- Definitive Feasibility Study of spodumene concentrate
production at North American Lithium increases annual production
targets in advance of first shipments to customers
- JORC and NI 43-101 compliant Measured & Indicated
Mineral Resources at Moblan increased to 41.1 million metric tons @
1.32% Li2O at a cut-off grade of 0.55% Li2O
Piedmont Lithium Inc. (“Piedmont” or the “Company”)
(Nasdaq:PLL; ASX:PLL), a leading global developer of lithium
resources, today announced that the Company’s joint venture
partner, Sayona Mining (“Sayona”) (ASX:SYA), has released a
definitive feasibility study (“DFS”) for the jointly-owned North
American Lithium (“NAL”) project, and increased lithium mineral
resources at its 60%-owned Moblan Lithium Project (“Moblan”), both
in the province of Quebec. Piedmont holds a 25% stake in NAL and an
equity interest of approximately 14% in Sayona. Sayona completed
the technical studies for NAL and Moblan in accordance with both
JORC Code and NI 43-101 requirements.
The NAL DFS contemplates increased annual spodumene concentrate
production averaging 190,000 metric tons per year (“tpy”) over a
20-year mine life, with a target of 226,000 tpy in years one
through four of steady state operations and approximately 186,000
tpy beginning in year five. The revised production targets,
combined with higher spodumene concentrate pricing, resulted in an
increase to the net present value for the NAL project compared to
the prefeasibility study completed in 2022.
As part of the DFS and mine restart efforts, Sayona undertook a
strategic review of mineral resources and ore reserves to create
opportunities to focus on higher-grade, open-pit material and to
improve project net present value. The revised block model has
resulted in a reduction in ore reserves and certain Indicated
Resources have been reclassified as Inferred Resources based on new
model interpretation. The study contemplates a mine life of 20
years, reduced from the prefeasibility study estimate of 27 years,
through the elimination of underground mining.
NAL is one of the projects of Sayona Quebec, a joint venture
between Sayona (75%) and Piedmont (25%). Piedmont holds an offtake
agreement with Sayona Quebec to purchase the greater of 113,000 tpy
or 50% of the joint venture’s spodumene concentrate production.
Piedmont subsequently has agreements with LG Chem and Tesla to
provide spodumene concentrate from NAL beginning in H2 2023. Sayona
Quebec is undertaking a prefeasibility study to explore downstream
production at NAL and expects results in Q2 2023.
Separately, Sayona has announced a significant increase in
mineral resources at its 60%-owned Moblan project in northern
Quebec. Measured and Indicated Mineral Resources at Moblan now
total 41.1 million metric tons @ 1.32% Li2O using a 0.55% Li2O
cut-off grade, making Moblan one of North America’s most
significant spodumene ore bodies.
Piedmont’s Chief Operating Officer Patrick Brindle said, “The
results of the DFS underscore NAL’s role as a significant lithium
producer positioned to meet the requirements of the Inflation
Reduction Act of 2022. Production is ramping up at NAL, and we look
forward to making initial shipments to our customers LG Chem and
Tesla later in 2023. Further, we congratulate our partners at
Sayona on the significant mineral resource expansion at their
60%-owned Moblan project. We are very pleased with our positions as
Sayona’s joint venture partner in the Abitibi Hub lithium projects
and as Sayona Mining’s largest shareholder. Quebec is an ideal
location for lithium chemicals in the future, given the province’s
abundant mineral resources, low-cost hydroelectricity, proximity to
U.S. markets, and supportive provincial government.”
Cautionary Note to U.S. Investors
Piedmont’s public disclosures are governed by the U.S. Exchange
Act of 1934, including Regulation S-K 1300 thereunder, whereas
Sayona discloses estimates of “measured,” “indicated,” and
“inferred” mineral resources as such terms are used in the JORC
Code and Canada’s National Instrument 43-101. Although S-K 1300,
the JORC Code, and NI 43-101 have similar goals in terms of
conveying an appropriate level of confidence in the disclosures
being reported, they at times embody different approaches or
definitions. Consequently, investors are cautioned that public
disclosures by Sayona prepared in accordance with the JORC Code or
NI 43-101 may not be comparable to similar information made public
by companies, including Piedmont, subject to S-K 1300 and the other
reporting and disclosure requirements under the U.S. federal
securities laws and the rules and regulations thereunder.
The statements in the link below were prepared by, and made by,
Sayona. The following disclosures are not statements of Piedmont
and have not been independently verified by Piedmont. Sayona Mining
is not subject to U.S. reporting requirements or obligations, and
investors are cautioned not to put undue reliance on these
statements. Sayona’s original announcements can be found here and
here.
About Piedmont Lithium
Piedmont Lithium (Nasdaq:PLL; ASX:PLL) is developing a
world-class, multi-asset, integrated lithium business focused on
enabling the transition to a net zero world and the creation of a
clean energy economy in North America. Our goal is to become one of
the largest lithium hydroxide producers in North America by
processing spodumene concentrate produced from assets where we hold
an economic interest. Our projects include our Carolina Lithium and
Tennessee Lithium projects in the United States and partnerships in
Quebec with Sayona Mining (ASX:SYA) and in Ghana with Atlantic
Lithium (AIM:ALL; ASX:A11). These geographically diversified
operations will enable us to play a pivotal role in supporting
America’s move toward energy independence and the electrification
of transportation and energy storage. For more information, follow
us on Twitter @PiedmontLithium and visit
www.piedmontlithium.com.
Piedmont Lithium Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of or as described in securities legislation in the
United States and Australia, including statements regarding
exploration, development, and construction activities of Sayona
Mining and Piedmont; current plans for Piedmont’s mineral and
chemical processing projects; and strategy. Such forward-looking
statements involve substantial and known and unknown risks,
uncertainties, and other risk factors, many of which are beyond our
control, and which may cause actual timing of events, results,
performance or achievements and other factors to be materially
different from the future timing of events, results, performance,
or achievements expressed or implied by the forward-looking
statements. Such risk factors include, among others: (i) that
Piedmont or Sayona Mining will be unable to commercially extract
mineral deposits or may experience delays in delivering any
minerals extracted, (ii) that Piedmont’s or Sayona Mining’s
properties may not contain expected reserves, (iii) risks and
hazards inherent in the mining business (including risks inherent
in exploring, developing, constructing and operating mining
projects, environmental hazards, industrial accidents, weather or
geologically related conditions), (iv) uncertainty about Piedmont’s
ability to obtain required capital to execute its business plan,
(v) Piedmont’s ability to hire and retain required personnel, (vi)
changes in the market prices of lithium and lithium products, (vii)
changes in technology or the development of substitute products,
(viii) the uncertainties inherent in exploratory, developmental and
production activities, including risks relating to permitting,
zoning and regulatory delays related to Piedmont’s projects as well
as the projects of Piedmont’s partners in Quebec and Ghana, (ix)
uncertainties inherent in the estimation of lithium resources, (x)
risks related to competition, (xi) risks related to the
information, data and projections related to Sayona Mining, (xii)
occurrences and outcomes of claims, litigation and regulatory
actions, investigations and proceedings, (xiii) risks regarding
Piedmont’s ability to achieve profitability, enter into and deliver
product under supply agreements on favorable terms, Piedmont’s
ability to obtain sufficient financing to develop and construct
Piedmont’s projects, its ability to comply with governmental
regulations and our ability to obtain necessary permits, and (xiv)
other uncertainties and risk factors set out in filings made from
time to time with the U.S. Securities and Exchange Commission
(“SEC”) and the Australian Securities Exchange, including
Piedmont’s most recent filings with the SEC. The forward-looking
statements, projections and estimates are given only as of the date
of this press release and actual events, results, performance, and
achievements could vary significantly from the forward-looking
statements, projections and estimates presented in this press
release. Readers are cautioned not to put undue reliance on
forward-looking statements. Piedmont disclaims any intent or
obligation to update publicly such forward-looking statements,
projections, and estimates, whether as a result of new information,
future events or otherwise. Additionally, Piedmont, except as
required by applicable law, undertakes no obligation to comment on
analyses, expectations or statements made by third parties in
respect of Piedmont, its financial or operating results or its
securities.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230418005450/en/
Erin Sanders SVP, Corporate Communications & Investor
Relations T: +1 704 575 2549 E: esanders@piedmontlithium.com
Christian Healy/Jeff Siegel Media Inquiries E:
Christian@dlpr.com E: Jeff@dlpr.com
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