Savannah Resources produces first lithium resource estimate

Savannah Resources has revealed an independent survey calculated an initial inferred mineral resource of 3.2m tonnes of ore graded at 1% lithium oxide for its Reservatorio deposit in northern Portugal.

The estimate, which was completed by Payne Geological Services Pty, will be followed by further updates in coming months as Savannah intends to expand the resource further in order to define new JORC-compliant estimates at other deposits as the drill programme continues at the Mina do Barroso project.

A maiden resource for Grandao, another of the eight pegmatite deposits at Mina do Barroso, of which three are being drilled, is expected to be completed during the first quarter of 2018.

Savannah chief executive David Archer said, "That we have an estimated 3.2m tonne resource from just one of at least eight pegmatite deposits at our Mina do Barroso lithium project gives an indication of the potential scale of this project."

"We believe Mina do Barroso is 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," he added.

As of 1040 GMT, shares had gained 5.18% to 6.44p.