64% Resource Increase for the Grandao Deposit Pushes the Total Resource Estimate for the Mina do Barroso Lithium Project Past 20Mt with Significant Scope for Further Expansions
· Continued resource expansion at Mina do Barroso, located in northern Portugal confirms it as Western Europe’s largest spodumene lithium Mineral Resource
· ~64% increase in the total Mineral Resource Estimate at Grandao Deposit to 16.4Mt at 1.04% Li₂O for a total contained Li₂O of 171,400t
· ~44% increase in overall Mineral Resource Estimate for the Project, which now stands at 20.1Mt at 1.04% Li₂O for 209,000t of contained Li₂O
· ~90% of the mineralisation within the Stage 1 Grandao pit, defined as part of the recent Scoping Study, now converted to Measured and Indicated Resource Estimates, which represents the first 4-5 years of the mining inventory based on average annual production of ~175,000tpa of spodumene concentrate at 6% Li₂O
· At Grandao, significant volumes of new mineralisation has been identified below the Stage 1 and 2 pits, defined during the Scoping Study, supporting the excellent potential to further expand the current mining inventory
· Updated Exploration Target* for Mina do Barroso calculated at 9-15Mt at 1.0-1.2% Li₂O, giving a potential mineral inventory of over 30Mt for the Project
· Significant upside remains and further Mineral Resource Estimate updates are expected during 2018. Highlights include:
o Infill and expansion drilling underway at the Reservatorio Deposit to convert the Stage 1 pit defined as part of the Scoping Study into Measured and Indicated category Mineral Resource Estimates and test for potential extensions
o Excellent potential for new discoveries of additional lithium bearing pegmatite bodies
· Feasibility Study on track for completion late Q1 2019 to build upon results of the Scoping Study in June 2018, which demonstrated an excellent base case pre-tax NPV8 of US$356m and IRR of 63% based on the previous Resource Estimate of 14Mt at 1.1% Li₂O
*Cautionary Statement: The potential quantity and grade of the Exploration Targets is conceptual in nature, there has been insufficient exploration work to estimate a mineral resource and it is uncertain if further exploration will result in defining a mineral resource.
Savannah Resources plc (AIM: SAV, FWB: AFM and SWB: SAV) (‘Savannah’ or ‘the Company’), the resource development company, is pleased to announce a significant increase in the JORC 2012-Compliant Measured, Indicated and Inferred Mineral Resource Estimate, with supporting Exploration Target at the Mina do Barroso Lithium Project (‘Mina do Barroso’ or the ‘Project’), located in northern Portugal (Figure 1-2 and Table 1-3).
To view the press release with the illustrative maps and diagrams please use the following link:
Savannah’s CEO, David Archer said: “Today’s Mineral Resource Estimate increase, shows that Mina do Barroso is shaping up to be Europe’s most strategically significant mineral discovery in recent years. The increasing Mineral Resource base of the Project means we have a long-life asset that can anchor the up-stream end of the European lithium value chain, with Europe being the second largest consumer of lithium in the world.
“Mina do Barroso has grown remarkably over the last 12 months with this being the third Mineral Resource Estimate upgrade in less than seven months; this is testament to both the quality of our Project and skill set of our team. There is considerable potential to expand the Mineral Resource Estimate even further, as highlighted by the 9Mt to 15Mt Exploration Target, and our intensive round of drilling continues with three drill rigs on site. Alongside this, at a commercialisation level we are making good progress with the Feasibility Study and continue to target making a mine development decision next year.
“Today’s results highlight Mina do Barroso as what we believe to be an outstanding lithium project.”
Read: Full RNS Update share-talk.co.uk/announcements/rns/savannah-resources
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