Savannah Resources Plc (LON:SAV) shares rose on Monday on news it has delivered further encouraging results from the ongoing reverse circulation and diamond drill programme at the Mina do Barroso lithium project in Portugal.
A total of 181 holes for 15,345 metres have now been drilled to date across the three primary targets of Grandao, Reservatorio and NOA.
The drilling continues to expand the boundaries of the known mineralised pegmatites demonstrating the project's potential for further increases in the existing 14mln tonne resource.
Among the highlights of the latest drilling were intercepts of 25 metres at 1.56% Li2O, 22 metres at 1.41% Li2O, and 15 metres at 1.32% Li2O.
Meanwhile, detailed discussions continue with potential feasibility study specialists.
"The drill programme continues to deliver encouraging results, which will go towards further increasing what is already the largest spodumene lithium Mineral Resource Estimate in Western Europe,” said chief executive David Archer.
“We are upping the drilling tempo with the addition of a third rig and drilling, which commenced a little under one year ago, now totals over 15km in length and constitutes one of the most intensive drill programmes undertaken in Portugal in recent years.”
In a note to clients, analysts at finnCap commented: "This is by some way Europe’s largest credible lithium project. We maintain our 20p price target."
In mid-morning trading, Savannah Resources shares were 1.6% higher at 9.55p.
-- Adds share price, analyst comment --