Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining

 

26 June 2017

 

Savannah Resources Plc

Preliminary Metallurgical Test Work Confirms High Quality Lithium Concentrate

 

Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), the AIM quoted resource development company, is pleased to announce that preliminary metallurgical test work on a composite lithium sample from the Mina do Barroso project in northern Portugal confirms that a very pure low iron spodumene concentrate can be produced. Savannah has a 75% interest in Slipstream Resources Portugal Unipessol Lda, which is the registered holder of the Mina do Barroso mining licence.  To view the press release with the illustrative maps and diagrams please use the following link: http://www.rns-pdf.londonstockexchange.com/rns/0742J_-2017-6-23.pdf

 

HIGHLIGHTS:

·    Metallurgical test work undertaken on a composite sample from Mina do Barroso to determine if lithium bearing minerals can be recovered using commercially available technology to produce a saleable product;

·    Work confirms that a high-grade, very pure, low iron spodumene concentrate can be produced;

·    Single analysis of the combined sample confirmed a high Li₂O head grade (~1.95% Li₂O) and low Fe₂O₃ head grade (~0.9%);

·    Heavy Liquid Separation ('HLS') shows a very pure (~8%) Li₂O product can be produced;

·    Floatation results utilising a simple one stage float without any optimisation achieved ~83.7% Li₂O recovery at ~5.9% Li₂O, this is very positive and can be improved through optimisation;

·    Microscopy confirmed that the concentrate was almost entirely spodumene with only very minor amounts of petalite;

·    Test work confirms that a high quality spodumene concentrate can be produced using conventional commercially available processing technologies; and

·    3,000-5,000m drill programme to commence shortly, focusing on defining a JORC mineral resource estimate to support potential mine development.

 

Savannah's CEO, David Archer said: "We are delighted with these results as they confirm that a high-grade, low impurity spodumene concentrate can be produced using conventional, well understood processing techniques.  Furthermore, based on the quality of the results, we believe that our spodumene concentrate is likely to be highly sought after by manufacturers of battery grade lithium.

 

"Whilst it is still early days, we are working to highlight what we believe to be the superior characteristics of our Portuguese lithium project, namely:

·    Spodumene dominant mineralisation;

·    Granted Mining Leases;

·    Conventional and well understood processing techniques;

·    High-grade, low impurity spodumene concentrates;

·    Extensive lithium mineralisation over at least 6km; and

·    Excellent regional lithium exploration potential from extensive pegmatite fields.

 

"All of this is within a premier mining jurisdiction with a government intent on supporting the development of a lithium industry in Portugal.  Accordingly, we are highly encouraged with the results received to date and will be moving forward with drilling shortly as we look to define a JORC mineral resource estimate."

 

Figure 1. Project Location Map - See PDF

 

Technical Data

 

The scope of work was to conduct preliminary ore characterisation test work on a composite sample from the NOA and Reservatorio Deposits (sample site 3, 10, 11, 12 on Figure 1) on the Mina do Barroso mining lease to determine if the lithium bearing minerals could be recovered from the rock using commercially available technology and a saleable product produced. The work was conducted by lithium specialists Nagrom Metallurgical in Perth, Australia.

 

The test work is outlined as follows:

 

·    Sample analysis by x-ray fluorescence ('XRF') and inductively coupled plasma ('ICP') to determine lithium grade of the sample and any potential penalty elements;

·    Size analysis to determine what size fraction contains the lithium minerals

·    Microscopy for mineral identification;

·    Heavy Liquid Separation at SG 2.7 to determine if gravity separation can recover the lithium minerals; and

·    Single stage floatation test to determine if lithium minerals can be recovered via flotation.

 

Results

 

Location data and individual analysis of the samples taken and combined into the preliminary metallurgical test sample is provided below and confirmed the rocks were lithium bearing.

 

East_UTM29T	Nth_UTM29T	Sample	Li2O%	Fe%	SnO2%	Ta2O5%	Comments
599112	4609435	3	1.54	0.526	0.011	<0.001	Spodumene-bearing pegmatite in quarry
599957	4609183	10	2.31	0.493	0.007	<0.001	Coarse spodumene mineralisation
599960	4609182	11	1.51	0.269	0.010	<0.001	Coarse spodumene mineralisation
599962	4609179	12	0.58	0.385	0.010	<0.001	Coarse spodumene crystals in granular pegmatite

 

Single analysis of the combined sample confirmed a high Li₂O head grade (~1.95% Li₂O) and low Fe₂O₃ head grade (~0.9%) as shown below.

 

Composite ID	Composite Mass	Li2O	Fe2O3
	kg	%	%
Test work Composite	35.9	1.95%	0.902

 

Dense media separation ('DMS') and HLS test work summarised below was conducted to determine how the mineralisation might respond to conventional gravity concentration methods.

·    Rougher DMS at SG 2.7 is suggested as ~60% mass rejection is feasible at ~10% Li₂O loss. DMS Crush size and Cleaner DMS SG to be optimised; and

·    HLS shows a very pure (~8%) Li₂O product can be produced.

 

Test work Composite P100 6.3mm 1mm Heavy Liquid Separation at SG 2.7 and 2.96
PRODUCT	Yield	Li₂O		Fe₂O₃		SiO₂
HLS	%	ppm	dist.	%	dist.	%	dist.
SG 2.96 Sinks	9.70%	64820	35.48%	0.28	7.93%	67.37	8.85%
SG 2.96 Float	30.93%	32500	56.72%	0.31	27.25%	76.10	31.88%
SG 2.7 Float	59.37%	2330	7.81%	0.38	64.82%	73.71	59.27%
Calculated Head	100.00%	17722	100.00%	0.35	100.00%	73.83	100.00%

 

Test work Composite P100 6.3mm -1 0.045mm Heavy Liquid Separation at SG 2.7 and 2.96
PRODUCT	Yield	Li₂O		Fe₂O3		SiO₂
HLS	%	ppm	dist.	%	dist.	%	dist.
SG 2.96 Sinks	20.46%	79290	64.34%	0.58	34.99%	63.92	17.85%
SG 2.96 Float	13.46%	44020	23.50%	0.63	24.95%	65.62	12.06%
SG 2.7 Float	66.08%	4640	12.16%	0.21	40.06%	77.69	70.09%
Calculated Head	100.00%	25214	100.00%	0.34	100.00%	73.25	100.00%

 

·    Floatation results below utilising a simple one stage float without any optimisation achieved ~83.7% Li₂O recovery at ~5.9% Li₂O; and

·    This is very positive and can be improved through further optimisation.

 

Test work Composite P80 0.106mm Sighter Three-Stage Flotation Test #1
PRODUCT	Yield	Li₂O		Fe₂O₃		SiO₂
Flotation	%	ppm	dist.	%	dist.	%	dist.
Re-Cl Con 1	11.28%	63010	35.18%	0.752	15.96%	63.446	9.74%
Re-Cl Con 2	6.48%	58590	18.79%	0.737	8.98%	63.874	5.63%
Re-Cl Con 3	7.82%	57350	22.18%	0.669	9.83%	64.044	6.81%
Re-Cl Con 4	3.24%	47200	7.57%	0.580	3.53%	65.600	2.89%
Re-Cl Tail	9.63%	14320	6.82%	0.258	4.67%	72.660	9.52%
Cl Tail	12.28%	1910	1.16%	0.145	3.35%	76.834	12.83%
Ro Tail	39.75%	530	1.04%	0.072	5.38%	80.672	43.61%
-0.02mm	9.52%	15410	7.26%	2.699	48.30%	69.356	8.98%
Calculated Head	100.00%	20212	100.00%	0.532	100.00%	73.531	100.00%

 

·    Microscopy confirmed that the concentrate was almost entirely spodumene with only very minor amounts of petalite confirming that a simple conventional recovery process is likely

·    Further metallurgical test work will now be conducted to further optimise the lithium recovery process.

 

Image 1. Photograph of the re-cleaner 1 Concentrate showing spodumene rich concentrate (source: Company photo). - See PDF

 

Competent Person and Regulatory Information

 

The information in this announcement that relates to exploration results is based upon information compiled by Mr Dale Ferguson, Technical Director of Savannah Resources Limited. Mr Ferguson is a Member of the Australian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Ferguson consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

 

**ENDS**

 

For further information please visit www.savannahresources.com or contact:

 

David Archer	Savannah Resources plc	Tel: 44 20 7117 2489
David Hignell / Gerry Beaney (Nominated Adviser)	Northland Capital Partners Ltd	Tel: 44 20 3861 6625
Christopher Raggett / Emily Morris (Corporate Broker)	finnCap Ltd	Tel: 44 20 7220 0500
Charlotte Page / Lottie Brocklehurst	St Brides Partners Ltd	Tel: 44 20 7236 1177

 

 

About Savannah

 

Notes

Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, mineral development company.

 

Mozambique

Savannah operates the Mutamba heavy mineral sands project in Mozambique in collaboration with Rio Tinto, and can earn a 51% interest in the related Consortium, which has an established initial Indicated and Inferred Mineral Resource Estimate of 4.4 billion tonnes at 3.9% THM over the Jangamo, Dongane and Ravene deposits.  Under the terms of the Consortium Agreement with Rio Tinto, upon delivery by Savannah of the following will earn the corresponding interest in the Mutamba Project (which currently is 20% following delivery of scoping study in May 2017): pre-feasibility study - 35%; feasibility study - 51%. Additionally, the Consortium Agreement includes an offtake agreement on commercial terms for the sale of 100% of heavy mineral concentrate production to Rio Tinto (or an affiliate).

 

Oman

Savannah has interests in two copper blocks in the highly prospective Semail Ophiolite Belt in Oman.  The projects, which have an Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% copper and high-grade intercepts of up to 56.35m at 6.21% Cu, with gold credits, provide Savannah with an excellent opportunity to potentially evolve into a mid-tier copper and gold producer in a relatively short time frame. Together with its Omani partners, Savannah aims to outline further mineral resources to provide the critical mass for a central operating plant to develop the deposits and in December 2015 outlined exploration targets of between 10,700,000 and 29,250,000 tonnes grading between 1.4% and 2.4% copper.

 

Portugal

Savannah holds a 75% interest one mining licence and nine prospective applications for the exploration and development of lithium, covering an area in excess of 1,018km2 in northern Portugal.  This includes the highly strategic Mina do Barroso prospect, which with an approved Mining Plan ('MP'), Environmental Impact Assessment ('EIA') and a 30-year mining concession/Mining Licence ('ML'), means that with a defined JORC resource a development decision could be made as early as Q4 2018.

 

Finland

Savannah has Reservation Permits over two lithium projects, covering an area of 159km².  Geological mapping has highlighted the presence of seven pegmatites with key lithium minerals petalite, spodumene and lepidolite all identified.