New producer Sayona Mining (ASX: SYA; US-OTC: SYAXF) has posted a resource update for its 60% Moblan lithium project, including an initial resource for the South dyke discovery, highlighting the potential for its northern lithium hub in Quebec’s Eeyou Istchee James Bay region.
The project is located 130 km northwest of Chibougamau. Its 75%-owned North American Lithium (NAL) mine, which just restarted production in March, is located to the southwest, near Val-d’Or. The mine is 25% owned by U.S.-based Piedmont Lithium (NASDAQ: PLL; ASX: PLL).
Since acquiring a majority stake in Moblan in October 2021, Sayona and 40% partner Soquem have completed 37,700 metres of diamond core drilling. Moblan now holds measured and indicated resources of 49.8 million tonnes grading 1.15% lithium oxide (using a 0.25% Li2O cut‐off grade). Inferred resources add 20 million tonnes at 1.15% Li2O.
This includes higher grade tonnage opportunities with measured and indicated resources of 41 million tonnes at 1.31% Li2O (0.55% Li2O cut‐off grade in the sensitivity analysis) and inferred resources of 10 million tonnes at 1.31% Li2O. Sayona aims to further enhance the size and grade of this resource through additional drilling, with 60,000 metres planned at Moblan.
The company is working on a prefeasibility study for Moblan due out this spring, with a feasibility study to follow later in the year.
“Speed and tonnes are crucial and with our North American Lithium operation in production, we are now bringing significant added resources to the market. Moblan now represents one of the single largest lithium resources in North America, justifying our move to fast‐track a major drilling program that has delivered a resource within just a year of acquisition,” Sayona’s managing director, Brett Lynch said.
“Together with our established Abitibi lithium hub in the south, Sayona has quickly developed two emerging centres of lithium production amid surging demand from North America’s EV and battery revolution. As we progress these projects from spodumene concentrate production towards downstream processing, the significance of these assets will only increase as the market scrambles for supply.”
Between Moblan and Sayona’s nearby Lac Albert lithium project, the company is targeting production of more than 25,000 tonnes of lithium carbonate equivalent by 2027 in its northern hub, complementing its Abitibi lithium hub centred on NAL.
Sayona shares rose more than 10% on the news to A22¢ apiece. The company has a market cap of A$1.9 billion.
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