Savannah Resources plc (AIM: SAV) (‘Savannah’ or ‘the Company’), the AIM quoted resource development company, is pleased to announce that the first part of a reverse circulation (‘RC’) drill programme aimed at defining a JORC compliant Mineral Resource Estimate at the Mina do Barroso Lithium Project (‘Mina do Barroso’ or the ‘Project’) in Portugal (Figure 1) has returned significant intersections of lithium mineralisation.
We caught up with David earlier today to talk more about this RNS. See podcast link below.
· Assay results from the drill programme have returned a series of robust lithium intercepts on two of the high priority targets within the C-100 Mina do Barroso mining lease
· Reservatorio Deposit: drilling confirmed mineralisation over a 200m strike length together with good down dip extensions of at least 80m. Results include:
– 36m at 1.26% Li₂O from 29m in 17RESRC05
– 33m at 1.15% Li₂O from 16m in 17RESRC07
– 26m at 0.92% Li₂O from 61m in 17RESRC04
– 25m at 1.01% Li₂O from 36m in 17RESRC03
· Grandao Deposit: drilling confirmed mineralisation over a 200m strike length in a large, near surface, sub horizontal pegmatite body. Results include:
– 18m at 1.27% Li₂O from 1m in 17GRARC06
– 17m at 1.24% Li₂O from 16m in 17GRARC05
– 15m at 1.08% Li₂O from 39m in 17GRARC04
– 14m at 1.18% Li₂O from surface in 17GRA07
· Both Reservatorio and Grandao remain open along strike and down dip leaving excellent upside potential for both deposits
· Drilling is due to commence again shortly at NOA and will be followed by further drilling at both Reservatorio and Grandao with a view to defining a JORC compliant resource by the end of 2017
· Further mapping at five additional high priority targets, some with significant historical drill intersects, has also commenced to fast track the targets to drilling
· Phase 2 of the Metallurgical Test Work programme is scheduled to commence shortly. This is aimed at providing the required data for a scoping study, with results of the test work expected before the end of 2017.
· The intersection of near surface lithium mineralisation supports the potential for the Project to be fast tracked towards production via a series of open pit mines – targeting a development decision before the end of 2018.
Savannah’s CEO, David Archer said:
“The drilling of the first two targets at Mina do Barroso has confirmed excellent lithium grades over a series of broad intercepts. These results further highlight the appeal of the Project, which we believe is one of the most promising lithium projects in Europe, thanks to a number of key features:
- Spodumene is the dominant lithium mineral. It has high percentages of lithium relative to other lithium minerals and is a mineral with a conventional and well understood processing path;
- Metallurgical test work has shown very good recoveries producing a 6% Li₂O low iron concentrate product;
- There is near surface mineralisation with open pit potential;
- We have a granted mining lease with 19 years to run;
- There is excellent existing infrastructure, including the export port of Leixoes ~140km by road; and
- It is strategically positioned in Europe.
“Taking these positive attributes into consideration, we believe Mina do Barroso could be brought into production relatively quickly to produce a Li₂O concentrate for the manufacture of battery grade lithium. This is within a highly favourable context as there is a clear intent on the part of governments, communities and car manufacturers to foster accelerated adoption of electric vehicles. This will bring into focus lithium mines that can be brought into production swiftly to meet growing demand.
“We believe that hard rock, lithium spodumene deposits like those at Mina do Barroso will be playing the leading role in the upstream part of the lithium value chain going into the 2020s.”
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned