Second Round of Lithium Drilling, Portugal

RNS Number : 6325R

Savannah Resources PLC

25 September 2017

 

Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining

25 September 2017

Savannah Resources Plc

Second Round of Lithium Drilling

Advanced Mina do Barroso Lithium Project, Portugal

Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), the AIM quoted resource development company, is pleased to announce that the second round of reverse circulation ('RC') drilling aimed at defining a JORC resource at the Mina do Barroso lithium project in Portugal (Figures 1-2) has commenced.  To view the press release with the illustrative maps and diagrams please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/6325R_-2017-9-22.pdf

HIGHLIGHTS:

·    RC drill programme has re-started at Mino do Barroso mining lease

·    Drilling to focus on drill testing the NOA deposit and targeting potential extensions to the significant zones of mineralisation identified at Grandao and Reservatorio in recent drilling

·    Further mapping of the mining lease area is also underway to map and define other lithium bearing pegmatites

Savannah's CEO, David Archer said: "We're looking to this next round of drilling to build on the robust drill intersections we reported last week.  This has highlighted the appeal of Mina do Barroso as the best European analogue of the very successful Western Australian lithium spodumene developments. We believe that hard rock, lithium spodumene deposits like those at Mina do Barroso will play a leading role in the upstream part of the lithium value chain going into the 2020s."

Figure 1. Photograph of Drill Rig at NOA Prospect Mina do Barroso - see PDF

Figure 2. Mina do Barroso Project Summary Map - see PDF

Savannah has a 75% interest in Slipstream Resources Portugal Unipessol Lda, which is the registered holder of the Mina do Barroso mining licence.

Competent Person and Regulatory Information

The information in this announcement that relates to exploration results is based upon information compiled by Mr Dale Ferguson, Technical Director of Savannah Resources Limited. Mr Ferguson is a Member of the Australian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Ferguson consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

**ENDS**

For further information please visit www.savannahresources.com or contact:

David Archer	Savannah Resources plc	Tel: [phone]
David Hignell / Gerry Beaney (Nominated Adviser)	Northland Capital Partners Ltd	Tel: [phone]
Christopher Raggett / Emily Morris (Corporate Broker)	finnCap Ltd	Tel: [phone]
Charlotte Page / Lottie Brocklehurst	St Brides Partners Ltd	Tel: [phone]

About Savannah

Notes

Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, mineral development company.

Mozambique

Savannah operates the Mutamba heavy mineral sands project in Mozambique in collaboration with Rio Tinto, and can earn a 51% interest in the related Consortium, which has an established initial Indicated and Inferred Mineral Resource Estimate of 4.4 billion tonnes at 3.9% THM over the Jangamo, Dongane and Ravene deposits.  Under the terms of the Consortium Agreement with Rio Tinto, upon delivery by Savannah of the following will earn the corresponding interest in the Mutamba Project (which currently is 20% following delivery of scoping study in May 2017): pre-feasibility study - 35%; feasibility study - 51%. Additionally, the Consortium Agreement includes an offtake agreement on commercial terms for the sale of 100% of heavy mineral concentrate production to Rio Tinto (or an affiliate).

Oman

Savannah has interests in two copper blocks in the highly prospective Semail Ophiolite Belt in Oman.  The projects, which have an Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% copper and high-grade intercepts of up to 56.35m at 6.21% Cu, with gold credits, provide Savannah with an excellent opportunity to potentially evolve into a mid-tier copper and gold producer in a relatively short time frame. Together with its Omani partners, Savannah aims to outline further mineral resources to provide the critical mass for a central operating plant to develop the deposits and in December 2015 outlined exploration targets of between 10,700,000 and 29,250,000 tonnes grading between 1.4% and 2.4% copper.

Portugal

Savannah's Portuguese portfolio comprises a 75% interest in one approved mining lease and nine exploration licence applications for lithium. The project areas cover approximately 1,024km² of highly prospective lithium ground in northern Portugal. 348km² of the tenement applications are on course for government approval, with the remaining 670km² currently subject to overlapping exploration licence applications from third parties. The highly strategic Mina do Barroso project has in place an approved mining plan and an environmental impact assessment with a granted 30-year mining lease (expiring in 2036). Mina do Barroso represents a near-term mining opportunity for the Company and Savannah's focus upon defining a JORC compliant mineral resource estimate means that a development decision could be made as early as the end of 2018.

Finland

Savannah has Reservation Permits over two lithium projects, covering an area of 159km².  Geological mapping has highlighted the presence of seven pegmatites with key lithium minerals petalite, spodumene and lepidolite all identified.

 

END

 

 

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