Sayona Mining Ltd. Strategic Entry into the Western Australian Lithium Market

Brisbane - Sayona Mining Ltd. (ASX:SYA) (OTCMKTS:DMNXF) ("Sayona" or the "Company") is pleased to announce that it has secured a package of lithium prospective exploration tenements in Western Australia. The acquisition is complimentary to the Company's graphite development strategy, and objective of securing, exploring and developing the raw materials required for the production of lithium-ion batteries.


Highlights

- Package of lithium prospective tenements secured in Western Australia, a globally significant region for the production of lithium

- Undertaking due diligence on a number of prospective lithium projects in North and South America

- Acquisitions complement graphite projects and Company's objective of sourcing and developing the raw materials required to manufacture lithium-ion batteries

Lithium is a high-value product which is anticipated to be in tight supply as the demand for lithium-ion batteries continues to experience transformational growth due to use in the new green technology sectors.

Both projects have excellent regional infrastructure, and are close to the Asian markets for downstream processing and battery manufacturing.

The Company has secured tenements in two project areas totalling 364 km2, in Western Australia, including:

- Tabba Tabba - potential for lithium prospective pegmatites in a geological setting similar to the adjacent Tabba Tabba mine, and nearby Pilgangoora and Wodgina pegmatite fields; and

- Mt Edon - secures the bulk of lithium anomalous pegmatite field, with mapping identifying new areas of lithium mineralisation.

In addition, the Company is pursuing other lithium opportunities, including due diligence on a number of prospective lithium properties in both North and South America.

Mr Corey Nolan, CEO of Sayona Mining, said "The Company is pleased to have secured a strategic position in a number of highly prospective tenements in Western Australia, a state which is growing in dominance as a major supplier of lithium to the global market. Coupled with the extensive experience and expertise in lithium through board members involvement in Company's including Altura Mining Ltd. and Orocobre Ltd., the Company is well positioned to pursue its strategy of suppling the key raw materials required to build a lithium-ion battery".

Western Australian Project Overview

Western Australia is a premium lithium province with world-class, high-grade lithium deposits associated with rare metal pegmatites. The Company has secured two project areas covering a total 364 km2 (see figure 1 in link below) as part of its strategic move into lithium exploration, including:

- Tabba Tabba located in the East Pilbara, adjacent to the Tabba Tabba tantalum mine and 30 km north of the Pilgangoora lithium discoveries of Pilbara Minerals Ltd. and Altura Mining Ltd.; and

- Mt Edon located in the South Murchison and secures an area hosting a large number of prospective lithium bearing fractionated pegmatites.

The projects host tantalum mineralisation within complex rare metal pegmatites. This class of fractionated pegmatite includes prospective lithium-cesium-tantalum ("LCT") pegmatites, and especially albite-spodumene pegmatites, the target for the Company's high grade lithium exploration strategy.

Both projects have had little or no past lithium focussed exploration and the Company is encouraged that its initial reconnaissance work has been positive, identifying lithium minerals and geochemistry indicative of fractionated rare metal pegmatites.

The districts have excellent regional infrastructure including sealed roads, labour, and sea ports for export to the Asian markets for downstream processing and battery manufacturing.

Terms of the project area purchase agreements, includes:

- Attgold Pty Ltd ("Attgold") - SYA paid Attgold $15,000 on signing and is required to make payments of $80,000 within 12 months of signing of the agreement, respectively, to acquire a 100% interest in the pegmatite rights to tenement E45/2364, and; SYA has paid $15,000 to acquire a 100% interest in the pegmatite rights to E59/2055 with a 1% NSR royalty to apply to any production; and

- Mr Bruce Legendre - SYA paid Bruce Legendre $15,000 and has agreed to issue 1,000,000 fully paid shares in Sayona Mining Ltd. to purchase an 80% interest in the lithium rights to E59/2092. Sayona has the option to purchase the remaining 20% equity in the tenement for $100,000 within 3 years, plus a 1% royalty on any lithium production within the tenement.

Tabba Tabba Project

The Tabba Tabba project tenements cover the southern 10 km extension to the Tabba Tabba greenstone stratigraphy and an area to the east which are prospective for spodumene bearing pegmatites similar to those located at Pilgangoora and Mount Cassiterite at Wodgina.

The project area remains virtually untested for its lithium potential. Reconnaissance work by the Company has identified stream geochemical anomalism suggesting the presence of lithium prospective rare metal pegmatites.

The Company has carried out an orientation stream geochemical survey of 13 samples, including follow up to a historic stream tin (1,700 ppm Sn) and tantalum (5,000 ppm Ta) anomaly reported by CSR in 1982 (see figure 2). Results included an area of elevated tantalum, with stream location 7007 returning 24.7ppm Ta. The results suggest the presence of fractionated pegmatite within the stream samples drainage. Additionally, four rock samples were collected, with sample 10001 returning strongly anomalous tantalum (387 ppm), and anomalous rubidium, (1,390 ppm) and Cesium, (171 ppm).

Lithium was not significantly elevated but the Company is encouraged by this indication of previously unidentified target rare metal pegmatites within the project area.

The Company has applied for exploration licence ELA45/4703 to secure the area adjoining the anomalous stream results. The Red Rock exploration license covers the northern extension of the Pilgangoora belt and secures the Red Rock pegmatite as well as greenstone remnants and several old dredging claim areas, indicative of past tin - tantalum prospecting. These display a potential for undiscovered pegmatites in the area.

Further mapping, geochemistry and analysis of pegmatites is planned over the tenement areas in order to identify prospective lithium targets for drilling.

Mount Edon Project

Mount Edon covers an extensive swarm of pegmatites within the southern portion of the Paynes Find greenstone belt, South Murchison. These pegmatites have not previously been assessed for their lithium potential but have been variably prospected and mined for tantalum, mainly within an excised mining lease (see Figure 2 in link below).

The Mt Edon project is considered prospective due to:

- The large number of pegmatites including rare metal pegmatites including albite rich pegmatites (prospective for albite - spodumene pegmatite types); and

- A general zonation is apparent, with more fractionated and lithium anomalous pegmatites in the western part of the system giving an exploration focus in an area where previously unidentified pegmatites have been located.

The Mt Edon pegmatite system is located within greenstone rocks along a contact zone with the Coolagee Hill granite batholith. An 11 km strike extent of the prospective greenstone, a horizon is present within the project area with much of it remaining unexplored. Reconnaissance by the Company has identified new areas of pegmatite occurrence as well three new areas of lithium mica (lepidolite) mineralisation as shown in Figure 3 in link below.

The known pegmatites show a general mineral zonation, with microcline feldspar occurrences in the east, and more complex and evolved albite bearing differentiated pegmatites containing tantalum niobium and lithium in the west.

The western pegmatites have workings and pits, targeting tantalum mineralisation. The main areas of this past tantalum mining activity are within a mining lease, excised from the Sayona project area. Within this excised area, past rock sampling of lepidolite pegmatite has returned 2.2% Li.

Within the project area the only recorded drilling of pegmatite was a tantalite target in 2002 which intersected an anomalous zone of lithium mineralisation to 0.19% Li with anomalous rubidium and cesium.

The Company is exploring the project for highly evolved, albite-spodumene type pegmatites, initially targeting the western project area. Reconnaissance in this area has identified pegmatite up to 2 km west of previously known occurrences and is considered to have the best potential for discovery of high grade lithium hosted spodumene mineralisation.

It is anticipated that when sample results are received ranking of the pegmatites lithium prospectivity can help focus further exploration and drill target generation.


New Project Opportunities in North and South America

The Company is pursuing other lithium opportunities, including due diligence on a number of prospective lithium properties in both North and South America.

To view figures and tables, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-SYA-913123.pdf


About Sayona Mining Ltd:

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