Sayona study backs NAL expansion with lower costs, higher returns
ASX- and Nasdaq-listed Sayona Mining has released the results of a scoping study into the expansion of its North American Lithium (NAL) operation in Québec, confirming improved economics through lower unit costs and stronger returns.
The expansion study proposes increasing the plant feed rate from 4 200 t/d to 6 500 t/d, extending the operation’s mine life to 24 years based solely on existing ore reserves. Recoveries are estimated at 71.2%, producing a 5.4% lithium oxide concentrate.
Average production would rise to 315 000 t/y of concentrate, compared with 192 000 t/y in the base case. Over the life-of-mine, total concentrate output is estimated at 6.93-million tonnes. The strip ratio remains unchanged at 7.1.
Unit costs would improve significantly, with C1 costs reducing from C$935/t to C$759/t and all-in sustaining costs (AISC) dropping from C$1 128/t to C$920/t. Initial capital expenditure is estimated at C$366-million, with construction scheduled for completion by the end of 2029.
Financially, the expansion generates a post-tax net present value, using an 8% discount, of C$1.28-billion – up from C$805-million under the base case – and delivers an incremental post-tax net cash flow of C$837-million. The internal rate of return is estimated at 26.4%, with a 46-month payback period.
“This study clearly demonstrates the strong economic case for expansion, with higher concentrate production, reduced unit costs and robust returns across a 24-year mine life,” CEO Lucas Dow said.
Dow highlighted the inclusion of a second concentrator line and flowsheet enhancements, which would improve recoveries, enable staggered maintenance shutdowns and support a plant availability rate of 92%.
He added that expansion would allow Sayona to produce more than 300 000 t/y of spodumene concentrate, reinforcing its position as North America’s leading hard-rock lithium producer.
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