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Highlights
- Sayona’s shares were trading at AU$0.23 each, down 6.25% at 12.31 PM AEDT.
- The fall in share price might be because of the weakness in the overall materials sector.
- At 12.32 PM AEDT, the ASX 200 Materials index was trading 1.06% lower at 15,844.40 points.
Shares of Sayona Mining Limited (ASX:SYA) were trading in the red on Monday (10 October) despite the company not sharing any price sensitive news. At 12.31 PM AEDT, the lithium company's shares were trading at AU$0.23 apiece, down 6.25% on the ASX.
Why are Sayona's shares trading lower?
The fall in Sayona’s share price might be because of the weakness in the overall materials sector. At 12.32 PM AEDT, the ASX 200 Materials index was trading 1.06% lower at 15,844.40 points. However, the overall ASX 200 index was 1.69% down at 6,655.10 points at 12.33 PM AEDT. On a sectoral front, all 11 sectors were bleeding today at 12.34 PM AEST.
Sayona's recent development
On 5 October 2022, Sayona said in an ASX filing that it was aiming to expand the size of its Québec lithium resource base and has begun a pre-feasibility study (PFS) for its upcoming Moblan Lithium Project in northern Québec.
This follows a recent development by Sayona at its Abitibi hub, including the introduction of a PFS for the prospective production of lithium carbonate at NAL. Sayona holds Sayona 60% stake in Moblan Lithium Project, while remaining 40% is owned by SOQUEM Inc.
The Moblan project would act as a focal point of Sayona's northern lithium hub, which also includes the nascent Lac Albert Project, and the studies would look at the building of a mine and concentrator north of Chibougamau, close to Mistissini.
About Moblan
Moblan is situated in the Eeyou-Istchee James Bay region of northern Quebec, a region with a history of lithium mining.
Sayona launches PFS for NAL operation
With the start of a pre-feasibility study (PFS) Sayona Québec, Sayona Mining is moving forward with plans to move downstream in Quebec, according to an ASX filing on 4 October 2022. This study would look at the possibility of producing lithium carbonate at the North American Lithium (NAL) operation.
The PFS would look at the possibility of making lithium carbonate from spodumene (lithium) generated at NAL, where spodumene concentrate production is expected to start in Q1 2023.
