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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 | 1,490,777 | 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 : 5067V
Savannah Resources PLC
09 April 2019
9 April 2019
Savannah Resources Plc
Mineral Resource Increase of 17% to 23.5Mt at Mina do Barroso Lithium Project
Significant scope for further expansions
Highlights
-- Continued resource expansion at Mina do Barroso, increasing the Project's lead as Western Europe's most significant spodumene lithium Mineral Resource
-- 17% increase in overall JORC compliant Mineral Resource Estimate for the Project, which now stands at 23.5Mt at 1.02% Li O for 241,000t of contained Li O
-- 100% of mineralisation within the Grandao Stage 1 pit classified as Measured or Indicated Mineral Resource
-- 28% increase in Measured and Indicated Resource to 13.3Mt at 1.0% Li O representing 58% of the total Mineral Resource
-- Inferred Mineral Resource established at Pinheiro of 2.0Mt at 1.0% Li O
-- Exploration Target* remains unchanged for Mina do Barroso, calculated at 9-15Mt at 1.0-1.2% Li O, giving a potential mineral inventory of over 30Mt for the Project
-- Recent test work has reduced iron content of the Mineral Resource by 41% to 0.8% Fe O confirming a low iron deposit
-- The Board believes significant upside remains at all deposits to further increase the resource inventory in addition to any potential inaugural Mineral Resource Estimate for the Aldeia Quarry Prospect
*Cautionary Statement: The potential quantity and grade of the Exploration Targets is conceptual in nature, there has been insufficient exploration work to estimate a mineral resource and it is uncertain if further exploration will result in defining a mineral resource.
Savannah Resources plc (AIM: SAV, FWB: AFM and SWB: SAV) ('Savannah' or 'the Company'), the resource development company, is pleased to announce a significant increase in the JORC 2012 Compliant Measured, Indicated and Inferred Mineral Resource Estimate, with supporting Exploration Target at the Company's flagship asset, the Mina do Barroso Lithium Project ('Mina do Barroso' or the 'Project'), located in northern Portugal (Figure 1 and Table 1-2). To view the press release with the illustrative maps and diagrams please use the following link: http://www.rns-pdf.londonstockexchange.com/rns/5067V_1-2019-4-8.pdf
Savannah's CEO, David Archer said: "This is the fourth major increase in the Mina do Barroso Mineral Resource and it has been achieved in less than 14 months. The increasing Mineral Resource highlights the continued growth potential for the Project which is underscored by the Exploration Target remaining unchanged. With a potential mining inventory of over 30Mt, we have a long-life asset that can become a secure, long term supply source of lithium which is a strategic metal for the burgeoning battery and Electric Vehicle industries of Europe."
Figure 1. Mina do Barroso Project Summary Map showing key deposits and drilling completed to date
Mineral Resource Summary
Table 1. Updated Mineral Resource Estimation Summary
Hot Features
Premium
Deposit Resource Tonnes Li(2) Fe(2) Li(2) O
Class O O(3)
-------------- -----------
Mt % % Tonnes
-------------- ----------- ------- ------ ------ --------
All Deposits Measured 6.6 1.1 0.7 71,600
--------------
Indicated 6.8 1.0 0.8 65,400
Inferred 10.2 1.0 0.9 103,900
Total 23.5 1.02 0.8 241,000
------- ------
(Note: Minor rounding discrepancies may occur)
Table 2. Exploration Target Summary
Deposit Tonnage Range (Mt) Li(2)
O %
Lower Upper
---------- --------- ---------
Reservatorio 5.0 7.0 1.0-1.2%
---------- --------- ---------
Grandao 4.0 8.0 1.0-1.2%
---------- --------- ---------
Total Mina do Barroso Exploration
Target 9.0 15.0 1.0-1.2%
---------- --------- ---------
(Note: Minor rounding discrepancies may occur)
*Cautionary Statement: The potential quantity and grade of the Exploration Targets is conceptual in nature, there has been insufficient exploration work to estimate a mineral resource and it is uncertain if further exploration will result in defining a mineral resource.
Importantly, this exploration target only includes Grandao and Reservatorio with further upside remaining from the many other high priority exploration targets within the Project area.
Improved Confidence in the Mining Inventory
Reverse Circulation ('RC') and diamond drilling incorporated into this Mineral Resource update has focused on both improving the Mineral Resource Estimate category of the existing Mining Inventory, as well as targeting areas in and close to the potential open pit mining areas, defined as part of the Scoping Study. This work has led to some excellent results, now with 100% of the Mining Inventory within the stage one Grandao pit defined in the June 2018 Scoping Study being converted to either Measured or Indicated category and approximately 80% of the total mining inventory for Grandao now in the Measured or Indicated category.
Approximately 80% of the mining inventory defined in the scoping study for the NOA open pit is now in an Indicated Mineral Resource category.
This is an important stepping stone for the Feasibility Study as all material needs to be either Measured or Indicated to be considered as part of an Ore Reserve Estimate, which will be generated from the Feasibility Study (Figure 2).
Figure 2. Grandao Resource Estimate coloured by Category showing Scoping Study Stage 1 Pit
Recent drilling has also defined significant near surface mineralisation at the Pinheiro deposit that has the potential to add low strip, high-grade material to the early stage of the mining inventory (Figure 3).
Figure 3. Pinheiro Pegmatite wireframes and drilling
Assessment of Iron Contamination
Detailed test work by Savannah demonstrated that a large proportion of the assayed iron is due to contamination from the abrasion of steel sample preparation equipment. This was demonstrated by taking field duplicates of 208 samples and submitting them for analysis using ceramic sample preparation equipment. The duplicates had a Fe content 41% less than the original samples and this was attributed to contamination. The amount of contamination increased with lithium content, so a regression formula was developed to factor the Fe grade based on the lithium grade. The iron content of the mineralisation in the updated Mineral Resource estimates uses the factored Fe values to better estimate the true iron content of the mineralisation.
Mineral Resource Estimate
The Mineral Resource Estimate for the Grandao, NOA and Pinheiro Lithium Deposit has been updated by Payne Geological Services Pty Ltd, an external and independent mining consultancy - http://www.paynegeo.com.au/paul-payne. The Deposits forms part of Savannah's Mina do Barroso Lithium Project, located in northern Portugal. The Mineral Resource Estimates have been classified as Measured, Indicated and Inferred Mineral Resource in accordance with the JORC Code, 2012 Edition and is summarised in Table 3 and Appendix 1.
Table 3. April 2019 Mineral Resource Summary (0.5% Li(2) O cut-off)
Deposit Resource Tonnes Li(2) Fe(2) Li(2) O
Classification O O(3)
Mt % % Tonnes
------- ------ ------ --------
Grandao Measured 6.6 1.1 0.7 71,600
Indicated 6.4 1.0 0.8 65,300
Inferred 4.8 1.0 0.7 48,900
Total 17.7 1.04 0.7 181,800
------- ------
Reservatorio Measured
Indicated
Inferred 3.2 1.0 1.4 32,000
-------------------------------- ------- ------ ------ --------
Total 3.2 1.0 1.4 32,000
-------------------------------- ------- ------ ------ --------
Pinheiro Measured
Indicated
Inferred 2.0 1.0 0.7 20,000
-------------------------------- ------- ------ ------ --------
Total 2.0 1.0 0.7 20,000
-------------------------------- ------- ------ ------ --------
NOA Measured
Indicated 0.4 1.2 0.8 4,200
Inferred 0.3 1.0 0.9 2,900
-------------------------------- ------- ------ ------ --------
Total 0.6 1.1 0.9 7,100
-------------------------------- ------- ------ ------ --------
All Deposits Measured 6.6 1.1 0.7 71,600
Indicated 6.8 1.0 0.8 65,400
Inferred 10.2 1.0 0.9 103,900
-------------------------------- ------- ------ ------ --------
Total 23.5 1.02 0.8 241,000
-------------------------------- ------- ------ ------ --------
(Note: Minor rounding discrepancies may occur)
Grandao Mineral Resource Estimate
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 is a steep dipping dyke, which is 15m-20m in true width striking north south. In addition, minor parallel lenses of pegmatite are also included in the Mineral Resource Estimate. Both main pegmatite zones remain open either along strike or down plunge (Figure 4-6).
Figure 4. Grandao Resource Model coloured by resource classification (looking NE)
Figure 5. Cross Section (4608000N) through Grandao Resource Model (looking north)
*Cautionary Statement: The potential quantity and grade of the Exploration Targets is conceptual in nature, there has been insufficient exploration work to estimate a mineral resource and it is uncertain if further exploration will result in defining a mineral resource.
The Grandao Mineral Resource Estimate is based on results from 92 RC drill holes, 31 diamond holes and 25 RC holes with diamond tails completed by Savannah between 2017 and 2019.
Figure 6. Grandao Resource Model coloured by Li(2) O content (looking NE)
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 with 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 an expansion of the Grandao Deposit (Figure 4).
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 600m north-south and 980m 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 a north-south trending steep-dipping, tabular pegmatite dyke 15m-20m in true width. (Figure 7).
Figure 7. Grandao Geological Model
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 within the main pegmatite. Where these have sufficient continuity, they have been separately modelled and excluded from the estimate.
The weathering profile at Grandao 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 92 RC drill holes, 31 diamond holes and 25 RC holes with diamond tails were completed by Savannah between 2017 and 2019. The holes were drilled on an approximate grid spacing of 20m-60m with a number of closer spaced holes in the shallow part of the deposit.
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. Core was cut using a diamond saw, and for the majority of holes, half core was collected for assay. A number of diamond holes were sampled for metallurgical test work. For those holes, quarter core was submitted for assay.
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.
Quality assurance / quality control ("QAQC") protocols were in place for the drilling programmes and included the used of blanks, 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 10m (EW) by 20m (NS) by 5m (elevation) with sub-celling to 2.5m by 5m by 2.5m. The typical drill hole spacing is 20m-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 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 (71%) 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 extreme high grades were present in the Li(2) O and Fe data, and the CV of less than 1 for all elements suggested that high grade cuts were not required. However, a small number of outliers of Ta were present in Domain 1 and a high grade cut of 60ppm was applied to all Ta values.
Iron within the pegmatites is uniformly low, with a mean Fe(2) O(3) grade of 1.3% at Grandao. Test work by Savannah suggest that a large proportion of the assayed iron (approximately 40%) is due to contamination from the abrasion of steel sample preparation equipment. Results show a substantial and consistent difference between the Fe results from the different preparation equipment. The greatest difference is in the preparation of core samples, where it appears that the coarser nature of the particles may cause greater abrasion of the steel equipment and it was considered necessary to determine a correction factor to ensure reliable Fe values were applied to the Mineral Resource estimate.
The amount of Fe contamination was determined using the derived regression formula:Fe_contamination = (0.1734 * Li(2) O grade) + 0.2308.
A new field "Fe_factored" was inserted into the drill hole database, and the original Fe value minus the calculated contamination was stored in that field. This allowed a "Fe_factored" value to be extracted from the database and used for grade estimation in the Mineral Resource.
Bulk density determinations using the immersion method were carried out on 3,370 half core samples. Bulk density values applied to the estimates were 2.5t/m(3) for oxide lithologies, 2.65t/m(3) for unoxidised pegmatite and 2.67t/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 with a portion of the deposit drilled at closer 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.
Due to the consistent drill hole spacing defining excellent continuity of lithology and mineralisation and accurate location data, the well drilled portion of the upper pegmatite has been classified as Measured Mineral Resource. This includes mineralisation drilled at 20m to 40m spacings where the pegmatite geometry is consistent and mineralisation is uniform.
The portion of the deposit defined by 40m to 60m spaced drill holes has been classified as 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 250m vertical depth. The deep pegmatite has been reported to a depth of 230m 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. 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 is ongoing to define to determine an optimised flow sheet.
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.
Pinheiro Mineral Resource Estimate
The Pinheiro Deposit comprises a cluster or swarm of pegmatite bodies striking broadly NS and dipping steeply to the east. The orientation and extent of two of the pegmatites have been sufficiently defined by drilling for resource estimation. The pegmatites have been defined over a strike of 250m with an average thickness of 10m-20m. The pegmatite mineralisation is predominantly fresh with a shallow weathering profile affecting the material 10-20m below surface. Both main pegmatite zones remain open either along strike or down plunge (Figure 8-10).
Figure 8. Grandao Resource Model coloured by resource classification (looking NE)
Figure 9. Pinheiro Cross Section (4606850N) (looking north)
The Pinheiro Mineral Resource Estimate is based on results from 10 RC drill holes and 2 diamond holes completed by Savannah in 2018 and both modeled pegmatite zones remain open either along strike or down dip.
Figure 10. Pinheiro Resource Model coloured by Li(2) O content (looking North)
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 Pinheiro pegmatites are a swarm of steeply dipping tabular dykes defined over an area of 250m north-south with a dip extent of 160m. The dykes vary in thickness from 10m-20m and are typically mineralised across the full width. The pegmatites are very close to surface and visible in outcrop over a significant area (Figure 11).
Figure 11. Pinheiro Geological Model and Mapped Pegmatites
At the Project, lithium is present in most pegmatite compositions and laboratory test work confirms that the lithium is almost exclusively within spodumene. Limited lithium grade zonation occurs within the Pinheiro pegmatites. Minor xenoliths and inliers of schist are observed within the pegmatite.
The weathering profile comprises a shallow, surficial zone of weak to moderate oxidation, particularly of the schistose country rock with moderate oxidation to a depth of up to 20m.
Drilling
A total of 19 RC drill holes and 2 diamond holes were completed by Savannah in 2018. The holes were drilled on an approximate grid spacing of 20m-60m.
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 and the surrounding 5m either side of the pegmatite was with the rest of schist remaining unsampled. The 1m samples were collected through a rig-mounted riffle splitter and were 4kg-6kg in weight. Samples were weighed to assess the sample recovery which was determined to be satisfactory.
Core was PQ in size and sampled to geological boundaries. Core was cut using a diamond saw, and quarter core was collected for assay with the remaining sampled for metallurgical test work.
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 blanks, 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 Pinheiro Mineral Resource Estimate, a Surpac block model was constructed with block sizes of 5m (EW) by 20m (NS) by 5m (elevation) with sub-celling to 1.25m by 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 0.35% 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.
Sample data was composited into 1m intervals then block model grades estimated using inverse distance squared ("ID2") grade interpolation due to the small number of drill holes and limited extent of mineralisation. A first pass search range of 50m 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 (66%) was completed in the first pass with expanded search radii of 100m and 200m used for the blocks not estimated in the first pass. No extreme high grades were present in the Li(2) O and Fe data, and the CV of less than 1 for all elements suggested that high grade cuts were not required. However, a small number of outliers of Ta were present at Pinheiro and a high grade cut of 60ppm was applied to all Ta values.
Iron contamination has been reported from other lithium projects, where iron is introduced into the samples via abrasion of RC drilling equipment and/or sample preparation equipment. To test the potential for iron contamination at the MBLP, SAV carried out a preliminary program of check assays and a series of comparisons were undertaken on samples from the Grandao deposit.
It was concluded from the Grandao study that a significant proportion of the iron being reported in the drilling assay data was introduced as contamination during the sample preparation process. It was determined that the amount of contamination was proportional to the lithium content of the samples. A regression formula was calculated using all samples, with the derived regression formula being:
Fe_contamination = (0.1734 * Li(2) O grade) + 0.2308.
The amount of Fe contamination was determined using the derived regression formula. A new field "Fe_factored" was inserted into the drill hole database, and the original Fe value minus the calculated contamination was stored in that field. This allowed a "Fe_factored" value to be extracted from the database and used for grade estimation in the Mineral Resource.
Extensive bulk density determinations using the immersion method were carried out on 3,370 half core samples from the Grandao deposit. Results from these tests were applied to the Pinheiro mineralisation. Values applied to the estimates were 2.5t/m(3) for oxide lithologies, 2.65t/m(3) for unoxidised pegmatite and 2.67t/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).
Mineral Resource classification was considered on the basis of drill hole spacing, continuity of mineralisation and data quality. The continuity of the Pinheiro pegmatite is not well defined with patchy outcrop and multiple intrusions. Accurate drill hole collar and topographic surveys have been obtained for the deposit, so the spatial location of data and topography has a high level of confidence. The quality of the drilling and assaying has been confirmed through independent verification of procedures and through a satisfactory QAQC protocol.
Due to the uncertainty in the interpreted geometry of the mineralisation and the sparse drilling at the deposit, the entire deposit was classified as Inferred Mineral Resource.
Cut-off Grades
The shallow nature of the main Grandao pegmatite suggests good potential for open pit mining if sufficient resources can be delineated to consider a mining operation. 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. Initial assessments of the mineralogy and chemistry suggest mineralisation is broadly similar to other deposits at Mina do Barroso. Samples have been collected from the Pinheiro deposit are currently being tested to determine their exact processing requirement.
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.
NOA Mineral Resource Estimate
The NOA Deposit is hosted in steep dipping NW trending tabular pegmatite which has a true width of 5-10m thick. The estimate is based on results from 22 RC and two diamond drill holes all completed by Savannah in 2017 and 2018. The deposit outcrops over a strike length of approximately 420m and remains open along strike and at depth. (Figure 12-14).
Figure 12. NOA Resource Model coloured by Li(2) O% (looking west)
Figure 13. NOA Cross Section (4606850N) (looking north)
Figure 14. NOA Resource Model coloured Resource Classification (looking West)
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.
At the NOA deposit, the host pegmatite is a steep dipping, NW trending body which is 5-10m in true width. It has been mapped in outcrop over much of the interpreted 420m strike length of the Mineral Resource (Figure 15). The weathering profile comprises a shallow, surficial zone of weak to moderate oxidation, particularly of the schistose country rock. A weathering surface representing the top of fresh rock ("TOFR") was used to define the transitional and fresh mineralisation.
Figure 15: NOA pegmatite wireframes and drilling
At the Project, lithium is present in most pegmatite compositions and laboratory test work confirms that the lithium is almost exclusively within spodumene. Limited lithium grade zonation occurs within the NOA pegmatites. Minor xenoliths and inliers of schist are observed within the pegmatite.
Drilling
A total of 25 RC drill holes and 2 diamond holes were completed by Savannah in 2017 and 2018. The holes were drilled on an approximate grid spacing of 20m-40m.
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 and the surrounding 5m either side of the pegmatite was with the rest of schist remaining unsampled. The 1m samples were collected through a rig-mounted riffle splitter and were 4kg-6kg in weight. Samples were weighed to assess the sample recovery which was determined to be satisfactory.
Core was PQ in size and sampled to geological boundaries. Core was cut using a diamond saw, and quarter core was collected for assay with the remaining sampled for metallurgical test work.
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 blanks, 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 NOA Mineral Resource Estimate, a Surpac block model was constructed with block sizes of 20m (EW) by 5m (NS) by 5m (elevation) with sub-celling to 5m by 1.25m by 1.25m. The typical drill hole spacing is 20m-40m.
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 0.35% Li(2) O and this grade threshold was used to prepare the internal grade domains for estimation.
Sample data was composited into 1m intervals then block model grades estimated using inverse distance squared ("ID2") grade interpolation due to the small number of drill holes and limited extent of mineralisation. A first pass search range of 50m 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 (82%) was completed in the first pass with expanded search radii of 100m used for the blocks not estimated in the first pass. No extreme high grades were present in the Li(2) O and Fe data, and the CV of less than 1 for all elements suggested that high grade cuts were not required. However, a small number of outliers of Ta were present at Pinheiro and a high grade cut of 100ppm was applied to all Ta values.
Iron contamination has been reported from other lithium projects, where iron is introduced into the samples via abrasion of RC drilling equipment and/or sample preparation equipment. To test the potential for iron contamination at the MBLP, SAV carried out a preliminary program of check assays and a series of comparisons were undertaken on samples from the Grandao deposit.
It was concluded from the Grandao study that a significant proportion of the iron being reported in the drilling assay data was introduced as contamination during the sample preparation process. It was determined that the amount of contamination was proportional to the lithium content of the samples. A regression formula was calculated using all samples, with the derived regression formula being:
Fe_contamination = (0.1734 * Li(2) O grade) + 0.2308.
The amount of Fe contamination was determined using the derived regression formula. A new field "Fe_factored" was inserted into the drill hole database, and the original Fe value minus the calculated contamination was stored in that field. This allowed a "Fe_factored" value to be extracted from the database and used for grade estimation in the Mineral Resource.
Extensive bulk density determinations using the immersion method were carried out on 3,370 half core samples from the Grandao deposit. Results from these tests were applied to the Pinheiro mineralisation. Values applied to the estimates were 2.5t/m(3) for oxide lithologies, 2.65t/m(3) for unoxidised pegmatite and 2.67t/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).
At NOA, the continuity of the controlling pegmatite appears to be good. Where the pegmatite is exposed, the interpretation is supported by mapped contacts at surface and within the small pit being mined. The portion of the NOA pegmatite defined by 40m to 60m spaced drill holes and showing good continuity of pegmatite and Li(2) O distribution has been classified as Indicated Mineral Resource. The Indicated portion was extended for the full length of the pegmatite which had been exposed and mapped in the pit and was extrapolated up to 30m past drill hole intersections. Inferred Mineral Resource was assigned to those areas of the NOA deposit defined by a drill hole spacing of greater than 60m.
Cut-off Grades
The shallow nature of the main NOA pegmatite suggests good potential for open pit mining if sufficient resources can be delineated to consider a mining operation. 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. Initial assessments of the mineralogy and chemistry suggest mineralisation at NOA is broadly similar to other deposits at Mina do Barroso. Samples have been collected from the NOA deposit are currently being tested to determine their exact processing requirements.
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.
Exploration Target*
Savannah has defined a Mineral Resource Estimate from four deposits in the Mina do Barroso Project area (Table 5). All four deposits remain open and untested by drilling either down dip or along strike of the defined Mineral Resource Estimate and there is excellent potential to extend the deposits with further drilling. In addition, there are numerous other outcropping pegmatite dykes that require drill testing to determine if they are also lithium bearing.
Savannah has been drilling at Mina do Barroso since mid-2017 and ongoing programmes in 2018 and 2019 are designed to test for extensions of the defined deposits and to test other outcropping pegmatite targets in the Project area. The drilling at the Grandao deposit has been very successful and has allowed a major increase to the reported Mineral Resource Estimate, as well as, increasing confidence in the estimate. Infill drilling at NOA has allowed the confidence in a significant portion of the Mineral Resource Estimates to be increased to Indicated.
To quantify the potential of the Project beyond the currently defined Mineral Resource Estimates, an Exploration Target* for the Grandao and Reservatorio Deposits of 9-15Mt at 1.0% to 1.2% Li O. This gives a project target (including Mineral Resource Estimate) of 32-38Mt at 1.0-1.2% Li O. Importantly, this exploration target only includes Grandao and Reservatorio with further upside remaining from the many other high priority exploration prospects within the project area.
Table 4. Exploration Targets* for Mina do Barroso Project
Deposit Tonnage Range (Mt) Li(2)
O(5) %
Lower Upper
---------- --------- ---------
Reservatorio
---------- --------- ---------
Bottom of Inferred to 200m Vertical
Depth 5.0 7.0 1.0-1.2%
---------- --------- ---------
Grandao
---------- --------- ---------
200m-400m Extension of Upper Pegmatite 3.0 6.0 1.0-1.2%
---------- --------- ---------
100% Expansion of Lower Pegmatite 1.0 2.0 1.0-1.2%
---------- --------- ---------
Total Mina do Barroso Exploration
Target 9.0 15.0 1.0-1.2%
---------- --------- ---------
*Cautionary Statement: The potential quantity and grade of the Exploration Targets is conceptual in nature, there has been insufficient exploration work to estimate a mineral resource and it is uncertain if further exploration will result in defining a mineral resource.
Reservatorio Exploration Target*
A Mineral Resource Estimate was completed for the Reservatorio Deposit in December 2017. It was modelled and estimated for the full extent of the SAV drilling and the Inferred Mineral Resource Estimate was extended between 40m and 100m down dip from the deepest drill holes.
There is no information to suggest that the pegmatite and lithium mineralisation does not continue with the same characteristics and grade as the drilled portion. As a result, beneath the Inferred Mineral Resource Estimate boundary, a wireframe model was created, assuming continuation of the mineralisation down-dip to 200m below surface. Applying a density of 2.6t/m(3) as used in the Reservatorio Inferred Mineral Resource Estimate, and assuming the same lithium grade observed in the drilled portion, the Exploration Target has been defined as 5 Mt to 7 Mt at a grade of 1.0% to 1.2% Li(2) O.
Grandao Exploration Target*
The current Mineral Resource Estimate was completed for the Grandao Deposit in April 2019. It was modelled and estimated for the area drilled in detail by SAV. The Inferred Mineral Resource Estimate was extended up to 120m down plunge from drilled area.
The shallow pegmatite appears to be closed off by drilling to the northeast and to the southeast. To the west and northwest and south, the mineralisation remains open and untested the limits of the mineralisation have not been found. There is no information to suggest that the pegmatite and lithium mineralisation does not continue to the west and northwest with the same characteristics and grade as the drilled portion and the strong results from the recent drilling has confirmed this.
The Exploration Target* for the shallow pegmatite is considered to be at least a 200m-400m down-plunge extension of the defined Mineral Resource Estimate for that portion of the deposit so the Exploration Target has been defined as 3 Mt to 6 Mt at a grade of 1.0% to 1.2% Li(2) O. This represents a 20%-40% increase on the currently defined Mineral Resource.
The steep pegmatite has been intersected in a small number of holes which have recorded thick, high grade mineralisation. The mineralisation is open in most directions and the Exploration Target has been defined as a 100% increase on the defined Mineral Resource Estimate which gives an Exploration Target of 1 Mt to 2 Mt at a grade of 1.0% to 1.2% Li(2) O.
*Cautionary Statement: The potential quantity and grade of the Exploration Targets is conceptual in nature, there has been insufficient exploration work to estimate a mineral resource and it is uncertain if further exploration will result in defining a mineral resource.
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 7117 2489
plc
David Hignell / Charlie SP Angel Corporate Tel: +44 20 3470 0470
Bouverat (Nominated Adviser) Finance LLP
Christopher Raggett (Broker) finnCap Ltd Tel: +44 20 7220 0500
Grant Barker (Equity Adviser) Whitman Howard Tel: +44 20 7659 1225
Melissa Hancock/ Cosima St Brides Partners Tel: +44 20 7236 1177
Akerman (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 the communities we work with and our staff.
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: SAV, and the Börse Stuttgart (SWB) under the ticker "SAV".
Appendix 1: Detailed Mineral Resource Tables
Grandao April 2019 - Total Mineral Resource Estimate
0.5% Li(2) O Cut-off
Bench Measured Mineral Resource Indicated Mineral Resource Inferred Mineral Resource Total Mineral resource
--------------------------- --------------------------- --------------------------- ---------------------------------------
Li(2) Fe(2) Li(2) Fe(2) Li(2) Fe(2) Li(2) Fe(2) Li(2)
Top Tonnes O O(3) Tonnes O O(3) Tonnes O O(3) Tonnes O O(3) O
RL t % % t % % t % % t % % Tonnes
---------- ------ ------- ---------- ------ ------- ---------- ------ ------- ----------- ------ ------
590 40,000 0.71 0.9 40,000 0.71 0.9 300
580 17,000 1.17 0.9 183,000 0.76 0.9 1,000 0.63 0.9 201,000 0.79 0.9 1,600
570 188,000 1.09 0.6 244,000 0.80 0.8 8,000 0.65 0.7 440,000 0.92 0.7 4,100
560 231,000 0.99 0.5 204,000 0.76 0.7 18,000 0.69 0.6 454,000 0.87 0.6 4,000
550 220,000 0.98 0.6 207,000 0.73 0.9 30,000 0.75 0.6 457,000 0.85 0.7 3,900
540 301,000 0.96 0.6 187,000 0.71 0.8 44,000 0.84 0.7 533,000 0.86 0.7 4,600
530 368,000 0.91 0.6 201,000 0.69 0.8 54,000 0.91 0.7 623,000 0.84 0.7 5,200
520 452,000 0.87 0.6 237,000 0.77 0.7 62,000 0.92 0.7 751,000 0.84 0.7 6,300
510 408,000 0.88 0.8 227,000 0.82 0.8 68,000 0.99 0.7 703,000 0.87 0.8 6,100
500 468,000 0.96 0.9 282,000 0.85 0.9 128,000 1.01 0.8 878,000 0.93 0.9 8,200
490 471,000 1.10 0.9 326,000 0.91 0.9 153,000 1.02 1.0 951,000 1.02 0.9 9,700
480 406,000 1.21 0.8 281,000 0.90 1.1 149,000 0.95 1.2 836,000 1.06 1.0 8,800
470 435,000 1.11 0.7 308,000 0.95 1.0 134,000 0.92 1.2 877,000 1.03 0.9 9,000
460 492,000 1.15 0.6 361,000 0.97 0.9 125,000 0.97 1.1 979,000 1.06 0.8 10,400
450 499,000 1.22 0.6 340,000 1.05 0.7 110,000 0.93 1.0 949,000 1.12 0.7 10,700
440 409,000 1.30 0.6 284,000 1.13 0.6 116,000 0.96 0.9 809,000 1.19 0.6 9,600
430 308,000 1.25 0.9 240,000 1.15 0.6 153,000 1.06 0.7 701,000 1.17 0.7 8,200
420 234,000 1.25 0.8 214,000 1.13 0.6 168,000 1.07 0.8 616,000 1.16 0.7 7,200
410 205,000 1.23 0.7 212,000 1.13 0.7 152,000 0.97 0.9 569,000 1.13 0.7 6,400
400 154,000 1.25 0.7 155,000 1.21 0.6 205,000 0.99 0.8 515,000 1.14 0.7 5,800
390 114,000 1.30 0.5 176,000 1.19 0.6 220,000 1.01 0.8 511,000 1.14 0.7 5,800
380 80,000 1.24 0.5 223,000 1.16 0.6 254,000 1.05 0.7 556,000 1.12 0.7 6,200
370 53,000 1.13 0.6 274,000 1.06 0.7 289,000 1.11 0.7 616,000 1.09 0.7 6,700
360 31,000 1.14 0.6 293,000 0.95 0.7 297,000 1.09 0.6 621,000 1.03 0.7 6,400
350 10,000 1.10 0.6 278,000 0.97 0.7 287,000 1.07 0.6 575,000 1.02 0.6 5,900
340 230,000 0.98 0.6 322,000 1.06 0.7 553,000 1.03 0.7 5,700
330 137,000 1.09 0.6 406,000 1.01 0.6 543,000 1.03 0.6 5,600
320 60,000 1.11 0.5 416,000 1.13 0.6 476,000 1.13 0.6 5,400
310 10,000 1.17 0.5 274,000 1.04 0.6 285,000 1.04 0.6 3,000
300 104,000 0.97 0.7 104,000 0.97 0.7 1,000
290 18,000 0.80 0.7 18,000 0.80 0.7 100
280 1,000 0.65 0.7 1,000 0.65 0.7
---------- ------ ------- ---------- ------ ------- ---------- ------ ------- ----------- ------ ------ --------
Total 6,555,000 1.09 0.7 6,417,000 0.95 0.8 4,767,000 1.03 0.7 17,739,000 1.03 0.7 181,800
---------- ------ ------- ---------- ------ ------- ---------- ------ ------- ----------- ------ ------
(Note: Minor rounding discrepancies may occur)
NOA April 2019 - Total Mineral Resource
0.5% Li(2) O Cut-off
Bench Transitional Fresh Total
-------------------------------
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
------- ------ ------ ------ -------- ------ ------ ------ -------- ------ ------ ------
700 3,418 1.07 23 1.04 3,418 1.07 23 1.04 37
690 37,461 1.03 27 0.97 36,189 1.09 27 1.01 73,650 1.06 27 0.99 777
680 25,215 0.96 26 0.96 119,250 1.02 27 1.01 144,465 1.01 27 1.00 1,457
670 129,643 1.07 26 0.96 129,643 1.07 26 0.96 1,384
660 79,935 1.12 23 0.81 79,935 1.12 23 0.81 894
650 44,222 1.15 21 0.73 44,222 1.15 21 0.73 510
640 37,866 1.20 20 0.71 37,866 1.20 20 0.71 453
630 35,775 1.22 18 0.72 35,775 1.22 18 0.72 437
620 32,173 1.25 16 0.72 32,173 1.25 16 0.72 403
610 29,108 1.26 15 0.71 29,108 1.26 15 0.71 367
600 20,641 1.30 14 0.70 20,641 1.30 14 0.70 269
590 9,316 1.34 14 0.68 9,316 1.34 14 0.68 125
580 352 1.35 14 0.68 352 1.35 14 0.68 5
Total 66,094 1.00 26 0.97 574,470 1.12 23 0.86 640,564 1.11 23 0.88 7,117
------- ------ ------ ------ ------ ------ ------ ------ ------ ------
(Note: Minor rounding discrepancies may occur)
Pinheiro April 2019 - Total Mineral Resource
0.5% Li(2) O Cut-off
Bench Transitional Fresh Total
--------------------------------
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 9,199 1.06 46 0.61 9,199 1.06 46 0.61 98
580 20,469 1.10 31 0.62 11,697 1.03 37 0.63 32,166 1.07 33 0.62 346
570 9,727 1.17 25 0.56 42,234 1.06 28 0.61 51,961 1.08 28 0.60 564
560 23,379 1.31 19 0.49 58,404 1.07 30 0.58 81,783 1.14 27 0.56 929
550 28,066 1.37 19 0.46 83,351 1.06 29 0.60 111,417 1.14 27 0.57 1,265
540 22,773 1.38 20 0.46 118,194 1.03 28 0.70 140,967 1.08 27 0.66 1,528
530 149,394 1.08 26 0.71 149,394 1.08 26 0.71 1,619
520 149,290 1.14 26 0.67 149,290 1.14 26 0.67 1,707
510 147,593 1.07 25 0.71 147,593 1.07 25 0.71 1,572
500 148,462 1.02 25 0.76 148,462 1.02 25 0.76 1,518
490 150,180 1.05 24 0.70 150,180 1.05 24 0.70 1,570
480 152,271 1.02 25 0.70 152,271 1.02 25 0.70 1,560
470 152,561 0.99 25 0.71 152,561 0.99 25 0.71 1,510
460 146,682 0.99 23 0.71 146,682 0.99 23 0.71 1,449
450 132,873 1.00 20 0.67 132,873 1.00 20 0.67 1,323
440 80,908 0.80 19 0.58 80,908 0.80 19 0.58 648
430 63,683 0.67 18 0.59 63,683 0.67 18 0.59 428
420 43,787 0.60 19 0.62 43,787 0.60 19 0.62 261
410 13,478 0.59 20 0.62 13,478 0.59 20 0.62 79
Total 113,613 1.27 24 0.52 1,845,042 1.00 25 0.68 1,958,655 1.02 25 0.67 19,973
-------- ------ ------ ------ ------ ------ ------ ------ ------ ------
(Note: Minor rounding discrepancies may occur)
APPIX 2 - JORC 2012 Table 1 - Grandao
JORC Table 1 Section 1 Sampling Techniques and Data
Criteria JORC Code Explanation Commentary
Sampling
techniques * Nature and quality of sampling (eg cut channels, * The majority of holes were reverse circulation,
random chips, or specific specialised industry sampled at 1m intervals. RC samples were collected in
standard measurement tools appropriate to the large plastic bags from an onboard rig splitter and a
minerals under investigation, such as down hole gamma 4-6kg representative sample taken for analysis.
sondes, or handheld XRF instruments, etc). These
examples should not be taken as limiting the broad
meaning of sampling. * A substantial number of diamond holes were also
completed. Core was HQ size, sampled at 1m intervals
in the pegmatite, with boundaries sampled to
* Include reference to measures taken to ensure sample geological boundaries. Half core samples were
representivity and the appropriate calibration of any collected for analysis.
measurement tools or systems used.
* Drilling was on a nominal 40m by 40m to 80m by 80m
* Aspects of the determination of mineralisation that spacing with selected infill to 40m by 20m spacings.
are Material to the Public Report. In cases where
'industry standard' work has been done this would be
relatively simple (eg 'reverse circulation drilling * Collar surveys are carried using differential GPS
was used to obtain 1 m samples from which 3 kg was with an accuracy to within 0.2m.
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 * A down hole survey for each hole was completed using
sampling problems. Unusual commodities or gyro equipment.
mineralisation types (eg submarine nodules) may
warrant disclosure of detailed information.
* The lithium mineralisation is predominantly in the
form of Spodumene-bearing pegmatites, the pegmatites
are unzoned and vary in thickness from 10m-109m.
------------------------------------------------------------ -----------------------------------------------------------------
Drilling -- RC drilling used a 120mm bit diameter.
techniques * Drill type (eg core, reverse circulation, open-hole * Core drilling was carried out using an HQ triple tube
hammer, rotary air blast, auger, Bangka, sonic, etc) core barrel.
and details (eg 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
recovery * Method of recording and assessing core and chip * RC drilling sample weights were monitored to ensure
sample recoveries and results assessed. 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
* Measures taken to maximise sample recovery and ensure laboratories were in the range of 4-6kg.
representative nature of the samples.
* Core recovery was measured and was found to be
* Whether a relationship exists between sample recovery generally excellent.
and grade and whether sample bias may have occurred
due to preferential loss/gain of fine/coarse
material. * No obvious relationships between sample recovery and
grade.
------------------------------------------------------------ -----------------------------------------------------------------
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. Core was logged in detail in a logging
support appropriate Mineral Resource estimation, yard.
mining studies and metallurgical studies.
* Each 1m sample interval was carefully homogenised and
* Whether logging is qualitative or quantitative in assessed for lithology, colour, grainsize, structure
nature. Core (or costean, channel, etc) photography. and mineralisation.
* The total length and percentage of the relevant * A representative chip sample produced from RC
intersections logged. drilling was washed and taken for each 1m sample and
stored in a chip tray which was photographed.
* Core was photographed.
------------------------------------------------------------ -----------------------------------------------------------------
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * 1m RC samples were split by the riffle 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
appropriateness of the sample preparation technique.
* Core was cut in half using a diamond saw with 1m half
core samples submitted for analysis.
* Quality control procedures adopted for all
sub-sampling stages to maximise representivity of
samples. * The sampling was conducted using industry standard
techniques and were considered appropriate.
* Measures taken to ensure that the sampling is
representative of the in situ material collected, * Field duplicates were used to test repeatability of
including for instance results for field the sub-sampling and were found to be satisfactory.
duplicate/second-half sampling.
* Every effort was made to ensure that the samples were
* Whether sample sizes are appropriate to the grain representative and not biased in any way.
size of the material being sampled.
------------------------------------------------------------ -----------------------------------------------------------------
Quality of
assay data * The nature, quality and appropriateness of the * Samples were received, sorted, labelled and dried.
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%
* For geophysical tools, spectrometers, handheld XRF passing 75 microns and 5g was split of for assaying.
instruments, etc, the parameters used in determining
the analysis including instrument make and model,
reading times, calibrations factors applied and their * The samples were analysed using ALS Laboratories
derivation, etc. ME-MS89L Super Trace method which combines a sodium
peroxide fusion with ICP-MS instrumentation utilising
collision/reaction cell technologies to provide the
* Nature of quality control procedures adopted (eg lowest detection limits available.
standards, blanks, duplicates, external laboratory
checks) and whether acceptable levels of accuracy (ie
lack of bias) and precision have been established. * 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
ICP-MS 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.
* Standards/blanks and duplicates were inserted on a
1:20 ratio for both to samples taken.
* Duplicate sample regime is used to monitor sampling
methodology and homogeneity.
* 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 sample run is assayed with two
blanks, two certified standards and one duplicate
sample and results are evaluated accordingly.
* A QA/QC review of all information indicated that all
assays were satisfactory.
------------------------------------------------------------ -----------------------------------------------------------------
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,
data verification, data storage (physical and * Savannah's experienced project geologists supervised
electronic) protocols. all processes.
* Discuss any adjustment to assay data. * 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.
* Results were reported as Li (ppm) and were converted
to a percentage by dividing by 10,000 and then to
Li(2) O% by multiplying by 2.153.
------------------------------------------------------------ -----------------------------------------------------------------
Location of
data points * Accuracy and quality of surveys used to locate drill * The coordinate of each drill hole was taken at the
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 40m by 40m to 80m by 80m
distribution spacing and based on geological targets with selected
infill to 40m by 20m.
* 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 Measured, Indicated and Inferred Mineral Resource.
classifications applied.
* Compositing to 1m has been applied prior to resource
* Whether sample compositing has been applied. estimation.
------------------------------------------------------------ -----------------------------------------------------------------
Orientation
of data in * Whether the orientation of sampling achieves unbiased * Drilling was generally vertical and intersected the
relation to sampling of possible structures and the extent to gently dipping deposit at close to orthogonal to the
geological which this is known, considering the deposit type. known dip of the main pegmatite.
structure
* If the relationship between the drilling orientation * Intersections were close to true width for the main
and the orientation of key mineralised structures is pegmatite.
considered to have introduced a sampling bias, this
should be assessed and reported if material.
* No orientation-based sampling bias has been
identified in the data.
------------------------------------------------------------ -----------------------------------------------------------------
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
reviews * The results of any audits or reviews of sampling * Internal company auditing and a review by PayneGeo
techniques and data. during the April 2018 site visit found that all data
collection and QA/QC procedures were conducted to
industry standards.
------------------------------------------------------------ -----------------------------------------------------------------
JORC Table 1 Section 2 Reporting of Exploration Results
Criteria JORC Code explanation Commentary
Mineral
tenement and * Type, reference name/number, location and ownership * All work was completed inside the Mina do Barroso
land tenure including agreements or material issues with third project C-100.
status parties such as joint ventures, partnerships,
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.
---------------------------------------------------------------- ------------------------------------------------------------
Exploration
done by other * Acknowledgment and appraisal of exploration by other * Limited exploration work has been carried out by
parties parties. previous operators.
* No historic information has been included in the
Mineral Resource estimates.
---------------------------------------------------------------- ------------------------------------------------------------
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
15m-109m.
---------------------------------------------------------------- ------------------------------------------------------------
Drill hole
information * A summary of all information material to the * Grid used WSG84.
under-standing 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.
* easting and northing of the drill hole collar * Drill hole intersections used in the resource have
been previously reported.
* elevation or RL (Reduced Level - elevation above sea
level in metres) of the drill hole collar
* dip and azimuth of the hole
* down hole length and interception depth
* 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 * Length weighted average grades have been reported.
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. * No high-grade cuts have been applied to reported
grades.
* Where aggregate intercepts incorporate short lengths
of high grade results and longer lengths of low grade * Metal equivalent values are not being reported.
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 * The majority of holes have been drilled at angles to
mineralisation reporting of Exploration Results. intersect the mineralisation approximately
widths and perpendicular to the orientation of the mineralised
intercept trend.
lengths * If the geometry of the mineralisation with respect to
the drill hole angle is known, its nature should be
reported. * The geometry of the steep pegmatite at Grandao is
steep dipping and some holes have drilled at a close
angle to the mineralisation in that part of the
* If it is not known and only the down hole lengths are deposit.
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 * A relevant plan showing the drilling is included
tabulations of intercepts should be included for any within this 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 * Accuracy and quality of surveys used to locate drill * All relevant results available have been previously
holes (collar and down-hole surveys), trenches, mine reported.
workings and other locations used in Mineral Resource
estimation.
* 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, * Geological mapping and rock chip sampling has been
exploration should be reported including (but not limited to): conducted over the project area.
data geological observations; geophysical survey results;
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 RC and DD drilling to test for further
tests for lateral extensions or depth extensions or extensions and to increase confidence.
large- scale step-out drilling).
* Economic evaluation of the defined Mineral Resources.
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
---------------------------------------------------------------- ------------------------------------------------------------
JORC Table 1 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
geological interpretation of the mineral deposit. mineralisation are well 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
* The effect, if any, of alternative interpretations on mineralisation is clearly controlled by the general
Mineral Resource estimation. geometry of the pegmatites.
* The use of geology in guiding and controlling Mineral * Zonation of lithium within the pegmatite is evident,
Resource estimation. and typically the margins are weakly mineralised.
* Xenoliths or inliers of barren schist country rock
* The factors affecting continuity both of grade and occur within the pegmatite, and these have been
geology. excluded from the estimate where large enough to
model.
------------------------------------------------------------ -----------------------------------------------------------------
Dimensions
* The extent and variability of the Mineral Resource * The Grandao main pegmatite has a drilled extent of
expressed as length (along strike or otherwise), plan 500m NS and 700m EW and a maximum vertical depth of
width, and depth below surface to the upper and lower 200m. 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, 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 Li(2) O in
the Mineral Resource estimate takes appropriate the estimate. A cut of 60ppm was applied to Ta
account of such data. values.
* The assumptions made regarding recovery of * At Grandao the parent block dimensions were 10m EW by
by-products. 20m NS by 5m vertical with sub-cells of 2.5m by 5m by
2.5m. Cell size was based on KNA and was 50% of the
average drill hole spacing.
* Estimation of deleterious elements or other non-grade
variables of economic significance (eg sulphur for
acid mine drainage characterisation). * The previous resource estimate for Grandao was
reported in August 2018.
* In the case of block model interpolation, the block
size in relation to the average sample spacing and * No assumptions have been made regarding recovery of
the search employed. by-products.
* Any assumptions behind modelling of selective mining * The grade of Fe(2) O(3) was estimated for the deposit,
units. using factored Fe data to eliminate Fe introduced in
the sample preparation stage. The with a mean grade
of Fe(2) O(3) was determined to be 0.7%.
* Any assumptions about correlation between variables.
* An orientated ellipsoid search was used to select
* Description of how the geological interpretation was data and was based on drill hole spacing and the
used to control the resource estimates. geometry of the pegmatite dyke.
* Discussion of basis for using or not using grade * A search of 60m was used with a minimum of 10 samples
cutting or capping. and a maximum of 24 samples which resulted in 70% of
blocks being estimated (79% of Meas and Ind). The
remaining blocks were estimated with search radii of
* The process of validation, the checking process used, 120m and 240m.
the comparison of model data to drill hole data, and
use of reconciliation data if available.
* Selective mining units were not modelled in the
Mineral Resource model. The block size used in the
model was based on drill sample spacing and deposit
geometry.
* 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 both deposits and
parameters applied. in particular the flat lying, shallow geometry of the
Grandao deposit 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
part of the process of determining reasonable 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 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 were carried out on 3,370
for the assumptions. If determined, the method used, core samples. Bulk density values applied to the
whether wet or dry, the frequency of the measurements estimates were 2.5t/m(3) for transitional lithologies
, ,
the nature, size and representativeness of the 2.65t/m(3) for unoxidised pegmatite and 2.67t/m(3)
samples. for unoxidised schist.
* 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 (ie relative confidence in
tonnage/grade estimations, reliability of input data, * The portion of the deposit defined by 40m by 20m to
confidence in continuity of geology and metal values, 40m by 40m drilling and showing excellent continuity
quality, quantity and distribution of the data). of geology and Li(2) O grade has been reported as
Measured Mineral Resource.
* Whether the result appropriately reflects the
Competent Person's view of the deposit. * The portion of the deposit defined by 40m by 40m to
80m by 80m drilling has been reported as Indicated
Mineral Resource.
* The remainder of the Mineral Resource was classified
as Inferred due the sparse drilling. Inferred Mineral
Resource was extrapolated up to 120m past drill hole
intersections.
* 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.
------------------------------------------------------------ -----------------------------------------------------------------
APPIX 2 - JORC 2012 Table 1 -NOA
JORC Table 1 Section 1 Sampling Techniques and Data
Criteria JORC Code Explanation Commentary
Sampling
techniques * Nature and quality of sampling (eg cut channels, * The majority of holes were reverse circulation,
random chips, or specific specialised industry sampled at 1m intervals. RC samples were collected in
standard measurement tools appropriate to the large plastic bags from an onboard rig splitter and a
minerals under investigation, such as down hole gamma 4-6kg representative sample taken for analysis.
sondes, or handheld XRF instruments, etc). These
examples should not be taken as limiting the broad
meaning of sampling. * A small number of diamond holes were also completed.
Core was HQ size, sampled at 1m intervals in the
pegmatite, with boundaries sampled to geological
* Include reference to measures taken to ensure sample boundaries. Half core samples were collected for
representivity and the appropriate calibration of any analysis.
measurement tools or systems used.
* Drilling was on a nominal 40m by 40m spacing.
* Aspects of the determination of mineralisation that
are Material to the Public Report. In cases where
'industry standard' work has been done this would be * Collar surveys are carried using differential GPS
relatively simple (eg 'reverse circulation drilling with an accuracy to within 0.2m.
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 * A down hole survey for each hole was completed using
as where there is coarse gold that has inherent gyro equipment.
sampling problems. Unusual commodities or
mineralisation types (eg submarine nodules) may
warrant disclosure of detailed information. * The lithium mineralisation is predominantly in the
form of Spodumene-bearing pegmatites, the pegmatites
are unzoned and vary in thickness from 10m-20m.
------------------------------------------------------------ -----------------------------------------------------------------
Drilling -- RC drilling used a 120mm bit diameter.
techniques * Drill type (eg core, reverse circulation, open-hole * Core drilling was carried out using an HQ triple tube
hammer, rotary air blast, auger, Bangka, sonic, etc) core barrel.
and details (eg 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
recovery * Method of recording and assessing core and chip * RC drilling sample weights were monitored to ensure
sample recoveries and results assessed. 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
* Measures taken to maximise sample recovery and ensure laboratories were in the range of 4-6kg.
representative nature of the samples.
* Core recovery was measured and was found to be
* Whether a relationship exists between sample recovery generally excellent.
and grade and whether sample bias may have occurred
due to preferential loss/gain of fine/coarse
material. * No obvious relationships between sample recovery and
grade.
------------------------------------------------------------ -----------------------------------------------------------------
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. Core was logged in detail in a logging
support appropriate Mineral Resource estimation, yard.
mining studies and metallurgical studies.
* Each 1m sample interval was carefully homogenised and
* Whether logging is qualitative or quantitative in assessed for lithology, colour, grainsize, structure
nature. Core (or costean, channel, etc) photography. and mineralisation.
* The total length and percentage of the relevant * A representative chip sample produced from RC
intersections logged. drilling was washed and taken for each 1m sample and
stored in a chip tray which was photographed.
* Core was photographed.
------------------------------------------------------------ -----------------------------------------------------------------
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * 1m RC samples were split by the riffle 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
appropriateness of the sample preparation technique.
* Core was cut in half using a diamond saw with 1m half
core samples submitted for analysis.
* Quality control procedures adopted for all
sub-sampling stages to maximise representivity of
samples. * The sampling was conducted using industry standard
techniques and were considered appropriate.
* Measures taken to ensure that the sampling is
representative of the in situ material collected, * Field duplicates were used to test repeatability of
including for instance results for field the sub-sampling and were found to be satisfactory.
duplicate/second-half sampling.
* Every effort was made to ensure that the samples were
* Whether sample sizes are appropriate to the grain representative and not biased in any way.
size of the material being sampled.
------------------------------------------------------------ -----------------------------------------------------------------
Quality of
assay data * The nature, quality and appropriateness of the * Samples were received, sorted, labelled and dried.
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%
* For geophysical tools, spectrometers, handheld XRF passing 75 microns and 5g was split of for assaying.
instruments, etc, the parameters used in determining
the analysis including instrument make and model,
reading times, calibrations factors applied and their * The samples were analysed using ALS Laboratories
derivation, etc. ME-MS89L Super Trace method which combines a sodium
peroxide fusion with ICP-MS instrumentation utilising
collision/reaction cell technologies to provide the
* Nature of quality control procedures adopted (eg lowest detection limits available.
standards, blanks, duplicates, external laboratory
checks) and whether acceptable levels of accuracy (ie
lack of bias) and precision have been established. * 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
ICP-MS 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.
* Standards/blanks and duplicates were inserted on a
1:20 ratio for both to samples taken.
* Duplicate sample regime is used to monitor sampling
methodology and homogeneity.
* 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 sample run is assayed with two
blanks, two certified standards and one duplicate
sample and results are evaluated accordingly.
* A QA/QC review of all information indicated that all
assays were satisfactory.
------------------------------------------------------------ -----------------------------------------------------------------
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. * Savannah's experienced project geologists supervised
all processes.
* Documentation of primary data, data entry procedures,
data verification, data storage (physical and * All field data is entered into a custom log sheet and
electronic) protocols. then into excel spreadsheets (supported by look-up
tables) at site and subsequently validated as it is
imported into the centralised Access database.
* Discuss any adjustment to assay data.
* Hard copies of logs, survey and sampling data are
stored in the local office and electronic data is
stored on the main server.
* Results were reported as Li (ppm) and were converted
to a percentage by dividing by 10,000 and then to
Li(2) O% by multiplying by 2.153.
------------------------------------------------------------ -----------------------------------------------------------------
Location of
data points * Accuracy and quality of surveys used to locate drill * The coordinate of each drill hole was taken at the
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 40m by 40m spacing.
distribution
* Whether the data spacing and distribution is * Drill data is at sufficient spacing to define
sufficient to establish the degree of geological and Indicated and Inferred Mineral Resource.
grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and
classifications applied. * Compositing to 1m has been applied prior to resource
estimation.
* Whether sample compositing has been applied.
------------------------------------------------------------ -----------------------------------------------------------------
Orientation
of data in * Whether the orientation of sampling achieves unbiased * At NOA, drilling was generally angled to the SW and
relation to sampling of possible structures and the extent to intersected the moderately dipping deposit at close
geological which this is known, considering the deposit type. to orthogonal to the known dip of the main pegmatite.
structure
* If the relationship between the drilling orientation * Intersections were close to true width for the NOA
and the orientation of key mineralised structures is pegmatite.
considered to have introduced a sampling bias, this
should be assessed and reported if material.
* No orientation-based sampling bias has been
identified in the data.
------------------------------------------------------------ -----------------------------------------------------------------
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
reviews * The results of any audits or reviews of sampling * Internal company auditing and a review by PayneGeo
techniques and data. during the April 2018 site visit found that all data
collection and QA/QC procedures were conducted to
industry standards.
------------------------------------------------------------ -----------------------------------------------------------------
JORC Table 1 Section 2 Reporting of Exploration Results - NOA
Criteria JORC Code explanation Commentary
Mineral
tenement and * Type, reference name/number, location and ownership * All work was completed inside the Mina do Barroso
land tenure including agreements or material issues with third project C-100.
status parties such as joint ventures, partnerships,
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.
---------------------------------------------------------------- ---------------------------------------------------------------
Exploration
done by other * Acknowledgment and appraisal of exploration by other * Limited exploration work has been carried out by
parties parties. previous operators.
* No historic information has been included in the
Mineral Resource estimates.
---------------------------------------------------------------- ---------------------------------------------------------------
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
5m-20m.
---------------------------------------------------------------- ---------------------------------------------------------------
Drill hole
information * A summary of all information material to the * Grid used WSG84.
under-standing 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.
* easting and northing of the drill hole collar * Drill hole intersections used in the resource have
been previously reported.
* elevation or RL (Reduced Level - elevation above sea
level in metres) of the drill hole collar
* dip and azimuth of the hole
* down hole length and interception depth
* 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 * Length weighted average grades have been reported.
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. * No high-grade cuts have been applied to reported
grades for lithium. A high grade cut of 100ppm was
applied to the tantalum data.
* Where aggregate intercepts incorporate short lengths
of high grade results and longer lengths of low grade
results, the procedure used for such aggregation * Metal equivalent values are not being reported.
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 * The majority of holes have been drilled at angles to
mineralisation reporting of Exploration Results. intersect the mineralisation approximately
widths and perpendicular to the orientation of the mineralised
intercept trend.
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 * A relevant plan showing the drilling is included
tabulations of intercepts should be included for any within this 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 * Accuracy and quality of surveys used to locate drill * All relevant results available have been previously
holes (collar and down-hole surveys), trenches, mine reported.
workings and other locations used in Mineral Resource
estimation.
* 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, * Geological mapping and rock chip sampling has been
exploration should be reported including (but not limited to): conducted over the project area.
data geological observations; geophysical survey results;
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 RC and DD drilling to test for further
tests for lateral extensions or depth extensions or extensions and to increase confidence.
large- scale step-out drilling).
* Economic evaluation of the defined Mineral Resources.
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
---------------------------------------------------------------- ---------------------------------------------------------------
JORC Table 1 Section 3 Estimation and Reporting of Mineral Resources - NOA
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 NOA mineralisation
geological interpretation of the mineral deposit. are 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.
* The factors affecting continuity both of grade and
geology.
------------------------------------------------------------ -----------------------------------------------------------------
Dimensions
* The extent and variability of the Mineral Resource * The pegmatite at Noa has a drilled extent of 420m NS
expressed as length (along strike or otherwise), plan and a maximum vertical depth of 80m. The thickness of
width, and depth below surface to the upper and lower the mineralisation ranges from 10m to 20m.
limits of the Mineral Resource.
------------------------------------------------------------ -----------------------------------------------------------------
Estimation and
modelling * The nature and appropriateness of the estimation * Inverse distance squared interpolation was used to
techniques technique(s) applied and key assumptions, including estimate block grades within the resource.
treatment of extreme grade values, domaining,
interpolation parameters and maximum distance of
extrapolation from data points. If a computer * Surpac software was used for the estimation.
assisted estimation method was chosen include a
description of computer software and parameters used.
* Samples were composited to 1m intervals to match the
sample lengths. Due to the extremely low CV of the
* The availability of check estimates, previous data no high grade cuts were applied to Li(2) O in
estimates and/or mine production records and whether the estimate. A cut of 100ppm was applied to Ta
the Mineral Resource estimate takes appropriate values.
account of such data.
* At NOA the parent block dimensions were 20m EW by 5m
* The assumptions made regarding recovery of NS by 5m vertical with sub-cells of 5m by 1.25m by
by-products. 1.25m.
* Estimation of deleterious elements or other non-grade * The previous resource estimate for NOA was reported
variables of economic significance (eg sulphur for in April 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,
using factored Fe data to eliminate Fe introduced in
* Any assumptions behind modelling of selective mining the sample preparation stage. The mean grade of Fe(2)
units. O(3) was determined to be 0.9% at NOA.
* Any assumptions about correlation between variables. * An orientated ellipsoid search was used to select
data and was based on drill hole spacing and the
geometry of the pegmatite dyke.
* Description of how the geological interpretation was
used to control the resource estimates.
* A search of 50m was used with a minimum of 10 samples
and a maximum of 24 samples which resulted in 82% of
* Discussion of basis for using or not using grade blocks being estimated. The remaining blocks were
cutting or capping. estimated with search radii of 100m.
* The process of validation, the checking process used, * Selective mining units were not modelled in the
the comparison of model data to drill hole data, and Mineral Resource model. The block size used in the
use of reconciliation data if available. model was based on drill sample spacing and deposit
geometry.
* The deposit mineralisation was constrained by
wireframes prepared using a 0.35% Li(2) O grade
envelope.
* For validation, quantitative comparison of block
grades to assay grades was carried out for each
estimated body.
* 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 both deposit
parameters applied. 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
part of the process of determining reasonable Grandao deposit. 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 underway and
there is no reason to consider that the NOA
mineralisation will behave any differently to the
Grandao deposit.
------------------------------------------------------------ -----------------------------------------------------------------
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.
------------------------------------------------------------ -----------------------------------------------------------------
JORC Table 1 Section 1 Sampling Techniques and Data - Pinheiro
Criteria JORC Code Explanation Commentary
Sampling
techniques * Nature and quality of sampling (eg cut channels, * The majority of holes were reverse circulation,
random chips, or specific specialised industry sampled at 1m intervals. RC samples were collected in
standard measurement tools appropriate to the large plastic bags from an onboard rig splitter and a
minerals under investigation, such as down hole gamma 4-6kg representative sample taken for analysis.
sondes, or handheld XRF instruments, etc). These
examples should not be taken as limiting the broad
meaning of sampling. * A small number of diamond holes were also completed.
Core was HQ size, sampled at 1m intervals in the
pegmatite, with boundaries sampled to geological
* Include reference to measures taken to ensure sample boundaries. Half core samples were collected for
representivity and the appropriate calibration of any analysis.
measurement tools or systems used.
* Drilling was irregular and up to 130m spacings at
* Aspects of the determination of mineralisation that Pinheiro.
are Material to the Public Report. In cases where
'industry standard' work has been done this would be
relatively simple (eg 'reverse circulation drilling * Collar surveys are carried using differential GPS
was used to obtain 1 m samples from which 3 kg was with an accuracy to within 0.2m.
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 * A down hole survey for each hole was completed using
sampling problems. Unusual commodities or gyro equipment.
mineralisation types (eg submarine nodules) may
warrant disclosure of detailed information.
* The lithium mineralisation is predominantly in the
form of Spodumene-bearing pegmatites, the pegmatites
are unzoned and vary in thickness from 10m-20m.
------------------------------------------------------------ -----------------------------------------------------------------
Drilling -- RC drilling used a 120mm bit diameter.
techniques * Drill type (eg core, reverse circulation, open-hole * Core drilling was carried out using an HQ triple tube
hammer, rotary air blast, auger, Bangka, sonic, etc) core barrel.
and details (eg 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
recovery * Method of recording and assessing core and chip * RC drilling sample weights were monitored to ensure
sample recoveries and results assessed. 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
* Measures taken to maximise sample recovery and ensure laboratories were in the range of 4-6kg.
representative nature of the samples.
* Core recovery was measured and was found to be
* Whether a relationship exists between sample recovery generally excellent.
and grade and whether sample bias may have occurred
due to preferential loss/gain of fine/coarse
material. * No obvious relationships between sample recovery and
grade.
------------------------------------------------------------ -----------------------------------------------------------------
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. Core was logged in detail in a logging
support appropriate Mineral Resource estimation, yard.
mining studies and metallurgical studies.
* Each 1m sample interval was carefully homogenised and
* Whether logging is qualitative or quantitative in assessed for lithology, colour, grainsize, structure
nature. Core (or costean, channel, etc) photography. and mineralisation.
* The total length and percentage of the relevant * A representative chip sample produced from RC
intersections logged. drilling was washed and taken for each 1m sample and
stored in a chip tray which was photographed.
* Core was photographed.
------------------------------------------------------------ -----------------------------------------------------------------
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * 1m RC samples were split by the riffle 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
appropriateness of the sample preparation technique.
* Core was cut in half using a diamond saw with 1m half
core samples submitted for analysis.
* Quality control procedures adopted for all
sub-sampling stages to maximise representivity of
samples. * The sampling was conducted using industry standard
techniques and were considered appropriate.
* Measures taken to ensure that the sampling is
representative of the in situ material collected, * Field duplicates were used to test repeatability of
including for instance results for field the sub-sampling and were found to be satisfactory.
duplicate/second-half sampling.
* Every effort was made to ensure that the samples were
* Whether sample sizes are appropriate to the grain representative and not biased in any way.
size of the material being sampled.
------------------------------------------------------------ -----------------------------------------------------------------
Quality of
assay data * The nature, quality and appropriateness of the * Samples were received, sorted, labelled and dried.
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%
* For geophysical tools, spectrometers, handheld XRF passing 75 microns and 5g was split of for assaying.
instruments, etc, the parameters used in determining
the analysis including instrument make and model,
reading times, calibrations factors applied and their * The samples were analysed using ALS Laboratories
derivation, etc. ME-MS89L Super Trace method which combines a sodium
peroxide fusion with ICP-MS instrumentation utilising
collision/reaction cell technologies to provide the
* Nature of quality control procedures adopted (eg lowest detection limits available.
standards, blanks, duplicates, external laboratory
checks) and whether acceptable levels of accuracy (ie
lack of bias) and precision have been established. * 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
ICP-MS 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.
* Standards/blanks and duplicates were inserted on a
1:20 ratio for both to samples taken.
* Duplicate sample regime is used to monitor sampling
methodology and homogeneity.
* 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 sample run is assayed with two
blanks, two certified standards and one duplicate
sample and results are evaluated accordingly.
* A QA/QC review of all information indicated that all
assays were satisfactory.
------------------------------------------------------------ -----------------------------------------------------------------
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,
data verification, data storage (physical and * Savannah's experienced project geologists supervised
electronic) protocols. all processes.
* Discuss any adjustment to assay data. * 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.
* Results were reported as Li (ppm) and were converted
to a percentage by dividing by 10,000 and then to
Li(2) O% by multiplying by 2.153.
------------------------------------------------------------ -----------------------------------------------------------------
Location of
data points * Accuracy and quality of surveys used to locate drill * The coordinate of each drill hole was taken at the
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 irregular and up to 130m spacings at
distribution Pinheiro.
* Whether the data spacing and distribution is
sufficient to establish the degree of geological and * Drill data is at sufficient spacing to define
grade continuity appropriate for the Mineral Resource Inferred Mineral Resource.
and Ore Reserve estimation procedure(s) and
classifications applied.
* Compositing to 1m has been applied prior to resource
estimation.
* Whether sample compositing has been applied.
------------------------------------------------------------ -----------------------------------------------------------------
Orientation
of data in * Whether the orientation of sampling achieves unbiased * At Pinheiro, holes have been drilled in various
relation to sampling of possible structures and the extent to directions as the geometry of the deposit has been
geological which this is known, considering the deposit type. refined. A number of holes have been drilled down-dip
structure but later holes have intersected at a more optimal
angle.
* If the relationship between the drilling orientation
and the orientation of key mineralised structures is
considered to have introduced a sampling bias, this * No orientation-based sampling bias has been
should be assessed and reported if material. identified in the data.
------------------------------------------------------------ -----------------------------------------------------------------
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
reviews * The results of any audits or reviews of sampling * Internal company auditing and a review by PayneGeo
techniques and data. during the April 2018 site visit found that all data
collection and QA/QC procedures were conducted to
industry standards.
------------------------------------------------------------ -----------------------------------------------------------------
JORC Table 1 Section 2 Reporting of Exploration Results - Pinheiro
Criteria JORC Code Explanation Commentary
Mineral
tenement and * Type, reference name/number, location and ownership * All work was completed inside the Mina do Barroso
land tenure including agreements or material issues with third project C-100.
status parties such as joint ventures, partnerships,
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.
---------------------------------------------------------------- ------------------------------------------------------------
Exploration
done by other * Acknowledgment and appraisal of exploration by other * Limited exploration work has been carried out by
parties parties. previous operators.
* No historic information has been included in the
Mineral Resource estimates.
---------------------------------------------------------------- ------------------------------------------------------------
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
15m-109m.
---------------------------------------------------------------- ------------------------------------------------------------
Drill hole
information * A summary of all information material to the * Grid used WSG84.
under-standing 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.
* easting and northing of the drill hole collar * Drill hole intersections used in the resource have
been previously reported.
* elevation or RL (Reduced Level - elevation above sea
level in metres) of the drill hole collar
* dip and azimuth of the hole
* down hole length and interception depth
* 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 * Length weighted average grades have been reported.
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. * No high-grade cuts have been applied to reported
grades for lithium. A high grade cut of 60ppm was
applied to the tantalum data.
* Where aggregate intercepts incorporate short lengths
of high grade results and longer lengths of low grade
results, the procedure used for such aggregation * Metal equivalent values are not being reported.
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 * The majority of holes have been drilled at angles to
mineralisation reporting of Exploration Results. intersect the mineralisation approximately
widths and perpendicular to the orientation of the mineralised
intercept trend.
lengths * If the geometry of the mineralisation with respect to
the drill hole angle is known, its nature should be
reported. * The geometry of the pegmatite at Pinheiro was
difficult to define initially, and some holes have
drilled at a close angle to the mineralisation in
* If it is not known and only the down hole lengths are that part of the deposit.
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 * A relevant plan showing the drilling is included
tabulations of intercepts should be included for any within this 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 * Accuracy and quality of surveys used to locate drill * All relevant results available have been previously
holes (collar and down-hole surveys), trenches, mine reported.
workings and other locations used in Mineral Resource
estimation.
* 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, * Geological mapping and rock chip sampling has been
exploration should be reported including (but not limited to): conducted over the project area.
data geological observations; geophysical survey results;
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 RC and DD drilling to test for further
tests for lateral extensions or depth extensions or extensions and to increase confidence.
large- scale step-out drilling).
* Economic evaluation of the defined Mineral Resources.
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
---------------------------------------------------------------- ------------------------------------------------------------
JORC Table 1 Section 3 Estimation and Reporting of Mineral Resources - Pinheiro
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 Pinheiro
geological interpretation of the mineral deposit. mineralisation are 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 >0.35% 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.
* The factors affecting continuity both of grade and
geology.
------------------------------------------------------------ -----------------------------------------------------------------
Dimensions
* The extent and variability of the Mineral Resource * The pegmatite at Pinheiro has a drilled extent of
expressed as length (along strike or otherwise), plan 250m NS and a maximum vertical depth of 160m. The
width, and depth below surface to the upper and lower thickness of the mineralisation ranges from 10m to
limits of the Mineral Resource. 20m.
------------------------------------------------------------ -----------------------------------------------------------------
Estimation and
modelling * The nature and appropriateness of the estimation * Inverse distance squared interpolation was used to
techniques technique(s) applied and key assumptions, including estimate block grades within the resource.
treatment of extreme grade values, domaining,
interpolation parameters and maximum distance of
extrapolation from data points. If a computer * Surpac software was used for the estimation.
assisted estimation method was chosen include a
description of computer software and parameters used.
* Samples were composited to 1m intervals to match the
sample lengths. Due to the extremely low CV of the
* The availability of check estimates, previous data no high grade cuts were applied to Li(2) O in
estimates and/or mine production records and whether the estimate. A cut of 60ppm was applied to Ta
the Mineral Resource estimate takes appropriate values.
account of such data.
* At Pinheiro the parent block dimensions were 5m EW by
* The assumptions made regarding recovery of 20m NS by 5m vertical with sub-cells of 1.25m by 5m
by-products. by 1.25m.
* Estimation of deleterious elements or other non-grade * There are no previous resource estimate for Pinheiro.
variables of economic significance (eg sulphur for
acid mine drainage characterisation).
* No assumptions have been made regarding recovery of
by-products.
* In the case of block model interpolation, the block
size in relation to the average sample spacing and
the search employed. * The grade of Fe(2) O(3) was estimated for the deposit,
using factored Fe data to eliminate Fe introduced in
the sample preparation stage. The mean grade of Fe(2)
* Any assumptions behind modelling of selective mining O(3) was determined to be 0.9% at Pinheiro.
units.
* An orientated ellipsoid search was used to select
* Any assumptions about correlation between variables. data and was based on drill hole spacing and the
geometry of the pegmatite dyke.
* Description of how the geological interpretation was
used to control the resource estimates. * A search of 50m was used with a minimum of 10 samples
and a maximum of 24 samples which resulted in 66% of
blocks being estimated. The remaining blocks were
* Discussion of basis for using or not using grade estimated with search radii of 100m.
cutting or capping.
* Selective mining units were not modelled in the
* The process of validation, the checking process used, Mineral Resource model. The block size used in the
the comparison of model data to drill hole data, and model was based on drill sample spacing and deposit
use of reconciliation data if available. geometry.
* The deposit mineralisation was constrained by
wireframes prepared using a 0.35% Li(2) O grade
envelope.
* For validation, quantitative comparison of block
grades to assay grades was carried out for each
estimated body.
* 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 both deposit
parameters applied. 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
part of the process of determining reasonable Grandao deposit. 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 underway and
there is no reason to consider that the Pinheiro
mineralisation will behave any differently to the
Grandao deposit.
------------------------------------------------------------ -----------------------------------------------------------------
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.
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END
DRLUGUCGCUPBPUR
(END) Dow Jones Newswires
April 09, 2019 02:00 ET (06:00 GMT)
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