Piedmont Lithium (NASDAQ:PLL) Inc (ASX:PLL, NASDAQ:PLL, XETRA:) has welcomed the acquisition and earn-in by strategic partner Sayona Lithium Ltd involving Jourdan Resources Inc’s Vallée Lithium Project adjacent to Sayona’s North American Lithium (NAL) operation in Quebec, Canada.
This strategic acquisition and earn-in agreement has the potential to expand the NAL resource base and increase future mine production capacity at the nearby operation of SYA subsidiary NAL.
Strategic partnership
Piedmont is leveraged to the NAL operations along with SYA’s Authier Lithium Project and its emerging Tansim Lithium Project through a strategic partnership.
The Vallée project comprises 48 claims covering around 1,997 hectares, closely neighbouring the NAL mine tenure with 20 leases located within 500 metres of the mine boundary. In comparison, NAL’s 19 claims cover some 582 hectares.
NAL’s acquisition
Under the agreement, NAL will acquire 20 claims outright, spanning 755.3 hectares, providing an immediate extension to the NAL operating area and allowing for potential future infrastructure expansion at the NAL mine and its processing facility.
Pegmatite targets are located close to and along strike from the NAL orebody.
NAL mine area and Jourdan’s Vallée claims.
Expansion opportunities
Sayona’s managing director Brett Lynch said the agreement provided a substantial boost for NAL and its future production potential.
“Sayona continues to pursue opportunities for expansion and this is an excellent opportunity to swiftly expand NAL’s potential resource base, paving the way for an increase in NAL’s future mine production capacity,” he said.
NAL can earn up to 50% equity by spending C$4 million within the first year to earn a 25% equity stake and an additional C$6 million within two years to earn a further 25%.
A further 1% equity is available if Sayona prepares a feasibility study and arranges funding for the construction of a mine at Vallée.
JV intention
Sayona will aim to treat any ore obtained within the earn-in area at its NAL operation, with NAL and Jourdan forming a joint venture to develop the Vallée project and its potential integration into NAL.
Sayona’s Québec subsidiary will also acquire a 9.99% shareholding in Jourdan through a private placement for approximately C$1.5 million and will have the right to appoint a director on Jourdan’s board.
Keen to drill
“With mineralised spodumene pegmatite dykes previously mined by NAL continuing directly onto Jourdan’s claims, we are keen to quickly launch new drilling,” Lynch said.
“Significantly, the additional leases acquired under this agreement will also allow for increased flexibility and optimisation of the NAL mine design, production and infrastructure.”
NAL’s restart is on track for the first quarter of 2023, with permitting applications and procurement both 96% complete as at the end of September.
Lynch added: “Sayona is pursuing cooperative alliances with our neighbours with the aim of further building on our already leading lithium resource base in North America.
“The potential for more tonnes, faster production and higher grades only amplifies the opportunity for NAL to move downstream, whether into lithium carbonate or hydroxide production.”