Sayona Mining (ASX:SYA) shares are on the rise today, following the company securing an option from Great Sandy Pty Ltd to acquire an 871 square kilometre package of tenements in the world-class Pilgangoora district of Western Australia.
The package includes the Mallina project with newly identified spodumene pegmatite.
Highlights include rock chip samples up to 2.13% lithium in discovery pegmatite, with the average of the 10 rock chip samples collected to date being 1.28% lithium.
Mallina is located 80 kilometres west of the Pilgangoora lithium deposits of Altura Mining (ASX:AJM) and Pilbara Minerals (ASX:PLS), and compliments the company’s other 1,000 square kilometre lithium exploration portfolio in the Pilbara region.
Additional highlights at Mallina
- Spodumene crystals over 20 centimetres in diameter identified within the discovery pegmatite, along a 500 metre strike zone; and
- Pegmatite swarm remains unexplored, and therefore the high potential for additional discoveries.
The company plans to commence mapping and geochemical sampling in early 2017, to generate drill targets.
Consideration
The purchase terms include an option to acquire 80% interest in all the tenements by making staged payments in cash or shares at Great Sandy’s election of $300,000 within 12 months and $300,000 within 24 months (or $500,000 within 18 months at Sayona’s election), and free carrying Grant Sandy to Decision to Mine.
Great Sandy can elect to convert the 20% interest to a 2% gross smelter royalty.
Sayona is required to make a $30,000 deal signing payment and commit to minimum expenditure of $100,000 within the first 12 months.
Details on the Mallina Spodumene Project
The Mallina project overlies Archaean sediments and mafic volcanics which have been intruded by post tectonic monzogranite.
The area does not appear to have been prospected for pegmatite mineralisation before the recent discovery, despite the combination of post tectonic granite, structure and proximity to the Wodgina / Pilgangoora lithium discoveries to the east.
The discovery pegmatite was recently identified during routine reconnaissance of the area.