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Savannah Resources Plc

Expanded geometry, near surface and deeper mineralisation for Savannah Resources

Savannah Resources plc (LON:SAV and SWB: SAV) , the AIM quoted resource development company, this morning announced further results from the ongoing reverse circulation (‘RC’) drill programme at the Mina do Barroso Lithium Project in Portugal (Figure 1). The drill programme continues to return significant intersections of lithium mineralisation as Savannah aims to increase the current JORC – 2012 compliant Mineral Resource Estimate of 3.2 million tonnes at 1.0% Li(2) O containing 32,000t of Li(2) O, which was defined at the Reservatorio Deposit, one of three targets currently being evaluated. To view the press release with the illustrative maps and diagrams please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/5127E_-2018-2-9.pdf

HIGHLIGHTS:

— Total of 87 holes for 7,081m drilled to date as part of the ongoing RC drill programme across three primary targets

— Broad zones of lithium mineralisation intersected giving further confidence of significant resource potential of Mina do Barroso

— Drill programme is ongoing and has been extended as a result of the positive results received to date

— Grandao Deposit – New Mineral Resource Estimate on track for Q1 2018 to add to current Project resource

o Significant widths of lithium mineralisation identified. Key results include:

— 59m at 1.13% Li(2) O from 5m, in 17GRARC31

— 33m at 1.22% Li(2) O from 40m, in 17GRARC41

— 31m at 1.07% Li(2) O from 40m, including 24 at 1.31% Li(2) O in 17GRARC25

— 32m at 0.89% Li(2) O from 35m, including 17m at 1.29% Li(2) O in 17GRARC38

o Exploration efforts to be accelerated with a diamond drill rig to mobilise in second half of February, to test depth extensions of Grandao mineralisation and begin collecting samples for the next phase of metallurgical test work

o New high priority targets identified to the north east of Grandao: Romainho, Campo de Futebol and Peigro Negro will be drill tested

— NOA Deposit – drilling of a further six holes has confirmed the presence of lithium mineralisation over a 200m strike length together with good down dip extensions of at least 50m. Key results include:

— 15m at 0.83% Li(2) O from 5m, including 9m at 1.27% Li(2) O in 17NOARC06

— 14m at 0.73% Li(2) O from 19m, including 7m at 1.26% Li(2) O in 17NOARC10

— Phase 2 of the metallurgical test work programme underway – samples taken from Grandao, Reservatorio and NOA being tested with results expected in Q1 2018

Savannah’s CEO, David Archer said: “We are delighted to see the expanding geometry of Grandao with both near surface and deeper mineralisation. The Grandao Deposit is shaping up as a major additional component to the overall global Mineral Resource for the Mina do Barroso Lithium Project.

“The overall tempo of activities continues to accelerate as the Project’s potential becomes more apparent. We are working to an aggressive timetable to deliver on a series of major milestones over coming months, which we believe will highlight the Project’s potential to be a key, up-stream component of the European lithium valued added chain.”

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

Grandao

A total of 57 drill holes for 4,708m (17GRARC01-57) have been completed and results for drill holes 17GRARC24 to 42 have now been received and returned further very encouraging results (Tables 1-2 and Figure 2).

Drilling targeted at intersecting the near surface, shallowly west dipping pegmatite body has continued to meet with significant success. Drilling has further expanded the zone of lithium mineralisation, which now extends to over 400m in length, reaching up to 300m in width and with anomalous mineralisation recorded 185m below surface.

Significant drill results targeting the flat lying pegmatite body are summarised in Table 1.

Table 1. Summary of drill results for Grandao flat lying pegmatite using a 0.2% and 0.5% Li(2) O cut-off

 
                0.2% Li(2) O Cut-Off      0.5% Li(2) O Cut-Off 
-----------  -------------------------  -----------------------  ------ 
    Hole                        Li(2)                             Li(2) 
     ID       From     Width     O       From        Width        O 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC25    40       31       1.07     47          24           1.31 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC26    32       17       1        54          1            0.9 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC26    54       2        0.61 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC27    26       10       1.29     26          9            1.38 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC27    41       15       0.67     41          15           0.67 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC28    NSA 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC29    NSA 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC30    0        27       0.82     0           14           1.28 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC32    0        24       0.67 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC32    61       2        0.74 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC33    NSA 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC34    30       1        1.1      30          1            1.1 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC34    44       17       0.39     46          2            0.81 
-----------  -------  -------  -------  ----------  -----------  ------ 
                                         56          2            1.03 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC35    3        56       0.64     3           1            0.55 
-----------  -------  -------  -------  ----------  -----------  ------ 
                                         9           16           1.27 
-----------  -------  -------  -------  ----------  -----------  ------ 
                                         39          4            1.1 
-----------  -------  -------  -------  ----------  -----------  ------ 
                                         48          3            1.07 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC36    33       7        0.73     36          4            1.04 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC37    34       16       1.11     58          10           1.32 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC37    58       11       1.23 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC38    8        3        0.71     9           2            0.96 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC38    21       9        1.1      21          9            1.1 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC38    35       32       0.89     35          17           1.29 
-----------  -------  -------  -------  ----------  -----------  ------ 
                                         55          2            0.81 
-----------  -------  -------  -------  ----------  -----------  ------ 
                                         61          2            0.56 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC39    11       17       0.76     13          9            0.93 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC39    34       16       0.71     24          3            0.74 
-----------  -------  -------  -------  ----------  -----------  ------ 
                                         36          8            1.1 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC40    9        11       0.97     10          9            1.11 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC40    28       15       1.04     28          14           1.08 
-----------  -------  -------  -------  ----------  -----------  ------ 
 17GRARC41    40       33       1.22     40          33           1.22 
-----------  -------  -------  -------  ----------  -----------  ------ 
 

Further drilling of the newly identified sub-vertical body has met with further success with another 59m wide zone of lithium mineralisation identified and this body remains open both along strike and down dip and is a high priority target for further drilling. Recently received results are summarised in Table 2.

Table 2. Summary of drill results for Grandao new vertical pegmatites using a 0.2% and 0.5% Li(2) O cut-off

 
                0.2% Li(2) O Cut-Off       0.5% Li(2) O Cut-Off 
-----------  -------------------------  ------------------------- 
    Hole                        Li(2)                      Li(2) 
     ID       From     Width     O       From     Width     O 
-----------  -------  -------  -------  -------  -------  ------- 
 17GRARC24    30       12       0.67     31       1        0.68 
-----------  -------  -------  -------  -------  -------  ------- 
                                         35       6        1.05 
-----------  -------  -------  -------  -------  -------  ------- 
 17GRARC31    5        59       1.13     5        59       1.13 
-----------  -------  -------  -------  -------  -------  ------- 
 17GRARC31    68       22       0.48     72       2        0.69 
-----------  -------  -------  -------  -------  -------  ------- 
 17GRARC31    102      4        1.01     78       7        0.97 
-----------  -------  -------  -------  -------  -------  ------- 
 17GRARC31    121      11       0.95     102      4        1.01 
-----------  -------  -------  -------  -------  -------  ------- 
 17GRARC31    138      2        0.85     121      7        1.37 
-----------  -------  -------  -------  -------  -------  ------- 
                                         138      1        1.36 
-----------  -------  -------  -------  -------  -------  ------- 
 17GRARC42    3        1        0.29     37       2        0.79 
-----------  -------  -------  -------  -------  -------  ------- 
 17GRARC42    13       2        0.21     48       2        0.67 
-----------  -------  -------  -------  -------  -------  ------- 
 17GRARC42    36       4        0.56     110      1        0.7 
-----------  -------  -------  -------  -------  -------  ------- 
 17GRARC42    45       5        0.4 
-----------  -------  -------  -------  -------  -------  ------- 
 17GRARC42    55       1        0.27 
-----------  -------  -------  -------  -------  -------  ------- 
 17GRARC42    97       1        0.2 
-----------  -------  -------  -------  -------  -------  ------- 
 17GRARC42    100      1        0.28 
-----------  -------  -------  -------  -------  -------  ------- 
 17GRARC42    108      6        0.3 
-----------  -------  -------  -------  -------  -------  ------- 
 17GRARC42    126      1        0.21 
-----------  -------  -------  -------  -------  -------  ------- 

Figure 2. Summary of drilling at Grandao showing significant assay results and holes with pending assays – SEE PDF

NOA

Drilling at the NOA deposit now totals 10 holes for 768m (17NOARC01-10) and results from 5 holes (17NOARC06-10) have been received. Results have been encouraging with 10m-15m wide zones of pegmatite being intersected over a strike length of 200m and a down dip depth of around 50m (Table 4 and Figure 3). Further work is now required to access the full potential of the deposit.

Table 4. Summary of drill results for NOA reported at a 0.2% and 0.5% Li(2) O cut-off

 
                0.2% Li(2) O Cut-Off       0.5% Li(2) O Cut-Off 
-----------  -------------------------  ------------------------- 
    Hole                        Li(2)                      Li(2) 
     ID       From     Width     O%      From     Width     O% 
-----------  -------  -------  -------  -------  -------  ------- 
 17NOARC06    9        15       0.83     9        7        1.27 
-----------  -------  -------  -------  -------  -------  ------- 
                                         20       1        1.46 
-----------  -------  -------  -------  -------  -------  ------- 
 17NOARC07    31       3        0.18     51       3        1.55 
-----------  -------  -------  -------  -------  -------  ------- 
 17NOARC07    48       12       0.56 
-----------  -------  -------  -------  -------  -------  ------- 
 17NOARC08    6        6        1.01     7        4        1.35 
-----------  -------  -------  -------  -------  -------  ------- 
 17NOARC08    51       6        0.25 
-----------  -------  -------  -------  -------  -------  ------- 
 17NOARC09    10       7        1.04     11       5        1.28 
-----------  -------  -------  -------  -------  -------  ------- 
 17NOARC09    63       1        0.23 
-----------  -------  -------  -------  -------  -------  ------- 
 17NOARC09    65       1        0.26 
-----------  -------  -------  -------  -------  -------  ------- 
 17NOARC10    2        3        0.56     3        2        0.71 
-----------  -------  -------  -------  -------  -------  ------- 
 17NOARC10    19       14       0.73     23       7        1.26 
-----------  -------  -------  -------  -------  -------  ------- 

Figure 3. Summary of recent drilling at NOA, showing drilling completed and significant assays received – SEE PDF

Ongoing Drill Programme

Based on the new results an additional 16 RC drill holes have been added to the programme at Grandao, Romainho, Campo de Futebol and Piero Negro in order to further evaluate the potential of the wider project area.

In addition, to accelerate exploration, a diamond drill rig will be mobilised to site for an initial 1,500m drill programme, which will include sample collection for the phase 3 metallurgical test work programme, stratigraphic/structural holes and the extension of six existing RC holes to depth to target the newly identified broad zone of lithium mineralisation identified at depth below Grandao.

Metallurgical Test Work

The test work programme to determine the crush size and the density at which a 6% concentrate can be produced and mass yield, together with the three fundamental design parameters for developing a gravity process flow sheet based on the dense medium (DMS) process, is ongoing. Work is expected to be completed in Q1 2018.

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.