Savannah Resources plc (AIM: SAV) the AIM quoted resource development company, has told DirectorsTalk about the first part of a reverse circulation drill programme aimed at defining a JORC compliant Mineral Resource Estimate at the Mina do Barroso Lithium Project in Portugal (Figure 1) has returned significant intersections of lithium mineralisation. To view the press release with the illustrative maps and diagrams please use the following link:
Savannah Resources Figures in a PDF
HIGHLIGHTS:
— Assay results from the drill programme have returned a series of robust lithium intercepts on two of the high priority targets within the C-100 Mina do Barroso mining lease
— Reservatorio Deposit: drilling confirmed mineralisation over a 200m strike length together with good down dip extensions of at least 80m. Results include:
- 36m at 1.26% Li O from 29m in 17RESRC05 - 33m at 1.15% Li O from 16m in 17RESRC07 - 26m at 0.92% Li O from 61m in 17RESRC04 - 25m at 1.01% Li O from 36m in 17RESRC03
— Grandao Deposit: drilling confirmed mineralisation over a 200m strike length in a large, near surface, sub horizontal pegmatite body. Results include:
- 18m at 1.27% Li O from 1m in 17GRARC06 - 17m at 1.24% Li O from 16m in 17GRARC05 - 15m at 1.08% Li O from 39m in 17GRARC04 - 14m at 1.18% Li O from surface in 17GRA07
— Both Reservatorio and Grandao remain open along strike and down dip leaving excellent upside potential for both deposits
— Drilling is due to commence again shortly at NOA and will be followed by further drilling at both Reservatorio and Grandao with a view to defining a JORC compliant resource 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 scheduled to commence shortly. This is aimed at providing the required data for a scoping study, with results of the test work expected before the end of 2017.
— The intersection of near surface lithium mineralisation supports the potential for the Project to be fast tracked towards production via a series of open pit mines – targeting a development decision before the end of 2018.
Savannah’s CEO, David Archer said: “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, thanks to a number of key features:
ü Spodumene is the dominant lithium mineral. It has high percentages of lithium relative to other lithium minerals and is a mineral with a conventional and well understood processing path;
ü Metallurgical test work has shown very good recoveries producing a 6% Li O low iron concentrate product;
ü There is near surface mineralisation with open pit potential;
ü We have a granted mining lease with 19 years to run;
ü There is excellent existing infrastructure, including the export port of Leixoes 140km by road; and
ü It is strategically positioned in Europe.
“Taking these positive attributes into consideration, we believe Mina do Barroso could be brought into production relatively quickly to produce a Li O 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.
“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.”
Figure 1. Mina do Barroso Project Summary Map showing prospects and 2017 drilling – see PDF link
Reservatorio
Assay results from the drilling at Reservatorio has confirmed lithium mineralisation (Table 1 and Figure 2-3) in pegmatite up to 49 metres in width (down hole). Drilling intersected significant zones of lithium mineralisation along a 200m strike length and on one section to at least 80m down dip confirming the potential for good depth extensions of the lithium mineralisation. Drilling suggests that the pegmatite body has a dip of about 40 degrees to the northwest and the pegmatite remains open along strike and down dip. Importantly, the mineralisation starts from surface suggesting excellent potential for the use of open pit mining methods as part of any potential mine development.
Table 1. Summary of drill results for Reservatorio reported at both a 0.2% and 0.5% Li(2) O cut-off
Hole 0.2% Li(2) O Cut 0.5% Li2O Cut
Prospect ID Off Off
------------- ---------- ------------------- -------------------
14m at 1.12% Li(2) 5m at 0.73% Li(2)
Reservatorio 17RESRC02 O from 6m O from 6m
------------- ---------- ------------------- -------------------
7m at 1.60% Li(2)
O from 13m
------------- ---------- ------------------- -------------------
30m at 0.88% Li(2) 25m at 1.01% Li(2)
Reservatorio 17RESRC03 O from 34m O from 36m
------------- ---------- ------------------- -------------------
39m at 0.71% Li(2) 26m at 0.92% Li(2)
Reservatorio 17RESRC04 O from 59m O from 61m
------------- ---------- ------------------- -------------------
39m at 1.18% Li(2) 36m at 1.26% from
Reservatorio 17RESRC05 O from 29m 41m
------------- ---------- ------------------- -------------------
10m at 0.3% Li(2) No Significant
Reservatorio 17RESRC06 O from 2m Results
------------- ---------- ------------------- -------------------
50m at 0.85% Li(2) 33m at 1.15% Li(2)
Reservatorio 17RESRC07 O from 8m O from 16m
------------- ---------- ------------------- -------------------
26m at 0.52% Li(2) 14m at 0.73% from
Reservatorio 17RESRC08 O from 15m 19m
------------- ---------- ------------------- -------------------
Figure 2. Summary of drilling at Reservatorio, together with historical drill holes and planned drill holes. (It is important to note that may of the historical drill holes intersected only sediments as they were not drilled deep enough to intersect the underlying pegmatite body) – see PDF link
Figure 3. Reservatorio: Cross Section through 17RESRC04, 17RESRC05 and 17RES07 – see PDF link
Grandao
Assaying at Grandao has returned lithium mineralisation (Table 2 and Figure 4-5) to a maximum down hole width of 19m. Drilling intersected mineralised pegmatite along a 200m strike length and drilling has indicated that the body is close to flat or shallowly dipping to the southwest. This near surface, relatively flat body would have significant mining cost benefits for any potential development of the deposit as it could be mined using an open pit with what is likely to be a very low strip ratio. The pegmatite body remains open in all directions; further work is required to better define the full potential of the Grandao pegmatite bodies.
Table 2. Summary of drill results for Grandao reported at both a 0.2% and 0.5% Li(2) O cut-off
Hole 0.2% Li2O Cut 0.5% Li2O Cut
Prospect ID Off Off
--------- ---------- ------------------- -------------------
No Significant No Significant
Grandao 17GRARC01 Results Results
--------- ---------- ------------------- -------------------
No Significant No Significant
Grandao 17GRARC02 Results Results
--------- ---------- ------------------- -------------------
4m at 0.9% Li(2) 4m at 0.9% Li(2)
Grandao 17GRARC03 O from 36m O from 36m
--------- ---------- ------------------- -------------------
2m at 1.69% Li(2) 2m at 1.69% Li(2)
O from 45m O from 45m
--------- ---------- ------------------- -------------------
11m at 0.77% Li(2) 11m at 0.77% Li(2)
O from 51m O from 51m
--------- ---------- ------------------- -------------------
17m at 1.00% Li(2) 15m at 1.08% Li(2)
Grandao 17GRARC04 O from 39m O from 40m
--------- ---------- ------------------- -------------------
17m at 1.24% Li(2) 17m at 1.24% Li(2)
Grandao 17GRARC05 O from 16m O from 16m
--------- ---------- ------------------- -------------------
19m at 1.23% Li(2) 18m at 1.27% Li(2)
Grandao 17GRARC06 O from 1m O from 1m
--------- ---------- ------------------- -------------------
14m at 1.18% Li(2) 14m at 1.18% Li(2)
Grandao 17GRARC07 O from Surface O from Surface
--------- ---------- ------------------- -------------------
7m at 0.7% Li(2) 5m at 0.84% Li(2)
Grandao 17GRARC08 O from 10m O from 11m
--------- ---------- ------------------- -------------------
10m at 1.13% Li(2) 9m at 1.24% Li(2)
Grandao 17GRARC09 O from 7m O from 8m
--------- ---------- ------------------- -------------------
Figure 4. RC drilling at Grandao together with historical drill holes and planned drill holes. (It is important to note that many of the historical drill holes intersected only sediments as they were not drilled deep enough to intersect the underlying pegmatite body) – see PDF link
Figure 5. Grandao: Cross Section through 17GRARC0X, 17GRARC0X, 17GRARC0X – see PDF link
Drilling is now underway at NOA and with follow up drilling at both Reservatorio and Grandao to be completed following this to further define the mineralisation with a view to achieving a JORC compliant mineral resource before the end of 2017.
Additional Projects
Apart from Reservatorio, Grandao and NOA there are a series of five other advanced exploration opportunities which are currently being mapped and sampled to determine their order of priority for follow up drilling. All of the prospects were drilled by a small number of shallow drill holes by a previous explorer evaluating the project for potential feed for ceramic products. These initial results are very encouraging and represent what appear to be a series of walk up drill targets for future evaluation.
A summary of the key characteristics of each prospect is provided below in Table 3.
Table 3. Summary of other advanced prospects in the Mina do Barrosa tenement
Prospect Apparent Dimension Historical Results
---------------- ----------------------- ------------------------
Carvalha approx. 300m by 30m SAC1: 12m at 1.22%
da Bacora Li(2) O from 16m (EOH)
---------------- ----------------------- ------------------------
Pinheiro sporadic outcrop over SP2: 13m at 1.25% Li(2)
a 200m strike length O from Surface
---------------- ----------------------- ------------------------
Alto do Cortico approx. 300m by 30m SAC6: 5m at 1.07% Li(2)
O from 3m
---------------- ----------------------- ------------------------
Campo de 4 bodies with approx CAM1: 2m at 1.28% Li(2)
Futebol dimensions of 100m by O for 5m
20m each
---------------- ----------------------- ------------------------
Piegro Negro sporadic outcrop over PGR01: 4m at 0.9% Li(2)
a 200m strike length O from Surface
---------------- ----------------------- ------------------------
Figure 6. Small bulk sample pit on lithium bearing pegmatite on the NOA prospect – see PDF link
Figure 7. Lithium bearing pegmatite from drilling at the Mina do Barroso Project – see PDF link
Figure 8. The export port of Leixoes, located 140km by road from Mina do Barroso – see PDF link
Savannah has a 75% shareholding in Slipstream Resources Portugal Unipessol Lda, which is the registered holder of the Mina do Barroso mining licence.
