Savannah Resources David Archer
Aim-listed Savannah Resources on Monday announced its third mineral resource estimate for its northern Portugal lithium project in less than seven months, with the resource shooting past the 20-million-tonne mark.
The mineral resource estimate of the Grandao deposit has increased by 64% to 16.4-milion tonnes 1.04% lithium oxide (Li2O), pushing the total resource of Mina do Barroso lithium to 21-million tonnes at 1.04% Li2O for 209 000 t of contained Li2O.
About 90% of the Stage 1 Grandao pit, defined as part of the scoping study, has now been converted to measured and indicated resource estimates, which represents the first four to five years of the mining inventory based on an average production of 175 000 t/y of spodumene concentrate at 6% Li2O.
CEO David Archer said that that there was considerable potential to further expand the resource estimate and announced an updated exploration target of 9-million tonnes to 15-million tonnes at 1% to 1.2% Li2O, for a potential mineral inventory of more than 30-million tonnes.
Three drill rigs are currently on site.
“Today's mineral resource estimate increase, shows that Mina do Barroso is shaping up to be Europe's most strategically significant mineral discovery in recent years. The increasing mineral resource base of the project means we have a long-life asset that can anchor the up-stream end of the European lithium value chain, with Europe being the second largest consumer of lithium in the world,” commented Archer.
He added that Savannah was making good progress with its feasibility study and that it aimed to make a mine development decision next year.