Savannah Resources plc (AIM: SAV – SWB: SAV) 200% Increase, Lithium Resource Estimate,Portugal

 

Savannah Resources Plc

200% Increase in Lithium Mineral Resource Estimate to 9.1Mt and Significant Exploration Target at Mina do Barroso Lithium Project, Portugal

 

Savannah Resources plc (AIM: SAV and SWB: SAV) (‘Savannah’ or ‘the Company’), the AIM quoted resource development company, is pleased to announce a revised JORC 2012-Compliant Inferred Mineral Resource Estimate and an initial Exploration Target for the Mina do Barroso Lithium Project (‘Mina do Barroso’ or the ‘Project’), located in northern Portugal (Figure 1).   To view the press release with the illustrative maps and diagrams please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/8468F_-2018-2-23.pdf

 

Overview

·    ~200% increase in Inferred Mineral Resource Estimate to 9.1Mt at 1.03% LiO containing 94,100t of LiO using a 0.5% LiO cut-off grade 

 

·    Mineral Resource Estimate covers three of at least eight known pegmatites on the Mina do Barroso Mining Lease

·    Further drilling is now underway utilising both Reverse Circulation (RC) and diamond drill rigs, targeting both down dip and strike extensions of currently defined Mineral Resource Estimate

·    Further Mineral Resource Estimate updates are expected during 2018 as the drill programme advances – Grandao resource is based on the first 40 holes drilled only (of the 61 drilled to date)

·    Savannah remains on track to make a development decision by the end of the year

·    In addition, an initial Exploration Target* for the Grandao and Reservatorio deposits of 8-12Mt at 1.0% to 1.2% Li₂O has been defined. This gives a project target (including Mineral Resources) of 17-21Mt at 1.0-1.2% 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’s CEO, David Archer said“The Mineral Resource Estimate defined from our 2017 drill programme supports our belief that Mina do Barroso is one of Europe’s most promising lithium projects.  Whilst we are delighted with the results to-date, the Exploration Target underscores the potential to increase the aggregate Mineral Resource Estimate over the coming months, especially as we now have two drilling rigs on site.

 

“This potential is matched by excellent first pass metallurgical test results with conventional processes, the spodumene dominant nature of the deposits, open-cut potential, access to excellent infrastructure including roads and ports, and the premier nature of the jurisdiction.

 

“Looking ahead, we are progressing with more detailed, second pass metallurgical test work and hope to shortly commission a Scoping Study to lead into a Definitive Feasibility Study later this year. We believe that we are moving towards defining a project that will sustain one of Europe’s most significant, long-term, lithium mining operations.”

 

Figure 1. Mina do Barroso Project Summary Map showing prospects and drilling completed to date – See PDF

 

Mineral Resource Estimate

 

A Mineral Resource Estimate for the Grandao and NOA Lithium Deposits has been completed by Payne Geological Services Pty Ltd, an external and independent mining consultancy – http://www.paynegeo.com.au/paul-payne. The Deposits form part of Savannah’s Mina do Barroso Lithium Project, located in northern Portugal.

 

The Grandao Deposit comprises two separate pegmatite intrusions. The upper part of the Deposit occurs within a broad, flat-lying pegmatite body with a typical thickness of 20m-40m. The lower portion appears to be a steep dipping dyke, which is 15m-20m in true width. The geometry of the lower zone is not clear due to the current sparse drilling in this portion of the Deposit, where only three holes drilled to the depths to intersect the zone. The overall Grandao Mineral Resource Estimate is based on results from 40 RC drill holes completed by Savannah in 2017. Both pegmatite zones remain open along strike (Figure 2-3).

 

Figure 2. Grandao Resource Model – See PDF

 

Figure 3. Cross Section through Grandao Resource Model – See PDF

 

At the NOA Deposit, mineralisation is hosted in a steep dipping, NW trending tabular dyke 5m-10m in true width. The Mineral Resource Estimate is based on results from 9 reverse circulation drill holes completed by Savannah in 2017. The Deposit outcrops over a strike length of approximately 400m and remains open along strike and at depth (Figure 4-5).

 

Figure 4. NOA Resource Model – See PDF

 

Figure 5. Cross Section through NOA Resource Model – See PDF

 

The Mineral Resource Estimate has been classified as an Inferred Mineral Resource Estimate in accordance with the JORC Code, 2012 Edition and are shown in Table 1.

Full RNS Update Link: HERE 

 




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