Sayona Mining Limited has announced a new milestone for North American Lithium (NAL), producing over 30,000 tonnes of spodumene concentrate ahead of target.
As of 25 June 2023, the average grade of all NAL spodumene concentrate was around 5.5% Li2O, with all critical metrics meeting offtake standards. During the ramp-up phase at NAL, the optimal product lithium grade versus process plant recoveries was evaluated.
According to Sayona, mine production and process plant output have demonstrated that the present spodumene concentrate product grade of around 5.5% Li2O produces greater recoveries and more tonnes of spodumene concentrate, optimising profitability for the NAL joint venture.
On 6 June 2023, NAL set a new daily production record of 643 tonnes at 5.67% Li2O and a 71% recovery rate. A stockpile of around 26,000 tonnes of spodumene concentrate is being held at the port in preparation for the first export, which is scheduled for this month. Since the beginning of June 2023, all of the concentrate has been carried to the port via rail.
Sayona has achieved this production milestone while adhering to its Zero Tolerance policy and its dedication to the greatest environmental standards and benefiting local communities. During the first half of fiscal 2024, the Company intends to produce between 85,000 and 115,000 tonnes of NAL spodumene concentrate.
“Since restarting production in March 2023, we have worked hard to ensure a successful production ramp-up and we continue to deliver speed and tonnage ahead of schedule. This is an amazing achievement in the lithium industry given recent supply chain and cost challenges,” Sayona Managing Director Brett Lynch said.
Lynch added, “ NAL’s recent lithium carbonate study highlighted the value of moving downstream at our flagship operation. With more drilling planned in 2023, we look forward to expanding the resource and further enhancing North America’s leading source of lithium production.”
With a downstream shift into lithium carbonate production, NAL hopes to become the region’s first vertically integrated producer by 2026. A preliminary technical study on 21 June 2023 assessed a fully integrated NAL net present value (NPV) of A$5.4 billion (pretax), incorporating the 14 April 2023 NAL DFS estimate.
Before deciding to undertake the preliminary carbonate technical study, NAL did a preliminary economic tradeoff analysis of lithium carbonate versus lithium hydroxide production. Sayona and Piedmont Lithium will collaborate with technical consultants to conduct another tradeoff assessment of lithium carbonate versus lithium hydroxide production at NAL, with a definitive technical study to follow in 2024.
In addition, the Company intends to drill more than 50,000m at NAL in 2023, as well as at the adjacent Valleé Lithium Project, which consists of 28 claims subject to an earn-in and joint venture agreement with Consolidated Lithium Metals Inc (previously known as Jourdan Resources Inc). Drilling at NAL has begun and will continue over the coming months.
Sayona is discussing offtake arrangements for the uncommitted portion of spodumene concentrate produced at NAL.
