Sayona Mining [ASX:SYA] shares are skyrocketing today after the company upgraded its mineral resource estimates for its North American Lithium and Authier Lithium projects in Quebec, Canada.
Sayona Mining is an emerging lithium producer with projects in Canada and Western Australia.
In August, the company finalised the purchase of their joint venture flagship project, North American Lithium (NAL), with Piedmont Lithium [ASX:PLL]. Sayona holds 75% of the project while Piedmont has a 25% stake.
Sayona plans to integrate NAL with their two projects — the wholly-owned (nearby) Authier Lithium and Tansim Lithium — to create the Abitibi lithium hub.
Sayona looking to take advantage of the coming lithium crunch
The company announced today it has doubled its Quebec lithium resource base.
After independent studies by BBA Inc and SGS Canada, the combined JORC compliant lithium resource base for both NAL and Authier Lithium has approximately doubled to 119.1 million tonnes at 1.05% lithium oxide.
The JORC mineral resource estimate for NAL has a total measured, indicated, and inferred mineral resource of 101.9 million tonnes at 1.06% lithium oxide.
Sayona’s Managing Director Brett Lynch said:
‘Since the start of 2020, we have now grown our Quebec resource base nearly six times and with futher increases expected soon from Moblan.
‘With lithium prices surging on the back of an increasing structural supply deficit, our upcoming definitive feasibility study for an integrated NAL-Authier operation, expected in coming weeks, is set to show significantly enhanced profitability for the benefit of shareholders.’
Lithium prices are soaring
According to Benchmark Minerals, prices for lithium carbonate have increased by over 400% since this time last year. And with a lithium shortage expected to hit the market as soon as next year, prices could keep rising.
Sayona is looking to start producing spodumene lithium concentrate from next year.
At time of writing, Sayona Mining is trading at 13 cents — a 15.6% surge after a trading halt.
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Best,
Selva Freigedo
