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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 | 726,563 | 08:00:00 |
| 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 : 7819B
Savannah Resources PLC
25 September 2018
25 September 2018
Savannah Resources Plc
Significant Resource Potential Identified in Area Near Mina do Barroso Lithium Project
Option to Acquire Mining Lease Application Executed
HIGHLIGHTS:
-- Acquired an option for the potential purchase of the 2.94km(2) Aldeia Mining Lease application proximal to Savannah's flagship 20Mt Mina do Barroso Lithium Project ("the MdB Project") in Portugal
-- Follows technical and legal due diligence completed by Savannah, which has highlighted excellent lithium prospectivity focusing on a large scale pegmatite in Block A where
o Rock chip sampling has returned a maximum result of 1.53% Li(2) O
o Reconnaissance geological mapping and air photography interpretation suggest a pegmatite body of up to 300m long and 25m wide is present
o The geometry and characteristics of the body appears to be similar to the 16.4Mt Grandao deposit at Mina do Barroso - potential to develop into a significant resource amenable to open pit mining
-- Savannah is confident the Lease application area provides further resource upside to enhance Mina do Barroso, and could help optimise the layout for any potential mine development
-- All payments under the deal are structured to be staged with the majority of payments expected to be made from anticipated revenue generated from Mina do Barroso
Savannah Resources plc (AIM: SAV, FWB: AFM and SWB: SAV) ('Savannah' or the 'Company'), the AIM quoted resource development company, announces that, further to the Company's announcement of 18 July 2018, it has completed its technical and legal due diligence process with a private Portuguese company Aldeia & Irmão, S.A. ('Aldeia'), and executed an agreement to purchase a mining lease application ('Mining Lease Application') (once granted) which covers areas of land bordering the Company's Mina do Barroso Lithium Project ("the MdB Project") lease in northern Portugal (the 'Proposed Licence Area') (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/7819B_1-2018-9-24.pdf
Savannah's CEO, David Archer said: "Our technical due diligence has highlighted the lithium prospectivity of three blocks. The blocks are highly accretive to our Mina do Barroso Project, bringing the potential for further lithium resources and extra area for mine infrastructure. This new ground further strengthens an already highly attractive mine development project, which we believe has the potential to be Western Europe's largest, near term producer of spodumene lithium."
Figure 1. Location Map showing the position of the mining licence application relative to Savannah's Mina do Barroso Mining Lease
Savannah Technical Due Diligence Programme
The Aldeia Mining Lease Application for lithium, feldspar and quartz covers key areas of the lithium pegmatite bearing structural corridors identified by Savannah both adjacent to and within the vicinity of the Company's Mina do Barroso Mining Lease. A technical due diligence work programme was completed by Savannah to evaluate the potential of the Aldeia licence application including rock chip sampling and reconnaissance geological mapping on Block A (Figure 2).
This work has confirmed the excellent potential of the Aldeia licence to host spodumene bearing pegmatites similar to those already identified by Savannah in the Company's nearby Mina do Barroso mining lease.
The results from the programme were positive in outlining significant potential for the discovery of further spodumene mineralisation. A summary of the key results for Block A are provided below and in Table 1.
Block A
The largest and most extensive pegmatite on Block A, occurs where quarrying operations are taking place (Figure 2). The quarried pegmatite has many similarities with the Grandao deposit in Mina do Barroso, which has a Mineral Resource Estimate of 16.4Mt at 1.04% Li O for a total contained Li O of 171,400t. It is evident from the excavation that the pegmatite has a continuity that can be followed into the hillside and has a current surface dimension over 300m in strike with a maximum width of 25m in places (Figure 3). The pegmatite is seen to have a relatively shallow dip to the north of about 30 degrees, similar to Grandao, which indicates good potential to increase the buried extent of the pegmatite to both the northeast and similarly to the southwest.
Figure 2. Panorama Photo of the Pegmatite Quarry on Block A
Three rock chip samples were collected from the quarry, and all of them had values greater than 0.5% Li O with two them greater than 1.0% Li O. Spodumene mineralisation has been noted in hand specimen from the quarried rock, which is confirmed from the sampling making the quarry area a high priority target for drilling.
Figure 3. Block A area showing pegmatites and rockchip assay results
Table 1. Summary of the sample location and assay results
Hot Features
Premium
Sample Tin
ID Location East North RL Comment Li O% ppm
Large area of fresh
pegmatite on fire cutting
Block very close to lease
A010 A 603217 4606745 600 boundary 1.02 75
---------- -------- --------- ----- ------------------------------- ------- ------
Small pegmatite quarry
which Aldeia are working.
Visible spodumene, pegmatite
15-20m thick with shallow
dip to west. Pegmatite
extends to other side
Block of water line to the
A011 A 603038 4606640 575 west 0.65 246
---------- -------- --------- ----- ------------------------------- ------- ------
Block
A012 A 603038 4606640 575 As above 1.53 147
---------- -------- --------- ----- ------------------------------- ------- ------
Commercial Rationale
The key commercial aspects and potential value the additional ground could provide include:
-- Potential expansion of the current Mineral Resource base, which could provide the opportunity to extend the mine life of eleven years, as defined by the recent scoping study, and/or potentially increase annual processing rates.
-- Expanding the site footprint will potentially improve infrastructure options and reduce mining and infrastructure costs
Key Commercial Terms
The Due Diligence Agreement provided the Company with a 70-day exclusive due diligence period, announced on 18 July 2018, whereby Savannah conducted technical, financial, and legal due diligence into the Proposed Aldeia Licence Area.
The Company has received satisfactory results from the due diligence, and therefore triggers the commencement of an exclusive option governed by a certain Pledge and Purchase Agreement to acquire the Proposed Licence Area following the grant of a mining lease from relevant government/competent authorities (the 'Option').
The Option would, if not exercised earlier, endure until no later than 25 June 2019 whereby the Company would be required to commit to the purchase of the Proposed Licence Area once granted by the relevant Portuguese government bodies ('Commitment to Purchase'). The total purchase price of the option is EUR358,000, of which EUR58,000 is due upon execution of the Pledge and Purchase Agreement and the balance payment of EUR300,000 payable in 4 equal instalments supported by a corresponding bank guarantee.
Upon Savannah providing a Commitment to Purchase in the future, the parties shall have a maximum of five years (which cannot exceed 25 September 2024) to submit, and to have approved, a mining lease application for the Proposed Licence Area. Upon approval of the mining lease, Aldeia shall thereafter apply to register the lease in a subsidiary of Savannah.
The total purchase price for the acquisition of the Proposed Licence Area (once granted) is EUR3.25m, which would be paid EUR55k upon execution and the balance in 71 monthly instalments following the transfer of the mining lease to Savannah's subsidiary. These payments are expected to be made whilst the Mina do Barroso project is in production with the newly acquired area potentially being mined shortly thereafter.
Regulatory Information
This Announcement contains inside information for the purposes of Article 7 of the Regulation (EU) 596/2014.
Competent Persons
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.
**S**
For further information please visit www.savannahresources.com or contact:
David Archer Savannah Resources Tel: +44 20 7117 2489
plc
David Hignell / Dugald J. Northland Capital Tel: +44 20 3861 6625
Carlean (Nominated Adviser) Partners Ltd
Christopher Raggett / Camille finnCap Ltd Tel: +44 20 7220 0500
Gochez (Broker)
Grant Barker (Equity Adviser) Whitman Howard Tel: +44 020 7659
1225
Charlotte Page / Lottie St Brides Partners Tel: +44 20 7236 1177
Wadham (Financial PR) Ltd
About Savannah
Savannah is a diversified resources group (AIM: 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. The Board is committed to serving the interests of its shareholders and to delivering outcomes that will improve the lives of our staff and the communities we work with.
The Company is listed and regulated on AIM and the Company's ordinary shares are also available on the Quotation Board of the Frankfurt Stock Exchange (FWB) under the symbol FWB: AFM, and the Börse Stuttgart (SWB) under the ticker "SAV".
APPIX 1 - 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, * Random rockchip samples were completed over areas of
random chips, or specific specialised industry potential geological interest. Samples were collected
standard measurement tools appropriate to the using a geological hammer
minerals under investigation, such as down hole gamma
sondes, or handheld XRF instruments, etc). These
examples should not be taken as limiting the broad
meaning of sampling.
--------------------------------------------------------------- -----------------------------------------------------------------------
* Include reference to measures taken to ensure sample * A series of representative small fist sized rock
representivity and the appropriate calibration of any chips were collected over a 2m radius, from a central
measurement tools or systems used. point on a rock outcrop of interest
* A location of the sample was carried using hand held
GPS with an accuracy to within 5m, and the z
direction was determined by satellite derived
elevation data and is accurate to less than a metre.
The point surveyed was the centre point of the
sampled
--------------------------------------------------------------- -----------------------------------------------------------------------
* Aspects of the determination of mineralisation that * Approximately 2-3kg of representative material was
are Material to the Public Report. collected from each sample point
* In cases where 'industry standard' work has been done
this would be relatively simple (e.g. 'reverse
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g
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 * N/A
techniques * Drill type (e.g. core, reverse circulation, open-hole
hammer, rotary air blast, auger, Bangka, sonic, etc)
and details (e.g. core diameter, triple or standard
tube, depth of diamond tails, face-sampling bit or
other type, whether core is oriented and if so, by
what method, etc).
--------------------------------------------------------------- -----------------------------------------------------------------------
Drill sample * N/A
recovery * Method of recording and assessing core and chip
sample recoveries and results assessed.
--------------------------------------------------------------- -----------------------------------------------------------------------
* N/A
* Measures taken to maximise sample recovery and ensure
representative nature of the samples.
--------------------------------------------------------------- -----------------------------------------------------------------------
* Whether a relationship exists between sample recovery * N/A
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 * Rockchip samples were identified by rock type and the
and geotechnically logged to a level of detail to lithium minerals which could be visually identified
support appropriate Mineral Resource estimation, in the samples
mining studies and metallurgical studies.
* Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc) photography.
* The total length and percentage of the relevant
intersections logged.
--------------------------------------------------------------- -----------------------------------------------------------------------
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * A bulk sample was taken of representative material
and sample half or all core taken.
preparation
* If non-core, whether riffled, tube sampled, rotary
split, etc and whether sampled wet or dry.
--------------------------------------------------------------- -----------------------------------------------------------------------
* For all sample types, the nature, quality and * For recent rockchip sampling at least 2kg of
appropriateness of the sample preparation technique. representative rock material from a 2m radius around
the sample point was collected
--------------------------------------------------------------- -----------------------------------------------------------------------
* Quality control procedures adopted for all * 1 in 25 samples were duplicated in the field
sub-sampling stages to maximise representivity of
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 bias in anyway
including for instance results for field
duplicate/second-half sampling.
--------------------------------------------------------------- -----------------------------------------------------------------------
* Whether sample sizes are appropriate to the grain * A minimum sample size of 2kg was collected for recent
size of the material being sampled. rock chip sampling
--------------------------------------------------------------- -----------------------------------------------------------------------
Quality
of assay * The nature, quality and appropriateness of the * Laboratory and procedures for historical sampling
data and assaying and laboratory procedures used and whether unknown
laboratory the technique is considered partial or total.
tests
* Fine crushing of rock chip and drill samples to 90%
nominal -2mm
* Split sample using a rotary splitter
* Pulverize entire sample up to 85% passing 75 microns.
* 48 element 4 acid digest with ICP-AES/ICP-MS finish
* REE's may not be totally soluble in this method.
--------------------------------------------------------------- -----------------------------------------------------------------------
* 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 and duplicates we used and were off
standards, blanks, duplicates, external laboratory acceptable levels of accuracy
checks) and whether acceptable levels of accuracy
(i.e. lack of bias) and precision have been
established.
--------------------------------------------------------------- -----------------------------------------------------------------------
Verification
of sampling * The verification of significant intersections by * N/A
and assaying either independent or alternative company personnel.
--------------------------------------------------------------- -----------------------------------------------------------------------
* N/A
* The use of twinned holes.
--------------------------------------------------------------- -----------------------------------------------------------------------
* Documentation of primary data, data entry procedures, * Most assays are Li2O occasionally they are Li assays
data verification, data storage (physical and and the conversion used was Li2O = Li x 2.153
electronic) protocols.
--------------------------------------------------------------- -----------------------------------------------------------------------
* Discuss any adjustment to assay data. * No adjustments are made to the assay data for the
purposes of public reporting.
--------------------------------------------------------------- -----------------------------------------------------------------------
Location
of data * Accuracy and quality of surveys used to locate drill * The coordinate of each rockchip was taken at the time
points holes (collar and down-hole surveys), trenches, mine of collecting using a handheld GPS with an accuracy
workings and other locations used in Mineral Resource of 5m.
estimation.
* Specification of the grid system used. * The grid system used is the UTM datum WGS 84 Zone
29N.
* Quality and adequacy of topographic control. * Topographic accuracy was +/- 5m
--------------------------------------------------------------- -----------------------------------------------------------------------
Data spacing
and * Data spacing for reporting of Exploration Results. * Samples were collected on irregular spacing based on
distribution rock outcrop and geological targets
* Whether the data spacing and distribution is
sufficient to establish the degree of geological and * Further sampling and drilling is required to
grade continuity appropriate for the Mineral Resource accurately establish the grade continuity
and Ore Reserve estimation procedure(s) and
classifications applied.
* No sample compositing was conducted
* Whether sample compositing has been applied.
--------------------------------------------------------------- -----------------------------------------------------------------------
Orientation
of data * Whether the orientation of sampling achieves unbiased * Unknown due to limited data
in relation sampling of possible structures and the extent to
to which this is known, considering the deposit type.
geological
structure * Unknown due to limited data
* If the relationship between the drilling orientation
and the orientation of key mineralised structures is
considered to have introduced a sampling bias, this
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 or * Internal company auditing
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 * Mining concession application in the District of
and land including agreements or material issues with third Boticas County in Portugal known as Canedo-Covas
tenure status parties such as joint ventures, partnerships, MNPC03512, including Blocks A, B and C
overriding royalties, native title interests,
historical sites, wilderness or national park and
environmental settings.
* The security of the tenure held at the time of
reporting along with any known impediments to
obtaining a license to operate in the area.
--------------------------------------------------------------- -----------------------------------------------------------------
Exploration
done by * Acknowledgment and appraisal of exploration by other * No known lithium exploration has occurred in the
other parties parties. license area in the past
--------------------------------------------------------------- -----------------------------------------------------------------
Geology
* Deposit type, geological setting and style of * The lithium mineralization 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 are unzoned and vary in
thickness from 10m-50m. Lithium is present in most
aplite compositions.
--------------------------------------------------------------- -----------------------------------------------------------------
Drill hole * See table in main release
Information * A summary of all information material to the
understanding of the exploration results including a
tabulation of the following information for all
Material drill holes:
o easting and northing of the drill hole
collar
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 * N/A
methods techniques, maximum and/or minimum grade truncations
(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 * N/A
between * These relationships are particularly important in the
mineralisation reporting of Exploration Results.
widths and
intercept
lengths * If the geometry of the mineralisation with respect to
the drill hole angle is known, its nature should be
reported.
* 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 * All results have been reported.
reporting * Where comprehensive reporting of all Exploration
Results is not practicable, representative reporting
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
data geological observations; geophysical survey results; historical 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. * Rock chip sampling, channel sampling and RC drilling
tests for lateral extensions or depth extensions or .
large-scale step-out drilling). Once planning has been completed the detail will be
provided
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
--------------------------------------------------------------- -----------------------------------------------------------------
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
MSCUSSKRWOAKUAR
(END) Dow Jones Newswires
September 25, 2018 02:01 ET (06:01 GMT)
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