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Drilling boosts potential size of Savannah’s Mina do Barroso lithium project

Mina do Barroso is shaping up to be one of Europe's most significant lithium projects

Demand for lithium continues to rise

Savannah Resources PLC (LON:SAV) has identified a new higher-grade lithium-bearing pegmatite body at Aldeia, about two kilometres to the south-east of the Grandao deposit in Portugal.

Key lithium intersections include: 21 metres at 1.50% lithium oxide (Li₂O), 20 metres at 1.36% Li₂O, 21metres at 1.24% Li₂O, and 14 metres at 1.41% Li₂O.

The pegmatite was consistently intersected over a strike length of over 200 metres and has been traced down dip for a distance of over 200 metres, confirming the potential for the presence of a significant mineralised body.

Drilling is continuing. Both the Aldeia and the newly discovered Pinheiro deposits will now be incorporated in an expanded and fully-funded definitive feasibility study, the completion of which will now extend into the second half of the year.

Savannah’s wider Mina do Barroso project currently boasts a 20mln tonne resource and has been billed as Western Europe's most significant new spodumene lithium discovery. 

 "The discovery of this new higher grade Aldeia Block A pegmatite is likely to add further tonnage to the overall mineral resource inventory of the Mina do Barroso project,” said Savannah chief executive David Archer.

“These excellent results mean we will now look to incorporate these deposits as part of the early mining schedule of a potential mine development.”

In a note to clients, analysts at ‘house’ broker finnCap commented: “The new drilling programme has returned some excellent results, with high grades encountered over significant widths.

“The Mina do Barroso lithium project is already by some way the largest and most significant spodumene lithium project in Western Europe and looks set to become larger.

finnCap repeated a 20p price target on Savannah Resources shares, which in afternoon trading were 0.9% higher at 5.35p.

 -- Adds analyst comment, share price --

Quick facts: Savannah Resources PLC

Price: 2.2 GBX

Market: AIM
Market Cap: £28.58 m

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