PERTH (miningweekly.com) – Lithium developer Sayona Mining has flagged the potential for increased production from its North American Lithium operations (NAL), in Québec, following a strategic acquisition and earn-in with TSX-V-listed Jourdan Resources over its adjacent Vallée lithium project.

The Vallée project comprises 48 claims covering around 1 997 ha, closely neighbouring the NAL mine tenure with 20 leases located within 500 m of the mine boundary. In comparison, NAL’s 19 claims cover 582 ha.

Under the agreement, NAL will acquire 20 claims outright, spanning 755.3 ha, providing an immediate extension to the NAL operating area and allowing for potential future infrastructure expansion at the NAL mine and its processing facility. Pegmatite targets are located close to and along strike from the NAL orebody, Sayona told shareholders.

NAL also has the right to earn up to a 51% stake in the Vallée project’s remaining 28 claims, covering 1 241.57 ha. NAL can earn up to 50% equity by spending C$4-million within the first year to earn a 25% equity stake and an additional C$6-million within two years to earn a further 25%.

A further 1% equity is available if Sayona prepares a feasibility study and arranges funding for the construction of a mine at Vallée.

Sayona told shareholdes that it will aim to treat any ore obtained within the earn‐in area at its NAL operation, with NAL and Jourdan forming a joint venture (JV) to develop the Vallée project and its potential integration into NAL.

Sayona’s Québec subsidiary will also acquire a 9.99% shareholding in Jourdan through a private placement for approximately C$1.5-million and will have the right to appoint a director on Jourdan’s board.

Sayona MD Brett Lynch said the agreement provided a substantial boost for NAL and its future production potential.

“Sayona continues to pursue opportunities for expansion and this is an excellent opportunity to swiftly expand NAL’s potential resource base, paving the way for an increase in NAL’s future mine production capacity,” he said.

“With mineralised spodumene pegmatite dykes previously mined by NAL continuing directly onto Jourdan’s claims, we are keen to quickly launch new drilling. Significantly, the additional leases acquired under this agreement will also allow for increased flexibility and optimisation of the NAL mine design, production and infrastructure.

“Sayona is pursuing cooperative alliances with our neighbours with the aim of further building on our already leading lithium resource base in North America. The potential for more tonnes, faster production and higher grades only amplifies the opportunity for NAL to move downstream, whether into lithium carbonate or hydroxide production.”

Sayona and its JV partner Piedmont earlier this year formally approved the restart of the NAL operations at a budget of C$98-million. The NAL restart project has been funded through cash contributions by both Sayona and Piedmont, each company having successfully completed significant capital raises in the first half of 2022.

The restart of operations is on track for the first quarter of 2023.