Sayona Mining (ASX: SYA) has released a definitive feasibility study for its 75%-owned North American lithium (NAL) mine in Quebec, a month after restarting commercial production of spodumene concentrate at the mine.
The study estimates after-tax net present value (8% discount) of $1.4 billion, and an internal rate of return of 2,545%.
NAL, along with the nearby Authier lithium deposit, is expected to support a 20-year life with an average annual mill feed of 1.4 million tonnes. The plant has a capacity of 4,200 tonnes per day, and the average concentrate production during the first four years will be 226,000 tonnes. The all-in sustaining cost is estimated at $987 per tonne of concentrate.
Total capital costs of the mine and mill restart are pegged at $375.3 million. Onsite total operating costs are $2.3 billion, or $597 per tonne of concentrate.
Sayona says proven and probable reserves are 21.7 million tonnes grading 1.08% lithium oxide (Li2O) for 235.5 million tonnes Li2O. Measured and indicated resources (inclusive of reserves) total 25 million tonnes at 1.23% Li2O for the pit constrained portion. The project hosts another 22 million inferred tonnes at 1.2% Li2O.
A 50,000-metre drilling program is scheduled for this year. The first phase will primarily target the conversion of inferred resources to indicated within the pit shell. Sayona will also drill the northwest and southeast strike extensions at NAL.
NAL and Authier are part of Sayona Quebec, owned 75% by Sayona Mining and 25% by Piedmont Lithium (ASX: PLL; NASDAQ: PLL).
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