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Savannah Resources buoyed by Mina do Barroso drilling results

Published: 18:55 20 Sep 2017 AEST

Savannah's drilling prospects
There is near-surface mineralisation with open pit potential

Shares in Savannah Resources Plc (LON:SAV) rose after drilling results returned “a series of robust lithium intercepts” at the Mina do Barroso lithium project.

The company said the intersections support the potential to fast-track the lithium project.

The company highlighted results from two of the high priority targets with the C-100 Mina do Barroso mining lease: the Reservatorio deposit and the Grandao deposit.

Highlights included:

Reservatorio

  • 33 metres (m) at 1.15% Li₂O from 16m in hole 17RESRC07
  • 26m at 0.92% Li₂O from 61m in 17RESRC04
  • 25m at 1.01% Li₂O from 36m in 17RESRC03

Grandao 

  • 18m at 1.27% Li₂O from 1m in 17GRARC06
  • 17m at 1.24% Li₂O from 16m in 17GRARC05
  • 15m at 1.08% Li₂O from 39m in 17GRARC04
  • 14m at 1.18% Li₂O from surface in 17GRA07

Both deposits remain open along strike and down-dip, leaving open the prospect of extending both deposits.

Drilling on NOA, the third main area of the Portuguese lithium project, is due to restart soon and this will be followed by further drilling at Reservatorio and Grandao as the company works towards defining a JORC-compliant resource by the end of this year.

READ: Savannah Resources says phase one of its pre-feasibility study on Mozambique project is now underway

“The drilling of the first two targets at Mina do Barroso has confirmed excellent lithium grades over a series of broad intercepts. These results further highlight the appeal of the project, which we believe is one of the most promising lithium projects in Europe,” said David Archer, chief executive officer of Savannah.

“We believe Mina do Barroso could be brought into production relatively quickly to produce a Li2O concentrate for the manufacture of battery grade lithium. This is within a highly favourable context as there is a clear intent on the part of governments, communities and car manufacturers to foster accelerated adoption of electric vehicles. This will bring into focus lithium mines that can be brought into production swiftly to meet growing demand,” Archer predicted.

“We believe that hard rock, lithium spodumene deposits like those at Mina do Barroso will be playing the leading role in the upstream part of the lithium value chain going into the 2020s,” he added.

Shares in Savannah rose 5.3% to 5p.

READ: Savannah moves to 100% ownership of Jangamo mineral sands project

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