Acquisition Offers Potential Increase to NAL Resource
Acquisition Offers Potential Increase to NAL Resource

Brisbane, Nov 14, 2022 AEST (ABN Newswire) - Emerging lithium producer Sayona Mining Limited (ASX:SYA) (DML:FRA) (SYAXF:OTCMKTS) will target an expansion in the future mine production capacity of its North American Lithium (NAL) operation in Quebec, following a strategic acquisition and earn-in agreement between Sayona Mining subsidiary, NAL and Jourdan Resources Inc (CVE:JOR) over its adjacent Vallee Lithium Project.

The Vallee project comprises 48 claims covering around 1,997 ha, closely neighbouring the NAL mine tenure with 20 leases located within 500m of the mine boundary. In comparison, NAL's 19 claims cover some 582 ha.

Under the agreement, NAL will acquire 20 claims outright, spanning 755.3 ha, providing an immediate extension to the NAL operating area and allowing for potential future infrastructure expansion at the NAL mine and its processing facility. Pegmatite targets are located close to and along strike from the NAL orebody.

NAL also has the right to earn up to a 51% stake in the Vallee project's remaining 28 claims, covering 1,241.57 ha. NAL can earn up to 50% equity by spending C$4 million within the first year to earn a 25% equity stake and an additional C$6M within two years to earn a further 25%. A further 1% equity is available if Sayona prepares a feasibility study and arranges funding for the construction of a mine at Vallee.

Sayona will aim to treat any ore obtained within the earn-in area at its NAL operation, with NAL and Jourdan forming a joint venture to develop the Vallee project and its potential integration into NAL.

Sayona's Quebec subsidiary will also acquire a 9.99% shareholding in Jourdan through a private placement for approximately C$1.5 million and will have the right to appoint a director on Jourdan's board.

Sayona's Managing Director, Brett Lynch said the agreement provided a substantial boost for NAL and its future production potential.

"Sayona continues to pursue opportunities for expansion and this is an excellent opportunity to swiftly expand NAL's potential resource base, paving the way for an increase in NAL's future mine production capacity," he said.

"With mineralised spodumene pegmatite dykes previously mined by NAL continuing directly onto Jourdan's claims, we are keen to quickly launch new drilling. Significantly, the additional leases acquired under this agreement will also allow for increased flexibility and optimisation of the NAL mine design, production and infrastructure."

He added: "Sayona is pursuing co-operative alliances with our neighbours with the aim of further building on our already leading lithium resource base in North America.

"The potential for more tonnes, faster production and higher grades only amplifies the opportunity for NAL to move downstream, whether into lithium carbonate or hydroxide production."

Earn-in agreement terms

The agreement includes the following key commercial terms:

- Sayona and Jourdan to enter into an earn-in agreement concerning the formation of a joint venture over the Vallee project covering 28 claims, with NAL to spend up to C$10,000,000 in exploration to earn up to a 51% interest over a two-year period. The initial 25% equity will be earned by expenditure of C$4M in the first 12 months, with the right to earn a further 25% by spending C$6M within 24 months. An additional 1% is subject to Sayona preparing a feasibility study and arranging funding for the development of a mine. The earn-in interest will be held by NAL.

- Sayona and Jourdan to process mineral products produced from the joint venture at NAL's facilities, with the terms and conditions to be negotiated and agreed upon to the reasonable satisfaction of both parties.

- Sayona to be the operator of the joint venture.

Desjardins Capital Markets acted as exclusive financial adviser and McCarthy Tetrault LLP as legal counsel to Sayona for the transaction.

Vallee Lithium Project

The Vallee Lithium Project comprises 48 claims covering 1,997 ha, closely neighbouring the NAL mine tenure. Twenty of the leases are located within 500m of the mine tenure boundary. Known pegmatites have been recorded in past exploration and are orientated along strike from the NAL orebody. Critically, the tenure secures the prospective granodiorite host and its contact zone, which are important ore controls in the NAL deposit.

Within the Jourdan claims, some 14 pegmatite occurrences are recorded in government data, indicating the high exploration upside for discovery of mineralisation for blending into the NAL operation.

Exploration work, including geochemistry, geophysics and an aggressive drilling program is being planned by Sayona. Sayona's exploration team has already confirmed multiple high potential target areas for drill testing.

The Vallee project is located in Abitibi, Quebec, near the township of La Corne. The project is situated within the heart of the southern portion of the Abitibi Greenstone Belt, some 100 kilometres northeast of the mining towns of Rouyn-Noranda, 45 kilometres north of Val-d'Or, 50 kilometres northeast of Malartic (home to the Canadian-Malartic Mine), 30 kilometres southeast of Amos and contiguous and in proximity to RB Energy's Quebec Lithium Property and adjacent to the NAL mine. The mineralised spodumene pegmatite dykes that NAL has mined continue directly onto the claims of Jourdan.

The Vallee Lithium Project's claim block is geologically located on the northeast edge of the Preissac-Lacorne batholite and east of the edge of the late pluto of La Corne. The intrusive rocks of the dioritic to early granodioritic suite largely make up its geology targeted by drilling. However, the upper part of the block, contains volcanic rocks of felsic to mafic composition of the Aurora Group.

NAL comprises 19 contiguous claims covering 582.31 ha, situated in La Corne township in Quebec's Abitibi-Temiscamingue region. The project lies 60 km north of the city of Val d'Or, a major mining service centre, and in proximity to Sayona's Authier Lithium Project.

NAL's restart is on track for Q1 2023, with permitting applications and procurement both 96% complete as at the end of September (refer ASX release 27 October 2022).

Sayona aims to produce 220kt of spodumene 6% concentrate (lithium) or 30kt lithium carbonate equivalent (LCE) from its Abitibi lithium hub, which combined with the Company's emerging Northern Quebec hub represents North America's largest lithium resource base.

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About Sayona Mining Limited

Sayona Mining LtdSayona Mining Limited (ASX:SYA) (OTCMKTS:SYAXF) is an Australian, ASX-listed (SYA) company focused on sourcing and developing the raw materials required to construct lithium-ion batteries for use in the rapidly growing new and green technology sectors. The Company has lithium projects in Quebec, Canada and in Western Australia.

Please visit us as at www.sayonamining.com.au

   


Contact

Brett Lynch
Managing Director
Phone: +61 (7) 3369 7058
Email: info@sayonamining.com.au



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