Savannah Resources plc (AIM: SAV) (‘Savannah’ or ‘the Company’), the AIM quoted resource development company, is pleased to announce new and outstanding results from the ongoing reverse circulation (‘RC’) drill programme at the Mina do Barroso Lithium Project (‘Mina do Barroso’ or the ‘Project’) located in Portugal (Figure 1). The drill programme, which is aiming to generate a JORC – 2012 compliant Mineral Resource Estimate, has returned significant intersections of lithium mineralisation. To view the press release with the illustrative maps and diagrams please use the following link: http://www.rns-pdf.londonstockexchange.com/rns/1552Z_-2017-12-12.pdf
· Total of 66 holes for 5,558m completed to date as part of the ongoing RC drill programme
· Drill results from three deposits being targeted confirm the outstanding potential of Mina do Barroso – Savannah believes these intercepts represent some of the best lithium spodumene intersections ever reported for a European deposit
o Mineralised zone over 100m intersected: results from recent drilling has recorded the broadest and most significant results for the project to date. Key results include:
§ 109m at 1.04% Li₂O from surface (uncut), including 52m at 1.32% Li₂O in 17GRARC17
§ 71m at 1.06% Li₂O from 88m, including 57m at 1.2% Li₂O in 17GRARC19
§ 31m at 1.2% Li₂O from surface in 17GRARC12
§ 25m at 1.15% Li₂O from 36m in 17GRARC23
o New high-grade zone discovered: drill testing of a newly identified sub-vertical pegmatite body has been successful, identifying a new high-grade zone of mineralisation. Results from the first drill hole include:
§ 25m at 1.49% Li₂O from 32m including 14m at 2.1% Li₂O in 17GRARC20
o Drill programme extended – an additional 16 holes have been added to the drilling programme to help outline the full potential of the Grandao deposit
o Pegmatite and structural experts on site, to assist in developing the mineralisation model for these outstanding new results at Grandao
o Deposit expanded – assay results confirm that the lithium mineralisation extends to over 400m strike length, with good down dip extensions of at least 100m. New assay results include:
§ 32m at 1.05% Li₂O from 78m in 17RESRC17
§ 15m at 1.19% Li₂O from 79m in 17RESRC16
o Maiden Mineral Resource Estimate for Reservatorio, expected by the end of 2017
· NOA – further drilling and results pending: drilling of a further 6 holes has confirmed the presence of lithium mineralisation over a 200m strike length together with good down dip extensions of at least 50m and pegmatite widths up to 15m
· Phase 2 of the metallurgical test work programme underway – samples taken from Grandao, Reservatorio and NOA being tested with results expected in early 2018
Savannah’s CEO, David Archer said: “We believe these are outstanding results that represent some of the best lithium spodumene intersections ever reported for a European deposit. Additionally, they highlight the potential of the extensive pegmatite systems in the northern part of Portugal to host major deposits of lithium.
“The results from Grandao are particularly exciting as there are some exceptional widths and high-grades reported and the geometry of what we are seeing suggests that there is potential for a low stripping ratio, open-cut mine development. It is important to remember that all of the results are from deposit areas for which we have a granted mining lease.
“These results continue to underscore the potential of the Mina do Barroso Project to be a strategic upstream feature in the European lithium value chain. From an investment perspective, we see the Project as the closest European analogue to the very successful Australian hard-rock, open cut mine developments which produce highly sought-after lithium spodumene concentrates for international markets.
“Ongoing drilling and metallurgical test work will be used to support an early scoping study around a potential mine development.”
Figure 1. Mina do Barroso Project Summary Map showing prospects and 2017 drilling – see PDF link
A total of 36 drill holes for 2,809m (17GRARC01-36) have been completed targeting the flat lying pegmatite body at Grandao and two newly identified sub vertical pegmatite bodies nearby the flat body. Results for drill holes 17GRARC10 to 23 have now been received and returned the most significant set of results for the Project to date (Table 1-3 and Figure 2-3).
Drilling targeted at intersecting the near surface, flat or shallowly west dipping pegmatite body has continued to meet with significant success, with extensive mineralisation now being defined. Drilling has confirmed a zone of lithium mineralisation extending to over 400m in length, reaching up to 150m in width and with continuous anomalous mineralisation recorded as deep as 109m below surface. Significant drill results targeting the flat lying pegmatite body are summarised in Table 1.
Table 1. Summary of drill results for Grandao flat lying pegmatite using a 0.2% and 0.5% Li2O cut-off
It is important to note that a number of angled drill holes will be completed in the vicinity of 17GRARC17 and 19 as part of the ongoing drill programme to confirm the current geological interpretation in this area.
In addition, mapping has highlighted a series of at least four sub-vertical pegmatite bodies, many of which can be traced over 200m in strike and in places reach widths up to 40m. Limited drill testing of two of these bodies to date has met with early success including the identification of a high-grade lithium bearing pegmatite body. Recently received results are summarised in Table 2.
Full RNS link: HERE
We are a diversified resources group (AIM: SAV) with a portfolio of energy metals projects – lithium in Portugal and copper in Oman – together with the world-class Mutamba Heavy Mineral Sands Project in Mozambique, which is being developed in a consortium with the global major Rio Tinto. We are committed to serving the interests of our shareholders and to delivering outcomes that will improve the lives of our staff and the communities we work with.
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