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Savannah Resources Plc

“Savannah Resources PLC More Higher-Grade Lithium Intersected in Portugal” says CEO, David Archer

Savannah’s CEO, David Archer said: “We continue to see very encouraging results from the drilling of Grandao Extended which, together with Grandao, are matched by a very low stripping ratio. We believe this highlights the significant expansion potential available at Mina do Barroso as we continue to fast-track the Project towards production.”

Savannah Resources plc (AIM: 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 (‘Mina do Barroso’ or the ‘Project’, located in Portugal (Figure 1). Results for holes 18GRARC66 to 18GRARC78 have now been received. To view the press release with the illustrative maps and diagrams please use the following link: http://www.rns-pdf.londonstockexchange.com/rns/9908L_-2018-4-24.pdf

HIGHLIGHTS:

— Ongoing RC drilling at Grandao Extended has intersected further higher-grade lithium mineralisation over significant widths

   --    Key results include: 
-     50m at 1.18% Li O from 72m, including 41m at 1.39% Li O from 73m in 18GRARC71 
-     26m at 1.06% Li O from 71m, including 20m at 1.31% Li O from 75m in 18GRARC77 
-     34m at 0.86% Li O from 6m, including 17m at 1.31% Li O from 17m in 18GRARC72 
-     53m at 0.68% Li O from 63m, including 15m at 1.32% Li O from 67m in 18GRARC74 
-     13m at 1.46% Li O from 100m in 18GRARC78

— Drilling to date at Grandao and Grandao Extended has now defined a virtually continuous zone of shallowly westerly dipping pegmatite from surface to a vertical depth of over 100m and covering a zone of approximately 550m long and up to 450m wide, confirming the excellent potential of the zone

— Total of 135 holes for 11,083m drilled to date as part of the ongoing RC and diamond drill programme across three primary targets of Grandao, Reservatorio and NOA

— The Hatch Scoping Study and Resource Estimation update remain on schedule to be completed towards the end of Q2 2018

— Phase 3 of the metallurgical test work programme comprising diamond drilling is complete, and samples have arrived at Nagrom in Perth for testing, which is on schedule to be completed in Q3 2018

   --    Diamond drilling of the sub-vertical body at Grandao has now commenced

 

Figure 1. Mina do Barroso Project Summary Map showing Prospects and Drilling Completed – See PDF

Grandao

A total of 82 drill holes for 6,865m (17GRARC01-82) have been completed and results for drill holes 17GRARC66 to 78 have now been received and returned further encouraging results (Tables 1 and Figure 2-3 See PDF).

Drilling targeting the Exploration Target* to the west and southwest of the main Grandao Deposit has returned further encouraging zones of lithium mineralisation. All holes completed in the area to date have intersected significant mineralisation

*Cautionary Statement: The potential quantity and grade of the Exploration Targets is conceptual in nature, there has been insufficient exploration work to estimate a mineral resource and it is uncertain if further exploration will result in defining a mineral resource.

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 O Cut-Off      0.5% Li O Cut-Off 
----------------------  --------------------  ----- 
Hole ID     From    Width    Li O   From       Width      Li O 
------  -------  -----  ---------  ---------  ----- 
18GRARC66    0       7        1.08   0          7          1.08 
-----------  ------  -------  -----  ---------  ---------  ----- 
19      5        0.39   21         1          0.95 
------  -------  -----  ---------  ---------  ----- 
18GRARC67    33      7        0.25   37         1          0.5 
-----------  ------  -------  -----  ---------  ---------  ----- 
45      17       0.83   46         3          1.24 
-----------  ------  -------  -----  ---------  ---------  ----- 
65      12       0.75   53         6          1.39 
-----------  ------  -------  -----  ---------  ---------  ----- 
82      11       0.99   66         6          1.28 
-----------  ------  -------  -----  ---------  ---------  ----- 
96      6        1.29   83         9          1.12 
-----------  ------  -------  -----  ---------  ---------  ----- 
106     7        0.7    96         6          1.29 
-----------  ------  -------  -----  ---------  ---------  ----- 
107        6          0.74 
------  -------  -----  ---------  ---------  ----- 
18GRARC68    57      16       0.69   62         11         0.92 
-----------  ------  -------  -----  ---------  ---------  ----- 
76      11       0.92   76         11         0.92 
-----------  ------  -------  -----  ---------  ---------  ----- 
90      1        0.94   90         1          0.94 
-----------  ------  -------  -----  ---------  ---------  ----- 
94      7        0.76   94         7          0.76 
------  -------  -----  ---------  ---------  ----- 
18GRARC69    27      1        0.56   27         1          0.56 
-----------  ------  -------  -----  ---------  ---------  ----- 
36      7        0.42   37         3          0.7 
-----------  ------  -------  -----  ---------  ---------  ----- 
52      11       1.08   52         10         1.16 
-----------  ------  -------  -----  ---------  ---------  ----- 
67      2        0.32   87         4          0.85 
-----------  ------  -------  -----  ---------  ---------  ----- 
85      8        0.56 
------  -------  -----  ---------  ---------  ----- 
18GRARC70    66      12       1.15   67         11         1.24 
-----------  ------  -------  -----  ---------  ---------  ----- 
87      13       0.59   87         10         0.69 
------  -------  -----  ---------  ---------  ----- 
18GRARC71    72      50       1.18   73         41         1.39 
------  -------  -----  ---------  ---------  ----- 
18GRARC72    6       34       0.84   7          4          0.68 
-----------  ------  -------  -----  ---------  ---------  ----- 
58      2        0.81   17         17         1.31 
-----------  ------  -------  -----  ---------  ---------  ----- 
59         1          1.19 
------  -------  -----  ---------  ---------  ----- 
18GRARC73    50      8        0.57   56         2          1.57 
-----------  ------  -------  -----  ---------  ---------  ----- 
61      15       1.1    61         14         1.15 
-----------  ------  -------  -----  ---------  ---------  ----- 
82      14       0.22 
-----------  ------  -------  -----  ---------  ---------  ----- 
102     3        0.26 
------  -------  -----  ---------  ---------  ----- 
18GRARC74    63      53       0.68   67         15         1.32 
-----------  ------  -------  -----  ---------  ---------  ----- 
89         2          0.85 
-----------  ------  -------  -----  ---------  ---------  ----- 
100        9          0.85 
------  -------  -----  ---------  ---------  ----- 
18GRARC75    38      9        1.15   38         8          1.25 
------  -------  -----  ---------  ---------  ----- 
18GRARC76    38      9        0.85   41         4          1.54 
------  -------  -----  ---------  ---------  ----- 
18GRARC77    71      26       1.06   75         20         1.31 
------  -------  -----  ---------  ---------  ----- 
18GRARC78    100     13       1.46   100        13         1.46 
-----------  ------  -------  -----  ---------  ---------  ----- 
130     10       0.62   130        4          1.18 
------  -------  -----  ---------  ---------  ----- 

Figure 2. Summary of drilling at Grandao showing significant assay results – See PDF

Figure 3. Grandao Cross Section through Main Flat Lying Body – See PDF

Ongoing Drill Programme

Based on the new results, additional RC drill holes have been added to the programme at Grandao in order to further evaluate the potential of Grandao Extended and the wider project area. In addition, a further six holes will be drilled at the Pinheiro Prospect, which is located around 1km to the south of the Grandao Deposit.

The diamond rig is now completing the extension of six existing RC holes to depth, targeting the newly identified broad zone of sub-vertical lithium mineralisation identified below the main tabular shallowly westerly dipping body.

Phase 3 Metallurgical Test Work

Diamond drilling at both the Reservatorio and Grandao Deposits has been completed, with around 500kg of diamond core cut and shipped to Nagrom in Perth from each deposit for the metallurgical test work programme being overseen by lithium expert Mr Noel O’Brien (Figure 4). Work is on track to be completed in Q3 2018.

Figure 4. Mina do Barroso Phase 3 Metallurgical Samples at Nagrom Perth awaiting Processing – See PDF

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