Piedmont Lithium Inc announced that Sayona Mining published a Definitive Feasibility Study (DFS) for the North American Lithium (NAL) and expanded lithium mineral resources at the Moblan Lithium Project.
Piedmont has a 25% stake in NAL and a roughly 14% equity interest in Sayona. According to Piedmont, Sayona conducted the technical studies for NAL and Moblan in compliance with the JORC Code standards and NI 43-101 requirements.
Over a 20-year mine life, the NAL DFS anticipates increased annual spodumene concentrate production of 190,000 metric tonnes per year (tpy), with a target of 226,000 tpy in years one through four of steady-state operations and roughly 186,000 tpy beginning in year five. The improved production expectations and higher spodumene concentrate pricing resulted in a better net present value for the NAL project than the pre-feasibility study done in 2022.
Sayona conducted a strategic analysis of mineral resources and ore reserves as part of the DFS, and mine restart efforts to identify the potential to focus on higher-grade, open-pit material and improve the project’s net present value. Due to the updated block model, mineral reserves have been reduced, and specific Indicated Resources have been reclassified as Inferred Resources based on new model interpretation. By eliminating underground mining, the study envisions a mine life of 20 years, down from the pre-feasibility study estimate of 27 years.
Sayona Quebec is a collaboration between Sayona and Piedmont. Piedmont has an offtake agreement with Sayona Quebec, under which it will purchase more than 113,000 tpy or 50% of the joint venture’s spodumene concentrate production. Sayona Quebec is conducting a feasibility study to investigate downstream production in the second quarter of 2023.
Following that, Piedmont has agreements with LG Chem and Tesla to supply spodumene concentrate from NAL commencing in H2 2023.
Sayona has also reported a significant increase in mineral resources at its Moblan project. Moblan presently has 41.1 million metric tonnes of measured and indicated mineral resources at 1.32% Li2O using a 0.55% Li2O cut-off grade, making it one of North America’s most significant spodumene ore deposits.
“The results of the DFS underscore NAL’s role as a significant lithium producer positioned to meet the requirements of the Inflation Reduction Act of 2022. Production is ramping up at NAL, and we look forward to making initial shipments to our customers LG Chem and Tesla later in 2023. Further, we congratulate our partners at Sayona on the significant mineral resource expansion at their 60%-owned Moblan project. We are very pleased with our positions as Sayona’s joint venture partner in the Abitibi Hub lithium projects and as Sayona Mining’s largest shareholder. Quebec is an ideal location for lithium chemicals in the future, given the province’s abundant mineral resources, low-cost hydroelectricity, proximity to U.S. markets, and supportive provincial government,” Piedmont Chief Operating Officer Patrick Brindle said.
