Emerging lithium producer Sayona Mining soared by over 50% last week after it announced it is advancing its Western Australian exploration assets, amid rising global demand for lithium from the accelerating EV revolution.
WA partner, Altura Mining completed its due diligence on Pilbara lithium projects and reached an agreement to commence an earn‐in period. The earn‐in covers a range of lithium tenements in the world‐class Pilgangoora lithium district, with Altura to spend $1.5 million on exploration within three years to earn a 51% interest.
The move follows an increasing focus on Western Australia’s lithium potential, amid rising prices and growing global demand, with the state already home to the world’s largest spodumene mine and other producing miners.
Spodumene concentrate from Western Australia has recently been quoted at more than US$1,200 per dry metric tonne, with some analysts predicting prices will rise by up to 30% through to 2025 due to a lack of third-party, independent supply and with other analysts projecting a growing supply deficit.
The tenements cover areas subject to native title claims by three separate native title groups. Heritage agreements are either in place or being finalised, with clear operative requirements to enable Altura to work with the traditional owners, access the land, and conduct its work activities.
Sayona has retained 100% of the gold and other non‐lithium rights within the tenement area. Sayona’s Pilbara portfolio comprises 12 leases totalling 1,016 sq km in area within the world‐class lithium district.
Sayona’s Managing Director, Brett Lynch commented: “We welcome Altura’s decision to commence the earn‐in period and launch lithium exploration, given its track record of exploration success. This exploration activity provides the potential for further increases in shareholder value from any lithium discoveries by our earn‐in partner, amid rapidly rising spodumene prices and need for independent supply. Importantly, Sayona has a growing presence with multiple projects in the two major lithium markets of the Asia‐Pacific and North America. We are shovel‐ready and set for near‐term production, putting us in an excellent position to benefit from accelerating global lithium demand.”