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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Savannah Resources Plc | LSE:SAV | London | Ordinary Share | GB00B647W791 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 3.30 | 3.20 | 3.40 | 3.30 | 3.30 | 3.30 | 0.00 | 07:47:54 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 0 | -2.86M | -0.0016 | -20.63 | 60.33M |
From Apr 2019 to Apr 2024
TIDMSAV
RNS Number : 8031M
Savannah Resources PLC
02 May 2018
2 May 2018
Savannah Resources Plc
52% Resource Upgrade for the Mina do Barroso Lithium Project
Western Europe's Largest New Spodumene Lithium Discovery
Savannah Resources plc (AIM: SAV and SWB: SAV) ('Savannah' or 'the Company'), the AIM quoted resource development company, is pleased to announce a significant increase in the JORC 2012-Compliant Indicated and Inferred Mineral Resource Estimate at the Mina do Barroso Lithium Project ('Mina do Barroso' or the 'Project') in northern Portugal (Figure 1). To view the press release with the illustrative maps and diagrams please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/8031M_-2018-5-1.pdf
Highlights
-- Mina do Barroso believed to be Western Europe's largest spodumene (a lithium bearing mineral) Mineral Resource
-- 52% increase in overall Mineral Resource for Mina do Barroso, which now stands at 14Mt at 1.1% Li O
-- Resource defined from three deposits, and expansion marks an 87% increase in the total Mineral Resource Estimate at Grandao to 10.3Mt at 1.1% Li O containing 111,600t of Li O
-- 70% of the Grandao Deposit is now reported at the higher confidence Indicated classification, with an increase in Li O grade of 6% compared to the February 2018 estimate
-- Significant upside remains and further Mineral Resource Estimate updates are expected during 2018:
o Drilling is now underway targeting both down dip and strike extensions of the current Mineral Resource Estimate
o Excellent potential for new discoveries of additional lithium bearing pegmatite bodies
-- Scoping Study on track for completion in Q2 2018 ahead of making a development decision by early-2019
Savannah's CEO, David Archer said: "Mina do Barroso is shaping up as a major new European mineral discovery. With the strong growth prospects for lithium ion batteries for Electric Vehicles and for electricity storage from the grid this is a critical time to be bringing a project of Mina do Barroso's scale, grade and location, on stream. We believe that Mina do Barroso has the potential to be a key piece of Europe's emerging lithium value chain that could help support the shift by European car manufacturers to the production of Electric Vehicles."
"This is the second Mineral Resource Estimate upgrade we have made in the last two months, outlining our rapid development approach. We believe we have established the largest spodumene lithium Mineral Resource in Western Europe. It is important to remember that spodumene concentrate is the dominant lithium mineral product that is traded internationally, and with no current European producer we believe that Portugal could be the first European supplier of spodumene thanks to the near-term development potential of Mina do Barroso, which has already been granted a Mining Lease. Our focus now is to establish the Project's economics, with the results of the Scoping Study due this quarter. Further Mineral Resource upgrades are expected in coming months."
Figure 1. Mina do Barroso Project Summary Map showing key deposits and drilling completed to date - See PDF
Mineral Resource Estimate
A Mineral Resource Estimate for the Grandao Lithium Deposit has been completed by Payne Geological Services Pty Ltd, an external and independent mining consultancy - http://www.paynegeo.com.au/paul-payne. The Deposit forms part of Savannah's Mina do Barroso Lithium Project, located in northern Portugal. The Mineral Resource Estimate has been classified as Indicated and Inferred Mineral Resource Estimate in accordance with the JORC Code, 2012 Edition and is summarised in Table 1, Table 2 and Appendix 1.
Table 1. April 2018 Mineral Resource Summary
Hot Features
Premium
Deposit Indicated Inferred Total
-------------- ----------------------- ----------------------- ---------------------------------
Tonnes Li(2) Fe(2) Tonnes Li(2) Fe(2) Tonnes Li(2) Fe(2) Li(2)
O O(3) O O(3) O O(3) O
-------------- ------- ------ ------ ------- ------ ------ ------- ------ ------ --------
Mt % % Mt % % Mt % % Tonnes
-------------- ------- ------ ------ ------- ------ ------ ------- ------ ------ --------
Grandao 7.2 1.1 1.3 3.1 1.1 1.3 10.3 1.1 1.3 111,600
-------------- ------- ------ ------ ------- ------ ------ ------- ------ ------ --------
Reservatorio 3.2 1.0 1.4 3.2 1.0 1.4 32,000
-------------- ------- ------ ------ ------- ------ ------ ------- ------ ------ --------
Noa 0.5 1.2 1.3 0.5 1.2 1.3 5,600
-------------- ------- ------ ------ ------- ------ ------ ------- ------ ------ --------
Total 7.2 1.1 1.3 6.7 1.1 1.4 14.0 1.1 1.3 149,300
-------------- ------- ------ ------ ------- ------ ------ ------- ------ ------ --------
(minor rounding discrepancies may occur)
Table 2. Grandao Deposit April 2018 Mineral Resource Estimate (0.5% Li(2) O cut-off grade)
Resource Tonnes Li(2) Ta(2) Fe(2) Li(2) O
Class O O(5) O(3)
-----------
Mt % ppm % Tonnes
----------- ------- ------ ------ ------ --------
Indicated 7.2 1.1 22 1.3 77,100
Inferred 3.1 1.1 25 1.3 34,600
Total 10.3 1.1 23 1.3 111,600
----------- ------- ------ ------ ------ --------
(minor rounding discrepancies may occur)
The Grandao Deposit comprises two main pegmatite intrusions. The upper part of the deposit occurs within a broad, shallow dipping pegmatite body with a typical thickness of 20m-40m. The lower portion appears to be a steep dipping dyke, which is 15m-20m in true width. The geometry of the lower zone is not clear due to the current sparse drilling in this portion of the Deposit, where only three holes have intersected the zone. In addition, four minor lenses of pegmatite are also included in the Mineral Resource Estimate. Both main pegmatite zones remain open either along strike or down plunge (Figure 2-5 - See PDF).
The Grandao Mineral Resource Estimate is based on results from 70 Reverse Circulation ('RC') drill holes and two diamond drill holes all completed by Savannah in 2017 and 2018.
Figure 2. Grandao Resource Model (looking NE) - See PDF
Figure 3. Cross Section (4607980N) through Grandao Resource Model (looking north) - See PDF
Figure 4. Main Pegmatite Coloured by Lithium (plan view) - See PDF
Figure 5. Main Pegmatite Coloured by Classification (plan view) - See PDF
Potential Resource Expansion
The Grandao Deposit remains open both along strike in a number of directions as well as down dip. Given the consistency and predictability in which the drilling programme has been able to regularly intersect the main flat lying pegmatite it is reasonable to interpret that further drilling could lead to a further expansion of the Grandao Deposit (Figure 6 - See PDF).
Figure 6. Grandao Resource Model and Exploration Potential - See PDF
Geology
At Mina do Barroso, lithium mineralisation occurs predominantly in the form of spodumene-bearing pegmatites, which are hosted in metapelitic and mica schists, and occasionally carbonate schists of upper Ordovician to lower Devonian age. The main Grandao pegmatite is a flat-lying, tabular zone defined over an area of 500m north-south and 500m east-west and varies in thickness from 10m-60m. It is very close to surface and is visible in outcrop over a significant area. A lower zone of mineralisation is also present at Grandao, hosted in what is interpreted to be a north-south trending steep-dipping, tabular pegmatite dyke 15m-20m in true width. The geometry of the lower pegmatite is not well defined due to the currently sparse drilling (Figure 7 - See PDF).
Figure 7. Grandao Geological Model - See PDF
At the Project, lithium is present in most pegmatite compositions and laboratory test work confirms that the lithium is almost exclusively within spodumene. Distinct lithium grade zonation occurs within the pegmatites, with weakly mineralised zones often evident at the margins of the dykes. Minor xenoliths and inliers of schist are observed on occasions.
The weathering profile comprises a shallow, surficial zone of weak to moderate oxidation, particularly of the schistose country rock. A zone of deeper weathering exists on the western side of the Grandao Deposit with moderate oxidation to a depth of up to 50m.
Drilling
A total of 70 RC holes and two diamond holes define the Grandao Mineral Resource Estimate. Four of the RC holes and both diamond holes were awaiting assay results however the geological logging from those holes was used to assist in interpretation of the pegmatite. The holes were drilled on an approximate grid spacing of 40m-60m. All holes were drilled by Savannah in 2017 and 2018.
Drill collar locations are recorded in Universal Traverse Mercator ("UTM") coordinates using differential GPS. All Savannah drilling has been down-hole surveyed using a gyroscopic tool.
Sampling and Sub-Sampling Techniques
For the Savannah RC drilling, a face-sampling hammer was used with samples collected at 1m intervals from pegmatite zones with composite sampling of typically 4m in the surrounding schists in early drilling. In recent drilling the schist 5m either side of the pegmatite was sampled at 1m intervals with the rest of schist remaining unsampled. The 1m samples were collected through a rig-mounted riffle splitter and were 4kg-6kg in weight. The 4m composites were collected by spear sampling of the 1m intervals. Samples were weighed to assess the sample recovery which was determined to be satisfactory.
Core was PQ and HQ in size and sampled to geological boundaries. Half core was collected for metallurgical test work, and quarter core samples were collected for assay. No assay results from the diamond drilling were available for this update.
Sample Analysis Method
For all Savannah drilling, whole samples were crushed then riffle split to produce a 250g split for pulverising and analysis.
The samples were analysed using ALS laboratories ME-MS89L Super Trace method which combines a sodium peroxide fusion with ICP-MS analysis and a multi-element suite was analysed.
QAQC protocols were in place for the drilling programmes and included the used of standards and field duplicates. The data has confirmed the quality of the sampling and assaying for use in Mineral Resource estimation.
Estimation Methodology
For the Grandao Mineral Resource Estimate, a Surpac block model was constructed with block sizes of 20m (EW) by 10m (NS) by 5m (elevation) with sub-celling to 5m by 2.5m by 1.25m. The typical drill hole spacing is 40m-60m.
Interpretation of the pegmatite dykes was completed using detailed geological logging and Fe geochemistry. Wireframes of the pegmatites were prepared and within those the sample data was extracted and analysed. A clear break in the grade distribution occurs at 0.5% Li(2) O and this grade threshold was used to prepare the internal grade domains for estimation. In addition to the two main pegmatite bodies, several small pegmatites were also interpreted. Zones of unmineralised schist within the pegmatite body were selectively wireframed and excluded from the estimate.
Sample data was composited into 1m intervals then block model grades estimated using ordinary kriging ("OK") grade interpolation for the two main pegmatites and inverse distance squared ("ID2") grade interpolation for the four small pegmatite zones. A first pass search range of 60m was used and oriented to match the dip and strike of the mineralisation. A minimum of 10 samples and a maximum of 24 samples were used to estimate each block. The majority of the Mineral Resource Estimate (61%) was completed in the first pass with expanded search radii of 120m and 240m used for the blocks not estimated in the first pass. No high-grade cuts were applied to the estimate.
Iron within the pegmatites is uniformly low, with a mean Fe(2) O(3) grade of 1.3% at Grandao. Other similar deposits have reported that a large proportion of the assayed iron is due to contamination from the abrasion of steel drilling and sample preparation equipment and this will be investigated as part of ongoing studies at the Project.
Bulk density determinations (helium pycnometer) were carried out on 87 sample pulps. Bulk density values applied to the estimates were 2.5t/m(3) for oxide lithologies, 2.7t/m(3) for unoxidised pegmatite and 2.8t/m(3) for unoxidised schist.
Mineral Resource Classification
The Mineral Resource Estimate was classified in accordance with the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC, 2012).
The main pegmatite dyke at Grandao has generally been drilled at 40m to 60m holes spacings. The majority of holes in the main pegmatite at Grandao have consistently intersected pegmatite, with the majority intersecting resource grade Li(2) O mineralisation and the continuity of lithium mineralisation is good. The portion of the deposit defined by 40m to 60m spaced drill holes has been classified as an Indicated Mineral Resource Estimate. Where the main pegmatite showed good potential for further extensions, the Indicated Mineral Resource Estimate was extrapolated up to 60m past drill hole intersections and the Inferred Mineral Resource Estimate was extrapolated a further 60m.
All minor pegmatite bodies were classified as an Inferred Mineral Resource Estimate due to the lack of detailed drilling or the uncertainty of geometry of the mineralisation.
The main shallow pegmatite at Grandao lies entirely above 100m vertical depth. The deep pegmatite has been reported to a depth of 160m vertical.
Cut-off Grades
The shallow and flat lying nature of the main Grandao pegmatite suggests good potential for open pit mining if sufficient resources can be delineated to consider a mining operation. The lower pegmatite at Grandao has favourable geometry and thickness for low-cost underground mining as an option in the second step. As such, the Mineral Resource Estimate has been reported at a 0.5% Li(2) O lower cut-off grade to reflect assumed exploitation by low-cost mining methods.
Metallurgy
Metallurgical test work has been conducted by Savannah on representative mineralisation at Mina do Barroso. The work was completed by Nagrom Metallurgical in Australia and confirmed that high-grade lithium, low-grade iron concentrate can be generated from the mineralisation using conventional processing technology. Microscopy confirmed that the concentrate was almost entirely spodumene. A substantial metallurgical test work programme has recently commenced.
Modifying Factors
No modifying factors were applied to the reported Mineral Resource Estimate. Parameters reflecting mining dilution, ore loss and metallurgical recoveries will be considered during the any future mining evaluation of the Project.
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 Australasian 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.
The Information in this report that relates to Mineral Resources is based on information compiled by Mr Paul Payne, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Payne is a full-time employee of Payne Geological Services. Mr Payne has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Payne consents to the inclusion in the report of the matters based on his 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.
**S**
For further information please visit www.savannahresources.com or contact:
David Archer Savannah Resources Tel: +44 20
plc 7117 2489
David Hignell / Dugald Northland Capital Tel: +44 20
J. Carlean (Nominated Partners Ltd 3861 6625
Adviser)
Christopher Raggett finnCap Ltd Tel: +44 20
/ Emily Morris (Broker) 7220 0500
Charlotte Page / St Brides Partners Tel: +44 20
Lottie Wadham Ltd 7236 1177
(Financial PR)
About Savannah
We are a diversified resources group (AIM: SAV and SWB: SAV) with a portfolio of energy metals projects - lithium in Portugal and copper in Oman - together with the world-class Mutamba Heavy Mineral Sands Project in Mozambique, which is being developed in a consortium with the global major Rio Tinto. We are committed to serving the interests of our shareholders and to delivering outcomes that will improve the lives of our staff and the communities we work with.
The group is listed and regulated on AIM and the Company's ordinary shares are also available on the Börse Stuttgart (SWB) under the ticker "SAV".
Appendix 1: Detailed Mineral Resource Tables
Grandao April 2018 Mineral Resource Estimate
0.5% Li(2) O Cut-off
Indicated Mineral Inferred Mineral
Bench Resource Resource Total Mineral Resource
---------------------------------------------- ----------------------------------- --------------------------------
Li(2) Ta(2) Fe(2) Li(2) Ta(2) Fe(2) Li(2) Ta(2) Fe(2) Li(2)
Top Tonnes O O(5) O(3) Tonnes O O(5) O(3) Tonnes O O(5) O(3) O
RL t % ppm % t % ppm % t % ppm % Tonnes
------ ---------- ------ ------ ------ ---------- ------ ------ ------ ----------- ------ ------ ------ --------
590 19,000 0.72 28 1.8 19,000 0.72 28 1.8 100
580 100,000 0.81 27 1.8 100,000 0.81 27 1.8 800
570 344,000 1.05 24 1.4 1.16 15 1.0 344,000 1.05 24 1.4 3,600 560 418,000 1.06 23 1.2 15,000 1.14 23 1.1 433,000 1.06 23 1.2 4,600 550 398,000 1.04 20 1.2 30,000 1.06 24 1.2 428,000 1.04 20 1.2 4,500 540 517,000 1.01 21 1.2 40,000 1.00 22 1.6 557,000 1.01 21 1.2 5,600 530 647,000 0.97 22 1.2 50,000 0.94 24 1.7 697,000 0.97 22 1.2 6,700 520 728,000 0.93 22 1.2 86,000 1.00 23 1.7 814,000 0.94 22 1.3 7,600 510 685,000 1.00 20 1.3 198,000 1.13 21 1.4 882,000 1.03 20 1.4 9,100 500 620,000 1.11 19 1.4 177,000 1.13 23 1.5 797,000 1.11 20 1.4 8,900 490 534,000 1.22 24 1.4 181,000 1.12 26 1.5 716,000 1.19 24 1.4 8,500 480 530,000 1.22 25 1.3 221,000 1.12 30 1.5 751,000 1.19 27 1.4 8,900 470 490,000 1.10 24 1.3 252,000 1.10 30 1.5 743,000 1.10 26 1.4 8,200 460 375,000 1.05 25 1.2 242,000 1.11 31 1.4 617,000 1.07 27 1.3 6,600 450 340,000 1.06 26 1.2 228,000 1.08 28 1.2 568,000 1.07 27 1.2 6,100 440 250,000 1.23 22 1.2 221,000 1.24 26 1.2 471,000 1.23 24 1.2 5,800 430 196,000 1.20 21 1.2 259,000 1.23 24 1.2 454,000 1.22 23 1.2 5,500 420 57,000 1.12 23 1.1 278,000 1.19 22 1.2 336,000 1.18 22 1.2 3,900 410 1,000 1.10 22 1.1 201,000 1.16 21 1.1 202,000 1.16 21 1.1 2,300 400 205,000 1.04 20 1.1 205,000 1.04 20 1.1 2,100 390 161,000 0.99 19 1.1 161,000 0.99 19 1.1 1,600 380 43,000 0.85 18 1.1 43,000 0.85 18 1.1 400 Total 7,247,000 1.06 22 1.3 3,089,000 1.12 25 1.3 10,336,000 1.08 23 1.3 111,600 ------ ---------- ------ ------ ------ ---------- ------ ------ ------ ----------- ------ ------ ------ --------
APPIX 2 - JORC 2012 Table 1
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Sampling
techniques * Nature and quality of sampling (e.g. cut channels, * Reverse circulation (120mm size) samples were taken
random chips, or specific specialised industry at 1 intervals for pegmatite. In early drilling the
standard measurement tools appropriate to the schist as sampled in 4m composites. In recent
minerals under investigation, such as down hole gamma drilling the schist 5m either side of the pegmatite
sondes, or handheld XRF instruments, etc). These was sampled at 1m intervals with the rest of schist
examples should not be taken as limiting the broad remaining unsampled. RC samples were collected in
meaning of sampling. large plastic bags from an onboard rig splitter and a
4-6kg representative sample taken for analysis.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Include reference to measures taken to ensure sample * Drilling was conducted using RC drilling technology
representivity and the appropriate calibration of any on a nominal 80m by 80m spacing with selected infill
measurement tools or systems used. to 40m by 40m spacings.
* Collar surveys are carried using differential GPS
with an accuracy to within 0.2m.
* A downhole survey for each hole was completed using
gyro equipment
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Aspects of the determination of mineralisation that * The lithium mineralisation is predominantly in the
are Material to the Public Report. form of Spodumene-bearing pegmatites, the pegmatites
are unzoned and vary in true thickness from 10m-60m.
* In cases where 'industry standard' work has been done
this would be relatively simple (e.g. 'reverse * Down hole sampling is carried out on either a 1 or 4m
circulation drilling was used to obtain 1 m samples interval from which 4-6kg of pulverised material (RC)
from which 3 kg was pulverised to produce a 30 g was pulverised to produce a 50g charge for assaying
charge for fire assay'). In other cases more
explanation may be required, such as where there is
coarse gold that has inherent sampling problems.
Unusual commodities or mineralisation types (e.g.
submarine nodules) may warrant disclosure of detailed
information.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Drilling
techniques * Drill type (e.g. core, reverse circulation, open-hole * RC drilling at a diameter of 120mm is a form of
hammer, rotary air blast, auger, Bangka, sonic, etc) reverse circulation drilling requiring annular drill
and details (e.g. core diameter, triple or standard rods. Compressed air is pumped down the outer tube
tube, depth of diamond tails, face-sampling bit or and the sample is collected from the open face
other type, whether core is oriented and if so, by drilling bit and blown up the inner tube.
what method, etc).
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Drill
sample * Method of recording and assessing core and chip * Field assessment of sample volume. A theoretical
recovery sample recoveries and results assessed. dried sample mass was estimated to be within the
range of 18 kg to 24 kg, 70% of samples are within
the expected range. Lower than average sample
recovery is recorded only for the very top of the
drill hole due to air and sample losses into the
surrounding soil
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Measures taken to maximise sample recovery and ensure * RC drilling sample weights were monitored to ensure
representative nature of the samples. samples were maximised. Samples were carefully loaded
into a splitter and split in the same manner ensuring
that the sample split to be sent to the assay
laboratories were in the range of 4-6kg.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Whether a relationship exists between sample recovery * No obvious relationships
and grade and whether sample bias may have occurred
due to preferential loss/gain of fine/coarse
material.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Logging
* Whether core and chip samples have been geologically * RC holes were logged in the field at the time of
and geotechnically logged to a level of detail to sampling.
support appropriate Mineral Resource estimation,
mining studies and metallurgical studies.
* Each 1m sample interval was carefully homogenised and
assessed for lithology, colour, grainsize, structure
* Whether logging is qualitative or quantitative in and mineralisation.
nature. Core (or costean, channel, etc) photography.
* A representative chip sample produced from RC
* The total length and percentage of the relevant drilling was washed and taken for each 1m sample and
intersections logged. stored in a chip tray which was photographed
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * 1m RC samples were split by the rotary splitter on
and sample half or all core taken. the drill rig and sampled dry
preparation
* If non-core, whether riffled, tube sampled, rotary * The 4m composites were collected using a spear with
split, etc and whether sampled wet or dry. the spear inserted into the bag at a high angle and
pushed across the sample to maximise representivity
of the sample
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* For all sample types, the nature, quality and * The sampling was conducted using industry standard
appropriateness of the sample preparation technique. techniques and were considered appropriate
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Quality control procedures adopted for all * Field duplicates were used to test repeatability of
sub-sampling stages to maximise representivity of the sub-sampling and were found to be satisfactory
samples.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Measures taken to ensure that the sampling is * Every effort was made to ensure that the samples were
representative of the in-situ material collected, representative and not biased in any way
including for instance results for field
duplicate/second-half sampling.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Whether sample sizes are appropriate to the grain * All samples were taken once they went through the
size of the material being sampled. onboard splitter from the drill rig. Depending on the
rock types on average a 4-6kg sample was sent to the
lab for analysis and the remaining material averaged
18-24kg and remains stored on site for any further
analysis if required.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Quality
of assay * The nature, quality and appropriateness of the * Samples were received, sorted, labelled and dried
data and assaying and laboratory procedures used and whether
laboratory the technique is considered partial or total.
tests * Samples were crushed to 70% less than 2mm, riffle
split off 250g, pulverise split to better than 85%
passing 75 microns and 5g was split of for assaying
* The samples were analysed using ALS laboratories
ME-MS89L Super Trace method which combines a sodium
peroxide fusion with ICP-MS instrumentation utilising
collision/reaction cell technologies to provide the
lowest detection limits available.
* A prepared sample (0.2g) is added to sodium peroxide
flux, mixed well and then fused in at 670degC. The
resulting melt is cooled and then dissolved in 30%
hydrochloric acid. This solution is then analysed by
Inductively Coupled Plasma - Mass Spectrometry and
the results are corrected for spectral inter-element
interferences.
* The final solution is then analysed by ICP-MS, with
results corrected for spectral inter-element
interferences.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Not used
* For geophysical tools, spectrometers, handheld XRF
instruments, etc, the parameters used in determining
the analysis including instrument make and model,
reading times, calibrations factors applied and their
derivation, etc.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Nature of quality control procedures adopted (e.g. * Standards/blanks and duplicates were inserted on a
standards, blanks, duplicates, external laboratory 1:20 ratio for both to samples taken
checks) and whether acceptable levels of accuracy
(i.e. lack of bias) and precision have been
established. * Duplicate sample regime is used to monitor sampling
methodology and homogeneity.
* A powder chip tray for the entire hole is completed
for RC drilling. A sub-sample is sieved from the
large RC bags at site into chip trays over the
pegmatite interval to assist in geological logging.
These are photographed and kept on the central
database
* Routine QA/QC controls for the method ME-MS89L
include Blanks, certified reference standards of
Lithium and duplicate samples. Samples are assayed
within runs or batches up to 40 samples. At the
fusion stage that quality control samples are
included together with the samples so all samples
follow the same procedure until the end. Fused and
diluted samples are prepared for ICP-MS analysis. ICP
instrument is calibrated through appropriate
certified standards solutions and interference
corrections to achieve strict calibration fitting
parameters. Each 40 samples run is assayed with 2
blanks, 2 certified standards and one duplicate
samples and results are evaluated accordingly.
* A QA/QC review of all information indicated that all
assays we inside reasonable tolerance levels.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Verification
of sampling * The verification of significant intersections by * All information was internally audited by company
and assaying either independent or alternative company personnel. personnel
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* The use of twinned holes. * Several historical holes were twinned for comparison
purposes with the modern drilling.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Documentation of primary data, data entry procedures, * Savannah's experienced project geologists supervised
data verification, data storage (physical and all processes.
electronic) protocols.
* All field data is entered into a custom log sheet and
then into excel spreadsheets (supported by look-up
tables) at site and subsequently validated as it is
imported into the centralised Access database.
* Hard copies of logs, survey and sampling data are
stored in the local office and electronic data is
stored on the main server.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Discuss any adjustment to assay data. * Results were reported as Li(ppm) and were converted
to a percentage by dividing by 10,000 and then to
Li2O% by multiplying by 2.153
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Location
of data * Accuracy and quality of surveys used to locate drill * The coordinate of each drill hole was taken at the
points holes (collar and down-hole surveys), trenches, mine time of collecting using a handheld GPS with an
workings and other locations used in Mineral Resource accuracy of 5m. All collars were subsequently
estimation. surveyed using DGPS with an accuracy of 0.2m.
* Specification of the grid system used. * The grid system used is WSG84
* Quality and adequacy of topographic control. * An accurate, aerial topographic survey was obtained
with accuracy of +/- 0.5m
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Data spacing
and * Data spacing for reporting of Exploration Results. * Drilling was on a nominal 80m by 40m spacing and
distribution based on geological targets with selected infill to
40m by 40m.
* Whether the data spacing and distribution is
sufficient to establish the degree of geological and
grade continuity appropriate for the Mineral Resource * Drill data is at sufficient spacing to define
and Ore Reserve estimation procedure(s) and Indicated and Inferred Mineral Resource.
classifications applied.
* No compositing has been applied to samples in the
* Whether sample compositing has been applied. mineralised zones.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Orientation
of data * Whether the orientation of sampling achieves unbiased * Drilling was orientated perpendicular to the known
in relation sampling of possible structures and the extent to strike of the pegmatites
to which this is known, considering the deposit type.
geological
structure * Drill holes were orientated at -90(o) with a small
* If the relationship between the drilling orientation number of holes at -60(o) depending on the dip of the
and the orientation of key mineralised structures is pegmatite in an attempt to get drill holes as close
considered to have introduced a sampling bias, this to true width as possible.
should be assessed and reported if material.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Sample
security * The measures taken to ensure sample security. * Samples were delivered to a courier and chain of
custody is managed by Savannah.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Audits * Internal company auditing.
or reviews * The results of any audits or reviews of sampling
techniques and data.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
--------------- --------------------------------------------------------------- --------------------------------------------------------------------
Mineral
tenement * Type, reference name/number, location and ownership * All work was completed inside the Mina do Barroso
and land including agreements or material issues with third project C-100.
tenure parties such as joint ventures, partnerships,
status overriding royalties, native title interests,
historical sites, wilderness or national park and * Savannah has received written confirmation from the
environmental settings. DGEG that under article 24 of Decree-Law no. 88/90 of
March 16 being relevant justification based on the
resources allocated exploited and intended, Savannah
* The security of the tenure held at the time of has been approved an expansion up to 250m of C100
reporting along with any known impediments to mining concession in specific areas where a resource
obtaining a license to operate in the area. has been defined and the requirement for the
expansion can be justified. This expansion and
re-definition of the boundary is currently underway
in the Reservatorio area and as a result potential
mineralisation in the area has been included into the
previously reported exploration target
--------------- --------------------------------------------------------------- --------------------------------------------------------------------
Exploration * N/A
done by * Acknowledgment and appraisal of exploration by other
other parties.
parties
--------------- --------------------------------------------------------------- --------------------------------------------------------------------
Geology
* Deposit type, geological setting and style of * The lithium mineralisation is predominantly in the
mineralisation. form of Spodumene-bearing pegmatites which are hosted
in meta-pelitic and mica schists, and occasionally
carbonate schists of upper Ordovician to lower
Devonian age. The pegmatites vary in thickness from
10m-60m true width.
--------------- --------------------------------------------------------------- --------------------------------------------------------------------
Drill hole
Information * A summary of all information material to the * Grid used WSG84
understanding of the exploration results including a
tabulation of the following information for all
Material drill holes: * No material data has been excluded from the release
o easting and northing of * Drill hole intersections used in the resource have
the drill hole collar been previously reported.
o elevation or RL (Reduced
Level - elevation above sea
level in metres) of the drill
hole collar
o dip and azimuth of the hole
o down hole length and interception
depth
o hole length.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
--------------- ----------------------------------------------------------------- ------------------------------------------------------------------
Data
aggregation * In reporting Exploration Results, weighting averaging * No new exploration results have been reported in this
methods techniques, maximum and/or minimum grade truncations release.
(e.g. cutting of high grades) and cut-off grades are
usually Material and should be stated.
* Where aggregate intercepts incorporate short lengths
of high grade results and longer lengths of low grade
results, the procedure used for such aggregation
should be stated and some typical examples of such
aggregations should be shown in detail.
* The assumptions used for any reporting of metal
equivalent values should be clearly stated.
--------------- ----------------------------------------------------------------- ------------------------------------------------------------------
Relationship
between * These relationships are particularly important in the * Exploration results are reported as down hole
mineralisation reporting of Exploration Results. intercepts
widths and
intercept
lengths * If the geometry of the mineralisation with respect to * The generally vertical drill holes at Grandao
the drill hole angle is known, its nature should be intersect the shallow dipping mineralisation at a
reported. high angle, so down hole lengths are similar to true
thickness for most intersections.
* If it is not known and only the down hole lengths are
reported, there should be a clear statement to this
effect (e.g. 'down hole length, true width not
known').
--------------- ----------------------------------------------------------------- ------------------------------------------------------------------
Diagrams
* Appropriate maps and sections (with scales) and * Relevant diagrams and maps have been included in the
tabulations of intercepts should be included for any main body of the release.
significant discovery being reported These should
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views.
--------------- ----------------------------------------------------------------- ------------------------------------------------------------------
Balanced
reporting * Where comprehensive reporting of all Exploration * All relevant results available have been previously
Results is not practicable, representative reporting reported.
of both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
--------------- ----------------------------------------------------------------- ------------------------------------------------------------------
Other
substantive * Other exploration data, if meaningful and material, * The interpretation of the results is consistent with
exploration should be reported including (but not limited to): the observations and information obtained from the
data geological observations; geophysical survey results; data collected.
geochemical survey results; bulk samples - size and
method of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
--------------- ----------------------------------------------------------------- ------------------------------------------------------------------
Further work
* The nature and scale of planned further work (e.g. * Further rock chip sampling, channel sampling and RC
tests for lateral extensions or depth extensions or drilling is planned
large-scale step-out drilling).
* Ongoing technical evaluation to support a scoping
* Diagrams clearly highlighting the areas of possible study.
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
--------------- ----------------------------------------------------------------- ------------------------------------------------------------------
Section 3 Estimation and Reporting of Mineral Resources
Criteria JORC Code explanation Commentary
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Database
integrity * Measures taken to ensure that data has not been * The assay data was captured electronically to prevent
corrupted by, for example, transcription or keying transcription errors.
errors, between its initial collection and its use
for Mineral Resource estimation purposes.
* Validation included visual review of results.
* Data validation procedures used.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Site visits
* Comment on any site visits undertaken by the * Numerous site visits were undertaken by Dale Ferguson
Competent Person and the outcome of those visits. in 2017 which included an inspection of the drilling
process, outcrop area and confirmation that no
obvious impediments to future exploration or
* If no site visits have been undertaken indicate why development were present.
this is the case.
* A site visit by Paul Payne was undertaken in April
2018 to confirm geological interpretations, drilling
and sampling procedures and general site layout.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Geological
interpretation * Confidence in (or conversely, the uncertainty of) the * The pegmatite dykes hosting the Grandao are well
geological interpretation of the mineral deposit. defined in outcrop and in drilling and boundaries are
generally very sharp and distinct.
* Nature of the data used and of any assumptions made.
* The shape and extent of the >0.5% Li(2) O
mineralisation is clearly controlled by the general
* The effect, if any, of alternative interpretations on geometry of the pegmatites.
Mineral Resource estimation.
* Zonation of lithium within the pegmatite is evident,
* The use of geology in guiding and controlling Mineral and typically the margins are weakly mineralised.
Resource estimation.
* Xenoliths or inliers of barren schist country rock
occur within the pegmatite, and these have been
* The factors affecting continuity both of grade and excluded from the estimate where large enough to
geology. model.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Dimensions
* The extent and variability of the Mineral Resource * The Grandao upper pegmatite has a drilled extent of
expressed as length (along strike or otherwise), plan 500m NS and 500m EW and a maximum vertical depth of
width, and depth below surface to the upper and lower 100m. The thickness of the mineralisation ranges from
limits of the Mineral Resource. 10m to 60m.
* The Grandao lower pegmatite has a modelled strike
extent of 320m NS and a dip extent of 230m and a
maximum vertical depth of 150m. The true thickness of
the mineralisation ranges from 15m to 20m.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Estimation and
modelling * The nature and appropriateness of the estimation * Ordinary kriging (main pegmatites) and inverse
techniques technique(s) applied and key assumptions, including distance squared (minor zones) was used to estimate
treatment of extreme grade values, domaining, average block grades within the resource.
interpolation parameters and maximum distance of
extrapolation from data points. If a computer
assisted estimation method was chosen include a * Surpac software was used for the estimation.
description of computer software and parameters used.
* Samples were composited to 1m intervals to match the
* The availability of check estimates, previous sample lengths. Due to the extremely low CV of the
estimates and/or mine production records and whether data no high-grade cuts were applied to the estimate.
the Mineral Resource estimate takes appropriate
account of such data.
* At Grandao the parent block dimensions were 20m EW by
10m NS by 5m vertical with sub-cells of 5m by 2.5m by
* The assumptions made regarding recovery of 1.25m. Cell size was based on 50% of the average
by-products. drill hole spacing.
* Estimation of deleterious elements or other non-grade * The previous resource estimate for Grandao was
variables of economic significance (e.g. sulphur for reported in February 2018.
acid mine drainage characterisation).
* No assumptions have been made regarding recovery of
* In the case of block model interpolation, the block by-products.
size in relation to the average sample spacing and
the search employed.
* The grade of Fe(2) O(3) was estimated for the deposit,
with a mean grade of 1.3%.
* Any assumptions behind modelling of selective mining
units.
* An orientated ellipsoid search was used to select
data and was based on drill hole spacing and the
* Any assumptions about correlation between variables. geometry of the pegmatite dyke.
* Description of how the geological interpretation was * A search of 60m was used with a minimum of 10 samples
used to control the resource estimates. and a maximum of 24 samples which resulted in 63% of
blocks being estimated. The remaining blocks were
estimated with search radii of 120m and 240m.
* Discussion of basis for using or not using grade
cutting or capping.
* Selective mining units were not modelled in the
Mineral Resource model. The block size used in the
* The process of validation, the checking process used, model was based on drill sample spacing and deposit
the comparison of model data to drill hole data, and geometry.
use of reconciliation data if available.
* The deposit mineralisation was constrained by
wireframes prepared using a 0.5% Li(2) O grade
envelope.
* For validation, quantitative spatial comparison of
block grades to assay grades was carried out using
swath plots;
* Global comparisons of drill hole and block model
grades were also carried out.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Moisture
* Whether the tonnages are estimated on a dry basis or * Tonnages and grades were estimated on a dry in situ
with natural moisture, and the method of basis. No moisture values were reviewed.
determination of the moisture content.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality * The shallow, outcropping nature of the deposit and in
parameters applied. particular the flat lying, shallow geometry of the
upper pegmatite suggests good potential for open pit
mining if sufficient resources can be delineated to
consider a mining operation. As such, the Mineral
Resource has been reported at a 0.5% Li(2) O lower
cut-off grade to reflect assumed exploitation by open
pit mining.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Mining factors
or assumptions * Assumptions made regarding possible mining methods, * Based on comparison with other similar deposits, the
minimum mining dimensions and internal (or, if Mineral Resource is considered to have sufficient
applicable, external) mining dilution. It is always grade and metallurgical characteristics for economic
necessary as part of the process of determining treatment if an operation is established at the site.
reasonable prospects for eventual economic extraction
to consider potential mining methods, but the
assumptions made regarding mining methods and * No mining parameters or modifying factors have been
parameters when estimating Mineral Resources may not applied to the Mineral Resource.
always be rigorous. Where this is the case, this
should be reported with an explanation of the basis
of the mining assumptions made.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Metallurgical
factors or * The basis for assumptions or predictions regarding * Metallurgical test work has been conducted by
assumptions metallurgical amenability. It is always necessary as Savannah on representative mineralisation at the Mina
part of the process of determining reasonable do Barroso project. The work was completed by Nagrom
prospects for eventual economic extraction to Metallurgical in Australia and confirmed that high
consider potential metallurgical methods, but the grade lithium, low grade iron concentrate can be
assumptions regarding metallurgical treatment generated from the mineralisation using conventional
processes and parameters made when reporting Mineral processing technology. Microscopy confirmed that the
Resources may not always be rigorous. Where this is concentrate was almost entirely spodumene.
the case, this should be reported with an explanation
of the basis of the metallurgical assumptions made.
* Additional metallurgical test work is currently
underway.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Environmental
factors or * Assumptions made regarding possible waste and process * The area is not known to be environmentally sensitive
assumptions residue disposal options. It is always necessary as and there is no reason to think that proposals for
part of the process of determining reasonable development including the dumping of waste would not
prospects for eventual economic extraction to be approved if planning and permitting guidelines are
consider the potential environmental impacts of the followed.
mining and processing operation. While at this stage
the determination of potential environmental impacts,
particularly for a greenfields project, may not
always be well advanced, the status of early
consideration of these potential environmental
impacts should be reported. Where these aspects have
not been considered this should be reported with an
explanation of the environmental assumptions made.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Bulk density
* Whether assumed or determined. If assumed, the basis * Bulk density determinations (helium pycnometer) were
for the assumptions. If determined, the method used, carried out on 87 sample pulps. Bulk density values
whether wet or dry, the frequency of the measurements applied to the estimates were 2.5t/m(3) for
, transitional lithologies, 2.7t/m(3) for unoxidised
the nature, size and representativeness of the pegmatite and 2.8t/m(3) for unoxidised schist.
samples.
* The bulk density for bulk material must have been
measured by methods that adequately account for void
spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within
the deposit.
* Discuss assumptions for bulk density estimates used
in the evaluation process of the different materials.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Classification
* The basis for the classification of the Mineral * The Mineral Resources was classified in accordance
Resources into varying confidence categories. with the Australasian Code for the Reporting of
Exploration Results, Mineral Resources and Ore
Reserves (JORC, 2012).
* Whether appropriate account has been taken of all
relevant factors (i.e. relative confidence in
tonnage/grade estimations, reliability of input data, * The portion of the deposit defined by 40m by 40m to
confidence in continuity of geology and metal values, 80m by 80m drilling has been reported as Indicated
quality, quantity and distribution of the data). Mineral Resource.
* Whether the result appropriately reflects the * The remainder of the Mineral Resource was classified
Competent Person's view of the deposit. as Inferred due the sparse drilling. Inferred Mineral
Resource was extrapolated up to 120m past drill hole
intersections.
* The classification has been reviewed by the Competent
Person and the results reflect the view of the
Competent Person.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Audits or
reviews * The results of any audits or reviews of Mineral * The Mineral Resource estimate has been checked by an
Resource estimates. internal audit procedure.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Discussion of
relative * Where appropriate a statement of the relative * The estimate utilised good estimation practices, high
accuracy/ accuracy and confidence level in the Mineral Resource quality drilling, sampling and assay data. The extent
confidence estimate using an approach or procedure deemed and dimensions of the mineralisation are sufficiently
appropriate by the Competent Person. For example, the defined by outcrop and the detailed drilling. The
application of statistical or geostatistical deposit is considered to have been estimated with a
procedures to quantify the relative accuracy of the high level of accuracy.
resource within stated confidence limits, or, if such
an approach is not deemed appropriate, a qualitative
discussion of the factors that could affect the * The Mineral Resource statement relates to global
relative accuracy and confidence of the estimate. estimates of tonnes and grade.
* The statement should specify whether it relates to * There is no historic production data to compare with
global or local estimates, and, if local, state the the Mineral Resource.
relevant tonnages, which should be relevant to
technical and economic evaluation. Documentation
should include assumptions made and the procedures
used.
* These statements of relative accuracy and confidence
of the estimate should be compared with production
data, where available.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
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