Savannah Resources Plc (LON:SAV) has boosted the resource base at the Grandao lithium deposit in Portugal by 64% to 16.4mln tonnes grading 1.04% Li₂O.
Total contained lithium rings in at 171,400 tonnes.
WATCH: Savannah Resources reports 44% increase to resource at Mino do Barrosso
The upgrade brings the total resource at the wider Mina do Barroso project to over 20mln tonnes, with significant scope left for further increases.
Mino do Barroso is now confirmed as Western Europe's largest spodumene lithium mineral resource.
Around 90% of the mineralisation within the Stage 1 Grandao pit has now been upgraded to the measured and indicated categories, representing the first 4-5 years of the mining inventory based on an average annual production of around 175,000 tonnes per year of spodumene concentrate at 6% Li₂O.
A feasibility study is underway and due for completion late in the first quarter of 2019 to build upon results of the June 2018 scoping study.
This study demonstrated an excellent base case pre-tax NPV of US$356mln and an internal rate of return of 63%.
In early morning trading, Savannah Resources shares were 4.8% higher at 8.75p.
In a note to clients, analysts at 'house' broker finnCap reiterated a 20p target price on Savannah Resources shares noting that Mina do Barroso is "the largest known spodumene deposit in Western Europe".
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