Downstream Concept Study Demonstrates Positive Economics
Brisbane, Aug 30, 2017 AEST (ABN Newswire) - Sayona Mining Limited (
ASX:SYA) (DMNXF:OTCMKTS) ("Sayona" or the "Company") is pleased to report the positive results of a downstream processing Concept Study for the production of lithium carbonate and/or lithium hydroxide at the Authier lithium project in Quebec, Canada.
- Positive Concept Study confirms opportunity to unlock value at Authier processing concentrates into high-value products used in the lithium-ion battery industry
- Potential to partly finance downstream operations by the sale of spodumene concentrate in the early years whilst the permitting and downstream feasibility study are completed
- Significant competitive advantages in raw material supply, infrastructure, energy and reagent supply and costs, in Quebec
- Competitive capital and operating costs compared to benchmark new projects
The Concept Study prepared by engineering consultants, Wave International ("Wave"), has demonstrated the potential technical and economic viability of constructing a lithium carbonate and/or hydroxide facility in Quebec.
The study evaluated the option of converting Authier's annual spodumene concentrate into either 13,000 tonnes of lithium carbonate or 14,000 tonnes of lithium hydroxide, utilising conventional processing technology, and leveraging the world-class infrastructure, low energy and reagent costs. Lithium carbonate and hydroxide are both high-value products used in the lithium-ion battery industry.
The Concept Study demonstrates that the Authier downstream project has the potential to be competitive on both capital and operating costs compared to benchmarked projects. The Company will explore options to either acquire or partner with other companies that have deposits in Quebec, as significant economies of scale are achievable at larger scale.
The next step in the project development plan is to convert Authier concentrates into lithium carbonate, complete of a Pre-Feasibility Study, permitting and site selection. This process will run in parallel with the completion of the mining and concentrate processing Definitive Feasibility Study, and strategic partnering process.
Chief Executive Officer, Corey Nolan, commented: "The positive results from the Concept Study signals a new phase of value creation for the Authier project. In the short term, the Company is committed to developing a low capital expenditure concentrate sales operation and capitalising on the projected high price environment for concentrates near term. The cash flows could then be applied to funding the equity required to construct the downstream processing plant. This would unlock the inherent value in the project at a time when lithium carbonate/hydroxide prices are trading near at all time price highs based on the strong demand growth for lithium-ion batteries. Please also refer to the cautionary contained within".
To view the full release with tables and figures, please visit:
http://abnnewswire.net/lnk/5Q06TN1P
About Sayona Mining Limited
Sayona Mining Limited (ASX:SYA) (OTCMKTS:SYAXF) is a North American lithium producer with projects in Quebec, Canada and Western Australia. In Quebec, Sayona's assets comprise North American Lithium together with the Authier Lithium Project and its emerging Tansim Lithium Project, supported by a strategic partnership with American lithium developer Piedmont Lithium Inc. (ASX:PLL). Sayona also holds a 60% stake in the Moblan Lithium Project in northern Quebec.
In Western Australia, the Company holds a large tenement portfolio in the Pilbara region
prospective for gold and lithium. Sayona is exploring for Hemi-style gold targets in the world-class Pilbara region, while its lithium projects include Company-owned leases and those subject to a joint venture with Morella Corporation (ASX:1MC).
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