Savannah Resources Share Discussion Threads

[hiddendepths] 13/12/2017 09:38

Ed - thanks again - already in GEO!

[broncowarrior] 13/12/2017 09:19

Good news indeed. Not long until that full JORC, then people will really take notice.

[ged5] 13/12/2017 09:17

Looking back a few posts, Pilgangoora (considered a world class Lithium resource)has an average grade of 1.04%. Combined with previous drilling results how many are above 1.04% at Mina do Barroso?

Together with:-

"there is potential for a low stripping ratio, open-cut mine development."

which suggests a low cost project, we can look forward to the scoping study which is already being mentioned in official announcements. Amazing!

9 full days and 2 half days trading until the end of year so not long to wait.

"Maiden Mineral Resource Estimate for Reservatorio, expected by the end of 2017"

Meteor1 I don't think the mining licence covers all 8 areas but it certainly covers the 3 we've just had results from. I'll ask tomorrow. If anyone has any questions you'd like to ask please post or PM.

[edgein] 13/12/2017 09:17

HD,

I was in SOLG from 3p up to around 20p, I sold long before it went on to 40p+ because it was getting ahead of itself. Its got a world class asset there for sure, but imo at the current cap there's better elsewhere like GEO or GWMO if you're looking for copper specifically. Oman is part of the reason I bought these too as copper, lith and tungsten are very good places to be right now.

Regards,
Ed.

[maywillow] 13/12/2017 09:06

Savannah Resources hits 'some of best grades ever seen in Europe' at lithium deposit in Portugal
08:30 13 Dec 2017
“These intercepts represent some of the best lithium spodumene intersections ever reported for a European deposit,”
batteries
Lithium will be a key component in batteries in future

Savannah Resources Plc (LON:SAV) has found some of the highest grades of lithium oxide ever seen in Europe from its latest drilling programme in Portugal.

Significant intersections of lithium mineralisation were crossed from a shallow drilling programme at Mina do Barroso, which Savannah now describes as outstanding deposit.

“These intercepts represent some of the best lithium spodumene intersections ever reported for a European deposit,” it said.

Drill results from three deposits, Grandao; Reservatorio and NOA, are now being targeted to confirm the potential.

Grandao returned a mineralised zone of over 100m, with the broadest and most significant results for the project to date.

Grades included 52m in one hole at 1.32% lithium oxide and 71m at 1.06% in another, with a high grade zone of more than 2.1% Li₂O in a third hole.

An additional 16 holes have been added to the drilling programme to help outline the full potential of the Grandao deposit, with geological specialists brought in to help with the development.

Reservatorio also saw lithium oxide grades of more than 1% with a maiden resource expected by the end of 2017

At NOA, the drilling of a further 6 holes has confirmed the presence of lithium mineralisation over a 200m strike length.

David Archer, Savannah’s chief executive said: "We believe these are outstanding results that represent some of the best lithium spodumene intersections ever reported for a European deposit.

“Additionally, they highlight the potential of the extensive pegmatite systems in the northern part of Portugal to host major deposits of lithium.”

"The results from Grandao are particularly exciting as there are some exceptional widths and high-grades reported and the geometry of what we are seeing suggests that there is potential for a low stripping ratio, open-cut mine development.

“It is important to remember that all of the results are from deposit areas for which we have a granted mining lease.

Archer added Mina do Barroso might be similar to the very successful Australian hard-rock, open cut mine developments which produce highly sought-after lithium spodumene concentrates for international markets.

[hiddendepths] 13/12/2017 09:05

Took another look at SOLG fwiw. Had been hoping it would go to 25. Now I can buy at a smidge below that price, I'm in for the first time even if there's a bit of falling knife about the chart.

[edgein] 13/12/2017 08:43

HD,

Its the way AIM operates at the moment unfortunately/fortunately. If it were as bullish as it used to be we'd never get opportunities like this. A company sitting on a world class project with a JV with Rio T in Moz. About to go into production from decent grade shallow copper in Oman (about 6 months). The CEO chipper on interviews claiming the white stuff is everywhere in Portugal (we can see the reason for that today), and now potentially the largest lith asset in Europe shaping up. If it wasn't for sellers we wouldn't be getting these at a £34m cap that's for sure. That's starting to look rather small for the mineral sands project. Its one to shuffle away and like SOLG it will pop at some point. Either that or one of the large lith companies will make an offer the management cannot refuse. No wonder the recent raising was done pretty much bang on the share price though.

Regards,
Ed.

[hiddendepths] 13/12/2017 08:22

We still have sellers into strength, which is disappointing.

[edgein] 13/12/2017 07:52

Hiddendepths,

When you have those sort of intersects quite a few! Great grades, shallow, large intersects the prospectivity of the area is huge. The RNS simply is outstanding!

Regards,
Ed.

[paleje] 13/12/2017 07:48

Quality counts. As per DA's Walsall presentation at the start of the month. Mcap too low.

[meteor1] 13/12/2017 07:44

Amazing Lithium drill results in Portugal, 2.1% Li spodumene, near surface. Extensive drilling completed and more underway. Remember we have 8 areas with mining licence granted and drilling is only taking place in three.

[hiddendepths] 13/12/2017 07:41

How many times can you get "outstanding" into a single RNS? Not complaining though, not at all!

[ged5] 08/12/2017 15:28

Also agree with you BW but it would depend on Al Marjan. They do have 29.39%. Although a possibility of a takeout I think there's more value in proving up the Lithium project first.

[dubby] 08/12/2017 15:09

Agree with you there BW, i don't think we will take anything out of the ground, company with be taken out, not fussed either way.

[broncowarrior] 08/12/2017 13:01

Yep, I think people are more reserved about metals these days but we really do seem to be in a sweet spot here; just need to get things a little further up the value curve and when we start generating cash flow in Oman we should see a significant re-rating IMO.

Likelihood of a takeout of lithium project or whole company also got to be a possibility at some point.

[ged5] 08/12/2017 10:04

From the same article:-

Let’s take a look at the most significant commodity in terms of usage and world growth. Copper has had a great 2017, as the price has made higher lows and higher highs throughout the year. Chilean miner Codelco believes prices could test record highs above $10,000 a ton, as the supply-demand balance shifts to “substantial” deficits from 2018 onwards. Goldman Sachs also predicts the metal will continue to benefit from synchronized global growth. Copper is up by around 23% this year and is trading a three-year high.

[ged5] 08/12/2017 10:01

Thanks to a poster on SML thread elsewhere.

The rate at which global automotive markets are adopting electric vehicles (EVs) is accelerating at a much faster pace than even some of the keenest market observers had estimated at the start of 2017, opening up seemingly once-in-a-lifetime investment opportunities amongst the key ‘energy metals.

Since the beginning of 2017, the market has reached a new peak of lithium-ion battery capacity in the pipeline. An additional 153 GWh has been added to planned capacity build-outs this year alone, taking the total to 372 GWh. But there are estimates that suggest by 2025 we will need to be around 750 GWh, of which 645 GWh will be for EVs.

Lithium-ion battery demand will continue to be the story that dominates the lithium market. This will be led by Chinese demand and their build-out of new hard rock lithium conversion capacity will be the one- to three-year processing story to watch. The emergence of western EV auto manufacturers is a comparatively new trend that will influence the supply chain.

[ged5] 08/12/2017 09:01

Indeed Edgein.

Worth a reminder of this from the interim results:-

The pilot plant is expected to be constructed and commissioned by the end of 2017, and once operational will be used to produce bulk samples of concentrate for metallurgical and product test work. This will help us refine our final production model whilst also supporting test marketing to be undertaken by our partner Rio Tinto (or its affiliate), which has an offtake agreement on commercial terms for the purchase of 100% of heavy mineral concentrate produced at Mutamba.

[edgein] 08/12/2017 07:40

Yeah excellent progress Pilot plant now up and running, should provide plenty of test results over the coming months for the company. I've been adding more here recently, given progress and the imminent JORC it would be rude not to.

Regards,
Ed.

[inbrackets] 07/12/2017 23:01

Just waiting for someone to shout 'Bingo'.

[ged5] 07/12/2017 19:54

So the commissioning of a pilot processing plant at the Mutamba has been completed.

Yet another box ticked.

[ged5] 03/12/2017 12:54

Thank you paleje.

[paleje] 03/12/2017 00:42

Yes Ged and I spoke with David after the show, which was recorded and I think sharetalk will publish it.

Nothing new was said, it can't be, but David was asked by an investor about the poor share price performance and he acknowledged it and agreed it needs to improve. I asked him afterwards about other European lithium competition in particular EMH and how he saw Portugal in comparison. He said as I suppose you'd expect, he thought Portugal compared we'll and it was quality that counted. He also referred me to European Lithium another oz outfit whose mcap has gone a bit wild lately. He said look at them, see their mcaps both around 50m then look at ours around 35m but we've got Oman and Moz too never mind Finland.

I'm not a technical man and I stayed away from the geology but I liked David he's a bloke I'd do business with on a handshake, my wife was with me she liked him too. I don't know at what point the share price will get real but I think it will.