- Sayona Mining (SYA) has announced a new drilling program in Quebec, as well as an earn-in agreement with fellow ASX-lister, Altura Mining (AJM)
- The 4500-metre diamond drilling program will be conducted at the Authier Lithium Project to expand the lithium resource, accelerate production and improve strip ratio
- In terms of the earn-in deal, Altura has the right to earn a 51 per cent interest in Sayona’s WA-based lithium tenements so long as it spends at least $1.5 million on exploration over a three-year period
- Of this, $500,000 will need to go towards exploration at the Mallina Lithium Project which is Sayona’s most advanced lithium asset in WA
- Sayona will retain a complete interest in gold and other non-lithium rights
- Company shares are up 4.65 per cent and are trading at 4.5 cents
Sayona Mining (SYA) has announced a new drilling program at its Authier Lithium Project in Quebec, as well as an earn-in agreement with Altura Mining (AJM).
Drilling
Around 31 holes will be drilled for 4500 metres and the program is expected to take about 10 weeks to complete.
The diamond drilling program aligns with the company’s goal of expanding the project’s lithium resource, improving the strip ratio and accelerating production to enhance profitability.
Under an exploration agreement, all drilling will be conducted by Les Forages Pikogan, a member of the Algonquin Abitibiwinni community of Pikogan. This deal was signed to benefit economic amd sustainable development and demonstrates Sayona’s commitment to the First Nations community.
“We are excited to start this latest drilling campaign at Authier to accelerate production and enhance its profitability,” Managing Director Brett Lynch said. “This is a further concrete commitment and investment by Sayona in developing a world‐scale lithium hub in Abitibi.”
In addition, the diamond drilling campaign will test for potential repetition of lithium pegmatite to the south of the project after new observations were made during core relogging.
Earn-in deal
Sayona Mining has also entered a new earn-in agreement with fellow ASX-lister, Altura Mining (AJM) over Sayona’s lithium tenements in WA.
Altura has the right to earn a 51 per cent interest in Sayona’s core lithium tenements by spending at least $1.5 million on exploration over three years. Sayona will retain the remaining 49 per cent interest.
At least $500,000 of the required expenditure and 1500 metres of drilling will need to be completed at the Mallina Lithium Project within the world-class Pilgangoora district.
According to Sayona, the Mallina Lithium Project is its most advanced lithium project in WA, with multiple zones of spodumene pegmatite identified with 25 square kilometres.
The companies previously entered an earn-in deal in August 2019 and while some terms remain the same, today’s agreement covers only lithium.
Sayona Mining will retain 100 per cent of the gold and other non-lithium rights within the area.
“It is rare for such a close alignment of two companies, but this deal is truly
one that benefits both. It allows us to prioritise the development of our flagship Authier Lithium Project in Quebec, whilst maintaining our interest in our prospective WA assets,” Mr Lynch said.
Company shares are up 4.65 per cent and are trading at 4.5 cents at 11:50 am AEST.