Successful Glass & Ceramics Test Work Programme Completed on Co-Product Feldspar and Quartz at Mina do Barroso Lithium Project
Highlights:
· Test work programme demonstrates that feldspar and quartz from Mina do Barroso’s spodumene concentrate tails are suitable for use in a range of glass and ceramic applications
· Test work has confirmed that the bulk tail from the spodumene concentrator is also a saleable product requiring no further processing
· Successful test work validated Mina do Barroso feldspar for both ceramic bodies and glazes, and float and container glass, in addition to validating Mina do Barroso quartz for lead crystal and container glass
· Marketing studies concluded that prices for Mina do Barroso co-products could be significantly higher than reported in the 2018 Scoping Study, with feldspar at US$65-100/t vs. US$39/t, quartz at US$60-100/t vs. US$33/t and a bulk tail at US$40-45/t
· Glass and ceramics are two of the biggest global markets for feldspar and quartz
o Mina do Barroso is geographically well-positioned to supply markets in Portugal, Spain and other European countries
· Discussions underway with potential offtake and JV partners to advance the co-product opportunity
· Sale of products derived from the lithium concentrator tails would generate additional revenue and reduce the costs and the footprint associated with waste storage on site
· The test work programme was designed and managed by experienced industry professionals, First Test Minerals
Savannah Resources plc (AIM: SAV, FWB: SAV and SWB: SAV) (‘Savannah’ or the ‘Company’), the AIM-quoted resource development company, which is focused on becoming Europe’s most significant producer of lithium spodumene concentrates from its wholly-owned Mina do Barroso Project in Portugal (‘Mina do Barroso’ or ‘the Project’), is pleased to announce that its ongoing metallurgical test work programme has successfully produced saleable co-products from the ongoing ceramics test work programme.
Mina do Barroso is currently targeting an average annual production rate of 175,000 tonnes of battery grade spodumene lithium concentrate in addition to targeting the production of feldspar and quartz co-products for the regional glass and ceramics industries. Co-product sales will add valuable additional revenues to the Project as well as reducing the environmental footprint and costs associated with waste handling and storage, adding substantially to Mina do Barroso’s commercial appeal.
To view the announcement with the illustrative diagrams and tables please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/7916I_1-2019-8-12.pdf
Savannah’s CEO, David Archer said: “Glass and ceramics are huge global industries, with Europe representing 25% of global production of ceramics. Feldspar and quartz products have been produced in this region of Portugal for decades and are well regarded by glass and ceramic manufacturers in the domestic market and in Spain. The completed test work has validated Mina do Barroso’s feldspar and quartz for these applications. Producing saleable products from the waste stream of the spodumene concentrator will help to reduce the operating costs and the footprint associated with handling and storing waste material on the Project site.
“Very significantly, the test work has also confirmed that there is potential for the sale of a combined feldspar and quartz bulk tail (Mina do Barroso Fine Grade Feldspar) from Mina do Barroso requiring no further processing. Production of this bulk material would also potentially eliminate approximately US$15m from the estimated processing plant capex that would be required to produce separate quartz and feldspar co-products. At the same time the estimated unit sale price of the bulk product is likely to exceed the prices for separate feldspar and quartz products assumed in the June 2018 Scoping Study. Test marketing to potential customers is now underway.”
Full RNS Link www.share-talk.co.uk/announcements/rns/savannah-resources
