(MENAFN- ProactiveInvestors - Australia) This is the longest intercept of spodumene mineralisation recorded in drilling at Authier.
The current drilling program is demonstrating the potential to expand the size of the JORC Resource.
A new resource will be incorporated into the pre-feasibility study which is currently underway
Corey Nolan, chief executive officer, commented: 'The company is very encouraged by the widths and high-grade nature of the mineralisation intersected in the drilling.
'The company believes the new drilling will have the potential to expand the size of the JORC resource at the completion of the program.'
Diamond drilling program
More than 3,300 metres of drilling has been completed in 16 diamond holes at Authier.
The aim of the drilling program is to increase the size of the resource and improve the confidence level of the JORC resource categories.
The first two diamond drill holes intersected:
- 62 metres at 1.35% lithium oxide from 12 metres depth including 16 metres at 1.65% lithium oxide; and
- 49 metres at 1.18% lithium oxide from 50 metres depth including 17 metres at 1.49% lithium oxide.
Drilling recently helped discover a second pegmatite body, located 400 metres north of the Authier pegmatite.
Background
Sayona recently completed the CAD$4 million acquisition of the Authier lithium project in Canada, which is a near-term development project and cash-flow generation opportunity for the company.
Sayona has paid CAD$4 million for a project that:
- Has been extensively drilled;
- Is a simple deposit amenable to open cut mining;
- Has a defined JORC resource with simple metallurgy; and
- Has good access to developed infrastructure.
The acquisition cost represents a valuation of $47 per tonne of lithium resource.
Sayona can unlock value by progressing this project further towards development.
Developing Authier is in the line with the company's strategy to develop its lithium and graphite projects to provide raw materials for lithium-ion batteries.
Analysis
The width and grade from the first two drill holes at Authier shows the potential the project as to be expanded with drilling.
While the drilling is focused on converting resources to the higher confidence measured and indicated categories, it will also explore for extensions to the existing mineral resources.
The resource definition drilling is expected to enhance the quality and scale of the resource that will be used in the pre-feasibility study.
Once the pre-feasibility study is completed, the company plans the rapid completion of a bankable feasibility study, securing off-take agreements and project financing.
Any additional lithium resources found have the opportunity to improve project economics.
The Authier deposit is amenable to low cost, open cut mining.
News flow is expected regarding further drilling assays being received.
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