Moblan Lithium Project Boosted but Faces Environmental and Market Challenges

Significant Resource Growth at Moblan

Sayona Mining Limited (ASX, SYA) has announced a substantial upgrade to the Mineral Resource and Ore Reserve estimates for its Moblan Lithium Project in northern Quebec, Canada. The updated JORC-compliant Mineral Resource now stands at 121 million tonnes grading 1.19% lithium oxide (Li2O), marking a 30% increase over the previous estimate from August 2024. Meanwhile, Ore Reserves have grown by 39% to 48.08 million tonnes at 1.31% Li2O, reflecting the success of an extensive 2024 drilling campaign that added 261 holes totaling nearly 75,000 meters.

Geological and Operational Advances

The resource expansion is underpinned by updated geological models and an optimized mine plan. Moblan hosts 49 lithium-bearing pegmatite dykes grouped into three main swarms, Main, South/Moleon, and New South, within a structurally complex but well-understood lithium-caesium-tantalum system. The project benefits from excellent infrastructure access, including proximity to hydropower, an all-weather highway, and rail connections facilitating future processing or export.

Sayona’s Managing Director Lucas Dow highlighted the project's transformation since acquisition in 2021, noting a more than sixfold increase in resources. The updated Ore Reserves support a longer mine life and potential for increased production, with a Definitive Feasibility Study (DFS) confirming technical and economic viability over 28 years. The DFS projects average annual plant feed of 1.75 million tonnes and spodumene concentrate output of 279,000 tonnes, with an all-in sustaining cost of approximately USD 730 per tonne.

Economic and Market Context

The Moblan project’s economics are robust, with a net present value exceeding CAD 1.4 billion based on a spodumene concentrate price of USD 1,250 per tonne and an 8% discount rate. Operating costs and capital expenditure estimates have been refined, incorporating lessons from Sayona’s nearby North American Lithium operations. The lithium market outlook remains strong, with Benchmark Mineral Intelligence forecasting a supply deficit beginning in 2029 driven by surging demand from electric vehicles and energy storage sectors.

Environmental and Social Considerations

While Moblan remains at a greenfield stage with no operating infrastructure yet, Sayona is progressing environmental and social impact assessments (ESIA) in close consultation with local Cree communities and Quebec authorities. The project lies on Category III lands under the James Bay and Northern Quebec Agreement, ensuring Indigenous engagement and regulatory oversight. Early indications suggest positive community relations and no major impediments to permitting, though ongoing assessments will shape final approvals.

Looking Ahead

With a significantly expanded resource base, a detailed mine plan, and strong market fundamentals, Moblan is positioned as a cornerstone asset in Sayona’s North American lithium portfolio. The company plans further drilling to convert inferred resources and explore extensions, alongside advancing infrastructure development and permitting. Investors and analysts will be watching closely as Sayona moves toward production readiness in a market hungry for new lithium supply.