Piedmont confirms new production targets for North American Lithium project after release of DFS
Piedmont says the definitive feasibility study findings underscore NAL’s role as a significant lithium producer.
Piedmont Lithium (ASX: PLL) has confirmed a new production target for the North American Lithium (NAL) project in Canada, held in joint venture with Sayona Mining (ASX: SYA).
A definitive feasibility study released this week by Sayona contemplates increased annual spodumene concentrate figures averaging 190,000 tonnes per annum over a 20-year mine life.
The project will target 226,000tpa in the first four years and approximately 186,000tpa beginning in the fifth year.
The revised targets combined with higher spodumene concentrate pricing also resulted in an increase to the net present value of the NAL project when compared to a pre-feasibility study completed last year.
Significant producer
Piedmont chief operating officer Patrick Brindle said the DFS findings underscore NAL’s role as a potentially significant lithium producer.
“Production is ramping up at NAL and we look forward to making initial shipments to our customers later this year,” he said.
“We are very pleased with our position as Sayona’s joint venture partner in the Abitibi Hub lithium projects and as the company’s largest shareholder.”
Piedmont’s stake
Piedmont holds a 25% stake in NAL (through its interest in Sayona Quebec) and an equity interest of approximately 14% in Sayona.
Piedmont also holds an offtake agreement with Sayona Quebec to purchase the greater of 113,000tpa or 50% of the joint venture’s spodumene concentrate production.
It has agreements with LG Chem and Tesla Inc to provide concentrate from NAL beginning in the second half of this year.
Moblan resource increase
Earlier this week, Sayona announced a major increase to the mineral resource at its 60%-owned Moblan project in northern Quebec.
Measured and indicated resources now total 41.1 million tonnes grading 1.32% lithium oxide using a 0.55% cut-off.
Sayona managing director Brett Lynch said the increase makes Moblan one of North America’s most significant spodumene ore bodies.
“Moblan now represents one of the single largest lithium resources in North America and justifies our move to fast‐track a major drilling program which has delivered a resource within just a year of acquisition,” he said.
“This latest expansion further entrenches our competitive advantage, particularly given our projects’ favourable access to infrastructure, market proximity and availability of low‐cost, sustainable hydropower.”