The share price of diversified junior Savannah Resources jumped 6% on Wednesday on news of three newly discovered pegmatites at the Pinheiro deposit at the Mina do Barroso (MdB) lithium project, in northern Portugal.
Pinheiro is now the fourth major deposit in the mining lease and has the potential to increase the mineral resource estimate to more than 20-million tonnes, for over 200 000 t of contained lithium, the company said in a statement.
“Having already increased our mineral resource estimate by more than 500% in a little over a year we are excited by the discovery of three new pegmatites at the Pinherio deposit, which could further enhance the scheduling flexibility of a mine development and add to the overall mine life at Mina do Barroso,” said CEO David Archer.
Work at Pinheiro would be fast-tracked to be included in the feasibility study for the MdB project.
Shares in Savannah traded 6.72% higher at 6.35p each on Wednesday.