Resource Upgrade Potential Emerges from Sayona’s Latest North American Lithium Drilling

Context and Overview

Sayona Mining Limited (ASX: SYA) has released compelling results from its 2024 drilling campaign at the North American Lithium (NAL) operation in Québec, Canada. The program, comprising 102 new drillholes totaling nearly 32,000 meters, has delivered multiple high-grade lithium intersections that reinforce the strategic value of this asset. These results come amid Sayona's ongoing efforts to expand and upgrade its mineral resource base ahead of a planned merger with Piedmont Lithium.

Significant Drilling Highlights

The drilling has uncovered substantial lithium mineralisation outside the existing Mineral Resource Estimate (MRE) pit shells, particularly in the North-West, South-East, and North-East extensions. Noteworthy intercepts include a standout 39.3 meters at 1.78% Li2O from 297.7 meters in drillhole LAN-24-170, alongside other wide zones such as 20.45m at 1.80% Li2O and 22.2m at 1.50% Li2O in drillhole LAN-24-161a. These figures suggest both the continuity and robustness of the pegmatite dykes that host spodumene mineralisation.

Resource Upgrade Potential

Beyond new discoveries, the drilling program has focused on infill drilling to upgrade resource classifications. Results indicate a strong potential to convert inferred resources into the indicated category within the current pit shells, a critical step towards increasing mineable reserves. This upgrade potential is particularly evident in the Resources Area, where multiple intercepts exceed 20 meters in length with lithium grades around 1.5-1.8% Li2O.

Strategic Implications and Future Outlook

Sayona’s CEO, Lucas Dow, emphasised the significance of these results in underpinning plans for a brownfield expansion of NAL. The discoveries and resource upgrades align well with the company’s strategic vision, especially in light of the recently announced merger with Piedmont Lithium. This consolidation is expected to enhance development capabilities and create a substantial project portfolio, positioning the combined entity as a key player in the North American lithium market.

The 2024 drilling program concluded in early December, with further assay results anticipated in the coming months. These ongoing updates will be crucial for refining resource estimates and informing feasibility studies.

Geological and Operational Context

Located approximately 60 km north of Val-d'Or and 38 km southeast of Amos, the NAL mine benefits from year-round access and proximity to skilled labour and specialised services. The lithium mineralisation occurs within a swarm of pegmatite dykes intruding granodiorite and volcanic rocks, with the 2024 drilling confirming extensive pegmatite continuity and new parallel dykes. The geological setting supports a long mine life, currently estimated at 20 years, with strong potential for extension.