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Savannah Resources plc

INTERVIEW: A Good Lithium Mining Project

FinnCap Research Director Martin Potts and Savannah Resources Plc CEO David Archer join DirectorsTalk to discuss what makes a good lithium project. We talk about whats influencing demand for lithium, how the mining industry is responding, key features in a lithium miner and how technological developments are influencing the battery sector.

 

Savannah Resources Plc (LON: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.

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