Projects

Authier Lithium Project

Authier Lithium Project

 

Sayona’s Authier Lithium Project is a hard rock spodumene lithium deposit scheduled for development as an open cut mine initially producing a 6% Li2O spodumene concentrate. 

Sayona Mining acquired 100% of the Authier project in July 2016 for CAD$4 million. The company believes it will create significant share value-uplift for shareholders as the project is advanced towards development.

The key attraction of the Authier lithium project is its near-term development potential – the company has completed a Definitive Feasibility Study (DFS) and is targeting near-term construction pending regulatory approvals, amid growing lithium demand and constrained supply.

In parallel, studies on producing a premium value-added lithium carbonate product are progressing.

 

Definitive Feasibility Study demonstrates technical and economic viability.

A DFS, completed in September 2018, confirmed the Authier project’s viability as a profitable and sustainable new lithium mine that will provide new jobs, investment and strong returns for all stakeholders.

  • Updated Resource and Reserve estimates – JORC Ore Reserves totalling 12.10Mt @ 0.55% Li2O and
  • JORC Mineral Resource expanded to 20.94MT @ 0.55% Li2O.
  • Simple deposit and processing – resources defined in one spodumene bearing pegmatite based on 31,000 metres of diamond drilling. Deposit amenable to low-cost open pit mining techniques. Processing based on a conventional crush, grind and flotation flowsheet.
  • Excellent infrastructure – situated in close proximity to mining support services, low-cost electricity, gas, and road networks to export ports.
 
 
Resources and Reserves

 

Authier JORC Mineral Resource Estimate (0.55% Li2O cut-off grade)

CategoryTonnes (Mt)Grades % Li2OContained Li2O
Measured Resource6.581.02%67,100
Indicated Resource10.601.01%107,100
Measured + Indicated Resource17.181.01%174,200
Inferred Resource3.760.98%36,800
TOTAL20.941.01%211,000
Note: The Ore Reserve Estimate is inclusive of dilution and ore loss.

(Refer ASX announcement 24 September 2018)

 
Authier JORC Ore Reserve Estimate (0.55% Li2O cut-off grade)

CategoryTonnes (Mt)Grades (% Li2O)Contained Li2O (t)
Proven Reserve6.100.99%60,390
Probable Reserve6.001.02%61,200
TOTAL Reserves12.101.00%121,590
Note: The Ore Reserve Estimate is inclusive of dilution and ore loss.

(Refer ASX announcement 24 September 2018)

The company’s strategy is to initially develop Authier and sell lithium concentrates whilst it completes the test work and feasibility study for a downstream processing facility. Sayona has previously completed a scoping study, demonstrating the economic viability of building a lithium carbonate and/or hydroxide production conversion facility to enhance the project value, and improve the long-term competitive position of the project.

 
Definitive Feasibility Study highlights

In early 2019 it was announced that the Authier project would be subject to environmental impact assessment review procedures under the BAPE (bureau d’audiences publiques en environment). Subsequently the company decided to revise its mining lease application based on a sustainable development approach processing in the order of 2,600 tonnes per day, providing for an approximate mine life of 14 years and estimated annual average spodumene concentrate production of around 115,000 tonnes (at 6% Li20). Sayona will now undertake a review of its DFS under the these new parameters.

 
Mineral Rights

The project area comprises 19 mineral claims totalling 653 hectares, and extends 3.4 kilometres in an east-west, and 3.1 kilometres in a north-south direction, respectively. The mineral claims are located over Crown Lands.

 
Location

The Authier project is situated 45 kilometres northwest of the city of Val d’Or, a major mining service centre in the, Province of Québec. Val d’Or is located approximately 466 kilometres north-east of Montreal. The project is easily accessed by a rural road network connecting to a national highway a few kilometres east of the project site.

 
Regional Infrastructure

Val d’Or and other nearby cities have experienced mining work forces and other mining related support services. Regional support services, include:

  • 5 kilometres by dirt road to a sealed highway connecting to Val d’Or;
  • 5 kilometres from an electricity grid supplied by hydro-electric power; and
  • 20 kilometres to rail facilities connecting to an export port.
 
Mineralisation

The deposit is hosted in a spodumene-bearing pegmatite intrusion. The deposit is 825 metres long, striking east-west, with an average thickness of 25 metres, minimum 4 metres and maximum 55 metres, dipping at 40 degrees to the north. The current pit optimisation has the mineralisation extending down to 200 metres depth but the deposit remains open in all directions.

 


Isometric views of the Authier pit with the mineralised envelope on the left from the February 2017 PFS

 
Historical Drilling

The Authier project has been subject to more than 31,000 metres of drilling. Between 2010 and 2012 Glen Eagle, the previous tenement holder, completed 8,990 metres of diamond drilling in 69 diamond drill holes (DDH) of which 7,959 metres were drilled on the Authier deposit; 609 metres (five DDH) were drilled on the northwest and 422 metres on the south-southwest of the property.

Sayona Mining has completed three phases of drilling totalling more than 11,000 metres in 81 DDH. All the holes completed by Sayona and included in the Mineral Resource Estimate have used standard DDH, HQ or NQ core diameter size, using a standard tube and bit. The drilling programmes have been subject to very robust QA/QC procedures.

The Company believes there is further potential to optimise the main resource area including:

  • Infill drilling within the main deposit where there is no resource due to lack of drilling density (shown as block circles on Figure 1), especially in the east and west, and to add the resource base; and
  • Converting inferred resources into a higher resource classifications by further higher density drilling (shown as blue on the diagram).

Black circles represent areas where further density of drilling is required to increase the resource. Additionally, some of the blue Inferred Resource areas have the potential to be converted to higher resource categories with further drilling

 

The mineralisation remains open in all directions (see Figure below). Currently, the Company is not looking to expand the current Mineral Resource estimate given the current resource provides more than 20 years mine life. However, future target areas to expand the resource could include:

  • Testing for further mineralisation in the east and west strike extensions;
  • Defining further mineralisation at depth; and
  • Assessing the resource potential of Authier North.

Lithium solid showing the location of all the historical drill holes and the potential areas for expansion of the resource in future drilling programs.

 

Environmental, Community and First Nations

Environmental Baseline Studies were completed in October 2017 for the Authier project. Additional studies were undertaken in May and June 2018 to complete information required based on the change of the location of some infrastructure.

In May 2018, the company delivered its Environmental Assessment Study (EAS) that presented the results of the baseline studies (physical, biological and social environment), the project description and the effect of the project on the environment. These were updated for the DFS and resubmitted. Mitigation measures and environmental follow-ups were also presented.

A Community Relations Programme has been developed to approach and engage local stakeholders. This programme includes information sessions and consultations with municipalities, landowners, First Nations communities, non-governmental environmental organisations and recreational associations.

The objective of this programme was to provide baseline information to address some of the communities’ concerns and take them into consideration in the permitting process and in the design of the operation phase. The involvement of stakeholders will continue throughout the various project stages.

In addition, the company has been engaging with the broader community outside the immediate project area. Meetings have been held with regional councils, other mining companies successfully operating in the region, Government organisations, and other key business stakeholders in the region.

At the same time, the closure plan has been completed and submitted to the Ministry of Energy and Natural Resources (MERN) for public consultation.

The results of the EAS showed that the project will have no impact on the water quality of the Esker Saint-Mathieu-Berry, a local source of potable water, and that any other impacts arising from the operations will be low after the application of mitigation measures.

 
Permitting

In March 2019, the Québec Environment Minister announced the Authier project would be subject to the environmental impact assessment and review procedures under the BAPE (bureau d’audiences publiques en environnement).

Under the BAPE process, Sayona is undertaking further community engagement and environmental studies, including an Environmental Impact Assessment (EIA) as per Article 31.1 of the Environment Quality Act. Sayona’s previous environmental impact study showed the project would have no adverse impact on the water quality of the Esker Saint-Mathieu-Berry.

Community consultation and engagement efforts have included information sessions and consultations with local municipalities, landowners, First Nations communities, non-governmental organisations and other stakeholders. The engagement effort is led by Sayona Québec’s Chief Executive Officer, Guy Laliberté and Serge Roullier, Manager, Sustainable Development.

Sayona is now seeking approval based on a sustainable development approach for the processing of around 2,600 tonnes per day, providing for an approximate mine life of 14 years and estimated annual average spodumene concentrate production of around 115,000 tonnes (at 6% Li2O). The final production level will be optimised as part of a revised definitive feasibility study.

 
Project Implementation

The Company’s project development plan encompasses the following activities:

  • Detailed engineering;
  • Procurement and ordering of long lead items;
  • Completion of environmental and Mining Lease permitting;
  • Community and First Nations consultation;
  • Binding off-take agreements;
  • Finance; and
  • Construction and commissioning.

Sayona is targeting near-term construction pending regulatory approval.

The company’s strategy is to initially develop Authier and sell lithium concentrates whilst it completes the test work and feasibility study for a downstream processing facility. Sayona has previously completed a scoping study, demonstrating the economic viability of building a lithium carbonate and/or hydroxide production conversion facility to enhance the project value, and improve the long-term competitive position of the project.

 

Tansim Project

In January 2018, Sayona announced the expansion of its Canadian lithium footprint with the staged acquisition of the Tansim Lithium Project, 82 kilometres south west of the Authier project in Québec.

The project comprises 65 mineral claims of 12,000 hectares and is prospective for lithium, tantalum, and beryllium.

Activities to date comprised reinterpretation of historic geophysical data, an airborne geophysics survey, surface mapping and sampling of the pegmatites to define drilling targets.

Exploration is being closely coordinated with the local First Nations group, Long Point First Nation, who will provide support services for the future work programmes.

The Lithium Market

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Corporate Head Office

 

SAYONA MINING LIMITED

+61 7 3369 7058
info@sayonamining.com.au
Suite 68, 283 Given Tce, Paddington QLD 4064
PO Box 1357, Milton QLD 4064


 

            

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