Junior lithium stock Sayona Mining [ASX:SYA] rose 15% on Tuesday after launching a pre-feasibility study for its majority-owned lithium carbonate project in North America.
SYA shares also got a boost from a dovish update from the Reserve Bank of Australia, which raised the cash rate by 25 basis points, lower than the market anticipated.
The lower-than-expected interest rate hike sent the ASX soaring, with the benchmark index rising more than 3.5% late in afternoon trade.
Year to date, SYA shares are up 80%.
Source: tradingview.com
Sayona Launches PFS for NAL
On Tuesday, Sayona updated the market on its North American Lithium (NAL) operation in Québec.
Sayona owns 75% of NAL, with fellow ASX-listed lithium stock Piedmont Lithium [ASX:PLL] owning the rest.
To fast-track its development plans, SYA has launched a pre-feasibility study and said it would consider the potential for lithium carbonate possibilities within the region.
SYA and PLL said they are working closely together in assessing their options for lithium carbonate, or hydroxide, production in the region and will be able to examine what sort of options they can consider for their upcoming lithium carbonate spodumene production.
NAL is expected to commence lithium carbonate spodumene production from Q1 2023.
Sayona notes moving downstream of its existing region will enable the tapping of ‘significant potential’, adding value to long-term profitability within NAL operations.
The miner also alluded to its commitments alongside project partner Piedmont in contributing to local electrification efforts, which have been shared with Investissement Québec and the Québec Government upon acquiring the NAL operation.
Engineering firm Hatch will be called upon to undertake the major engineering works relevant to the PFS, which has a target completion date of March 2023.
This date is in line with the recommencement of spodumene concentrate production at NAL.
Brett Lynch, Managing Director of SYA commented:
‘Moving downstream has always been the plan for Sayona in Québec to enable a significant increase in profitability, whether through lithium carbonate or hydroxide production.
‘We look forward to examining the results of the PFS, as we work towards becoming a leading integrated producer and largest in North America, amid accelerating demand from the batter and electric vehicle sector.’
Lynch said the study would provide ‘valuable intelligence on future planned downstream processing in Québec’.
It was noted that NAL’s previous owners had already made headway with preparations for reaching operational goals, with around 50% of its facilities needed for production already installed.
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Regards,
Kiryll Prakapenka
For Money Morning
