Under an agreement with
Sayona's Managing Director,
"The recent rise in lithium prices reflects the importance of securing quality supply and there is no better place to be than
Located about 130km north-west of
The broad thickness of mineralisation, typically 20-30m width, combined with a shallow 30-35 degree dip results in a favourable mining geometry, with a low waste to ore strip ratio of 2.9 to 1.
Sayona has identified the opportunity for a potential expansion of the resource, including following up previous geotechnical drilling which intersected up to 29.1m of continuous spodumene-bearing pegmatites outside the resource envelope.
The project is located in a proven lithium mining province,
"We have been monitoring opportunities for further expansion in
"This will further drive our transformation into the leading lithium producer in
Consistent with the Company's focus on sustainable development, Sayona will engage in ongoing community consultation to ensure maximum benefits flow to the local community, including First Nations and other key stakeholders.
Transaction terms
Guo Ao's 60% interest in the project includes certain mineral claims, technical data and studies as well as the rights of Guo Ao in the joint venture formed with
In consideration for the assignment by LRC of its rights to acquire the Moblan Interest, Sayona has agreed to the following terms with LRC:
a) in consideration for a
(i) 2.5% for the first 1 million tonnes (Mt) of ore per annum produced from the
(ii) 1.5% for any tonne of ore per annum produced from the
b) in consideration for a
c) in consideration for a
d) Sayona and LRC have also agreed to enter into an offtake agreement with respect to the
(i) 10% of Sayona's ownership participation in the
(ii) price at a 5% discount to the prevailing market terms; and
e) Payment by Sayona to LRC of a
Moblan Project Outline
Resources and Reserves Foreign Estimates
In 2019, DRA/Met-Chem completed a Feasibility Study on the Moblan lithium project for Guo Ao. The report dated
- Tonnages have been rounded to the nearest 0.01 Mt to reflect their approximate nature.
- Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves. The quantity and grade of reported Inferred resources in this Mineral Resource Estimate are uncertain in nature and there has been insufficient exploration to define these Inferred resources as Indicated or Measured, and it is uncertain if further exploration will result in upgrading them to these categories.
Sayona regards the Moblan acquisition as a significant transaction based on the known high-grade mineralisation and opportunity for expansion of the resource base.
Key attributes include:
- Premium high-grade lithium mineralisation of 1.40% Li2O.
- Low stripping ratio of waste rock to ore of 2.9 to 1.
- Typically hosted in a single thick, tabular pegmatite with true width commonly 20 - 30m (see Figure 1* below).
Exploration Upside
Significant opportunity to expand Moblan's lithium resource base has been identified. The resource mineralisation is open to the east and at depth, with planning for step-back and extensional drilling underway.
Subsequent to the resource calculation, 10 geotechnical holes were drilled in
A number of subparallel footwall dykes are mapped on surface to the immediate south of the resource and which remain untested by drilling. Also, to the east, offset spodumene pegmatites have returned economic grades and remain to be drill tested. Similarly to the west, faulting has offset the main pegmatite with no drilling carried out to test for the offset extension.
In addition, Guo Ao drilled condemnation hole CD-18-08 to sterilise a proposed tailing dam on the western adjacent property. This intersected 26.45m of continuous spodumene mineralisation, indicating the high prospectivity of the project area for new discoveries, even when pegmatite does not crop out at surface.
Exploration drill planning is underway and will focus on the search for additional high-grade pegmatite mineralisation. This includes step out drilling from the resource area as well as three priority targets in parallel bodies to the south and to the east and west of the resource area (see Figure 2* below).
Project Background
The Moblan property is located approximately 130km to the north-west of the town of
The project is located in the western
The main spodumene pegmatite dyke (Main Dyke) has an east-west strike of 1,500m length, a dip of 35deg to the north and widths ranging between 20 to 30m (Figure 1* and 2), with the spodumene content commonly present as coarsely grained crystals, accompanied by quartz, feldspar and muscovite.
A swarm of Li-spodumene and barren pegmatite dykes outcrop on the north and the south of the Main dyke, in the Gabbro sill. One narrow, parallel dyke occurs on the footwall of the Main dyke ("Footwall dyke"). North to south oriented pegmatite dykes are present at the Moblan East prospect, with outcrops of 150m strike length and widths of around 10m.
Sayona continues to expand its
Recent drilling conducted at the Company's nearby
Sayona's moves to strengthen its asset base follow accelerating lithium demand in
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About
Please visit us as at www.sayonamining.com.au
Contact:
Managing Director
Phone: +61 (7) 3369 7058
Email: info@sayonamining.com.au
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