Savannah upbeat on latest lithium testing at Mina do Barroso

The AIM-traded firm said the latest test work evaluated the refining characteristics of Mina do Barroso's spodumene concentrate for the production of battery grade lithium chemicals.

It said a high lithium recovery rate was achieved from 49 kilograms of Grandao concentrate via the first two stages of conventional processing being calcination or acid roasting and water leaching, in the production of lithium chemicals.

The third stage, solution purification followed by causticisation and lithium crystallisation, of the production of battery grade chemicals was planned, but had been temporarily postponed due to Covid-19 related restrictions at the laboratory in the United States.

Impurity levels were described as “manageable” from the first two stages, with the production of battery grade lithium hydroxide set to be “readily achievable” from the third stage of testing.

Savannah said it would update the market on the third stage once more clarity on the revised schedule could be provided.

“It is encouraging to see excellent results from the metallurgical test work which continues to validate Mina do Barroso as a conventional lithium project in terms of the process flowsheet,” said chief executive officer David Archer.

“These latest results give a further clear indication that battery grade lithium chemicals can be produced efficiently from Mina do Barroso concentrate and provide increased confidence in the project both for Savannah and the potential customers for our lithium concentrate product.

“Test work will continue over the coming months to complete the programme and to help refine our understanding of the behaviour of the material. We expect the results to provide more evidence for our potential customers regarding the suitability of the project's lithium concentrate for refining into lithium hydroxide, the key lithium-ion-battery chemical.”

At 1601 BST, shares in Savannah Resources were down 1.46% at 2.02p.