Sayona Mining Ltd.: Itabela Drilling Defines Broad Zones of Mineralisation

Brisbane - Sayona Mining Ltd. (ASX:SYA) is pleased to announce the results from its first drilling program at the Itabela graphite project in Brazil.

The program has verified the results of the historical drilling and confirmed the extension of mineralisation to depth beyond the limit of previous drilling. The program has also demonstrated that the large flake mineralisation and soft saprolitic rock continues to at least 84 metres depth in the centre of the deposit, the limit of the deepest hole. The aircore drilling technique achieved excellent sample recoveries at low exploration cost.

Significant intersections from the first drilling program, include:

Sao Manuel:

- 77 metres at 2.9% TGC from 7 metres, including 33 metres at 3.04% TGC and 20 metres at 4.08% TGC

- 26 metres at 4.01% TGC from 18 metres; and

- 43 metres at 3.14% TGC from 18 metres.

Sao Rubens:

- 23 metres at 4.78% TGC from 3 metres; and

- 48 metres at 3.65% TGC from 3 metres.

A high-grade intercept of 12.09% TGC was reported in shallow levels at Sao Rubens in hole SIRC024, and visible inspection of the drilling sample indicates a high level of super jumbo, jumbo and large flake graphite.

Forty-nine air-core and reverse circulation drill holes totalling 2,440 metres were completed at the Sao Manuel and Sao Rubens prospects. The aim of the program was to expand, and verify the previous drilling, and also to test the depth extensions below the limit of previous drilling (which was typically 10 - 20 metres), and validate assays from historical drilling programs.

The Company believes there is potential to identify additional mineralisation which is largely open in all directions. The Company is now reviewing all the drilling information and project acquisition terms to determine whether the project will meet its investment criteria, and whether it can structure a long-term arrangement to continue exploration and development the project.

Itabela Drilling Program

Forty-nine air-core and reverse circulation drill holes totalling 2,440 metres were completed at the Sao Manuel and Sao Rubens prospects, during March and April 2016 (see Appendix A and B in the link below for a full tabulation of the drilling results, drill collar location plan and cross sections). The aim of the drilling program, included:

- Testing the grade, strike and lateral extensions of known mineralisation at Sao Manuel and Sao Rubens;

- Testing depth extensions to known mineralisation where the limit of previous auger drilling is generally between 10 and 20 metres from surface; and

- Validating assays from historical drilling programs.

The graphite mineralisation is hosted in a sequence of very deeply weathered, saprolitic paragneiss which extends down to at least 84 metres, the limit of current drilling. The saprolite mineralisation remains very soft and friable with visible super jumbo, jumbo and large flake graphite consistently observed in most drill intersections, and along road cuttings exposed by surface earthworks to prepare drill access and pads.

Sao Manuel

Forty drill holes were completed at the Sao Manuel prospect over 1.7 kilometres of strike extent, and to a maximum depth of 85 metres in some areas. The width of the mineralisation pinches and swells along strike but is typically defined over 80 to 100 metres, but remains open to both the east and west. Best intersections, include:

- 77 metres at 2.9% TGC from 7 metres, including:

-- 33 metres at 3.04% TGC
-- 20 metres at 4.08% TGC

- 26 metres at 4.01% TGC; and

- 43 metres at 3.14% TGC.

Further drilling will be required to improve the definition of the mineralisation along strike, the lateral extent and at depth.

Sao Rubens

Nine drill holes were completed at the Sao Rubens prospect over 90 metres of strike extent, and to a maximum depth of 67 metres. The Sao Rubens prospect is demonstrating higher grades than Sao Manuel and visible jumbo and large flake graphite throughout all the samples. Best intersections, include:

- 23 metres at 4.78%TGC from 3 metres; and

- 48 metres at 3.65%TGC from 3 metres.

The Sao Rubens target comprises five north-south striking mineralised zones. Nine holes have been drilled in only one of the five target zones. More drilling will be required to define the extent of the mineralisation in the first zone drilled. The mineralisation remains open in all directions. Sao Rubens will be a high priority future drill target given the more attractive grades, and the good flake size and metallurgy previously reported in this area.

Project Next Steps

The Company believes there is potential to identify additional mineralisation which is largely open in all directions. The Company is also reviewing the project acquisition terms to determine whether the project will meet its investment criteria, and whether it can structure a long-term arrangement to continue the exploration and development the project.

To view Appendix A and B, please visit:
http://abnnewswire.net/lnk/ZV6BVG29


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
www.sayonamining.com.au