Sayona Mining Ltd: Potential for New Lithium Deposit at Viau-Dallaire

Brisbane, Australia - Emerging lithium miner Sayona Mining Ltd. (ASX:SYA) (FRA:DML) (OTCMKTS:DMNXF) announced today an Exploration Target for the Viau-Dallaire prospect within the Company's Tansim Lithium Project in Quebec, Canada, highlighting the potential for the development of a new lithium deposit.

Based on recent drilling (refer ASX announcement 9 April 2019), the Exploration Target* has been estimated at between 5 million tonnes, at an estimated grade of 1.2-1.3% Li2O and 25 million tonnes at an estimated grade of 1.2-1.3% Li2O (Table 1*). The mineralisation is open in all directions.

Lithium Project.

The Tansim project comprises 141 mineral claims spanning 8,500 hectares and is prospective for lithium, tantalum and beryllium.

Sayona's Managing Director, Brett Lynch said the Viau-Dallaire prospect could potentially become an important boost to the Company's growth plans in Quebec.

"This Exploration Target demonstrates the potential for Viau-Dallaire to become another key part of our strategy to develop a lithium hub, supporting Quebec's ambitions to generate a complete lithium value chain," he said.

"With our bid progressing for NAL backed by a world-class team, Sayona has the potential to feed spodumene ore from Authier and Viau-Dallaire into NAL's concentrator to generate the necessary quality product for lithium-ion battery manufacturing."

Exploration Target outline

Sayona completed a Phase 1 diamond drilling program at the Viau-Dallaire prospect during February 2019 consisting of 11 holes for 1,129 metres (refer ASX announcement 9 April 2019), which intercepted two subparallel dykes (including a second deeper and non-outcropping dyke), trending a minimum of 350m east-west along strike and dipping 45deg-55deg to the north, both with variable concentrations of coarse grain spodumene mineralisation. Mineralisation is open in all directions.

Based on the drilling data, an Exploration Target* was set based on current geological knowledge concerning the area, as per follows (Table 2 and Figures 1 and 2*):

- Viau-Dallaire Main: this encompasses the mineralised zone tested by Phase 1 drilling, with dimensions of 350m along strike, average mineralised combined width of 50m (10m for dyke 1 and 40m for dyke 2) and up to 150m vertical depth, where some of the earlier shallow holes tested the shallower outcropping pegmatite dyke and were stopped before hitting the deeper and non-outcropping second dyke (Figure 1*)

- Viau-Dallaire along strike extensions: potential strike extensions of known mineralisation at Viau-Dallaire Main to the east and to the west

- Viau-Dallaire down dip extensions: potential deep extension of Viau-Dallaire Main and Viau-Dallaire strike extensions up to 250m vertical depth, including a potential merging of dykes 1 and 2 down dip

- Viau-Dallaire potential subparallel mineralised dykes: potential subparallel mineralised dykes south of Viau-Dallaire main and along strike extensions.

Exploration and drilling at Viau-Dallaire is still in its early stages and further drilling may highlight new mineralised zones, given the east-west structural setting similar to the Authier project.

Drilling highlights - Phase 1 drilling

The 11 diamond drill holes for 1,219m completed at Viau-Dallaire intercepted variable concentrations of spodumene mineralisation distributed in two sub-parallel dykes (including a deeper non-outcropping dyke) with best drilling intercepts including:

- Hole VD19-01 - 6.3m @ 1.28 % Li2O from 3.9m, including 2m @ 1.66 % Li2O from 6m and 6.5m @ 1.28 % Li2O from 13.5m, including 3.5m @ 1.78 % Li2O from 13.5m (shallower dyke);

- Hole VD19-05 - 12.35m @ 1.29 % Li2O from 4m, including 5m @ 1.63 % Li2O from 9m (shallower dyke); and

- Hole VD19-10 - 43.7m @ 0.82 % Li2O from 108.2m, including 16.1m @ 1.26 % Li2O from 135.8m.

Drilling tested 350m strike extension and up to 150m vertical depth. Two main pegmatite albitespodumene pegmatite dykes were intercepted, with an east-west strike dipping 45deg to 55deg to the north (Figure 1*):

- Dyke 1 (upper dyke - outcropping) - 10m to 18m true width averaging 15m true width.

- Dyke 2 (deeper dyke - not outcropping) - 30 to 55m averaging 40m approximate true width

All the dykes showed variable percentages of mostly very coarse to coarse spodumene (crystals of up to 20 cm length and concentrations of 10% to 25% with peaks of 40-50%), with minor fine grain spodumene as well as internal zones of low grade to barren pegmatite.

There is potential for both strike extensions and deeper extensions testing potential coalescence of pegmatite dykes as well as new and not-outcropping pegmatite dykes.

Project outline

Acquired in January 2018, the Tansim project is located just 82km south-west of Sayona's flagship Authier Lithium Project. The project comprises 141 mineral claims spanning 8,500 hectares and is prospective for lithium, tantalum and beryllium.

Historical exploration on the property has included mapping, sampling, geophysics and preparation of a Canadian NI 43-101report.

Access is via a well-maintained paved road to Remigny or Bellecombe (50km south-east of Rouyn-Noranda), then by a series of bush and logging roads. A Hydro Quebec 120 kv power line crosses the forest 1km north of the property.

Mineralisation is hosted within spodumene-bearing pegmatite intrusions striking east-west, dipping to the north and hosted by metasedimentary - metavolcanic rocks of the Pontiac sub-province.

The main prospects are Viau-Dallaire, Viau and Vezina, with exploration activity having included phase 1 diamond drilling at Viau-Dallaire prospect (see detail on drill hole collar location and mineralised intersections in Figures 6 to 10 and Table 3*) as well as an airborne geophysics survey and reconnaissance selective sampling.

Additional work

Additional, phase 2 diamond drilling at Viau-Dallaire to be considered includes:

- Testing the two known spodumene-bearing pegmatite dykes along strike and to depth;

- completing two deep exploration holes looking for additional subparallel dykes;

- confirming the geometry of dyke 2 at shallow levels not intercepted in phase 1 drilling; and

- continuing collection of data for further metallurgical testwork.

Mr Lynch added: "These results highlight the ability of Sayona to expand our lithium assets, supporting Quebec's ambitions to be at the forefront of the global revolution in lithium-ion battery technology. We look forward to further advancing this project together with Authier, while pushing forward with our bid for NAL backed by our world-class support team."

To view tables and figures, please visit:
https://abnnewswire.net/lnk/41D7E22T

About Sayona Mining Ltd:

Sayona Mining Ltd. (ASX:SYA) (OTCMKTS:DMNXF) is an Australian, ASX-listed (SYA) company focused on sourcing and developing the raw materials required to construct lithium-ion batteries for use in the rapidly growing new and green technology sectors. The Company has lithium projects in Quebec, Canada and in Western Australia.

Please visit us as at www.sayonamining.com.au

Source:

Sayona Mining Ltd.

Contact:

Brett Lynch Managing Director Phone: +61 (7) 3369 7058 Email: info@sayonamining.com.au