Sayona Mining Ltd: Quarterly Activities Report June 2024

Brisbane, Australia - It was a quarter of record operational performance for Sayona Mining Ltd. (ASX:SYA) (OTCMKTS:SYAXF), with concentrate production at NAL increasing 23% Quarter on Quarter (QoQ) to 49,660 dmt. Mill utilisation has improved materially over the prior quarter to 83%.

The team at NAL continues to optimise mining and production processes, with significant improvements in concentrate production over the quarter. This was driven by excellent mill utilisation and recovery rates. Mill utilisation increased from 73% to 83% as weather related outages abated with the onset of summer and with the availability of ore feedstock from the now fully operational Crushed Ore Dome.

Mill utilisation over the month of June reached a record 91% while the quarter average was negatively impacted by a planned shutdown in April related to the tie-in of the Crushed Ore Dome.

Recovery rates continued to improve during the quarter to 68% reflecting slightly above forecast ore grade and most significantly, excellent operational performance.

Revenue was lower during the quarter, impacted by the delay of a scheduled shipment in June as well as lower average realised selling prices with a decline in lithium prices towards the end of the quarter. Unit operating costs improved benefitting from increased mill output combined with lower mining expenditure through optimisation of activities and ROM pad inventories.

Production continued to improve throughout the quarter driven by higher mill utilisation and excellent recovery rates.

The Crushed Ore Dome is now complete and fully commissioned. The dome will significantly boost operational reliability during winter, providing an additional 6,000 tonnes storage capacity of crushed ore between the crusher and the mill. The additional storage capacity of crushed ore enables approximately 1.5 days of continuous mill operation.

Concentrate sales during the quarter included two marine shipments of 27,729 tonnes at 5.4% Li2O. A third shipment was scheduled for the end of June, however loading was delayed due to adverse weather conditions and the ship departed port on 1 July 2024 with approximately 14,000 dmt. Larger shipments of up to 30,000 tonnes are planned for the September quarter which is expected to result in higher average realised selling prices.

Excellent drilling results were released for both NAL and Moblan during the quarter. The results demonstrate the extension of mineralisation beyond current Mineral Resource Estimates (MRE) at both projects and provide the potential for further increases to the existing MREs.

Exploration and resource definition drilling will continue at both projects throughout 2024.

Exploration at the Tabba Tabba project focussed on strike extensions immediately south of recent discoveries by Wildcat Resources at the Leia and Luke pegmatite systems.

A ground gravity geophysical survey was conducted in April which helped inform the location of holes for a RC drilling program which commenced late May. Drilling focussed in the northern area, immediately south of Wildcat Resources tenements, and at the Roadside prospect, approximately 4.5km to the south and along strike. A programme of 21 holes for 3,538m was completed with assay results now pending.

Sayona appointed Mr Lucas Dow as Managing Director and CEO on 3 July. Mr Dow is a highly experienced mining executive who has a strong operational focus. Mr James Brown will serve as an Executive Director until 31 January 2025 to enable an effective handover, after which he will continue in a non-Executive Director role.

Sayona boasts an impressive portfolio of projects and exploration tenements poised to create significant value for shareholders. While market conditions remain challenging, Sayona remains focused on improving operational results and ensuring the Company is well positioned for the eventual upturn.

*To view the full quarterly report, please visit:
https://abnnewswire.net/lnk/4R58K6L1

To Watch an Interview with Lucas Dow CEO and MD, please visit:
https://www.abnnewswire.net/lnk/0H076MX7

About Sayona Mining Limited:

Sayona Mining Limited (ASX:SYA) (OTCMKTS:SYAXF) is a North American lithium producer with projects in Quebec, Canada and Western Australia. In Quebec, Sayona's assets comprise North American Lithium together with the Authier Lithium Project and its emerging Tansim Lithium Project, supported by a strategic partnership with American lithium developer Piedmont Lithium Inc. (ASX:PLL). Sayona also holds a 60% stake in the Moblan Lithium Project in northern Quebec.

In Western Australia, the Company holds a large tenement portfolio in the Pilbara region
prospective for gold and lithium. Sayona is exploring for Hemi-style gold targets in the world-class Pilbara region, while its lithium projects include Company-owned leases and those subject to a joint venture with Morella Corporation (ASX:1MC).

Source:
Sayona Mining Limited

Contact:

Andrew Barber President Investor Relations T: +61-7-3369-7058 E: ir@sayonamining.com.au