Testing confirms coproduct potential at Mina do Barroso
Savannah Resources, which is focused on becoming Europe’s most significant producer of lithium spodumene concentrates from its Portuguese Mina do Barroso project, has successfully produced saleable quartz and feldspar coproducts from its ongoing metallurgical test work at the project.
Coproducts will be produced from further processing of the tailings material from the spodumene concentration process.
Initial indications are that the following three products can be produced: feldspar (Na2O+K2O+Li2O grades >12%), with a potential price range of $65/t to $100/t, quartz (99.6% pure), with a potential price range of $60/t to $100/t and bulk tail (Na2O+K2O+Li2O grades >7%), with a potential price range of $40t to $45/t.
Savannah noted that the potential pricing of the by-products was significantly higher than those values used in the recent scoping study of $39/t for feldspar and $33/t for quartz.
Test work for coproduct and specifications have been independently evaluated and confirmed by First Test Minerals.
The Aim-listed company said that preliminary offtake discussions were under way with a number of potential parties.
The company also highlighted a significant environmental benefit from the sale of coproducts, reducing the potential size of the footprint of any potential operation.
“The area in which we operate is a major quarrying region for ceramic materials which supply the vibrant ceramics industries in both Portugal and Spain. Importantly, having multiple product streams means we are maximising the value adding potential of the project while also reducing the volume of nonsaleable material that will need to be emplaced on site in contoured and vegetated landforms,” said CEO David Archer.
Savannah’s share price increased by 7% to 5.90p a share on Thursday.
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