Savannah Resources sees more positive results from Mina do Barroso

Resource development company Savannah Resources announced further results from the ongoing reverse circulation (RC) and diamond core drill programme at the Mina do Barroso Lithium Project in northern Portugal on Thursday.

The AIM-traded firm said the ongoing drilling at Grandao had intersected further higher-grade lithium mineralisation over significant widths, with the widest intersection recorded so far at Mina do Barroso.

It said drilling to date at Grandao and Grandao Extended had now defined a “virtually continuous” zone of shallowly westerly-dipping pegmatite from surface to a vertical depth of more than 150m, and covering a zone of approximately 650m long and up to 550m wide, confirming the “excellent potential” of the zone, according to the board.

The company said the drill results would support a fourth mineral resource estimation, which was due to be reported shortly.

There was also said to be an opportunity for “significant” further upside, as drilling remained ongoing at the primary Grandao and Reservatorio targets, and first pass drilling had been completed at a new prospective target area - Carvalha da Bacora - with positive initial results.

It also said first comprehensive drill testing of a “high priority” exploration target at the Pinheiro area was due to commence shortly.

Phase 3 of the metallurgical test work programme was also ongoing, and scheduled to be completed in the fourth quarter.

Savannah said the feasibility study was “well underway”, with an initial focus on option and project optimisation work to finalise the process flowsheet and maximise project returns.

“We continue to see outstanding results from the drilling of Grandao,” said Savannah chief executive officer David Archer.

“These results, together with the recent drill results announced on 26 July are being incorporated into our fourth and latest Mineral Resource study, which we hope to be in a position to announce shortly.

“We believe this study will continue to underpin the significant value potential of our flagship Mina do Barroso lithium project as we continue to advance towards making a development decision next year.”