(MENAFN- ProactiveInvestors - Australia) Sayona Mining Ltd (ASX:SYA) has drilled a 40 metre thick zone of spodumene mineralisation at the Authier lithium project in Canada in a zone that was previously thought to be a gap in the lithium deposit.
Historical drilling has previously failed to intersect mineralisation within the middle to deep levels of the gap zone.
It was interpreted that the resource didn't connect between the eastern and western zones of the deposit.
Spodumene mineralisation was visible throughout the intersection and interpreted as medium to high grade lithium.
Assays remain pending.
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
This latest drill hole has the opportunity to enhance the value of the project by adding additional resources to the current deposit.
The mineralisation within the zone is interpreted to extend 150 metres in strike length and down to 200 metres depth.
It will also likely simplify the mine plan and optimisation of the life-of-mine stripping ratio.
An additional drill hole within the western border of the gap zone is being drilled for resource definition purposes.
The company's drilling objective is to significantly expand the size of the Authier JORC Resource and extend the mine life, and potentially the scale of a future operation.
A prefeasibility study is underway to study the technical and commercial viability of the base case development scenario, and is due for completion late in 2016.
Assays from 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.
The 62-metre intersection is the longest intercept of spodumene mineralisation recorded in drilling at Authier.
News flow is expected with all other assays of completed holes still pending.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.