Sayona Mining Ltd.: Corkwood Drilling - Broad Zones of Graphite Mineralisation

Brisbane, Feb 17 - Sayona Mining Limited (ASX: SYA) ("Sayona" or the "Company") is pleased to announce the assay results from its maiden Corkwood prospect drilling program at the East Kimberley project, Western Australia.

Highlights from the drilling program, included:

- Delineation of broad zones of shallow flake graphite mineralisation, including;

o 16m @ 5.03% TGC* from 13m in SKRC006, Windrush,

o 22m @ 3.8% TGC from 9m in SKRC008, Windrush,

o 36m @ 3.39% TGC from 7m in SKRC015, Snowbird,

o 54m @ 3.05% TGC from14m in SKRC016, Snowbird,

o 109m @ 1.84% TGC from 22m in SKRC017, Flying Ant,

- Mineralisation is open at depth and along strike;

- Assays up to 12.2% TGC;

- Mineralisation from surface, with shallow dip and good geometry, characteristics amenable to low cost open-cut mining; and

- Visible coarse graphite observed - graphite study underway to help characterise the quality of the mineralisation.

The 33 reverse circulation drill holes totalling 2,949 metres were located at six prospect areas along a 7 km strike extent. Every hole intersected graphite mineralisation. A onel metre assay of 12.2% provides encouragement that further drilling will identify high grade zones within the remaining 20km+ strike extent of the target horizon.

Mineralisation is from surface and the broad widths and shallow dip of the mineralisation has favourable geometry for open cut mining. Work is underway to evaluate the flake size and quality of the intersected mineralization. Diamond drilling is being planned to gain metallurgical information and to provide graphite concentrate for off take evaluation.


Corkwood Drilling Program

All the assay results from the maiden drilling program in December 2015 at the Corkwood graphite project in the East Kimberley have now been received. The results have defined broad, near surface coarse flake graphite mineralisation. Six prospect areas have been drilled, located along a 7km strike extent of a 25km geophysical anomaly where Sayona discovered graphite mineralisation in 2015.

The drilling has intersected coarse visual flake graphite mineralisation, with graphite present in every hole. Mineralisation is near surface and has a broadly tabular geometry and shallow dip. Two prospect areas, Windrush and Snowbird, each returned better grades, including:

- 16m @ 5.03% TGC from 13m in SKRC006, Windrush; and

- 54m @ 3.05% TGC from14m in SKRC016, Snowbird.

Results provide encouragement that further drilling can lead to the definition of a mineral resource.

Graphite mineralisation is hosted within a gneissic package of the Tickalara high grade metamorphic basement. The graphite mineralisation occurs as a broad single zone (for example the Firefly and Flying Ant prospects), or within two close spaced horizons (for example at the Windrush, Snowbird and Tempest-Tornado prospects).

The 33 reverse circulation drill holes for 2,949 metres were sited over six prospect areas, displayed in Figure 1 with collar and hole details presented in Table 1 in link below.

The Windrush prospect intersected the highest grade of graphite mineralisation, with 12.2% TGC recorded from 17-18m in SKRC006. The 8 drillholes were situated on four sections over a strong to moderate versatile domain electro-magnetic ("VTEM") geophysical anomaly and outcropping graphite mineralisation which had been exposed along a pastoral track.

The best intercepts are from SKRC006-7, the southernmost holes, and the mineralisation remains open at depth and totally untested along strike to the south. A cross section of the drill fence is displayed below.

The Snowbird prospect also returned encouraging mineralisation. At this location, a single fence of three drillholes was completed to test a conductive VTEM geophysical anomaly coincident with outcropping graphite mineralisation. A cross section of the drill traverse is displayed below, together with a cross section form the Firefly prospect which displays broad thickness to the graphite mineralisation.


Next steps

Drill chips and composite samples of selected intercepts have been collated and submitted for a petrographic study of the graphite flake size and morphology. Results from this work are anticipated within two weeks and will provide a first indication of the potential quality of the flake graphite mineralisation.

A program of diamond core drilling is being planned, to be carried out as soon as possible after the northern wet season. Core material will be used for metallurgical testwork and flotation testing, and flake graphite concentrate can be used for offtake evaluation.

In the interim, a geophysical study, modelling VTEM conductivity and the known graphite mineralisation is being planned. This work, combined with geological data will help highlight the exploration potential of the remaining 18km strike extent of the graphite prospective anomaly within the project area and help frame the priority exploration for 2016.

To view figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-SYA-906686.pdf


About Sayona Mining Ltd

Sayona Mining Limited (ASX:SYA) is an Australian, ASX-listed, company focused on sourcing and developing high purity flake graphite for use in the rapidly growing new technology sectors and industrial sectors.


Contact

Sayona Mining Limited
Corey Nolan, Chief Executive Officer
Phone: +61 (7) 3369 7058
Email: info@sayonamining.com.au