Follow-up drilling work undertaken by Savannah Resources PLC (LON:SAV) has confirmed continuity of lithium mineralisation at the Grandao, Reservatorio and Pinherio deposits on the Mina do Barroso lithium project in Portugal.
Key lithium intersections at Grandao include 46.11 metres at 1.04% Li₂O, 19.7 metres at 1.28% Li₂O, and 15.27 metres at 1.37% Li₂O. Key intersections at Reservatorio include 36 metres at 1.15% Li₂O, while key intersections at Pinheiro include 15 metres at 0.97% Li₂O.
Drilling has focused on building confidence in the continuity of mineralisation at Grandao and Reservatorio, with recent results confirming the geological model for these deposits.
The results underpin the company's strategy of aiming to become Europe's most significant producer of lithium spodumene concentrates in response to the growing demand from the expanding European electric vehicle market.
"The impressive continuity of lithium mineralisation revealed by these results continues to underpin the true potential of the Mina do Barroso lithium project,” said Savannah chief executive David Archer.
“While much of the recent drilling has been focused on increasing the mineral resource categories for the definitive feasibility study that is currently underway, the drilling programme at Mina do Barroso continues to deliver expansions to the mineralised zone at Grandao, extensions in depth at Reservatorio and further encouraging results from the Pinheiro deposit. In particular, Pinheiro is shaping up well as a further spodumene lithium deposit and is set to augment the three main deposits that have been defined to date.”
In late morning trading, shares in Savannah Resources were 2% higher at 5p.
In a note to clients, analysts at ‘house’ broker finnCap commented: “The drilling programme continues to return significant intersections of lithium mineralisation as Savannah aims to increase the current Mineral Resource Estimate of 20.1Mt at 1.04% Li₂O containing 209,000t of Li₂O.
“This is the largest known spodumene deposit in Western Europe. We maintain our 20p price target.”
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