Savannah Resources plc (AIM: SAV) (‘Savannah’ or ‘the Company’), the AIM quoted resource development company, is pleased to announce further results from the ongoing reverse circulation (‘RC’) drill programme for the Mina do Barroso Lithium Project (‘Mina do Barroso’ or the ‘Project’) in Portugal (Figure 1). The drill programme, which is aimed at defining a JORC – 2012 compliant Mineral Resource Estimate, has returned significant intersections of lithium mineralisation.
· Completed a further 27 holes for 2,566m with assays for the first 11 holes confirming extensions to the existing mineralisation
· Reservatorio Deposit: drilling significantly extends lithium mineralisation to over 400m strike length, with good down dip extensions of at least 150m. Results from the second round of drilling to date include:
– 29m at 1.07% Li₂O from 43m in 17RESRC10
– 35m at 1.06% Li₂O from 56m in 17RESRC11
· NOA Deposit: drilling has confirmed the presence of lithium mineralisation over a 100m strike length together with good down dip extensions of at least 50m. Results received to date from the second round of drilling include:
– 13m at 1.19% Li₂O from 7m in 17NOARC03
– 11m at 1.23% Li2O from 46m in 17NOARC04
· The Reservatorio, Grandao and NOA deposits remain open along strike and down dip leaving excellent upside potential for all deposits
· Maiden Mineral Resource Estimate for Reservatorio expected 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 due to get underway at Nagrom in Perth by the end of November 2017
Savannah’s CEO, David Archer said:
“The drilling results to date 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.
“Drilling and metallurgical test work is ongoing and 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
A further 12 drill holes for 1,322m have now been completed at Reservatorio. Assay results from the first six holes have now been received and have confirmed significant extensions to the already identified lithium mineralisation (Table 1-2 and Figure 2-3) in pegmatite, with mineralisation now defined along a 400m strike length and to at least 150m down dip confirming the potential for good depth extensions of the lithium mineralisation. Drilling in an area of faulting and shearing on the eastern part of the pegmatite has caused the pegmatite to become weathered resulting in some zones of near surface depletion. Further infill drilling is now required to further define these zones.
Table 1. Summarised downhole geology for recent Reservatorio Drilling
Table 2. Summary of drill results for Reservatorio reported at a 0.2% and 0.5% Li2O cut-off
Figure 2. Summary of drilling at Reservatorio, together with historical drill holes and planned drill holes
Figure 3. Reservatorio: Cross Section through 17RESRC04, 17RESRC05 and 17RES07 (assays are still pending for 17RESRC18 and 17RESRC19)
A further 10 drill holes for 860m (Figure 4) have been completed targeting the flat lying pegmatite body at Grandao. To date no results have been received for this drilling.
Figure 4. Summary of drilling at Grandao, with historical drill holes and planned drill holes
Initial drilling results from the NOA prospect have been encouraging with 10-15m wide zones of pegmatite being intersected to date at grades above 1.2% Li₂O over a strike length of 100m and a down dip depth of around 50m (Table 3-4, Figure 5). A further five RC holes are planned to test a further 200m of the strike of the NOA prospect focusing on areas where surface outcrop suggest widths of pegmatite over 20m may be present.
Table 3. Summarised downhole geology for recent NOA Drilling
Table 4. Summary of drill results for NOA reported at a 0.2% and 0.5% Li2O cut-off
Figure 5. Summary of drilling at NOA, with historical drill holes and planned drill holes
Drilling is continuing at both NOA and Grandao and a Mineral Resource Estimate for Reservatorio is expected to be delivered before the end of 2017.
Savannah has a 75% shareholding in Slipstream Resources Portugal Lda, which is the registered holder of the Mina do Barroso mining licence.
Competent Person and Regulatory Information
The information in this announcement that relates to exploration results is based upon information compiled by Mr Dale Ferguson, Technical Director of Savannah Resources Limited. Mr Ferguson is a Member of the Australian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Ferguson consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.
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