Sayona Mining Limited (ASX: SYA | OTCQB: SYAXF) has announced a definitive feasibility study (DFS) that demonstrates the value of its Moblan Lithium Project, forming the centre piece of the company’s Eeyou Istchee James Bay Hub in northern Québec, Canada.
Moblan is 60% owned by Sayona and 40% by Investissement Québec.
The project has an estimated post-tax NPV (8%) of C$2.2B. The operation is expected to generate estimated total net revenue of C$14.4N over its 21.1 life of mine (LOM), with an EBITDA of C$11.2B.
These positive financial returns have been driven by an estimated head grade of 1.36% Li2O, a LOM recovery rate of 74.7%, and LOM average annual concentrate production of 300,000tpa at a grade of 6% Li2O.
Interim CEO, James Brown, commented, “We are delighted by the results of this DFS, which demonstrate that the Moblan Lithium Project is an incredibly strategic and valuable asset for Sayona, representing one of the single largest hard rock lithium resources in North America.”
Moblan is a greenfield project situated in the Eeyou Istchee James Bay territory in north-western Québec, Canada. It is located within 300m of the Route du Nord, a regional highway which is accessible year-round, providing access to railway lines that link with major ports in Eastern Canada.
In addition, the project’s key production parameters include a relatively low strip ratio of 2.3:1 (ore versus waste), expected product grade of 6% Li2O, and an estimated operating unit cost comparable with some of the most cost competitive international hard-rock lithium mines currently in production, supporting a robust future for Moblan.
Upon receipt of the necessary regulatory approvals, delivery of an appropriate financing package based on securing potential offtake and project partners, the project is expected to require approximately two years to complete construction.
To find out more, please visit www.sayonamining.com.au
To read more articles like this, please visit www.theassay.com
