Peidmont Lithium (ASX:PLL) and its joint venture (JV) partner Sayona Mining (ASX:SYA) has received a ‘positive’ Definitive Feasibility Study (DFS), resulting in accelerating spoduemene production from its North American Lithium (NAL) Project in Quebec.
The NAL DFS contemplates raised annual spodumene concentrate production, averaging 190,000 metric tonnes per annum over a 20-year mine life.
Additionally, there is a target of 226,000tpa in years 1 through 2 of steady state operations, and about 186,000tpa beginning in the fifth year.
Piedmont Lithium states as part of the DFS and mine restart efforts, Sayona conducted a strategic review of mineral resource and ore reserves with the aim of creating opportunities to focus on ‘higher-grade’, open-pit material and to improve project net present value.
“The results of the DFS underscore NAL’s role as a significant lithium producer positioned to meet the requirements of the Inflation Reduction Act of 2022″
Commenting on the ‘positive’ DFS, Piedmont Lithium Chief Operating Officer, Patrick Brindle says: “The results of the DFS underscore NAL’s role as a significant lithium producer positioned to meet the requirements of the Inflation Reduction Act of 2022.
Production is ramping up at NAL, and we look forward to making initial shipments to our customers LG Chem and Tesla later in 2023.”
Piedmont also reported, Sayona reports a ‘significant’ increase in mineral resources at its 60% owned Moblan Project in Northern Quebec.
Now, the measured and indicated mineral resources at Moblan totals 41.1 million metric tons @ 1.32% lithium oxide (Li2O) using a 0.55% Li2O cut-off grade. This makes Moblan, one of North America’s most ‘significant’ spodumene ore bodies.
Commenting on the mineral resource expansion, Peidmont Lithium Chief Operating Officer, Patrick Brindle says: “Further, we congratulate our partners at Sayona on the significant mineral resource expansion at their 60% owned Moblan Project.
We are very pleased with our positions as Sayona’s joint venture partner in the Abitibi Hub lithium projects. Quebec is an ideal location for lithium chemicals in the future, given the province’s abundant mineral resources, low-cost hydroelectricity, proximity to U.S. markets, and supportive provincial government.”
The North American Lithium Project is a JV between the company and Sayona, which owns 75% and Piedmont owns the other 25%. Piedmont holds an offtake agreement with Sayona to purchase the greater of 113,000 tpy or 50% of the JV’s spoduemene concentrate production.
Additionally, the company also has agreements with LG Chem and Tesla to provide spodumene concentrate from NAL beginning in H2 2023.
Sayona is currently conducting a Pre-Feasibility Study to explore downstream production at NAL and expects results in Q2 2023.
Piedmont Lithium is an ASX-listed lithium resource company, focused on becoming one of the largest lithium hydroxide producers in North America by processing spodumene concentrate produced from assets.
Images: Piedmont Lithium Inc
