24 SEPTEMBER 2018 POSITIVE AUTHIER DEFINITIVE FEASIBILITY STUDY...

24 SEPTEMBER 2018
POSITIVE AUTHIER DEFINITIVE FEASIBILITY STUDY REAFFIRMS POTENTIAL OF SUSTAINABLE NEW LITHIUM MINE
Highlights
• Positive definitive feasibility study (DFS) for Authier Lithium Project shows potential for profitable and sustainable new lithium mine, delivering jobs, investment and other economic benefits to local community
• Pre-tax net present value (NPV) of C$184.8m (AUD $194.0m), pre-tax internal rate of return (IRR) of 33.7% and estimated payback of 2.6 years
• Life of mine (LOM) revenue C$1,394m; projected 1.58 million tonnes (Mt) of spodumene concentrate sales over 18 years
• Low start-up capital expenditure of C$89.9m, with production scheduled for 2020
• Downstream test work underway to produce lithium carbonate and hydroxide from
pilot plant concentrate, with results to be used for a Pre-Feasibility Study
Emerging lithium miner Sayona Mining Limited (ASX: SYA) announced today a positive definitive feasibility study (DFS) for its flagship Authier Lithium Project in Canada, which demonstrates the project’s potential to deliver a profitable and sustainable new lithium mine that will provide new jobs, investment and other benefits for all stakeholders.
The new mine could create 150 jobs in construction and up to 160 jobs in operation, with the Company giving priority to local employment and suppliers. Sayona is targeting a number of potential markets for its product, which is in increasing demand due to the role of lithium-ion battery technology in the clean energy revolution for cars and electricity.
Key findings of the DFS include:
• Pre-tax NPV of C$184.8 million and IRR 33.7% (real terms at 8% discount rate);
• Annual average concentrate production of 87,400 tonnes at 6% Li2O;
• Average annual revenue of C$80 million;
• Mine gate cash costs of C$416/t and FOB Port cash costs of C$482/t (US$366/t);
• Initial capital expenditure of C$89.9 million;
• Updated Ore Reserve of 12.10 Mt @ 1.00% Li2O (Proven Reserve 6.10Mt @ 0.99% Li2O and Probable Reserve 6.00 Mt @ 1.02% Li2O) delivers a mine life of 18 years.