West Australian Lithium

Pilbara Projects – Western Australia

Sayona Mining Limited (the Company) has a total of 15 tenements in the Pilbara Region, covering a total area of 1780km2. Of these, 9 were acquired through a deal with Great Sandy, with the Mallina Project – E47/2983, being the flagship project.

The company is exploring for hard rock lithium projects, primarily in the form of spodumene bearing pegmatites. Spodumene-Albite pegmatites are most commonly found intruded in Archaean Greenstone belts neighbouring post tectonic monzogranites. Some spodumene bearing pegmatites have also been discovered in pre-tectonic granite hosts, with a post tectonic monzogranite source, such as near Moolyella.

The 9 tenements in the Gt Sandy Option agreement cover a total of 871km2. They can be split into 4 project areas; Mallina, Mt Edgar, Dorringtons and White Springs.

The remaining 8 tenements cover a total of 1047km2 and can be divided into 6 project areas; Tabba-Tabba, Cooglegong, Moolyella, Wodgina, Friendly Creek and Red Rock / Carlindie. Of these, Tabba-Tabba is the most advanced with work there having identified 3 new complex pegmatites.

Sayona’s Pilbara tenements and the Great Sandy Option tenements are prospective for spodumene and work is planned to systematically explore for complex rare metal pegmatites, the source of spodumene.

Mallina Project

Exciting new high grade Spodumene discovery in the Pilbara Region

The Mallina project hosts a newly discovered, high grade spodumene pegmatite occurrence located just 100km from the town of Port Hedland.

The area does not appear to have been prospected for pegmatite mineralisation before the recent discovery, despite its favourable geology and proximity to the Wodgina / Pilgangoora lithium discoveries to the east.

The first samples returned up to 2.13% Li2O, collected from a 500m long pegmatite (the Discovery Pegmatite), with highly anomalous Rb, Cs, Sn and Ta results. The geochemical results are indicative of complex, rare metal highly fractionated, LCT pegmatite. Petrology and XRD analysis confirmed the lithium mineralisation is contained in spodumene. Lepidolite has not been observed in the project area.

In December 2016 Sayona negotiated the Great Sandy Option, whereby the Company can acquire an 80% in the package of tenements (including Mallina) by making staged payments in cash or shares.

Sayona’s first exploration in January 2017 identified a large number or swarm of previously unrecognised pegmatites around the Discovery pegmatite.

Rock sample results to 3.10% Li2O were returned from the Discovery pegmatite, confirming the high grade nature of the mineralisation. The 21 samples collected from the Discovery pegmatite to date have returned an average 1.35% Li2O. The pegmatite is weathered, in part silicified and has poor outcrop, typically visible over widths of 3-5m and up to 8m, but without the contacts to adjacent greenstone rocks being observed. The true width of the structure is not yet known.

Significantly, a single pegmatite outcrop, located 900m to the south returned an assay result of 3.47% Li2O. The area has very poor outcrop and further reconnaissance is needed to define the extents to the mineralisation. The result does however indicate the potential of the area to host additional mineralised pegmatites. These targets may lie under shallow soil cover.

Further reconnaissance and sampling is planned, and permitting to allow drill testing the area is underway.

Tabba-Tabba Project

The Tabba-Tabba Project is located 40km north of the Pilgangoora Lithium centre, and the Sayona tenements adjoin the Tabba Tabba tantalum mine. Exploration on the project has resulted in the discovery of 3 new complex pegmatites. The pegmatites are anomalous for tantalum, which is found with LCT complex pegmatites (Lithium Caesium Tantalum). The highest grade of Tantalum was 509ppm from sample SP555144 in the south of E45/2364.

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