Targeting an increase in future mine production capacity at its North American Lithium (NAL) operation, in November 2022 Sayona entered into a strategic acquisition and earn-in agreement with Sayona subsidiary NAL and Jourdan Resources Inc (TSXV:JOR) over the Vallée Lithium Project.

The project comprises 48 claims covering around 1,997 hectares, closely neighbouring the North American Lithium (NAL) operation. Some 20 leases are located within 500m of the boundary of the NAL mine, with the operation spanning a total area of 582 ha.

Under the agreement, NAL acquired 20 claims outright, spanning 755.3 ha, providing an immediate extension to the NAL operating area and allowing for potential future infrastructure expansion at the NALmine and its processing facility.

Pegmatite targets are located close to and along strike from the NAL orebody. Critically, the tenure secures the prospective granodiorite host and its contact zone, which are important ore controls in the NAL deposit.

Within the Jourdan claims, some 14 pegmatite occurrences are recorded in government data, indicating the high exploration upside for discovery of mineralisation for blending into the NAL operation.

NAL also has the right to earn up to a 51% stake in the Vallée project’s remaining 28 claims, covering 1,241.57 ha. NAL can earn up to 50% equity by spending C$4 million within the first year to earn a 25% equity stake and an additional C$6M within two years to earn a further 25%. A further 1% equity is available if Sayona prepares a feasibility study and arranges funding for the construction of a mine at Vallée (refer ASX release 14 November 2022).

Sayona will aim to treat any ore obtained within the earn‐in area at its NAL operation, with NAL and Jourdan forming a joint venture to develop the Vallée project and its potential integration into NAL.

Sayona’s Québec subsidiary has acquired a 9.99% shareholding in Jourdan through a private placement for approximately C$1.5 million and will have the right to appoint a director on Jourdan’s board.

Exploration work, including geochemistry, geophysics and an aggressive drilling program is being planned by Sayona. Sayona’s exploration team has already confirmed multiple high potential target areas for drill testing.

The Vallée project is located in Abitibi, Québec, near the township of La Corne. The project is situated within the heart of the southern portion of the Abitibi Greenstone Belt, some 100 kilometres northeast of the mining towns of Rouyn‐Noranda, 45 kilometres north of Val‐d’Or, 50 kilometres northeast of Malartic (home to the Canadian‐Malartic Mine), 30 kilometres southeast of Amos and contiguous and in proximity to RB Energy’s Quebec Lithium Property and adjacent to the NAL mine.

The mineralised spodumene pegmatite dykes that NAL has mined continue directly onto the claims of Jourdan.