The Sayona Mining Ltd (ASX: SYA) share price is back on form on Tuesday.
In morning trade, the lithium miner's shares are up 7% to 19.25 cents.
Why is the Sayona Mining share price pushing higher?
Investors have been bidding the Sayona Mining share price today after the company released a promising update on the Moblan Lithium Project in Canada.
According to the release, the company has identified a significant expansion to its lithium footprint following recent drilling. It notes that the results have continued to extend known mineralisation, including at the South Pegmatite system.
Importantly, the newly identified mineralisation extends outside of the April 2023 JORC resource pit shell, which indicates the opportunity to expand the existing resource.
Management notes that these positive results will contribute to the completion of the Moblan Definitive Feasibility Study (DFS), which is planned for release in November.
'One of the leading hard rock lithium deposits in North America'
Sayona's Managing Director, Brett Lynch, was pleased with the news. He said:
Moblan is shaping up as one of the leading hard rock lithium deposits in North America, advancing our planned move towards downstream processing. Working in partnership with the Québec Government, Sayona will deliver even more speed and more tonnes faster through this expanding northern hub.
Importantly, Moblan will benefit from its proximity to road, rail and power infrastructure – a unique competitive advantage in the James Bay region. We look forward to further results from our drilling, likely to be Québec's single largest drilling program in 2023.
Lynch revealed that if all goes to plan, the company could be producing lithium from Moblan in 2027. He concludes:
Significantly, these latest results have encouraged us to proceed directly to a definitive feasibility study, targeting completion by November. This will put us on a fast‐track to production, potentially as early as 2027, as we move to deliver exactly what the North American lithium market needs.
