logo-loader
viewSavannah Resources PLC

Drilling on Savannah’s Mina do Barroso project confirms continuity of lithium mineralisation

Savannah is currently moving forward with a definitive feasibility study for Mina do Barroso

1549872149_lithium-100118-2.jpg
Savannah aims to address the growing market for lithium from electric vehicles

Follow-up drilling work undertaken by Savannah Resources PLC (LON:SAV) has confirmed continuity of lithium mineralisation at the Grandao, Reservatorio and Pinherio deposits on the Mina do Barroso lithium project in Portugal.

Key lithium intersections at Grandao include 46.11 metres at 1.04% Li₂O, 19.7 metres at 1.28% Li₂O, and 15.27 metres at 1.37% Li₂O. Key intersections at Reservatorio include 36 metres at 1.15% Li₂O, while key intersections at Pinheiro include 15 metres at 0.97% Li₂O.

WATCH: Metallurgical testwork highlights potential for lithium production

Drilling has focused on building confidence in the continuity of mineralisation at Grandao and Reservatorio, with recent results confirming the geological model for these deposits.

The results underpin the company's strategy of aiming to become Europe's most significant producer of lithium spodumene concentrates in response to the growing demand from the expanding European electric vehicle market. 

"The impressive continuity of lithium mineralisation revealed by these results continues to underpin the true potential of the Mina do Barroso lithium project,” said Savannah chief executive David Archer. 

“While much of the recent drilling has been focused on increasing the mineral resource categories for the definitive feasibility study that is currently underway, the drilling programme at Mina do Barroso continues to deliver expansions to the mineralised zone at Grandao, extensions in depth at Reservatorio and further encouraging results from the Pinheiro deposit. In particular, Pinheiro is shaping up well as a further spodumene lithium deposit and is set to augment the three main deposits that have been defined to date.”

In late morning trading, shares in Savannah Resources were 2% higher at 5p.

In a note to clients, analysts at ‘house’ broker finnCap commented: “The drilling programme continues to return significant intersections of lithium mineralisation as Savannah aims to increase the current Mineral Resource Estimate of 20.1Mt at 1.04% Li₂O containing 209,000t of Li₂O.

“This is the largest known spodumene deposit in Western Europe. We maintain our 20p price target.”

 -- Adds share price, analysts comment --

 

 

Quick facts: Savannah Resources PLC

Price: 2.375 GBX

AIM:SAV
Market: AIM
Market Cap: £30.85 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Savannah Resources PLC named herein, including the promotion by the Company of Savannah Resources PLC in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Investor Update: Edenville Energy announces two big new offtake deals for...

Headlines from the Proactive UK newsroom. Edenville Energy’s (LON:EDL) signed two new significant contracts to supply washed coal from flagship Rukwa Coal Project in Tanzania. The new deals represent a supply of up to 9,000 tonnes per month, which is roughly 75% of the current capacity of the...

on 11/12/19

2 min read