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

10 August 2017

Savannah Resources Plc

Drilling Intersects Broad Zones of Pegmatite at the Advanced Mina do Barroso Lithium Project, Portugal

Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), the AIM quoted resource development company, is pleased to announce that the reverse circulation ('RC') drill programme aimed at defining a JORC compliant mineral resource estimate at the Mina do Barroso lithium project in Portugal (Figures 1) has intersected broad zones of pegmatite.  To view the press release with the illustrative maps and diagrams please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/5903N_-2017-8-9.pdf 

HIGHLIGHTS:

·    16 RC drill holes have now been completed at Mino do Barroso;

·    All holes drilled to date have intersected massive pegmatite;

·    Drilling focused on three primary target areas - Grandao, Reservatorio and NOA:

o Reservatorio: 7 holes for 605m completed over a 400m strike with pegmatite widths of 15m-39m intersected and drilling confirming potential good down dip extension of at least 80m;

o Grandao: 7 holes for 565m completed over a 200m strike with pegmatite widths of 15m-27m intersected with drilling confirming a large sub horizontal body could potentially be present;

o Both Reservatorio and Grandao remain open along strike and down dip;

o Drilling yet to start at NOA; and

·    Further mapping of the licence area also underway to map and define other lithium bearing pegmatites.

Savannah's CEO, David Archer said: "We are delighted that our maiden drill programme in Portugal has successfully extended the strike and depth extents of known pegmatites at the Reservatorio and Grandao deposits.  Crucially, both deposits remain open along strike and down dip, and drilling is yet to commence on our third target area, NOA.  All three targets are located on the key Mina do Barroso tenement, which has 21 years left to run on its 30-year mining licence, meaning that with a defined JORC resource a development decision could be made by the end of 2018.  The first set of mineral samples have been despatched for assay testing and analysis and I look forward to providing Savannah's shareholders with the results of this analysis in due course, alongside updates on our ongoing drill work."

Figure 1. Mina do Barroso Project Summary Map - see PDF 

Reservatorio

To date seven holes for 605m have been completed at Reservatorio with widths of massive pegmatite between 15m-39m intersected in all holes (Table 1 and Figure 2-3). Importantly, drilling has now intersected pegmatite along a 400m strike and on one section to least 80m down dip confirming the potential for good depth extensions of the pegmatite. Drilling suggests that the pegmatite body has a dip of about 40 degrees to the northwest. The pegmatite remains open along strike and down dip and further detailed information will be reported once the results have been received.

Table 1. Summary details of Reservatorio Drilling

Figure 2. RC drilling at Reservatorio - see PDF

Figure 3. Reservatorio: 37m intercept of massive pegmatite from drill hole 17RESRC04 - see PDF

Grandao

To date seven holes for 565m have been completed at Grandao with widths of massive pegmatite between 15m-27m intersected in all holes (Table 1 and Figure 4-5). Drilling intersected pegmatite along a 200m strike and drilling has indicated that the body is close to flat or shallowly dipping to the south west. This near surface, relatively flat body would have significant mining cost benefits for any potential development of the deposit. The pegmatite body remains open in all directions and further detailed information will be reported once the results have been received.

Table 2. Summary details of Reservatorio Drilling 

Figure 4. RC drilling at Grandao - see PDF

Figure 5. Grandao: 27m intercept of massive pegmatite from drill hole 17GRARC02 - see PDF

Further drilling will be completed at Grandao before the rig takes a short summer break and then work will continue with drilling at NOA and other potential follow up drilling.

Savannah has a 75% shareholding in Slipstream Resources Portugal Unipessol Lda, which is the registered holder of the Mina do Barroso mining licence.

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:

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 (currently has a 20% interest).  The project has an initial Indicated and Inferred Mineral Resource Estimate of 4.4 billion tonnes at 3.9% THM and a Scoping Study based on a resource of 451Mt at 6.0% THM (based on a conceptual mine plan utilising 33% indicated resource and 67% inferred resource) established a life of mine of 30 years, with average annual production following ramp-up to a 15 Mtpa mining rate estimated to be 456,000t of roasted ilmenite and 118,000t of non-magnetic concentrate (rutile and zircon), which will position Mutamba as a globally significant Ilmenite producer.  The Company is targeting first production in 2020 with a LOM revenue forecast of US$4.23 billion based on Management Case Two (base case revenue of US$3.53 billion forecast).  Under the terms of the Consortium Agreement, upon delivery by Savannah of the following milestones, the Company can earn the corresponding interest in Mutamba: 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.