Sayona Mining and Piedmont Lithium buoyed by positive NAL upgrade study results
The definitive feasibility study confirms the Abitibi lithium hub’s long-term viability.
Sayona Mining (ASX: SYA) and its JV partner Piedmont Lithium (ASX: PLL) have obtained robust study results confirming the downstream processing upside at the North American Lithium (NAL) project in Québec, Canada.
Earlier this year, Sayona and Piedmont became the darlings of the Canadian critical minerals sector with their successful developments at the NAL operation which was anointed as North America’s leading hard rock lithium producer.
The project gained initial headlines in January when it successfully produced 400 tonnes of spodumene ore as part of the project’s concentrator commissioning, an important step in the process to restart the critical minerals operation.
In early March, the project achieved two other major milestones with the initial first successful production of 70 tonnes of lithium concentrate, quickly followed by the maiden processing of 1,200 tonnes of saleable spodumene (lithium) concentrate.
Study highlights project upside
The new study results have confirmed the key role NAL can play in supporting the US and Canadian government’s desperate push to develop home grown battery metal projects.
In particular, the positive preliminary technical study for lithium carbonate production at NAL have highlighted the commercial benefits of moving further into downstream processing.
The study has estimated that the Québec operation has a fully integrated pre‐tax NPV now exceeding $5 billion.
It also identified a standalone estimated pre‐tax net present value (NPV) for lithium carbonate production of $3.2 billion, while total earnings before interest, tax, depreciation, and amortisation (EBITDA) over a 16‐year project life for a standalone carbonate plant forecast to earn $7.5 billion.
Managing director, Brett Lynch, said that following the receipt of the positive results, Sayona has elected to advance a definitive technical study for the lithium carbonate plant’s restart, targeting production as early as 2026.
“This study shows the outstanding value we have generated from our strategy of acquiring a brownfields plant with existing assets. With an accelerated pathway to lithium carbonate production, we are rapidly advancing our goal of becoming a fully integrated producer of lithium chemicals,” Mr Lynch said.
Rising lithium demand in North America
“Significantly, NAL is set to become the only lithium operation with a concentrator and carbonate plant all on the same site in North America.”
The growth of the NAL operations comes at a time when Lithium demand is accelerating in North America on the back of significant electric vehicle demand forecast.
The development has the ability to answer the Canadian and US governments intentions to develop a North American supply chain, from mining to processing and manufacturing.
“Québec has shown a clear vision of becoming a leader in this new industry, maximising the benefits of its sustainable hydropower, world‐class infrastructure and proximity to key battery markets,” Mr Lynch said.
“A new lithium carbonate plant will make a significant contribution in creating a green and sustainable supply chain, delivering new jobs and investment for local communities, together with a low carbon footprint.”
History of NAL acquisition
Sayona (75%) and Piedmont Lithium (25%) acquired the NAL assets in 2021.
Included in the purchase were historic mining and concentrator facilities, a lithium carbonate process plant, and waste and tailings management facilities.
As part of the preliminary studies, investigations included identifying any modifications and upgrades needed to be made on the existing lithium carbonate plant to reach its nameplate throughput capacity.
Results have confirmed that an upgrade is required for the hydrometallurgy section of the carbonate plant requires updating, while proposed additions to the original NAL flowsheet include a sodium sulphate crystalliser and buffer tanks.
Successful capital raising
Sayona is well placed to proceed with the proposed upgrades.
In late May, it successfully raised $200 million via a two tranche placement to support a production ramp‐up at the NAL operation.
Funding from the raising has also been earmarked for further development at the company’s northern Québec lithium hub, centred on its Moblan lithium project, where a 60,000m drilling campaign is currently underway.