Sayona Environnement Projet Authier
Sayona Environnement Projet Authier
Sayona Environnement Projet Authier
5 JULY 2018
Vegetation inventory, including wetlands and species with special status;
Inventory of fish and fish habitats;
Inventories of wildlife species with special status;
Assessment of surface and ground water quality; and
Hydrogeological and hydrological baseline conditions.
The reports are available on the Company’s website. In addition to these studies, a dust and
noise analysis survey is underway and should be completed in September.
The studies have not identified any potential environmental issues at the Authier project or any
major impact on the local communities. The Authier project is planned to be an operation
processing 1,900 tonnes of ore per day which is significantly smaller than other operations in the
district.
Permitting Process Update
The Company’s strategy is to initially develop Authier and sell lithium concentrates whilst it
completes the test work, permitting and feasibility study for a downstream processing facility
producing lithium carbonate and/or hydroxide. The strategy is analogous to other lithium
developers in Quebec including Nemaska Lithium and North American Lithium.
The Company has been completing the permitting activities required by both the Ministry of
Energy and Natural Resources (“MERN”) and the Ministry of Sustainable Development,
Environment and the Fight against Climate Change (“MDDELCC”).
MERN Authorisation
Mining lease applications are submitted to the MERN pursuant to Section V (articles 100 to 126)
of the Mining Act (Québec). A mining lease can only be granted after the following conditions
are fulfilled:
Completion of a feasibility study (in progress and due for completion July 2018);
Completion of a scoping and marketing study for processing within Quebec (in progress);
Rehabilitation and restoration plans have been submitted to the Government;
The MDDELCC authorization required under the Environment Quality Act has been issued
for the project (in progress);
A consultation report (in progress); and
A survey plan has been approved by the Office of the Surveyor-General of Québec (in
progress).
Before a mining lease can be granted for a mine that has a production capacity of less than
2,000 metric tons per day, a public consultation initiated by the proponent must be held in the
region in which the mine will be located.
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The Company has now facilitated 5 public consultation sessions and more than 40 information
meetings with different stakeholders located near the Project including the La Motte and Amos
municipalities, and the Pikogan First Nations. Further information sessions are planned during
follow-up meetings in September 2018. The purpose of the meetings is to present the results of
the environmental studies and address any stakeholder concerns about the project.
Community concerns are being addressed and implemented in the ongoing development
plans. Examples include:
Assessing the potential for utilisation of waste rock as a construction material in the local
district;
Implementing strategies for minimising dust emissions during operation;
Locating plant and infrastructure to avoid impacting on the wetlands habitat;
Developing blasting practises that minimise noise; and
Designing the waste rock storage areas to have minimum visual impact.
In addition, the Company has an active communication strategy and has been engaging with
the broader community outside the immediate project area. Meetings have been held with
regional councils, other mining companies successfully operating in the region, Government
organisations, and other key business stakeholders in the region.
The Company is aware that some members of the community (and from non-related different
localities) do not support mining projects and have expressed their opposition at the
consultation meetings. There has also been concern that the project could impact the nearby
Esker which is a source of potable water. This has been addressed through the environmental
studies undertaken by highly-regarded hydrogeologist. The results showed that the Authier
project is located downstream from the Esker and that no impact is anticipated on the
groundwater quality in the Esker, under any conditions. Appendix A outlines a number of the
environmental protection strategies the Company will implement into its future development
plans.
MDDELCC Authorisation
The project is subject to various environmental laws and must be authorized by the MDDELCC
pursuant to the Environment Quality Act. This permitting process involves the filing of various
documents and environmental studies, including potential environmental impacts of the
project and related monitoring and mitigation measures.
In March 2018, amendments to the Environmental Quality Act came into force allowing the
Government, in exceptional circumstances, on the recommendation of the Minister of
MDDELCC, to submit a project to the environmental impact assessment and review procedure
if in the Government’s opinion the project may raise major environmental issues and public
concern warrants it.
The Company believes its environmental studies have demonstrated that Authier will have
minimal impact on the environment and community. As such, it was planning to submit its
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application to obtain the MDDELCC project development authorisation in August 2018, with the
objective of obtaining key project development authorisation in early 2019.
However, on 29th June 2018, the MDDELCC issued a press release indicating that the Ministry
intended to recommend to the Government that the Company’s Authier mining project be
submitted to the environmental impact assessment and review procedure, unless the Company
undertakes to file an application to give the Office of Public Hearings (Bureau d’audiences
publiques sur l’environment –BAPE) the mandate to hold a public hearing. Authier was being
developed outside the BAPE process due its planned production rate of less than 2,000 tonnes
of ore per day as defined by the Environmen Quality Act.
The Company will be meeting with MDDELCC on 10 July 2018 to address this request and to
assess the most optimal path forward for the project development.
The BAPE is a public, neutral body reporting to the Minister of MDDELCC. It allows interested
parties to learn about and exercise their right to speak about projects that could have an
impact on the environment and their quality of life. More specifically, the BAPE's mission is to
inform government decision-making by providing to the Minister of MDDELCC with analyses and
opinions that take into account the sixteen principles of the Sustainable Development Act. To
fulfil its mission, the BAPE disseminates to the public all relevant information available on a
project or a question submitted to it by the Minister and takes into account the concerns and
suggestions submitted to it. The opinions of the BAPE are the result of rigorous analysis and
investigation that integrate the ecological, social and economic issues of the projects.
In the event the Company elected to proceed down the BAPE approval path, the Company
believes it can complete all the environmental work required for a full Environmental Impact
Assessment standard as required by the Environment Quality Act within several months. The
initial phase of the BAPE takes two months, and the inquiry and public hearing process of the
BAPE takes place over a period of no more than four months, followed by approval of the
Minister.
Authier Project Provides Significant Benefits to the Local Community
The Authier project will create significant sustainable benefits to the community and Quebec,
including:
The mine will create up to 130 jobs in the district for the project life of 17-years;
Contracts will be available for service providers in the district;
Employment and contract opportunities with the First Nations community; and
Generation of taxes and benefits for the Province of Quebec.
Directors have Successful Track Record of Low Impact Project Development
Three of the Company’s directors are also directors of Altura Mining Limited, an Australian-based
lithium company that has successfully completed all the technical and environmental studies,
permitting, indigenous agreements, financing, construction and operation of the Pilgangoora
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spodumene project. The AUD$150 million Altura project will process 1.54 million tonne per year
of ore to produce 230,000 tonnes per annum of SC6 spodumene concentrate. The project has
been developed in accordance with strict environmental compliance, impeccable safety
record and minimal impact on the communities it works within. The Directors of Sayona believe
they bring world’s best practice to the development of lithium projects and will apply their
experience and expertise to the development of Authier.
Dan O’Neill, Managing Director, commented “The Company is very pleased to scientifically
demonstrate the low environmental impact of the Authier project. The Company now has a
large database of scientific data collated and will continue its monitoring programs throughout
the project life. Finalisation of the studies represents another major step forward in the
development of the Authier project and paves the way for completing the public consultation
and advancing the permitting process on completion of the Definitive Feasibility Study in July
2018.
Whilst the Company is disappointed by the announcement from the Quebec Minister of
Sustainable Development, Environment and the Fight Against Climate Change, it can assure
shareholders that is has been following the applicable permitting laws developed by the
Quebec Government. Under no circumstances has the Company tried to short cut the process
for completing the studies and permitting the project. The 2,000 tonne per day or less permitting
regime has been in law since 2013 and is available to all resource companies in Quebec. The
Company will vigorously defend its environmental study process and demonstrate to the
Government that the Authier project is not a risk to the environment”.
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Figure 1: Sayona Canadian team meeting the local communities in La Motte.
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Water in process ponds will be treated, if required, before any discharge into the
environment;
The scale of the mining operations are relatively small at around 1,900 tons per day which
minimizes the impact on the community and environment;
Progressive site reclamation and remediation planning during operation and at the end
of mine activities.
Locate all of the infrastructures in a watershed downstream that will ensure that no
possible contaminants can affect the water quality of the Esker.
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The Authier JORC (2012) compliant Ore Reserve and Mineral Resource estimates are tabulated below at
a 0.45% Li20 cut-off grade.
Authier JORC Ore Reserve Estimate (0.45% Li20 cut‐off grade)
Category Tonnes (Mt) Grades (%Li20) Contained Li20
Proven Reserve 5.59 0.99% 55,341
Probable Reserve 6.07 1.06% 64,363
Total Reserves 11.66 1.03% 120,098
Authier JORC Mineral Resources Estimate (0.45% Li20 cut‐off grade)
Category Tonnes (Mt) Grades (% Li20) Contained Li20
Measured 6.09 1.01% 61,509
Indicated 11.55 1.04% 120,120
Inferred 2.82 0.98% 27,636
Total Resources 20.46 1.02% 209,265
The Authier lithium deposit is amenable to open-cut mining methods, and processing using a crushing,
grinding and flotation flowsheet to produce on average 96kt per year of 6% Li20 concentrate over the
projected 17 year mine life.
The Company is currently completing a Definitive Feasibility Study, due for completion in mid-2018. During
the second half of 2018, the Company will complete the permitting, offtake and financing with the plan
to commence construction in the 1Q2019 and first production in 2020.
In addition, the Company controls a portfolio of lithium and graphite exploration projects in Western
Australia.
Sayona Mining is committed to the local communities in which we operate, the environment and
responsible management of natural resources and the safety of our people, suppliers and communities.
Please visit us as at www.sayonamining.com.au
Forward Looking Statements
This announcement may contain forward-looking statements. These forward-looking statements are
based on Sayona’s expectations and beliefs concerning future events. Forward looking statements are
necessarily subject to risks, uncertainties and other factors, many of which are outside the control of
Sayona, which could cause actual results to differ materially from such statements. Sayona makes no
undertaking to subsequently update or revise the forward-looking statements made in the
announcement, to reflect the circumstances or events after the date of that announcement.
Reference to Previous ASX Releases
This document refers to the following previous ASX releases:
Expanded Authier JORC Resource, 12 April 2018
Authier maiden JORC Ore Reserve estimate, 11 December 2017
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The Company confirms that it is not aware of any new information or data that materially affects the
information included in the original market announcement and all material assumptions and technical
parameters continue to apply and have not materially changed. The Company confirms that the form
and context in which the Competent Person’s findings are presented have not been materially modified
from the original market announcements.
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