Sayona unveils feasibility results for ‘centrepiece’ Moblan lithium project

20th February 2024 By: Creamer Media Reporter

Sayona unveils feasibility results for ‘centrepiece’ Moblan lithium project

North American lithium producer Sayona Mining has announced feasibility study results that demonstrate the value of its Moblan lithium project, forming the centrepiece of the company’s Eeyou Istchee James Bay hub in northern Québec, Canada.

Moblan, owned 60% by Sayona and 40% by Investissement Québec, has an estimated post-tax net present value of C$2.2-billion and an internal rate of return of 34.4% with a 2.3-year payback period.

The project will require total capital expenditure of C$962.5-million.

Positive financial returns have been driven by an estimated head grade of 1.36% lithium oxide (Li2O), a life-of-mine (LoM) recovery rate of 74.7% and LoM average concentrate production of 300 000 t/y at a grade of 6% Li2O.

"We are delighted by the results of this feasibility study, which demonstrate that the Moblan lithium project is an incredibly strategic and valuable asset for Sayona, representing one of the single largest hard rock lithium resources in North America,” said interim CEO James Brown.

He stated that the challenging market conditions of recent months highlighted the importance of developing Tier 1 lithium projects that were strategically located near existing transport corridors and end markets and that had the potential to deliver high-grade lithium concentrate at industry-low and competitive operating costs.

“Moblan is an exceptional project that meets these criteria and we look forward to applying Sayona's extensive operational expertise to minimise costs and develop the Project as efficiently as possible.”

Brown said he was confident that the current lithium market would recover over the medium term and enable Moblan to benefit from the long-term industry fundamentals to become a profitable long-lasting operation for the benefit of all stakeholders.

“Sayona will now look to review the timelines given the current market conditions, and continue to advance the necessary regulatory approvals, seek community support and secure the necessary financing and project partners capable of advancing this project through to successful production, with the ultimate ambition to integrate Moblan into a regional supply chain for battery materials in Québec."