Brisbane, Australia, June 4, 2020 - (ABN Newswire) - Emerging lithium miner Sayona Mining Limited (ASX:SYA.AX - News) (HAM:DML.HM - News) (OTCMKTS:DMNXF - News) announced today plans to focus its Western Australian exploration efforts on projects within the world-class Pilgangoora lithium district, home to Earn-In partner Altura Mining Limited's successful mining operation and other major spodumene deposits.
The strategic review follows last year's Earn-In agreement with Altura Mining aimed at maximising the value of Sayona's Australian exploration portfolio. Under the agreement (refer ASX announcement 8 August 2019), Altura agreed to spend A$1.5 million on exploration across the project portfolio over three years to earn a 51% interest, with Sayona retaining the remaining project interest.
Altura has progressed the Earn-In assets, commencing a field mapping and sampling program in the northern Mallina (E47/2983), Deep Well (E47/3829), Tabba Tabba (E45/2364) and Red Rock (E45/4716) tenements. The proximity of these tenements to Altura's existing mining and processing infrastructure is expected to significantly enhance the development potential of any discoveries.
With a focus on maximising the value of its Australian assets, Sayona will retain the 10 most prospective Pilbara lithium tenements, spanning 971 sq km and in close proximity to Altura's Pilgangoora mine. Other regional projects include the East Kimberley and Murchison areas, comprising four tenements covering 170 sq km, with the total WA portfolio to consist of 14 tenements covering 1,141 sq km.
Despite the relinquishment of some tenements, key terms of the Earn-In Agreement with Altura remain unchanged.
Sayona's Managing Director, Brett Lynch, said the refocus would allow management time and Company resources to be focused on projects considered offering the fastest pathway to shareholder returns.
"We are delighted by the results of this strategic review, which has revealed the highest potential value projects in our WA exploration portfolio. Working closely with our Earn-In partner, Altura Mining, we are determined to unlock value from these assets for the benefit of both parties," Mr Lynch said.
"Importantly, this allows management to focus on our expansion strategy in Quebec, where we have a near-term opportunity to advance towards production, delivering value for all stakeholders."
Altura's Managing Director, James Brown commented: "We have been pleased by the developments made with Sayona in advancing the value of these exploration assets and look forward to getting back in the field. The tenements of interest are in relatively close proximity to the established Altura lithium mine, which means any exploration success will benefit our long-term operations."
Five Pilbara leases are being relinquished, including the Moolyella project (E45/4727, E45/4721 and E45/4700), Cooglegong (E45/4738) and Carlindie (E45/4775). Other regional WA tenements are being reviewed to determine the best strategy to maximise their potential value, including leases around the recent De Grey Hemi gold discovery. The Sayona-Altura Earn-In leases include the Mt Dove lease, E47/3950, which is located 12km to the south-west of the Hemi mineralisation.
To view the retained Earn-In Pilbara tenements, please visit:
About Sayona Mining Ltd:
Sayona Mining Limited (ASX:SYA.AX - News) (OTCMKTS:DMNXF - News) is an Australian, ASX-listed (SYA) company focused on sourcing and developing the raw materials required to construct lithium-ion batteries for use in the rapidly growing new and green technology sectors. The Company has lithium projects in Quebec, Canada and in Western Australia.
Please visit us as at www.sayonamining.com.au
Phone: +61 (7) 3369 7058
Sayona Mining Ltd
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