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RNS Number : 7807V
Savannah Resources PLC
26 July 2018


26 July 2018


Savannah Resources Plc


Significant Expansions to Grandao Extended Identified

Mina do Barroso Lithium Project, Portugal


Savannah Resources plc (AIM: SAV and SWB: SAV) ('Savannah' or the 'Company'), the AIM quoted resource development company, is pleased to announce further encouraging results from the ongoing reverse circulation ('RC') and diamond drill ('DD') programme at the Mina do Barroso Lithium Project ('Mina do Barroso' or the 'Project'), located in Portugal (Figure 1).  A total of 192 holes for 16,222m have now been drilled to date across three primary targets of Grandao, Reservatorio and NOA. To view the press release with the illustrative maps and diagrams please use the following link:




·    Ongoing RC and DD at the Grandao and Grandao Extended Deposits has identified further significant expansions to the mineralised pegmatite bodies

·    Drilling at Grandao Extended has identified a significant extension to the known mineralised pegmatites supporting the excellent potential for further increases in the existing 14Mt @ 1.1% Li₂O Mineral Resource Estimate

·    Key results include:

Grandao and Grandao Extended

-     25.15m at 1.38% Li2O from 96.85m in 18GRARC76 diamond tail

-     41.35m at 1.30% Li2O from 103m in 18GRARC80 diamond tail

-     14.4m at 1.57% Li2O from 148.60m in 18GRARC81 diamond tail

-     47m at 1.35% Li2O from 66m in 18GRARC105

-     30m at 1.33% Li2O from 45m in 18GRARC106

·    A second diamond drill rig is now on site to support the fast-tracked Feasibility Study, which is now underway and being undertaken by Perth based lithium specialist, Primero Group

·    Phase 3 of the metallurgical test work programme continues to progress well


Savannah's CEO, David Archer said: "The drill programme continues to produce outstanding results both in terms of widths and lithium grades. Zones in the main Grandao Deposit are thickening and drilling is also extending the deposit down dip, giving us confidence of the potential to increase the Project's Mineral Resource Estimate.


"Mina do Barroso has developed at an exceptionally fast pace since the first hole was drilled on 24 July 2017. We have gone from a point of having no Mineral Resource Estimate to having made one of Europe's most significant mineral discoveries of a mineral that is of vital and strategic importance to European industry." 


Figure 1. Mina do Barroso Project summary map showing the location of deposits and drilling completed - see PDF


Grandao and Grandao Extended


A total of 142 RC and DD drill holes for 1,1935m have been completed and results for drill holes 18GRARC104-106, 18GRADD001-006, and diamond tails on 18GRARC076, 080-081 have now been received and returned further encouraging results (Tables 1 and Figure 2-3).


Drilling targeting the down dip extensions of Grandao Extended has met with significant success, identifying a further down dip extension of the known mineralisation in the order of 100m and other expansions to the areas of known mineralisation. Drilling has now confirmed that the orebody continues for at least 600m down dip and importantly the ore body remains open down dip with further expansions likely as the drilling programme continues.


Table 1. Summary of drill results for Grandao flat lying pegmatite using a 0.5% Li2O cut-off

Hole ID









From (m)

To (m)

Down hole











Interval (m)

% Li2O













































































































* Diamond tail required to fully test the pegmatite thickness







Holes shaded grey are diamond tails on RC holes which did not reach target depth






Figure 2. Summary of drilling at Grandao showing significant assay results - see PDF


Figure 3. Grandao Cross Section 4,608,000North (see Figure 2 for location of cross section) - see PDF


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 Australasian 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.


The Information in this report that relates to Mineral Resources is based on information compiled by Mr Paul Payne, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy.  Mr Payne is a full-time employee of Payne Geological Services.  Mr Payne has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".  Mr Payne consents to the inclusion in the report of the matters based on his 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 / Dugald J. Carlean (Nominated Adviser)

Northland Capital Partners Ltd

Tel: 44 20 3861 6625

Christopher Raggett / Camille Gochez (Broker)

finnCap Ltd

Tel: 44 20 7220 0500

Grant Barker (Equity Adviser)

Whitman Howard

Tel: 44 020 7659 1225

Charlotte Page / Lottie Wadham (Financial PR)

St Brides Partners Ltd

Tel: 44 20 7236 1177



About Savannah

We are a diversified resources group (AIM: SAV) with a portfolio of energy metals projects - lithium in Portugal and copper in Oman - together with the world-class Mutamba Heavy Mineral Sands Project in Mozambique, which is being developed in a consortium with the global major Rio Tinto. We are committed to serving the interests of our shareholders and to delivering outcomes that will improve the lives of our staff and the communities we work with.


The group is listed and regulated on AIM and the Company's ordinary shares are also available on the Börse Stuttgart (SWB) under the ticker "SAV".

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 (e.g. 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 on-board 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 (e.g. '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 (e.g. 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 (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. 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 relationships.



·   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.

·      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 on-board 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, labelled and dried.

·      The final solution is then analysed 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 (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

·      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 were 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 supervise all processes.

·     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.

·     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.

·     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.

·      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 75% 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-109m. 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

·      See table 1 in the main release for hole co-ordinates



Data aggregation methods

·   In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. 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.

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

·      Narrow zones of schist (less than 5m) have been included in the significant intercepts where they are mineralised.


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 (e.g. '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 (e.g. 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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