The Sayona Mining Ltd (ASX: SYA) share price is soaring on Tuesday following an announcement from the lithium development company.
At the time of writing, investors have driven the company's shares to 13.5 cents apiece, up 20%. After entering a trading halt on Thursday, Sayona shares are now rapidly being traded today. Already, more than 37 million shares have exchanged hands today.
So, what's all the fuss about?
Sayona says double the potential
Grabbing the attention of the market on Tuesday, ASX-listed Sayona has revealed a doubling of its Québec lithium resource base.
According to the update, upgraded resource estimates now peg Sayona's North American Lithium (NAL) and Authier projects at a combined measured, indicated, and inferred mineral resource of 119.1 million tonnes at 1.05% lithium oxide.
Effectively, the upgrade represents a doubling from the company's previous estimates. Unsurprisingly, investors are attempting to snap up shares in Sayona as the share price roars ahead.
This information follows independent studies carried out by consultants BBA Inc and SGS Canada. Based on the JORC mineral estimates published, the breakdown of the lithium resource between projects is:
- NAL — 101.92 million tonnes at 1.06% lithium oxide
- Authier — 17.14 million tonnes at 1.01% lithium oxide
For reference, a 0.6% lithium oxide cut-off was used when establishing the total mineral resources. Additionally, the identification of underground constrained resources at NAL was a first for the project.
Commenting on the update, Sayona managing director Brett Lynch said:
This expansion is a major achievement for Sayona as we further enlarge our leading lithium resource base in North America. Since the start of 2020, we have now grown our Québec resource base nearly six times and with further increases expected soon from Moblan.
With lithium prices surging on the back of an increasing structural supply deficit, our upcoming definitive feasibility study for an integrated NAL‐Authier operation, expected in coming weeks, is set to show significantly enhanced profitability for the benefit of shareholders.
How has the Sayona share price been performing on the ASX?
Excitement in the Sayona share price began to peter out towards the tail end of last year. In fact, between September 2021 and the end of the year, ASX-listed Sayona tumbled approximately 32%.
Unfortunately for shareholders, this trend has continued into 2022, with shares down ~6% year-to-date. However, it's not all doom and gloom for those who have held on over the long run.
Zooming out to a 12-month time frame, Sayona investors are sitting smitten with a 340% return. That trumps the S&P/ASX 200 Index (ASX: XJO) by a long way.
