As part of its plan to create a lithium mining hub in the Abitibi region of Quebec, Sayona aims to restore operations at NAL and integrate it into its wholly-owned Authier project, which had already reached the feasibility stage and will provide additional ore supply to NAL.

Restarting the NAL operation would allow Sayona to start production ahead of other North American projects, generating sustainable cash flow and putting the company on a fast track to enter hydroxide or carbonate production. of value-added lithium, he said.

Recent PFS for NAL confirmed the potential of this Abitibi lithium hub, adding to the company’s emerging Northern Quebec hub and facilitating downstream processing, solidifying what would be the world’s largest lithium resource base (spodumene) in North America. As shown in the study, NAL’s after-tax net present value (NPV) was estimated to be approximately $751 million (8% reduction), with an internal rate of return (IRR) of 139% and a refund of the capital of about two years.

Capital costs were $91 million, with upgrades to improve operational efficiency, quality, quality and recovery. Long-term equipment has already been ordered to facilitate a restart in the first quarter of 2023.

Project economics was based on proven and probable (JORC compliant) ore reserves of 29.2 million tonnes averaging 0.96% lithium oxide (Li₂O). Along with an improved ore reserve, mill throughput has increased from 3,800 tpd to 4,200 tpd since acquisition in 2021, producing a 6% concentration of Li₂O spodumene concentrate.

“Sayona’s acquisition of NAL and the turnaround plan was not simply about restarting the existing operation. Rather, it was based on our strategy of creating a lithium hub in Abitibi, building on the operation of our nearby Authier project and investing in plant modernization to improve profitability and performance.” said Sayona CEO Brett Lynch.

“We have been modest with our pricing assumptions, but as the sensitivity analysis indicates, there is significant upside potential in the NPV projection given recent spodumene price trends. As a result, the project partners have already pre-ordered long-lead equipment in anticipation of a positive study result, ensuring that we are ready for start-up in the first quarter of 2023,” he added.

To visit www.SayonaMining.com.au for more information on the NAL project and the PFS.