Savannah Resources Plc (LON:SAV) said bulk sampling is underway at the NOA deposit at its Mina do Barroso lithium project in northern Portugal.
The AIM-listed miner said it had identified an opportunity to generate additional revenues from the sale of feldspar/quartz, which is used in ceramics, alongside the sale of battery-grade spodumene concentrates.
READ: Savannah Resources unearths further higher grade lithium results in Portugal
Savannah added that the key objective of the bulk sampling was to obtain a large sample for test work for the ceramics and lithium markets, with material from the sampling to be evaluated in on-going metallurgical test work at a facility in Perth run by Australian company Nagrom.
The news follows the discovery of higher grade lithium deposits at the Barroso project on April 25, where Savannah unearthed further lithium mineralisation from an ongoing drilling programme with highlight grades of between 1.31% and 1.46%.
David Archer, Savannah’s chief executive, said: "The commencement of bulk sampling at Mina do Barroso marks the next stage in our strategy, as we advance the Project towards the production of export grade spodumene concentrates for European and international markets.
He added: "The feldspar/quartz component from the bulk sample will help validate the possibility of selling this as a co-product, which will not only generate supplemental revenues but will potentially also help to reduce stored volumes of coarse rejects and tailings produced from the concentration process of our anticipated lithium mine development. We think this approach holds clear commercial, operational and environmental benefits for the larger development. Portugal has a vibrant ceramics industry and lithium enriched feldspar/quartz is a sought-after material."
In early morning trading Thursday, Savannah shares were steady at 5.2p.
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