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Savannah Resources announces another increase in the mineral resource estimate at Mina do Barroso

Current indications suggest that significant increases to total resources are achievable with further exploration

Mining work
Metallurgical and economic evaluations continue at the project

Savannah Resources PLC (LON:SAV) has announced an increase in the mineral resource estimate at its Mina do Barroso lithium project in Portugal.

The estimated mineral resources have been increased by around 15% to 27mln tonnes at 1.06% Li₂O for 285,900 tonnes of contained Li₂O.

READ the press release from Savannah Resources

The estimate of measured resources stands at 6.6mln tonnes at 1.1% Li₂O for 71,600 tonnes of contained Li₂O; indicated resources are 8.4mln tonnes at 1.0% Li₂O for 86.700 tonnes of contained Li₂O; inferred resources stand at 12mln tonnes at 1.1% Li₂O for 127,600 tonnes of contained Li₂O.

The company’ advisors have also upgraded the exploration target for Mina do Barroso, to 11-19mln tonnes at 1.0%-1.2% Li₂O, giving a potential project mineral inventory range of 38-47mln tonnes.

Meanwhile, a maiden mineral resource estimate for the Aldeia lithium deposit has been announced. Indicated resources have been put at 1.6mln tonnes at 1.3% Li₂O for 21,300 tonnes of contained Li₂O, with inferred resources pegged at 1.8mln tonnes at 1.3% Li₂O for 23,700 tonnes of contained Li₂O.

The Aldeia resource is more than 25% higher in overall grade than other deposits previously defined at Mina do Barroso, the company highlighted.

"We continue to be encouraged by our extensive resource drilling programme which is increasing the mine life of the project, in addition to providing an inventory of higher-grade material,2 said Savannah’s chief executive officer, David Archer.

Archer noted that the latest increase represents the fifth major mineral resource hike in just 15 months at Mina do Barroso.

"With the project's development and commissioning targeted for next year, Mina do Barroso is moving closer to meeting its objective of becoming a key strategic supplier of lithium spodumene for the fast-growing European lithium-ion battery and electric vehicle industries – by the year 2025, European lithium-ion batteries are expected to represent a market worth €250bn annually,” Archer noted.

“Mina do Barroso has the potential to supply c.40% of the forecast lithium demand from Europe's automotive industry in 2025, and this latest resource and exploration target upgrade supports this potential.
"It is evident that Mina do Barroso could support the development of a mineral conversion plant with the required tonnages of the lithium raw material inputs of spodumene concentrates to act as a base load for a major lithium hydroxide production plant and a new industry for Portugal. Through the ongoing work and development programme we are gaining a firmer understanding of Mina do Barroso's outstanding potential,” Archer said.

Quick facts: Savannah Resources PLC

Price: 2.35 GBX

AIM:SAV
Market: AIM
Market Cap: £30.49 m
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