Name of the Project
North American Lithium (NAL) project.

Location
Quebec, Canada.

Project Owner/s
Sayona Quebec is 75%-owned by Sayona Mining and 25%-owned by Piedmont Lithium.

Project Description
A positive prefeasibility study completed in May 2022 confirmed the project’s technical and financial viability.

The project has a mine life of 27 years, based on Joint Ore Reserves Committee-compliant proven and probable reserves of 29.2-million tonnes grading 0.96% lithium oxide.

Conventional bulk mining methods will be used to mine using hydraulic excavators, dump trucks and drill-and-blast, coupled to a run-of-mine stockpile. The processing plant will have a capacity of 1.5-million tonnes a year and will produce 163 266 t/y of spodumene concentrate for total spodumene production of 4.4-million tonnes over the mine’s life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of C$952-million and an internal rate of return of 140%, with a capital payback of two years.

Capital Expenditure
A$102-million.

Planned Start/End Date
The operation is on track for the resumption of spodumene concentrate production in the first quarter of 2023.

Latest Developments
Sayona Mining has delivered its first shipment of about 20 500 t of spodumene concentrate, which has been sold into the global spot market through a major trading company.

“We are . . . pleased to make this first shipment in less than two years since NAL’s acquisition in August 2021, reflecting the team’s strong execution capabilities and commitment,” Sayona MD Brett Lynch has said.

The next shipments of spodumene concentrate will be sold to JV partner Piedmont Lithium under the terms of the existing offtake agreement. The estimated volume of the shipments is 30 000 t and is expected to be shipped in August and September 2023, subject to ship sizing and availability.

The offtake agreement between NAL and Piedmont Lithium came into effect in  July 2023, with Piedmont Lithium entitled to the greater of 113 000 t, or 50%, of spodumene concentrate production in a calendar year.

NAL expects to sell Piedmont Lithium at least 56 500 t in the first half of the 2024 financial year, with an equivalent amount sold to other customers, subject to the performance of NAL’s production ramp‐up.

Sayona is targeting total NAL spodumene concentrate sales in excess of this combined amount in the first half of the 2024 financial year. The timing and volume of every shipment will be determined through mutual agreement between NAL and Piedmont Lithium, with scheduling of the shipments based on end-user requirements.

NAL has produced more than 42 000 t of spodumene concentrate since the successful restart of production in March 2023. The ramp‐up of the mine and process plant continues to perform in line with expectations, with the spodumene concentrate also adhering to offtake specifications.

Key Contracts, Suppliers and Consultants
L Fournier & Fils (mining contract).

Contact Details for Project Information
Sayona Mining, tel +61 7 3369 7058 or email info@sayonamining.com.au.