Sayona Mining’s NAL Ore Reserves Surge 124% to 48.6Mt at 1.11% Li2O

Significant Reserve Growth at North American Lithium

Sayona Mining Limited (ASX, SYA) has unveiled a substantial update to its lithium assets in North America, notably at its North American Lithium (NAL) operation in Québec, Canada. The company announced a remarkable 124% increase in Ore Reserves at NAL, now estimated at 48.6 million tonnes grading 1.11% lithium oxide (Li2O). This follows an 8% uplift in Mineral Resources to 95 million tonnes at 1.15% Li2O, reflecting successful drilling campaigns and refined geological modelling.

Authier Project Adjustments and Strategic Integration

Conversely, the Authier lithium project, in which Sayona holds a 75% stake, reported a 6% decline in Ore Reserves to 10.5 million tonnes at 1.00% Li2O. This reduction stems from an increased cut-off grade from 0.55% to 0.60% Li2O, a change driven by updated economic assumptions and mine planning. Despite this, the Mineral Resource estimate at Authier remains unchanged. Importantly, ore from Authier is planned to be processed at the NAL concentrator, blending at a ratio of approximately 67% NAL to 33% Authier, optimizing operational efficiencies.

Robust Life of Mine and Financial Metrics

The updated life-of-mine (LOM) plan for NAL extends to 45 years, supported by a comprehensive Definitive Feasibility Study (DFS) and incorporating new drilling data and economic parameters. The plan anticipates an average annual plant feed of 1.36 million tonnes, producing spodumene concentrate grades between 5.4% and 5.8% Li2O. Financially, the project forecasts total net revenues of CAD 11.9 billion and an EBITDA of CAD 2 billion over its lifespan, with all-in sustaining costs (AISC) estimated at USD 952 per tonne of concentrate.

Authier’s LOM spans 24 years, with an average annual plant feed of 450,000 tonnes and a forecast EBITDA of CAD 266 million. The project’s operating costs and capital expenditure have been carefully modelled, reflecting the integration with NAL’s processing facilities and the updated mining schedule.

Environmental and Infrastructure Considerations

Both projects operate within established mining districts with existing infrastructure, including processing plants, tailings facilities, and transport links. Environmental permits are in place, though expansions will require updated approvals from Québec’s regulatory bodies. Sayona has incorporated environmental management plans addressing waste rock storage, water management, and habitat protection, underscoring its commitment to sustainable operations.

Market Position and Outlook

Sayona’s Managing Director, Lucas Dow, highlighted the strategic importance of NAL as the largest spodumene mine in North America, positioned to meet growing demand from battery and electric vehicle markets. The company’s updated resource and reserve base provide a solid foundation for potential production expansion and long-term value creation amid a lithium market forecasted to shift from oversupply to deficit by 2029.