Lithium demand forecasts by several parties have been dramatically increased recently, driven largely by the expected growth in the use of electric cars driving demand for lithium-ion batteries. 2025 demand forecasts range between 500,000t and 1,000,000 LCE, multiples of the current demand of ~220,000t. Ideally placed to take advantage of this, and which has flown under the radar, is Sayona Mining, owner of the advanced Authier Lithium Project in Quebec, Canada.
Authier is a quality hard-rock spodumene project that has seen significant work (including 15,000m of drilling into the main pegmatite), and has the potential to be a low cost, near term development. This is borne out by the robust PFS delivered in February 2017, which is currently being updated following a resource increase and very positive metallurgical optimisation test-work – this update is due this quarter, followed by a DFS in early 2018.
Authier has ready access to infrastructure, including road, rail and cheap electricity and gas. Being in a mining district, and just 45km from the established mining centre of ValD-or, there is a skilled workforce at hand. Additionally, Quebec, by virtue of cheap power, is the only jurisdiction outside of China that has downstream processing of spodumene concentrate to lithium carbonate – as part of their studies, Sayona will be investigating this value adding opportunity. To read our full report on Sayona please click here.
Mark is a Senior Resources Analyst for Independent Investment Research, with a focus on junior and mid-cap listed resources stocks. With over 10 years as an analyst, following on from 17 years as a geologist, he has a good insight into the sector.