Sayona’s leases in Western Australia cover 1,072 sq km and comprise lithium, gold and graphite tenure in the Pilbara, Yilgarn and East Kimberley regions.

The Pilbara projects comprise 12 lithium leases totaling 933 sq km in the Pilgangoora lithium district, with 10 of the tenements also having associated gold rights. These are proximal to the De Grey Mining’s 10.6 Moz Au Mallina Gold Project, which includes the 8.5 Moz Au Hemi gold discovery.

Of the 12 Pilbara tenements with lithium rights, nine are subject to an earn‐in agreement, where Morella Corporation Limited (ASX:1MC, Morella), previously Altura Mining, is carrying out exploration to earn an interest. The three remaining tenements are held within Sayona’s 100% owned lithium exploration portfolio.

In 2021, Morella commenced an earn-in agreement with Sayona covering eight tenements including the Mallina, Tabba East and Strelley areas, all in the Pilgangoora lithium district, and two tenements in the South Murchison. Morella has to spend A$1.5 million on exploration within three years to earn a 51% interest. 

The Mallina project is the most advanced of Sayona’s Pilbara portfolio. Multiple zones of spodumene pegmatites have been identified within a 25 sq km zone.

The pegmatites occur in three main swarms: the western Discovery prospect, the central Area C prospect and the Eastern Group pegmatites. Surface sampling has been encouraging, with rock results up to 4.6% Li2O returned from spodumene pegmatite at surface. Mapping has confirmed the pegmatites can be extensive, with the Eastern No.2 pegmatite being over 1,300m in strike extent and up to 20m in thickness.

During fiscal 2022, Morella reported significant progress at the Mallina Lithium Project with the completion of a targeted deep drilling program. In total, three RC holes for 430m and four diamond core holes (including two core tail extensions to RC drilling) were completed for 831.4m.

Fine grained spodumene quartz intergrowths within aplite intrusive intervals were observed in the drill core. RC chips and drill core were logged on site and samples have been prepared for mineralogical studies and geochemical assay work to be completed at a Perth laboratory. Results are pending.

This project located in the South Murchison covers the southern portion of the Payne’s Find greenstone belt and hosts an extensive swarm of pegmatites.

During fiscal 2022, Morella commenced exploration, mapping a total of 53 pegmatite outcrops. Rock chip assay results indicate the potential of the area for lithium mineralisation.