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  • Sayona Mining (SYA) confirms the technical and financial viability of the North American Lithium (NAL) project in Quebec
  • The potential of the mine was confirmed from a pre-feasibility study (PFS), which doubled the expected life of the mine to 27 years
  • A pre-tax net present value (NPV) of $1 billion is estimated, with a pre-tax internal rate of return (IRR) of 140 per cent and capital payback within two years
  • The results from the PFS confirm the potential for the Abitibi lithium hub, which will combine its operations to form North America’s largest lithium resource base
  • Shares are trading 15.2 per lower today at 23.8 cents each at 3:04 pm AEST.

Sayona Mining (SYA) has confirmed the technical and financial viability of the North American Lithium (NAL) project in Quebec.

The potential of the mine was confirmed from a pre-feasibility study (PFS), which doubled the expected life of the mine to 27 years.

The PFS was conducted by the company’s subsidiary Sayona Quebec, in which 75 per cent is owned by Sayona and the remaining 25 per cent is owned by Piedmont Lithium (PLL).

A pre-tax net present value (NPV) of $1 billion is estimated, with a pre-tax internal rate of return (IRR) of 140 per cent and capital payback within two years.

This estimation is based on an 8 per cent discount to the average spodumene concentrate.

The results from the PFS confirm the potential for the Abitibi lithium hub, which will combine its operations to form North America’s largest lithium resource base.

A key goal for the company is the restart of production at the NAL project, which is estimated to have modest capital expenditure of $100 million.

This spending will include upgrades to improve operational efficiency, grade, quality and recovery. Long-lead items have been ordered, with the company looking to restart in the first quarter of next year.

Managing Director Brett Lynch said there is potential for significant upside given the modest pricing assumptions compared to recent spodumene price trends.

“Sayona’s acquisition of NAL and turnaround plan was not based simply on restarting the existing operation. Rather, it was based on our strategy of creating an Abitibi lithium hub, drawing upon the operation of our nearby Authier project and investing in plant upgrades to deliver improved profitability and performance,” Mr Lynch said.

Shares were trading 15.2 per lower today at 23.8 cents each at 3:04 pm AEST.

SYA by the numbers
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