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Savannah Resources PLC
20 September 2017

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


20 September 2017


Savannah Resources Plc

Robust Lithium Intersections Support the Potential to Fast Track the Advanced Mina do Barroso Lithium Project to Production, Portugal


Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), the AIM quoted resource development company, is pleased to announce that the first part of a reverse circulation ('RC') drill programme aimed at defining a JORC compliant Mineral Resource Estimate at the Mina do Barroso Lithium Project ('Mina do Barroso' or the 'Project') in Portugal (Figure 1) has returned significant intersections of lithium mineralisation.  To view the press release with the illustrative maps and diagrams please use the following link:





·    Assay results from the drill programme have returned a series of robust lithium intercepts on two of the high priority targets within the C-100 Mina do Barroso mining lease

·    Reservatorio Deposit: drilling confirmed mineralisation over a 200m strike length together with good down dip extensions of at least 80m.  Results include:

-     36m at 1.26% LiO from 29m in 17RESRC05

-     33m at 1.15% LiO from 16m in 17RESRC07

-     26m at 0.92% LiO from 61m in 17RESRC04

-     25m at 1.01% LiO from 36m in 17RESRC03

·    Grandao Deposit: drilling confirmed mineralisation over a 200m strike length in a large, near surface, sub horizontal pegmatite body.  Results include:

-     18m at 1.27% LiO from 1m in 17GRARC06

-     17m at 1.24% LiO from 16m in 17GRARC05

-     15m at 1.08% LiO from 39m in 17GRARC04

-     14m at 1.18% LiO from surface in 17GRA07

·    Both Reservatorio and Grandao remain open along strike and down dip leaving excellent upside potential for both deposits

·    Drilling is due to commence again shortly at NOA and will be followed by further drilling at both Reservatorio and Grandao with a view to defining a JORC compliant resource by the end of 2017

·    Further mapping at five additional high priority targets, some with significant historical drill intersects, has also commenced to fast track the targets to drilling

·    Phase 2 of the Metallurgical Test Work programme is scheduled to commence shortly. This is aimed at providing the required data for a scoping study, with results of the test work expected before the end of 2017.

·    The intersection of near surface lithium mineralisation supports the potential for the Project to be fast tracked towards production via a series of open pit mines - targeting a development decision before the end of 2018.


Savannah's CEO, David Archer said: "The drilling of the first two targets at Mina do Barroso has confirmed excellent lithium grades over a series of broad intercepts.  These results further highlight the appeal of the Project, which we believe is one of the most promising lithium projects in Europe, thanks to a number of key features:


ü Spodumene is the dominant lithium mineral. It has high percentages of lithium relative to other lithium minerals and is a mineral with a conventional and well understood processing path;

ü Metallurgical test work has shown very good recoveries producing a 6% Li₂O low iron concentrate product;

ü There is near surface mineralisation with open pit potential;

ü We have a granted mining lease with 19 years to run;

ü There is excellent existing infrastructure, including the export port of Leixoes ~140km by road; and

ü It is strategically positioned in Europe.


"Taking these positive attributes into consideration, we believe Mina do Barroso could be brought into production relatively quickly to produce a Li₂O concentrate for the manufacture of battery grade lithium. This is within a highly favourable context as there is a clear intent on the part of governments, communities and car manufacturers to foster accelerated adoption of electric vehicles. This will bring into focus lithium mines that can be brought into production swiftly to meet growing demand.


"We believe that hard rock, lithium spodumene deposits like those at Mina do Barroso will be playing the leading role in the upstream part of the lithium value chain going into the 2020s."


Figure 1. Mina do Barroso Project Summary Map showing prospects and 2017 drilling - see PDF link




Assay results from the drilling at Reservatorio has confirmed lithium mineralisation (Table 1 and Figure 2-3) in pegmatite up to 49 metres in width (down hole). Drilling intersected significant zones of lithium mineralisation along a 200m strike length and on one section to at least 80m down dip confirming the potential for good depth extensions of the lithium mineralisation. Drilling suggests that the pegmatite body has a dip of about 40 degrees to the northwest and the pegmatite remains open along strike and down dip. Importantly, the mineralisation starts from surface suggesting excellent potential for the use of open pit mining methods as part of any potential mine development.


Table 1. Summary of drill results for Reservatorio reported at both a 0.2% and 0.5% Li2O cut-off




14m at 1.12% Li2O from 6m

5m at 0.73% Li2O from 6m




7m at 1.60% Li2O from 13m


Figure 2. Summary of drilling at Reservatorio, together with historical drill holes and planned drill holes. (It is important to note that may of the historical drill holes intersected only sediments as they were not drilled deep enough to intersect the underlying pegmatite body) - see PDF link 


Figure 3. Reservatorio: Cross Section through 17RESRC04, 17RESRC05 and 17RES07 - see PDF link




Assaying at Grandao has returned lithium mineralisation (Table 2 and Figure 4-5) to a maximum down hole width of 19m. Drilling intersected mineralised pegmatite along a 200m strike length and drilling has indicated that the body is close to flat or shallowly dipping to the southwest. This near surface, relatively flat body would have significant mining cost benefits for any potential development of the deposit as it could be mined using an open pit with what is likely to be a very low strip ratio. The pegmatite body remains open in all directions; further work is required to better define the full potential of the Grandao pegmatite bodies.


Table 2. Summary of drill results for Grandao reported at both a 0.2% and 0.5% Li2O cut-off




4m at 0.9% Li2O from 36m

4m at 0.9% Li2O from 36m



2m at 1.69% Li2O from 45m

2m at 1.69% Li2O from 45m



11m at 0.77% Li2O from 51m

11m at 0.77% Li2O from 51m



Figure 4. RC drilling at Grandao together with historical drill holes and planned drill holes. (It is important to note that many of the historical drill holes intersected only sediments as they were not drilled deep enough to intersect the underlying pegmatite body) - see PDF link


Figure 5. Grandao: Cross Section through 17GRARC0X, 17GRARC0X, 17GRARC0X - see PDF link


Drilling is now underway at NOA and with follow up drilling at both Reservatorio and Grandao to be completed following this to further define the mineralisation with a view to achieving a JORC compliant mineral resource before the end of 2017.


Additional Projects


Apart from Reservatorio, Grandao and NOA there are a series of five other advanced exploration opportunities which are currently being mapped and sampled to determine their order of priority for follow up drilling. All of the prospects were drilled by a small number of shallow drill holes by a previous explorer evaluating the project for potential feed for ceramic products. These initial results are very encouraging and represent what appear to be a series of walk up drill targets for future evaluation.


A summary of the key characteristics of each prospect is provided below in Table 3.


Table 3. Summary of other advanced prospects in the Mina do Barrosa tenement



Apparent Dimension

Historical Results

Carvalha da Bacora

approx. 300m by 30m

SAC1: 12m at 1.22% Li2O from 16m (EOH)


sporadic outcrop over a 200m strike length

SP2: 13m at 1.25% Li2O from Surface

Alto do Cortico

approx. 300m by 30m

SAC6: 5m at 1.07% Li2O from 3m

Campo de Futebol

4 bodies with approx dimensions of 100m by 20m each

CAM1: 2m at 1.28% Li2O for 5m

Piegro Negro

sporadic outcrop over a 200m strike length

PGR01: 4m at 0.9% Li2O from Surface


Figure 6. Small bulk sample pit on lithium bearing pegmatite on the NOA prospect - see PDF link



Figure 7. Lithium bearing pegmatite from drilling at the Mina do Barroso Project - see PDF link



Figure 8. The export port of Leixoes, located ~140km by road from Mina do Barroso - see PDF link


Savannah has a 75% shareholding 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. Additional information in this announcement is based upon information compiled by Mr Colin Rothnie, an independent consultant. Mr Ferguson and Mr Rothnie are both a Member of the Australian Institute of Mining and Metallurgy (AusIMM) and have 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 and Mr Rothnie consent 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.



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


David Archer

Savannah Resources plc

Tel: 44 20 7117 2489

David Hignell / Gerry Beaney (Nominated Adviser)

Northland Capital Partners Ltd

Tel: 44 20 3861 6625

Christopher Raggett / Emily Morris

(Corporate Broker)

finnCap Ltd

Tel: 44 20 7220 0500

Charlotte Page / Lottie Brocklehurst

St Brides Partners Ltd

Tel: 44 20 7236 1177


About Savannah



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



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).



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.



Savannah holds a 75% interest one mining licence and nine prospective applications for the exploration and development of lithium, covering approximately 1,024km2 in northern Portugal.  This includes the highly strategic Mina do Barroso prospect, which with an approved Mining Plan ('MP'), Environmental Impact Assessment ('EIA') and a 30-year mining concession/Mining Licence ('ML'), means that with a defined JORC resource a development decision could be made as early as Q4 2018.



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.


APPENDIX 1 - JORC 2012 Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)


JORC Code explanation


Sampling techniques

·   Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

·     Reverse circulation (HQ size) samples were taken on either 1 intervals for pegmatite or 4m composites in surrounding schist. RC samples were collected in large plastic bags from an onboard rig splitter and a 4-6kg representative sample taken for analysis.


·   Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

·     Drilling was conducted on a nominal 80m by 40m spacing based on geological targets using RC drilling technology, an industry standard drilling technique. Drilling rods are 3m long and 1 sample is taken for each rod interval.

·     Collar surveys are carried using hand held GPS with an accuracy to within 5m, and the z direction was determined by satellite derived elevation data and is accurate to less than a metre. 

·     A downhole survey for each hole was completed


·   Aspects of the determination of mineralisation that are Material to the Public Report.

·   In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

·     The lithium mineralization is predominantly in the form of Spodumene-bearing pegmatites, the pegmatites are unzoned and vary in thickness from 15m-39m.

·     Down hole sampling is carried out on either a 1 or 4m interval from which 4-6kg of pulverized material (RC) was pulverized to produce a 50g charge for assaying


Drilling techniques

·   Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

·      RC drilling at a diameter of 120mm is a form of reverse circulation drilling requiring annular drill rods. Compressed air is pumped down the outer tube and the sample is collected from the open face drilling bit and blown up the inner tube.

Drill sample recovery

·   Method of recording and assessing core and chip sample recoveries and results assessed.


·      Field assessment of sample volume. A theoretical dried sample mass was estimated to be within the range of 18 kg to 24 Kg, 70% of samples are within the expected range. Lower than average sample recovery is recorded only for the very top of the drill hole due to air and sample losses into the surrounding soil


·   Measures taken to maximise sample recovery and ensure representative nature of the samples.

·      RC drilling sample weights were monitored to ensure samples were maximized. Samples were carefully loaded into a splitter and split in the same manner ensuring that the sample split to be sent to the assay laboratories were in the range of 4-6kg.


·   Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

·      No obvious releationships



·   Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

·   Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

·   The total length and percentage of the relevant intersections logged.

·      RC holes were logged in the field at the time of sampling.

·      Each 1m sample interval was carefully homogenized and assessed for lithology, colour, grainsize, structure and mineralization.

·      A representative chip sample produced from RC drilling was washed and taken for each 1m sample and stored in a chip tray which was photographed

Sub-sampling techniques and sample preparation

·   If core, whether cut or sawn and whether quarter, half or all core taken.

·   If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

·      RC samples were split by the rotary splitter on the drill rig and sampled dry


·   For all sample types, the nature, quality and appropriateness of the sample preparation technique.

·      The sampling was conducted using industry standard techniques and were considered appropriate


·   Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

·      The 4m composites were collected using a spear with the spear inserted into the bag at a high angle and pushed across the sample to maximise representivity of the sample


·   Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

·      Every effort was made to ensure that the samples were representative and not bias in anyway


·   Whether sample sizes are appropriate to the grain size of the material being sampled.

·      All samples were taken once they went through the onboard splitter from the drill rig. Depending on the rock types on average a 4-6kg sample was sent to the lab for analysis and the remaining material averaged 18-24kg and remains stored on site for any further analysis required

Quality of assay data and laboratory tests

·   The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

·     Samples were received, sorted, labeled and dried

·      Samples were crushed to 70% less than 2mm, riffle split off 250g, pulverize split to better than 85% passing 75 microns and 5g was split of for assaying

·      The samples were analysed using ALS laboratories ME-MS89L Super Trace method which combines a sodium peroxide fusion with ICP-MS instrumentation utilizing collision/reaction cell technologies to provide the lowest detection limits available.

·      A prepared sample (0.2g) is added to sodium peroxide flux, mixed well and then fused in at 670°C. The resulting melt is cooled and then dissolved in 30% hydrochloric acid. This solution is then analyzed by Inductively Coupled Plasma - Mass Spectrometry and the results are corrected for spectral inter-element interferences.

·      The final solution is then analyzed by ICP-MS, with results corrected for spectral inter-element interferences.


·   For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

·      Not used


·   Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

·      Standards/blanks and duplicates we inserted on a 1:20 ratio for both to samples taken

·      Duplicate sample regime is used to monitor sampling methodology and homogeneity.

·     A powder chip tray for the entire hole is completed for both RC and RAB. A sub-sample is sieved from the large RC bags at site into chip trays over the pegmatite interval to assist in geological logging. These are photographed and kept on the central database

·     Routine QA/QC controls for the method ME-MS89L include Blanks, certified reference standards of Lithium and duplicate samples. Samples are assayed within runs or batches up to 40 samples. At the fusion stage that quality control samples are included together with the samples so all samples follow the same procedure until the end. Fused and diluted samples are prepared for ICP-MS analysis. ICP instrument is calibrated through appropriate certified standards solutions and interference corrections to achieve strict calibration fitting parameters. Each 40 samples run is assayed with 2 blanks, 2 certified standards and one duplicate samples and results are evaluated accordingly.

·     A QA/QC review of all information indicated that all assays we inside reasonable tolerance levels.

Verification of sampling and assaying

·   The verification of significant intersections by either independent or alternative company personnel.

·      All information was internally audited by company personnel



·   The use of twinned holes.

·      Several historical holes we twinned for comparison purposes with the modern drilling


·   Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

·     Savannah's experienced project geologists are supervised all process's.

·     All field data is entered into a custom log sheet and then into excel spreadsheets (supported by look-up tables) at site and subsequently validated as it is imported into the centralized Access database.

·     Hard copies of logs, survey and sampling data are stored in the local office and electronic data is stored on the main server.


·   Discuss any adjustment to assay data.

·      Results were reported as Li(ppm) and were converted to a percentage by dividing by 10,000 and then to Li2O% by multiplying by 2.153

Location of data points

·   Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

·   Specification of the grid system used.

·   Quality and adequacy of topographic control.

·      The coordinate of each drill hole was taken at the time of collecting using a handheld GPS with an accuracy of 5m.

·      The grid system used is WSG84

·     Topographic accuracy was /- 5m

Data spacing and distribution

·   Data spacing for reporting of Exploration Results.

·   Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

·   Whether sample compositing has been applied.

·      Drilling was on a nominal 80m by 40m spacing and based on geological targets

·      Drill data is not currently at sufficient spacing to define a mineral resource.

·     Some samples were composited on a 4m basis based on geological criteria, these areas were all outside the pegmatite bodies where 1m sampling was completed

Orientation of data in relation to geological structure

·   Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

·   If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

·      Drilling was orientated perpendicular to the known strike of the pegmatites

·      Drill holes we orientated at either -60 degrees or -90 degrees depending on the dip of the pegmatite in an attempt to get drill holes as close to true width as possible

Sample security

·   The measures taken to ensure sample security.

·      Samples were delivered to a courier and chain of custody is managed by Savannah.

Audits or reviews

·   The results of any audits or reviews of sampling techniques and data.

·      Internal company auditing



Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)


JORC Code explanation


Mineral tenement and land tenure status

·   Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

·   The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.

·      All work was completed inside the 100% owned Mina do Barroso project C-100


Exploration done by other parties

·   Acknowledgment and appraisal of exploration by other parties.

·     N/A


·   Deposit type, geological setting and style of mineralisation.

·      The lithium mineralization is predominantly in the form of Spodumene-bearing pegmatites which are hosted in meta-pelitic and mica schists, and occasionally carbonate schists of upper Ordovician to lower Devonian age. The pegmatites are unzoned and vary in thickness from 15m-39m. Lithium is present in most aplite compositions.

Drill hole Information

·   A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

o dip and azimuth of the hole

o down hole length and interception depth

o hole length.

·   If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

·      Grid used WSG84

·      No material data has been excluded from the release





























































































Data aggregation methods

·   In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

·   Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

·   The assumptions used for any reporting of metal equivalent values should be clearly stated.

·      Low Grade Intercepts are weighted averages using a 0.2%Li2O cut off with no more than 2m of internal dilution

·      High Grade Intercepts are weighted averages using a 0.5%Li2O cut off with no more than 2m of internal dilution


Relationship between mineralisation widths and intercept lengths

·   These relationships are particularly important in the reporting of Exploration Results.

·   If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

·   If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

·      Exploration results are reported as down hole intercepts

·      No metal equivalent values have been used.

·      The drill holes are detailed in the table in the main release and the pegmatite at Reservatorio appears to dip at around 40degrees to the north west and at Grandao it is sub horizontal


·   Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

·      Relevant diagrams and maps have been included in the main body of the release.

Balanced reporting

·   Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

·      All relevant results available have been reported.

Other substantive exploration data

·   Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

·      The interpretation of the results is consistent with the observations and information obtained from the data collected.

Further work

·   The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

·   Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

·      Further rock chip sampling, channel sampling and RC drilling. Once planning has been completed the detail will be provided




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