General Discussion Topics, page-60742

Further to my previous post regarding PFS issues/recovery rate.

The details in the PFS just did not sit right with me.

Current published rate for NAL only ore is 65.8%, as per the PFS, with the blended NAL/Authier ore at 67.7%

The plant was originally plated for 180,000 sc6 at 3800 tpd NAL only ore.

That works out to -

3800x365= 1,387,000 tonnes of ore/pa required

1387000/180000= 7.706 tonnes ore/tonne of sc6

That was the original efficiency of the plant.

Extract from Genivar’s Executive summary for Quebec Lithium, dated July 2013

(I posted this a while ago)

The concentrator will have a processing capacity of 3,800 t/d, for an approximate annual volume of 1,077,000 t. This supply rate corresponds to 90% overall availability of the concentrator, with a lithium recovery rate of around 67.6%

You kidding me Brett?? The original recovery rate..NAL ONLY...ore from 2013 and the old processing circuit was basically the same as the NEW updated circuit, with the higher grade Authier ore blend???

Alarm bells are ringing.....

I have seen in some media outlets reporting about Sayona, throwing around the 226kt sc6 figure.

To find it in published literature, I had to go to the half yearly report ending 3/12/2021, but announced 17/3/2022.

Half yearly report 31/12/2021......published 17/3/22

A definitive feasibility study (DFS) is underway for the profitable production of spodumene concentrate at NAL, combined with production from nearby Authier. The integration of NAL with Authier will transform both operations and create a world-scale Abitibi lithium hub from which the Group aims to produce 220kt of spodumene 6% or 30kt LCE (lithium carbonate equivalent).

(BTW-still only mentioning carbonate!)

Obviously, an upgrade from 168kt/180kt to 226kt, needs to be planned and Sayona has been chasing this for a while.

The plant was originally plated for 180,000 sc6 at 3800 tpd NAL only ore. Due to varying ore concentrations, they had multiple problems trying to maintain sc6 and had to vary the ore and the time through processing to try and achieve it.A scoping study of the previous plants' operation identified bottlenecks and weak points in the production circuit. Recommendations were made, to increase the throughput and maintain the sc6 industry standard grade.

So, Sayona taking this on board and recognizing this was the way forward, re-engineered the flow sheet,
and began purchasing the equipment for the upgrades, particularly those deemed long lead time items, which is well published.

That works out to-

So 3800x365= 1,387,000 tonnes of ore/pa required

1387000/180000= 7.706 tonnes ore/tonne of sc6

That was the original efficiency of the plant, ore/sc6 recovery

Fast forward to 2023, and approval for 4200tpd is granted-

4200x365= 1533000 total ore

1533000/7.706= 198936 sc6 produced.

198936, still short of the 226kt target they are obviously aiming for.

And although they have mentioned the increase of throuput to 4200, nothing has been said about the plant efficiency. Granted, upgrades and additional processing and sorting equipment, but no mention of a plant efficiency increase.

We know that are engineering toward 220000tonne+ sc6

This was made clear in the last half yearly report, ending 31 December 2021, but announced to market 17/3/2022 And to get there, you need the compound effect of increasing throughput, AND, increasing efficiency.

Therefore, the 50% PLL keeps claiming is the 113 from the same targeted 226.

It all starts to make sense...

4200x365= 1533000 total ore

1533000/226000= 6.783 tonnes/ore per tonne of sc6, ore/sc6 recovery rate

How this translates across to the published rates-

7.706/6.783= 1.136 multiple (efficiency gained.)

We can also back test against the targeted increased output.

226000 targeted/198936 old efficiency= 1.136 multiple

1.136x 65.8% (NAL only ore) = 74.75% recovery

Or if we use the 67.7%, from the Genivar document OR the blended Authier/NAL-

1.136x 67.7= 76.9%

So, we need to see an increase to 4200tpd AND an increase the efficiency of the plant to 74.75% to76.9% underpin the increase to 226kt sc6/pa.

Keiths counting on it, and we need it.

This is why they have been engineering and working towards – around a 75% recovery rate.

For comparison, from PLS’s March 2022 quarterly-

A long-run expected lithium recovery rate in the range of 70-75% remains in place for the Pilgan operation, during periods where consistent and optimal ore feed should allow stable processing plant operations.

And with the upgrades and expenditure that is happening, I don’t doubt they can achieve it. And not only achieve it, but be industry leading.

You then combine that with-

1. Cheap green hydro power

1. Unlimited water

1. Increased tailings storage

1. A modern and efficient flow sheet and plant

1. An experienced local work force

1. NO DEBT (I still love saying that)

And it looks like we are headed down a very successful path here.

The building blocks of success if you will, because if we get this right, then the flow on for a stable and consistent feed to the carbonate/hydroxide plant is assured. The final destination....

Shame only Keith/Brettand the inner sanctum knew about it...

LOL, this PFS just keeps giving and giving....and our metrics just get better and better!!

I hope this all made sense....couldn’t they just publish it in the PFS?

Good luck everyone...