Sayona Mining (ASX: SYA; OTCQB: SYAXF) has completed the definitive feasibility study for its Moblan lithium project, giving it a post-tax net present value of $2.2 billion and a post-tax internal rate of return of 34.4%.
Moblan is a joint venture with Investissement Québec’s SOQUEM (40%) and located 130 km north of Chibougamau, in the Eeyou Istchee James Bay region of northern Quebec.
An open pit mine and 4,800-t/d processing plant is planned to produce a spodumene concentrate containing 6% lithium oxide (Li2O). Annual production will be 300,000 t/y of concentrate over a 21-year life for the mine. The project is expected to generate an estimates total net revenue of $14.4 billion, with an EBITDA of $11.2 billion.
“These positive financial returns have been driven by an estimated head grade of 1.36% Li2O, a LOM (life of mine) recovery rate of 74.7% and LOM average annual concentrate production of 300,000 t/y at a grade of 6% Li2O,” Sayona said in a release.
The company says it will cost $926 million to build the project and a further $96.1 million in sustaining costs. The all-in sustaining cost to produce a tonne of concentrate will be $748.04, compared to a projected market price of $2,653/tonne (US$1,990/tonne).
The Moblan project has a probable reserves of 34.5 million tonnes grading 1.36% Li2O, included in measured and indicated resources of 49.9 million tonnes at 1.20% Li2O. The inferred resource is 21.1 million tonnes at 1.0% Li2O.
Sayona has a producing lithium project, the North American Lithium (NAL) operations between Val d’Or and Amos, in the Abitibi-Temiscamingue hub of norther Quebec. It began last year producing spodumene to meet growing battery demand. The operation is a joint venture of Sayona (75%) and Piedmont Lithium (25%). The NAL operation is the subject of review as the spot price for lithium is expected to dip to roughly US$2,200/tonne in 2025 from an average of US$42,840/tonne last year.
“We are confident that the current lithium market will recover over the medium term,” said Sayona interim James Brown. ”Sayona will now look to review the timelines given the current market conditions, and continue to advance the necessary regulatory approvals, seek community support, and secure the necessary financing and project partners capable of advancing this project through to successful production, with the ultimate ambition to integrate Moblan into a regional supply chain for battery materials in Québec.”
All the details of the Moblan feasibility study are available on https://sayonamining.com.au/.
April 25, 2024
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