PERTH (miningweekly.com) – Lithium developer Sayona Mining on Friday said that the restart of the North American Lithium (NAL) operation, in Quebec, is tracking to plan, while the project budget has dropped by nearly C$2-million.
Sayona told shareholders that the restart of NAL was on track for the first quarter of 2023, with procurement 94% complete, and 95% of the required permits received.
Meanwhile, the overall project budget has also been lowered to C$95.5-million from the previous C$97.75-million owing to reductions in the scope of work, with commitments to date of C$41.6-million compared to the planned C$45.4-million.
Sayona and its joint venture partner Piedmont formally approved the restart of the NAL operations at a budget of C$98-million. The NAL restart project has been funded through cash contributions by both Sayona and Piedmont, each company having successfully completed significant capital raises in the first half of 2022.
Sayona noted that the project team’s continuous communication and close contact with vendors had resulted in innovative strategies to maintain the planned schedule, with contingency plans in place to mitigate any potential delays to equipment deliveries.
“We are delighted to see the continued progress towards the recommencement of lithium production at NAL in the first quarter of 2023. Our project team has overcome potential challenges due to proactive forward planning and the early ordering of critical long‐lead equipment items, while the near completion of permitting and procurement puts us in an excellent position,” Sayona MD Brett Lynch said.
“Our recent achievements have been recognised by investors, as seen by our promotion to the S&P/ASX200 index, and I would like to thank shareholders for their continued support. With the right team in place, an ESG‐friendly operation due to Québec’s clean and green hydro power and the backing of key stakeholders, we are well placed for further growth as the leading lithium producer in North America.”
An earlier prefeasibility study estimated that the 1.5-million-tonne-a-year NAL operation could deliver 4.4-million tonnes of spodumene concentrate over a mine life of 27 years. 