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Savannah Resources plc

INTERVIEW: Savannah Resources Plc Outstanding Lithium Results Identified

Savannah Resources Plc (LON:SAV) CEO David Archer talks to DirectorsTalk about the outstanding lithium results today from it’s drill programme in Portugal. David tells us more about these results and what they mean for Savannah, when they hope to deliver a JORC Resource for the project, the next steps and more about the other projects in the portfolio and the stages they are at.

The drill programme, which is aiming to generate a JORC – 2012 compliant Mineral Resource Estimate, has returned significant intersections of lithium mineralisation. To view the press release with the illustrative maps and diagrams please use the following link: Savannah PDF

HIGHLIGHTS:

· Total of 66 holes for 5,558m completed to date as part of the ongoing RC drill programme

· Drill results from three deposits being targeted confirm the outstanding potential of Mina do Barroso – Savannah believes these intercepts represent some of the best lithium spodumene intersections ever reported for a European deposit

· Grandao:

o Mineralised zone over 100m intersected: results from recent drilling has recorded the broadest and most significant results for the project to date. Key results include:

109m at 1.04% Li₂O from surface (uncut), including 52m at 1.32% Li₂O in 17GRARC17

71m at 1.06% Li₂O from 88m, including 57m at 1.2% Li₂O in 17GRARC19

31m at 1.2% Li₂O from surface in 17GRARC12

25m at 1.15% Li₂O from 36m in 17GRARC23

o New high-grade zone discovered: drill testing of a newly identified sub-vertical pegmatite body has been successful, identifying a new high-grade zone of mineralisation. Results from the first drill hole include:

25m at 1.49% Li₂O from 32m including 14m at 2.1% Li₂O in 17GRARC20

o Drill programme extended – an additional 16 holes have been added to the drilling programme to help outline the full potential of the Grandao deposit

o Pegmatite and structural experts on site, to assist in developing the mineralisation model for these outstanding new results at Grandao

· Reservatorio:

o Deposit expanded – assay results confirm that the lithium mineralisation extends to over 400m strike length, with good down dip extensions of at least 100m. New assay results include:

32m at 1.05% Li₂O from 78m in 17RESRC17

15m at 1.19% Li₂O from 79m in 17RESRC16

o Maiden Mineral Resource Estimate for Reservatorio, expected by the end of 2017

· NOA – further drilling and results pending: drilling of a further 6 holes has confirmed the presence of lithium mineralisation over a 200m strike length together with good down dip extensions of at least 50m and pegmatite widths up to 15m

· Phase 2 of the metallurgical test work programme underway – samples taken from Grandao, Reservatorio and NOA being tested with results expected in early 2018

Savannah’s CEO, David Archer said: “We believe these are outstanding results that represent some of the best lithium spodumene intersections ever reported for a European deposit. Additionally, they highlight the potential of the extensive pegmatite systems in the northern part of Portugal to host major deposits of lithium.

“The results from Grandao are particularly exciting as there are some exceptional widths and high-grades reported and the geometry of what we are seeing suggests that there is potential for a low stripping ratio, open-cut mine development. It is important to remember that all of the results are from deposit areas for which we have a granted mining lease.

“These results continue to underscore the potential of the Mina do Barroso Project to be a strategic upstream feature in the European lithium value chain. From an investment perspective, we see the Project as the closest European analogue to the very successful Australian hard-rock, open cut mine developments which produce highly sought-after lithium spodumene concentrates for international markets.

“Ongoing drilling and metallurgical test work will be used to support an early scoping study around a potential mine development.”

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

Grandao

A total of 36 drill holes for 2,809m (17GRARC01-36) have been completed targeting the flat lying pegmatite body at Grandao and two newly identified sub vertical pegmatite bodies nearby the flat body. Results for drill holes 17GRARC10 to 23 have now been received and returned the most significant set of results for the Project to date (Table 1-3 and Figure 2-3).

Drilling targeted at intersecting the near surface, flat or shallowly west dipping pegmatite body has continued to meet with significant success, with extensive mineralisation now being defined. Drilling has confirmed a zone of lithium mineralisation extending to over 400m in length, reaching up to 150m in width and with continuous anomalous mineralisation recorded as deep as 109m below surface. Significant drill results targeting the flat lying pegmatite body are summarised in Table 1.

Table 1. Summary of drill results for Grandao flat lying pegmatite using a 0.2% and 0.5% Li2O cut-off

 

Hole ID

0.2%Li₂O Cut-off

0.5%Li₂O Cut-off

From

Width

Grade

From

Width

Grade

17GRARC10

0

16

0.87

4

12

1.09

17GRARC11

NSA

17GRARC12

0

33

1.14

0

31

1.2

17GRARC13

18

16

1.14

18

16

1.14

17GRARC15

12

26

0.79

26

12

1.34

42

11

0.7

43

6

1.01

17GRARC16

22

11

0.65

28

5

1.15

17GRARC17

0

83

1.08

4

52

1.32

89

20

1.17

17GRARC19

0

13

1.24

0

12

1.32

17

6

0.8

17

5

0.91

29

9

0.91

29

8

0.98

88

71

1.06

88

57

17GRARC21

7

3

0.6

17GRARC22

5

2

0.95

17GRARC23

27

34

1.02

36

25

1.15

 

It is important to note that a number of angled drill holes will be completed in the vicinity of 17GRARC17 and 19 as part of the ongoing drill programme to confirm the current geological interpretation in this area.

 

In addition, mapping has highlighted a series of at least four sub-vertical pegmatite bodies, many of which can be traced over 200m in strike and in places reach widths up to 40m. Limited drill testing of two of these bodies to date has met with early success including the identification of a high-grade lithium bearing pegmatite body. Recently received results are summarised in Table 2.

 

Table 2. Summary of drill results for Grandao new vertical pegmatites using a 0.2% and 0.5% Li2O cut-off

 

Hole ID

0.2%Li₂O Cut-off

0.5%Li₂O Cut-off

From

Width

Grade

From

Width

Grade

17GRARC14

36

13

0.63

36

6

0.99

17GRARC18

9

17

0.45

22

4

0.9

40

17

0.37

43

3

0.89

17GRARC20

22

9

0.86

22

5

1.32

32

25

1.49

32

22

1.65

 

The pegmatite bodies identified to date remain open in all directions; further work is underway including RC drilling, geological and mineralogical mapping to better understand and define the full potential of the Grandao pegmatite bodies.

Table 3. Summarised downhole geology for drill assays received from Grandao

 

Hole ID

Summarised Downhole Geology

17GRARC10

Schist 0-3m, Pegmatite/Schist 3-4m; Pegmatite 4-16m; Pegmatite/Schist 16-18m; Schist 18-44m; Schist/Quartz 44-45m; Schist 45-65m; Schist/Quartz 65-68m; Schist 68-73m

17GRARC11

Schist 0-50m

17GRARC12

Pegmatite 0-31m; Schist/Pegmatite 31-32m; Schist 32-50m

17GRARC13

Schist/Pegmatite 2-3m; Pegmatite 3-9m; Schist/Pegmatite 9-15m; Pegmatite/Schist 17-18m; Pegmatite 18-35m; Schist/Pegmatite 35-37m; Pegmatite 45-52m; Pegmatite/Schist 52-53m

17GRARC14

Schist/Pegmatite 35-36m; Pegmatite 36-52m; Schist/Pegmatite 63-64m; Pegmatite 64-65m; Schist/Pegmatite 65-66m; Schist/Pegmatite 77-81m

17GRARC15

Schist/Pegmatite 16-17m; Pegmatite 17-18m; Schist/Pegmatite 18-19m; Schist/Pegmatite 24-26m; Pegmatite 26-49m; Schist/Pegmatite 49-54m; Pegmatite 54-58m

17GRARC16

Pegmatite 0-19m; Schist/Pegmatite 26-28m; Pegmatite 28-34m; Schist/Pegmatite 34-35m

17GRARC17

Schist/Pegmatite 4-5m; Pegmatite 5-26m; Schist/Pegmatite 26-29m; Pegmatite 29-52m; Schist/Pegmatite 52-53m; Pegmatite 53-56m; Schist/Pegmatite 56-57m; Schist/Pegmatite 59-64m; Pegmatite 64-83m; Schist/Pegmatite 83-84m; Schist/Pegmatite 88-89m; Pegmatite 89-109m

17GRARC18

Schist/Pegmatite 8-9m; Pegmatite 9-11m; Schist/Pegmatite 11-13m; Pegmatite 13-26m; Schist/Pegmatite 26-27m; Pegmatite 43-45m; Schist/Pegmatite 45-47m; Pegmatite 47-51m; Schist/Pegmatite 51-52m

17GRARC19

Pegmatite 0-11m; Schist/Pegmatite 11-13m; Pegmatite 13-24m; Schist/Pegmatite 24-26m; Pegmatite 26-27m; Schist/Pegmatite 28-30m; Pegmatite 30-34m; Schist/Pegmatite 34-35m; Schist/Pegmatite 36-37m; Pegmatite 37-41m; Schist/Pegmatite 41-42m; Schist/Pegmatite 48-49m; Pegmatite 49-57m; Schist/Pegmatite 61-62m; Pegmatite 62-63m; Schist/Pegmatite 67-68m; Pegmatite 68-70m; Schist/Pegmatite 70-71m; Schist/Pegmatite 87-88m; Pegmatite 88-158m

17GRARC20

Pegmatite/Schist 2-4m; Pegmatite 4-6m; Pegmatite/Schist 6-8m; Schist/Pegmatite 19-20m; Pegmatite 20-27m; Pegmatite/Schist 27-28m; Pegmatite/Schist 31-32m; Pegmatite 32-41m; Pegmatite/Schist 41-42m; Pegmatite 42-57m; Pegmatite/Schist 57-58m

17GRARC21

Pegmatite/Schist 6-8m; Schist/Pegmatite 8-9m; Pegmatite/Schist 9-12m; Schist/Pegmatite 12-14m; Pegmatite/Schist 14-16m

17GRARC22

Pegmatite/Schist 5-7m; Pegmatite 7-8m; Pegmatite/Schist 8-16m; Schist/Pegmatite 20-22m

17GRARC23

Schist/Pegmatite 9-10m; Pegmatite/Schist 21-28m; Pegmatite 28-52m; Pegmatite/Schist 52-54m; Pegmatite 57-60m; Pegmatite/Schist 60-63m

 

Figure 2. Summary of drilling at Grandao showing significant assay results and holes with pending assays – see PDF 

 

Figure 3. RC drill chips from 17GRARC17 which returned a result of 109m at 1.04% Li₂O (uncut) from surface – see PDF

 

Reservatorio

A total of 20 RC holes (17RESRC01-20) totalling 1,981m have been completed at Reservatorio and results for the last 6 holes (17RESRC15-20) have now been received (Table 4-5 and Figure 4).Lithium mineralisation has been identified along a 400m strike length and to a depth of at least 100m. Drilling in an area of faulting and shearing on the eastern part of the pegmatite has caused the pegmatite to become weathered resulting in some zones of near surface depletion. Further infill drilling is now required to further define these zones.

 

Table 4. Summary of drill results for Reservatorio reported at a 0.2% and 0.5% Li2O cut-off

 

Hole ID

0.2%Li₂O Cut-off

0.5%Li₂O Cut-off

From

Width

Grade

From

Width

Grade

17RESRC15

73

11

0.9

74

8

1.13

17RESRC16

48

18

0.43

51

5

0.81

79

15

1.19

79

19

0.99

17RESRC17

78

46

0.85

78

32

1.05

17RESRC18

80

23

0.39

85

4

0.66

17RESRC19

130

26

0.36

139

7

0.8

17RESRC20

95

27

0.71

98

13

0.87

126

12

0.71

127

9

0.86

 

 

Table 5. Summarised downhole geology for drill assays received from Reservatorio

 

Hole ID

Summarised Downhole Geology

17RESRC15

Schist/Pegmatite 74-45m; Pegmatite 75-82m; Schist/Pegmatite 82-83m; Pegmatite/Schist 89-90m; Pegmatite 90-91m; Schist/Pegmatite 91-92m; Schist/Pegmatite 97-98m; Pegmatite 98-110m; Pegmatite/Schist 110-111m; Schist/Pegmatite 115-116m; Pegmatite 116-117m

17RESRC16

Pegmatite 50-57m; Schist/Pegmatite 57-58m; Schist/Pegmatite 61-65m; Pegmatite/Schist 78-79m; Pegmatite 79-94m; Schist/Pegmatite 94-96m

17RESRC17

Schist/Pegmatite 78-79m; Pegmatite 79-111m; Schist/Pegmatite 111-112m; Pegmatite 114-117m; Schist/Pegmatite 117-119m

17RESRC18

Schist/Pegmatite 66-76m; Pegmatite 76-102m; Schist/Pegmatite 102-106m; Pegmatite 106-108m; Schist/Pegmatite 108-109m

17RESRC19

Schist/Pegmatite 113-114m; Pegmatite 114-119m; Schist/Pegmatite 119-121m; Pegmatite 121-149m; Schist/Pegmatite 149-151m

17RESRC20

Schist/Pegmatite 98-99m; Pegmatite 99-110m; Schist/Pegmatite 110-112m; Schist/Pegmatite 114-116m; Pegmatite 116-136m

 

 

Figure 4. Summary of drilling at Reservatorio, showing drilling completed and significant assays received – see PDF 

 

NOA Deposit

Drilling at the NOA deposit now totals 10 holes for 768m (17NOARC01-10) with results from 5 holes (17NOARC06-10) still pending. Drilling results from the NOA prospect have been encouraging with 10-15m wide zones of pegmatite being intersected over a strike length of 200m and a down dip depth of around 50m (Figure 5).

 

Figure 5. Summary of drilling at NOA of holes with pending assays – see PDF

 

Ongoing Drill Programme

Based on the new results an additional 16 RC drill holes have been added to the programme at Grandao in order to further evaluate the potential of this prospect area.

 

Lithium Mineralisation

All geological mapping, drill hole logging and metallurgical have confirmed that the predominant lithium mineral (over 95%) is spodumene and to date no lithium mica mineralisation has been identified.

 

Grandao Mineralisation Model

Portuguese lithium pegmatite expert Professor Alexandre Lima and structural expert Professor Pablo Gumiel are currently on site working with the Savannah team to develop a mineralisation and exploration model based on these very significant new results.

 

Metallurgical Testwork 

A series of scoping tests on a 100kg composite sample from Grandao, Reservatorio and NOA are currently underway at specialist lithium laboratory Nagrom in Perth, to find out the response of the ore to gravity separation. The work will determine the crush size and the density at which a 6% concentrate can be produced and mass yield. These are the three fundamental design parameters for developing a gravity process flow sheet based on the dense medium (DMS) process.

 

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.