Lithium play Sayona Mining jumps 31pc after joining the hunt for Pilbara gold

Lithium-focused minnow Sayona Mining is the latest explorer to turn its attention to Pilbara gold, identifying conglomerate gold mineralisation at its Deep Well project.

And investors were suitably impressed.

The stock (ASX:SYA) finished Thursday 31 per cent in the green at 1.7c after earlier hitting a high of 2.2c. More than 150 million shares changed hands.

Recent geological work at the site has identified Fortescue Group rocks prospective for conglomerate-hosted gold.

The Fortescue Group is made up of mafic volcanic rocks found in the Fortescue Basin in the Pilbara Craton which are known to host gold and other minerals.

Conglomerate rock found at Deep Well. Pic: Sayona Mining

Deep Well covers 119 sq km and was pegged to secure an area that had a similar geological setting to its flagship Mallina project to the south where spodumene pegmatites exist.

The spodumene mineral is a source of lithium and occurs in lithium-rich granite pegmatites.

While not finding outcropping pegmatites at Deep Well, reconnaissance did come across Fortescue aged rocks with potential for conglomerate hosted occurrences.

Further work is now planned to better understand the geology and potential of the area.

Stockhead’s guide to the Pilbara gold nugget rush

Sayona has 17 tenements in the Pilbara region of north-western Australia, covering a total area of just under 2000 sq km.

Of these, nine were acquired through a deal with Great Sandy, with the Mallina being the flagship project.

Meanwhile, the company has identified a new spodumene pegmatite at Mallina’s Area C prospect with rock chip results of up to 4.6 per cent lithium oxide.

Pegmatites have been identified along an 800-metre strike extent of Area C with soil sampling confirming a strong lithium anomaly.

Sayona has a market cap of around $25 million.