Sayona Mining share price higher on big lithium news

This lithium miner has uncovered one of the largest mineral resources in North America.

| More on:
Woman looks amazed and shocked as she looks at her laptop.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Sayona Mining Ltd (ASX: SYA) share price is on the move on Monday morning.

At the time of writing, the lithium miner's shares are up 5% to 20.5 cents.

Why is the Sayona Mining share price pushing higher?

Investors have been bidding the Sayona Mining share price higher today after the company released an update on its Canadian operations.

According to the release, the company has significantly expanded its Canadian lithium resource base, with an initial JORC mineral resource estimate for its Moblan Lithium Project. This project is owned 60:40 with Soquem.

Sayona estimates that the project has a total JORC measured, indicated and inferred resource of 70.9 million tonnes @ 1.15% Li20, which represents one of North America's single largest lithium resources.

Another positive is that this includes higher grade tonnage opportunities with measured, indicated and inferred resource of 51.4 million tonnes @ 1.31% Li20.

More to come

The company also aims to further enhance the size and grade of this resource through additional drilling, with 60,000m of extra drilling planned.

In addition, it highlights that opportunities exist to expand and build the mineral resources proximal to the known Moblan and Moleon deposits. In these areas exploration has indicated that lithium mineralisation may extend to the north, northeast and at depth.

Management believes further diamond drilling could potentially upgrade some of the inferred mineral resources to the indicated category and identify additional mineral resources down-plunge and in the vicinity of the currently identified mineralisation, including extra drilling between the Main/Inter and Moleon dyke groups.

Sayona's Managing Director, Brett Lynch, commented:

Speed and tonnes are crucial and with our North American Lithium operation in production, we are now bringing significant added resources to the market. Moblan now represents one of the single largest lithium resources in North America, justifying our move to fast-track a major drilling program that has delivered a resource within just a year of acquisition.

Sayona already has the leading advanced lithium resource base in North America and this latest expansion further entrenches our competitive advantage, particularly given our projects' favourable access to infrastructure, market proximity and availability of low-cost, sustainable hydropower.

Together with our established Abitibi lithium hub in the south, Sayona has quickly developed two emerging centres of lithium production amid surging demand from North America's EV and battery revolution. As we progress these projects from spodumene concentrate production towards downstream processing, the significance of these assets will only increase as the market scrambles for supply.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

Miner standing in front of trucks and smiling, symbolising a rising share price.
Materials Shares

Core Lithium share price storming higher on 'excellent' exploration results

ASX investors are sending Core Lithium shares flying higher today.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

Forget Fortescue and buy this ASX mining stock for a 30%+ return

Goldman Sachs thinks this miner is a far better option for investors seeking iron ore exposure.

Read more »

Man with his hand on his face looking at a falling share price chart on a tablet.
Materials Shares

Is the beaten down Mineral Resources share price a bargain buy now?

Let's see what Bell Potter is saying about the miner after Monday's selloff.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Materials Shares

Why did the Core Lithium share price hit a wall in October?

The Core Lithium share price rally came to an abrupt end in October. But why?

Read more »

Businessman walking down staircase with suitcase, at sunrise
Materials Shares

Mineral Resources shares sink 7% on CEO exit and 'major actions'

This mining company's CEO is leaving following a scandal.

Read more »

A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price
Materials Shares

Why this ASX lithium stock almost doubled in value in October

This lithium miner made its shareholders smile last month. But why?

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Materials Shares

Guess which ASX All Ords stock just rocketed 80%

What is getting investors excited about this stock today? Let's find out.

Read more »

two businessmen shake hands in a close up mid-level shot with other businesspeople looking on approvingly in the background.
Materials Shares

Core Lithium share price higher on 'invaluable' ex-Rio Tinto appointment

The lithium miner has made a new addition

Read more »