Sayona study backs NAL expansion with lower costs, higher returns
ASX- and Nasdaq-listed Sayona Mining has released the results of a scoping study into the expansion of its North American Lithium (NAL) operation in Québec, confirming improved economics through lower unit costs and stronger returns.
The expansion study proposes increasing the plant feed rate from 4 200 t/d to 6 500 t/d, extending the operation’s mine life to 24 years based solely on existing ore reserves. Recoveries are estimated at 71.2%, producing a 5.4% lithium oxide concentrate.
Average production would rise to 315 000 t/y of concentrate, compared with 192 000 t/y in the base case. Over the life-of-mine, total concentrate output is estimated at 6.93-million tonnes. The strip ratio remains unchanged at 7.1.
Unit costs would improve significantly, with C1 costs reducing from C$935/t to C$759/t and all-in sustaining costs (AISC) dropping from C$1 128/t to C$920/t. Initial capital expenditure is estimated at C$366-million, with construction scheduled for completion by the end of 2029.
Financially, the expansion generates a post-tax net present value, using an 8% discount, of C$1.28-billion – up from C$805-million under the base case – and delivers an incremental post-tax net cash flow of C$837-million. The internal rate of return is estimated at 26.4%, with a 46-month payback period.
“This study clearly demonstrates the strong economic case for expansion, with higher concentrate production, reduced unit costs and robust returns across a 24-year mine life,” CEO Lucas Dow said.
Dow highlighted the inclusion of a second concentrator line and flowsheet enhancements, which would improve recoveries, enable staggered maintenance shutdowns and support a plant availability rate of 92%.
He added that expansion would allow Sayona to produce more than 300 000 t/y of spodumene concentrate, reinforcing its position as North America’s leading hard-rock lithium producer.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...
VISIT SHOWROOM
Complete range of security sealing solutions including security seals bags and labels.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
