Savannah Resources Plc (LON:SAV) has revealed what are described as “excellent” results from exploratory drilling at Mina do Barroso lithium project in Portugal.
A new area of high grade lithium mineralisation has been discovered at the site. This zone, referred to as ‘Grandao Extended’ was unearthed through drilling to the west and southwest of the main Grandao deposit.
WATCH: Savannah Resources reveals 'excellent' results from ‘Grandao Extended
Drilling statistics include highlight grades ranging between 0.96% and 1.71% lithium.
The company noted that the drilling at Grandao Extended has thus far defined a zone that’s around 300 metres long and 200 metres wide. It added described the potential of the zone as “excellent”.
"We are delighted with the consistently excellent results we are seeing from the drilling of the Grandao system,” said David Archer, Savannah chief executive.
“The main Grandao Deposit already extends over a large area of 400m north-south and 330m east-west.
“Grandao Extended is adding to this with a 300m extension to the southwest which suggests that much of the exploration target in this area has the potential to be converted to additional mineral resource.
Archer added: “It is particularly encouraging to see the excellent grades being reported as we believe this will only add to the economic appeal of a mine development at Grandao which already benefits from near surface mineralisation which should be able to be mined with a very low stripping ratio.”
Grandao extended is one of a number of areas being tested in the exploration and expansion drilling campaign which has thus far comprised 120 holes and a total of 9,600 metres of drilling.
Drilling in other areas (Piagro Negro, Campo de Futebol and Romainho) has returned what are described as “encouraging” first pass results – with highlight lithium grades seen from 0.4% to 0.85%.
At the same time, the company continues to advance a scoping study, due by the end of the second quarter, and Phase 3 metallurgical works is said to be progressing well, due for completion in the third quarter.