Pilbara lithium portfolio with new spodumene discovery assaying up to 2.13% Li2O
Option To Acquire New Pilbara Spodumene Discovery
Brisbane, Dec 21, 2016 AEST (ABN Newswire) - Sayona Mining Limited (
ASX:SYA) (DMNXF:OTCMKTS) ("Sayona" or the "Company") is pleased to announce that it has secured an option from Great Sandy Pty Ltd ("Great Sandy") to acquire a 871 km2 package of tenements in the world-class Pilgangoora lithium district of Western Australia.
Highlights
- Option to acquire 871 km2 package of tenements in the world-class Pilgangoora district, including the Mallina project with newly identified spodumene pegmatite:
-- Rock chip samples up to 2.13% Li2O in discovery pegmatite. The average of the 10 rock chip samples collected to date is 1.28% Li2O
-- Spodumene crystals over 20 centimetres in diameter identified within the Discovery pegmatite, along a 500 metre strike zone
-- Pegmatite swarm remains unexplored; high potential for additional discoveries
Recent reconnaissance exploration conducted on the Mallina tenement has located significant zones of visible spodumene mineralisation within a pegmatite. Sample results include rock chip assays up to 2.13% Li2O within a pegmatite which has been mapped over 500 metres of strike extent. The average of the 10 rock chip samples collected to date is 1.28% Li2O. The Mallina area is a new spodumene discovery and has never been previously explored for its lithium potential.
The Mallina project is located 80 kilometres west of the Pilgangoora lithium deposits of Altura Mining and Pilbara Minerals, and compliments the Company's other 1,000 km2 lithium exploration portfolio in the Pilbara region.
The company plans to commence mapping and geochemical sampling in early 2017, to generate drill targets.
The purchase terms include an option to acquire 80% interest in all the tenements by making staged payments in cash or shares at Great Sandy's election of $300,000 within 12 months and $300,000 within 24 months (or $500,000 within 18 months at Sayona's election), and free carrying Grant Sandy to Decision to Mine. Great Sandy can elect to convert the 20% interest to a 2% gross smelter royalty. Sayona is required to make a $30,000 deal signing payment and commit to minimum expenditure of $100,000 within the first 12 months.
Mallina Spodumene Project
The Mallina project overlies Archaean sediments and mafic volcanics which have been intruded by post tectonic monzogranite. The area does not appear to have been prospected for pegmatite mineralisation before the recent discovery, despite the combination of post tectonic granite, structure and proximity to the Wodgina / Pilgangoora lithium discoveries to the east.
The discovery pegmatite was recently identified during routine reconnaissance of the area. Twenty-two rock samples were collected from granite and pegmatite. Two of the samples, NEAC1362 and NEAC1363 returned assays of 5,755 ppm lithium (1.23% Li2O) and 3,969ppm lithium (0.85% Li2O), together with highly anomalous rubidium, caesium, tin and tantalum results (see table 2, refer to link below). The geochemical results are indicative of complex, rare metal highly fractionated, LCT pegmatite. Petrology and XRD analysis confirmed the lithium mineralisation is present as the mineral spodumene.
Subsequent sampling of the discovery area confirmed anomalous lithium, with the highest of the 10 samples returning up to 9,910 ppm lithium (2.13% Li2O) and extending the strike of the pegmatite to over 500 metres. Of the 10 samples collected over the discovery pegmatite to date along its 500m strike, the average assay is 1.28% Li2O.
The Company's reconnaissance site visit confirmed visual spodumene mineralisation within the pegmatite, with crystals over 20 centimetres in size, (see Figure 1, refer to link below).
The pegmatite is weathered, in part silicified and has poor outcrop, typically visible over widths of 3 to 5 metres and up to 8 metres, but without the contacts to adjacent greenstone rocks being observed. Its true width is not known.
The pegmatite typically has fine grained as well as very coarse portions. Petrology has identified that the fine pegmatite material contains up to 25% spodumene, as well as being present in the coarser grained pegmatite. Lepidolite has not been observed to date.
Multiple pegmatites have been observed in the area but have not been systematically mapped or sampled. Significantly, a separate pegmatite in the swarm, located 800 metres to the west, has returned 1,970ppm lithium (0.42% Li2O), indicating multiple mineralised pegmatite's are present in the system. There is very good potential for additional discoveries in the area of the discovery pegmatite and within the greater 140km2 tenement area.
The Company plans to commence mapping and geochemical sampling over the discovery pegmatite swarm in early 2017, to define key drill targets.
Other Project Areas
The Option includes three other project area comprising 8 tenements. The Mt Edgar project, located east of Marble Bar comprises 6 exploration licence applications covering 440km2 adjacent to the Moolyella tin-tantalum field and post tectonic monzogranite.
The Dorringtons project is located 15 kilometres to the south east of Nullagine. It covers the post tectonic Split Rock granite and eluvial tantalite workings. The White Springs project is located 170 kilometres south of Port Hedland and secures historic tin and tantalite prospects, associated with Split Rock granite pegmatites.
All the project areas remain virtually unexplored for lithium mineralisation despite evidence of fertile pegmatite systems being present.
Option Terms
The Heads of Agreement with Great Sandy Pty Ltd, includes the following terms:
- $30,000 non-refundable deposit paid on signing;
- 24 month Option period whereby Sayona may acquire 80% of the tenements with Great Sandy retaining a 20% Free Carried Interest to Decision to Mine ("FCI");
- Option Payments of $300,000 after 12 months and $300,000 after 24 months from date;
- Sayona also has the option to acquire 80% at any time for $500,000 within the first 18 months;
- $100,000 minimum expenditure within first 12 months;
- Great Sandy may convert its 20% FCI to 2% Gross Production Royalty at any time;
- SYA may withdraw from the agreement at any time after the expenditure of $100,000 in exploration;
- SYA to acquire rights to all pegmatite related minerals (including Li, Sn, Ta, W) with Great Sandy retaining the rights to all non-pegmatite minerals (including gold and base metals);
- A 10 kilometre Area of Influence will be in place around all tenements included in the agreement. Any tenements applied for or acquired by either party after the signing of the initial agreement within this 10 kilometre zone will form part of the agreement;
- Pegmatite mining activities will always take priority over other mining activities; and
- SYA to keep tenements in good standing.
To view tables and figures, please visit:
http://abnnewswire.net/lnk/F43L99RX
About Sayona Mining Limited
Sayona Mining Limited (ASX:SYA) (OTCMKTS:SYAXF) is a North American lithium producer with projects in Quebec, Canada and Western Australia. In Quebec, Sayona's assets comprise North American Lithium together with the Authier Lithium Project and its emerging Tansim Lithium Project, supported by a strategic partnership with American lithium developer Piedmont Lithium Inc. (ASX:PLL). Sayona also holds a 60% stake in the Moblan Lithium Project in northern Quebec.
In Western Australia, the Company holds a large tenement portfolio in the Pilbara region
prospective for gold and lithium. Sayona is exploring for Hemi-style gold targets in the world-class Pilbara region, while its lithium projects include Company-owned leases and those subject to a joint venture with Morella Corporation (ASX:1MC).
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