Savannah Resources Plc (LON:SAV) has revealed what it described as “outstanding” drill results from the Mina do Barroso lithium project.
The explorer is carrying out both reverse circulation and diamond drilling at the Grandao area of the project where it has unearthed higher-grade lithium mineralisation over significant widths. Highlight results from Grandao included grades between 1.14% and 1.46%. The company told investors that drilling in the Grandao area has now defined a virtually continuous zone of shallowly westerly dipping pegmatite mineralisation.
It added that the positive results support a new mineral resource estimation which is due to be reported shortly, meanwhile, it has highlighted an “opportunity for significant further upside” as drilling operations are ongoing.
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Elsewhere, Phase 3 metallurgical testing is ongoing and is scheduled to be completed in the fourth quarter of 2014. A feasibility study is well underway, the initial focus is on option and project optimisation work to finalise the process flowsheet to maximise project returns.
"We continue to see outstanding results from the drilling of Grandao,” said David Archer, chief executive.
“These results, together with the recent drill results announced on 26 July are being incorporated into our fourth and latest Mineral Resource study, which we hope to be in a position to announce shortly.
“We believe this study will continue to underpin the significant value potential of our flagship Mina do Barroso lithium project as we continue to advance towards making a development decision next year.”
Archer added: "With additional highly prospective targets now also beginning to be tested and positive progress being made as we continue to advance development aspects of the project, Mina do Barroso continues to deliver, underscoring its increasing strategic significance to the European lithium value chain as Western Europe's largest spodumene lithium deposit."