North American Lithium - Revisit, page-144

PART 9

We had a little lunch and moved on to Moblan.

They are all very excited about the resource there.
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Worldwide tier 1, very economical to mine, with large lithium crystals and plenty of scope for growth.
Low strip ration and close to infrastructure.
The DFS will prove the economics.
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I asked if all the drilling would make it into the DFS but it will not.
They will upgrade the resource next year when all the results come in.
But even now at 50M, it is economically viable, and over 100M, it will be a worldwide tier 1 resource.
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Patriot may have the tonnage at the moment, but they have years of permitting ahead of them, in a very remote location, and the the environmental nightmare of having to drain a lake, which sits above their resource.
Wait until the greenies get a hold of that!
Destruction of waterways, habitat for an endangered weed, and a migratory waypoint for some endangered bird...
It will be an absolute ball ache...

No worries Ken, its not too late...we'll hold the CEO gig for you.......

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...BUT......
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As Split pointed out, we will probably not see the huge tonnages we want to see straight away.
The same principle applied at NAL, where they discounted the inferred part of the resource and it will not be included at Moblan either.
So, the tonnage in the DFS, although more accurate, may be about the same, maybe a little more or a little less, but not a significant change.
That will come next year with a revised resource definition and revised DFS.
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However, the growth will come.

Guy had mentioned the drilling will be completed within 2 weeks ( so completed by now) and they still had 7 drill rigs on site, when we were in Quebec.
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For the Moblan project, they already have a great team in place, and it is getting bigger by the day.

This falls under Menon the GM, with her team of engineers, technical people, OHS, native engagement, and northern office....etc....etc....
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This is the thing with Sayona.
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A junior usually has 1 project on the go...say Patriot with Corvette....

But we have 3 BIG projects....

1. -Ramp up

1. -Carbonate plant

1. -Moblan

So, our SP suffers, until the market can ascribe a valuation to these projects, which these days it seems, they all have to be proven up.
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Personally, I know we are below our intrinsic value for NAL alone.

I asked Sylvain what it would cost to replace NAL, permitting, mine, and concentration plant....
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Without the carbonate plant probably 1.5B.
If anyone knows, he does right...
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So, he is juggling his arse off between ramp, which has the most focus, then to Carbonate...and then consults for Moblan...

As I said, if we lose him, we are farked.

I have also emailed James and Guy, and said whatever you are paying this guy, its not enough.
Make sure we keep him and make sure you keep him happy!
They share a similar view...
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On James's visit recently, they spent a couple of days together.
Now Jame is an ops guy, so, they really hit it off...
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James saw what we saw in Sylvain.....and now I think they have a great rapport and speak frequently.

To the point, he had James reach out to us...
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By this stage, we had been talking for a couple of hours.
Ramp, comms, studies...we covered a lot of topics.
For him, the comms were killing him, because they kept getting dumped on his team, pulling focus from the ramp.
We pushed him to keep them coming...to keep the market informed as much as possible.
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Outside of Quebec we are at arm's length of what is truly going on at NAL.
The word needs to get out and the info need to keep flowing....
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By this stage, we had well and truly broken the ice, and I think Sylvain was getting a good handle on who we were, our intentions and who he was dealing with. To some degree, we were getting comfortable with each other.
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I did apologise if I had come off too aggressive, but explained it was years of frustration spewing out onto him.

We did not get a proper chance to vent to Guy, so I guess the disappointment of the day before, as well as the years of frustration, finally boiled over for all of us, and Sylvain was the one that bore the full brunt of it.
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He said -Don't worry guys, there will be no tears shed today, it's OK , I understand...
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He understood, and we were all in a good place with him....

So, we all had a little chuckle, and suited up, for our trip down to the pit.

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