Brisbane, Australia (ABN Newswire) - Sayona Mining Limited (ASX:SYA) (OTCMKTS:DMNXF) ("Sayona" or the "Company") is pleased to announce an updated independent JORC Mineral Resource estimate for the Authier lithium project.
Highlights
- New JORC-compliant Mineral Resource of 17.4Mt @ 1.02% Li20 (177,212 tonnes Li20)
- 88% of the new Mineral Resource in the Measured and Indicated categories
- Potential to expand the resource through further drilling
- Expanded Mineral Resource to be incorporated into an updated Pre-Feasibility Study
The expanded, JORC 2012 compliant Mineral Resource estimate, tabulated below, follows the recently completed 4,100 metre phase 2 drilling program. The contained lithium oxide Mineral Resource has increased by 21% from 146,700 tonnes to 177,212 tonnes compared to the November 2016 estimate. The Measured and Indicated Mineral Resource categories represent 88% of the total Mineral Resource estimate.
Following the completion a Pre-feasibility Study in February 2017, the Company has adopted a 0.45% Li20 cut-off grade compared to the 0.5% Li20 cut-off used in historical resource estimates.
The Mineral Resource has been estimated and reported in accordance with the guidelines of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012). A summary of the estimation methodology and competent person statement is included in this announcement.
Corey Nolan, Chief Executive Officer, commented, "The expanded resource estimate will extend the mine life beyond the 13 years outlined in the February 2017 Pre-Feasibility Study. The Company is now focused on a number of optimisation programs to incorporate into an Updated Pre-feasibility Study and Ore Reserve estimate. This is expected to improve the base case Authier deposit C$140 million pre-tax net present value".
JORC Mineral Resource Estimate Overview
The Authier project area comprises 20 mineral claims totalling 674.89 hectares, and extends 3.4 kilometres in an east-west, and 3.1 kilometres in a north-south direction, respectively. The mineral claims are located over Crown Lands. The tenure is all in good standing and there is no known impediment to obtaining a licence to operate. The claims are subject to a number of underlying vendor royalties.
The Authier project is situated 45 kilometres north-west of the city of Val d'Or, a major mining service centre, situated in the Province of Quebec. Val d'Or is located approximately 466 kilometres north-east of Montreal. The project is easily accessed by a rural road network connecting to a national highway a few kilometres east of the project site.
The Authier project hosts two separate mineralised pegmatite systems including, Authier and Authier North. The Authier North pegmatite which was drilled in early 2017, does not yet have a reported Mineral Resource estimate. The Authier deposit is hosted in a spodumene-bearing pegmatite intrusion. The dimensions of the deposit drilled are 1,100 metres long, striking eastwest, with an average thickness of 25 metres, ranging from 4 metres to 55 metres, dipping at 40 degrees to the north. The deposit outcrops in the eastern sector and then extends under up to 10 metres of cover in the western sector. The lithium mineralisation at Authier project is related to multiple pulses of spodumene bearing quartz-feldspar pegmatite. Higher lithium grades are related with high concentrations of mid-to-coarse spodumene crystals (up to 4 cm long axis) in a mid-to-coarse grained pegmatite facies.
Drilling in the main Authier pegmatite resource totals 19,513 metres of diamond drilling in 137 holes. The project was initially drilled between 1991 and 1999, and then by Glen Eagle between 2010 and 2012. Sayona has completed two phases of drilling totalling 8,071 metres in 49 holes (includes 12 holes for 639 metres at Authier North). Holes were typically drilled perpendicular to the strike of the mineralised pegmatite to provide high confidence in the grade, strike and vertical extensions of the mineralisation.
Prior to Sayona's two drilling programs, NQ size diamond core was halved, 1.5 metre sections were assayed for Li2O content at an ALS laboratory in Vancouver using Inductively Coupled Plasma Mass Spectrometry. Glen Eagle had a rigorous "good industry practise" quality control process, including routine assaying of standards, duplicates and blanks. During the preparation of the Glen Eagle 43-101, SGS recommended that Glen Eagle twin 3 historical drill holes. The program demonstrated strong correlations with historical drill assays. During Sayona's two 8,071 metre drilling programs, HQ holes were drilled at near 100% core recovery, and 1.0 metre sections were assayed for Li2O content at an ALS laboratory in Vancouver using Inductively Coupled Plasma Mass Spectrometry. The Company's quality control program included regular assaying of standards, duplicates and blanks. In addition, the program has had oversight of SGS Canada's internal quality controls.
The independent resource estimate was undertaken using reported intercepts calculated using arithmetic averages, no top-cut, and a 0.45% Li2O cut-off grade. Following the completion of a Pre-feasibility Study ("PFS") in February 2017, the Company has adopted a 0.45% Li20 cut-off grade compared to the 0.5% Li20 cut-off reported in historical resource estimates.
The PFS has confirmed the technical and financial viability of constructing a simple, low-strip ratio, open-cut mining operation and processing facility producing spodumene concentrate. The Authier deposit will be mined by open cut methods enhanced by the shallow and thick nature of the mineralisation, allowing spodumene ore to be processed from the commencement of mining. The PFS demonstrated a LOM strip ratio of 6:1 (waste to ore) providing a low mining cost. The Company believes with further drilling it can expand the size of the resource and provide better definition of the orebody.
Bumigeme have designed a concentrator plant to process 700,000 tpa of ore feed using conventional flotation technology suitable for a pegmatite orebody. The plant will produce a 5.75% Li20 concentrate suitable for feedstock to lithium carbonate conversion plants.
The resource estimation was based on an Inverse Distance Squared interpolation using Micromine software. The parent block dimensions used were 5 metres x 5 metres x 5 metres with sub-blocks of 2.5 metres x 2.5 metres x 2.5 metres in accordance with the drill spacing and pegmatite body geometry.
The resource has been estimated and reported in accordance with the guidelines of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012). The JORC compliant resource estimate at 0.45% Li2O cut-off grade is tabulated (see the link below).
The 2017 drilling program (see Table 4 in the link below for a full compilation of the drilling results, and Figure 1 (see the link below) for drill hole location plan and significant intercepts) has expanded the size of the Mineral Resource. The size of the contained lithium oxide Mineral Resource has increased 21% since the November 2016 estimate, and the level of mineralisation within the Measured and Indicated Mineral Resource categories has increased 1% to 88% (see Figure 2 in the link below) - this will form the basis of an updated Ore Reserve which will be prepared as part of an updated Pre- Feasibility Study.
The Measured Mineral Resource was defined within areas of close spaced diamond drilling of less than 35 metres by 35 metres, and where the continuity and predictability of the spodumene bearing pegmatite was high. The Indicated Mineral Resource was assigned to areas where drill hole spacing was less than 60 metres by 60 metres. The Inferred Mineral Resource was assigned to areas where drill hole spacing was greater than 60 metres by 60 metres generally in the edges of the known mineralisation mostly in the down-dip extensions beyond the last drill holes in each section.
The following solid and cross-sections, Figures 3 to 8 (see the link below), demonstrate the strong geological and grade continuity of the deposit.
The JORC compliant Mineral Resource estimate is based on 0.45% Li20 cut-off grade. The cutof grade was calculated in the Company's Pre-Feasibility Study in February 2017. Figure 6 and Table 3 (see the link below) demonstrate the grade and tonnage sensitivity to variation in the cut-off grade. Typically, the tonnage and grade variation is not significant to between 0.3% and 0.6% Li20 cut-off grade estimates, reflecting the low coefficient of variation in the grade of the deposit.
Authier Deposit Optimisation Potential
The Company believes there is further potential to optimise the main resource area including:
- Infill drilling within the main deposit where there is no resource due to lack of drilling density (shown as block circles on Figure 7 in the link below), especially in the east and west, and to add the resource base; and
- Converting inferred resources into a higher resource classifications by further higher density drilling (shown as blue on the diagram).
Authier Project Resource Expansion Potential
The mineralisation remains open in all directions (see Figure 8 in the link below). Currently, the Company is not looking to expand the current Mineral Resource estimate given the current resource provides more than 20 years mine life. However, future target areas to expand the resource could include:
- Testing for further mineralisation in the east and west strike extensions;
- Defining further mineralisation at depth; and
- Assessing the resource potential of Authier North.
To view tables and figures, please visit:
http://abnnewswire.net/lnk/163R1568
About Sayona Mining Ltd:
Sayona Mining Limited (ASX:SYA) (OTCMKTS:DMNXF) is a company focused on sourcing and developing the raw materials required to construct lithium-ion batteries for use in the rapidly growing new and green technology sectors. Please visit us as at www.sayonamining.com.au
Source:
Sayona Mining Ltd
Contact:
Corey Nolan
Chief Executive Officer
Phone: +61-7-3369-7058
Email: info@sayonamining.com.au
www.sayonamining.com.au
