REG - Savannah Resources - More progress made at the Barroso Lithium Project
08/04/2025 07:00
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RNS Number : 0120E Savannah Resources PLC 08 April 2025
8 April
2025
Savannah Resources Plc
(AIM: SAV) ('Savannah', or the 'Company')
Further progress made at the Barroso Lithium Project
Savannah Resources plc, the developer of the Barroso Lithium Project (the
'Project') in Portugal, one of the European Commission's 'Strategic Projects'
under the Critical Raw Materials Act and Europe's largest spodumene lithium
deposit, is pleased to provide an update on a number of ongoing Project
workstreams. The Company continues to make good progress towards completion of
the Definitive Feasibility Study ('DFS') and licencing phase in the Project's
overall development into a key asset in Europe's lithium battery value chain.
Highlights (Mid-January to date):
· Strategic Project status: The Project was classified as a 'Strategic
Project' by the European Commission under the Critical Raw Materials Act and
hence will benefit "from coordinated support by the Commission, Member States
and financial institutions to become operational".
· Definitive Feasibility Study:
o Fieldwork: Good progress continues to be made with the phase 2 drilling
programme, with up to 6 drill rigs working in parallel across multiple
orebodies. As at 2 April, 71 holes have been drilled for 6,916m in the planned
117/c.13,000m programme.
o Assays were received from the first 20 holes (see RNS 27 March 2025) with
a number of notable intercepts reported, including 26m @ 1.40% Li(2)O from 70m
in hole 25PNRRC027 at Pinheiro and 23.1m @ 1.28% Li(2)O from 99m in hole
25RESRC054 at Reservatório.
o Work on all other fronts is proceeding as scheduled, including
considerable progress in 3D modelling, metallurgical testwork, surface and
ground water modelling, processing plant equipment specification and vendor
engagement, and road network designs.
· JORC Resources & Exploration upside:
o Ahead of new JORC Resource estimates later in the year for Grandão,
Reservatório and Pinheiro, Savannah reconfirms the overall JORC (2012)
compliant Resource, including the upgraded NOA resource announced in May 2024,
at 28Mt at 1.05% Li(2)O, which includes 18.7Mt at 1.03% Li(2)O in the Measured
and Indicated categories.
o The current drilling programme continues to demonstrate the existing
orebodies remain open along strike and at depth, while a separate exploration
programme (see 22 January 2025 RNS) highlighted significant lithium
mineralisation located at additional locations on the Project's two Mining
Leases.
· Environmental licencing: Commencement of preparation of the "Plano De
Lavra" (Mining Plan) and good progress made with continuing RECAPE works and
required field studies.
· Infrastructure:
o The Environmental Impact Assessment and accompanying Preliminary Design
report for the 16km bypass road will be submitted to the Portuguese
Environmental Agency in the coming days.
o Preliminary design for the internal haul roads between the processing
plant and mining areas is nearing completion.
o Preparations are being made for the geotechnical fieldwork required on the
northern access road following completion of its design.
· Land: Savannah has maintained its dual approach to land acquisition
and access, with a further 3 properties purchased under its land acquisition
programme while also continuing with the process to secure compulsory purchase
rights over land it does not own.
· Stakeholder engagement: The team continued to engage regularly with
local stakeholders through supporting, hosting, and sponsoring local events
and providing accurate information on key aspects of the Project, particularly
around the topics of land and access.
· Recruitment: The team in Portugal was further expanded, including
with more recruits from the local community, across geology, community
relations and corporate.
· Next Steps: Over the remainder of H1 2025, Savannah will continue to
push on with all its workstreams as it looks to finalise the DFS and make its
submission for the final, confirmatory phase of the Environmental Licence by
the end of the year.
Savannah's Chief Executive Officer, Emanuel Proença said, "The team has
continued to make good progress with the Project's many workstreams over
recent months, as we get ever closer to our long-term objective of lithium
production. We are now over halfway through the current drilling programme and
have passed a number of other milestones during this period. With much work
still to do, the validation given to the Project by the European Commission
through its classification as a 'Strategic Project' provides great assurance
that our efforts, and the significance of the Project, are appreciated at the
highest levels.
"With that backing, alongside the ongoing support of our shareholders and
growing support by the Project's many stakeholders, we look forward to
continuing with the Project's development and providing regular updates on our
progress."
Further Information
Strategic Project classification under European Critical Raw Materials Act
In late March 2025 the European Commission announced the selection of the
Barroso Lithium Project as one of the first 47 projects considered 'Strategic'
for Europe under the Critical Raw Materials Act ('CRMA').
According to the European Commission, critical raw material projects which are
classified as Strategic "will be able to benefit from coordinated support by
the Commission, Member States and financial institutions to become
operational, notably regarding access to finance and support to connect with
relevant off-takers. They will also benefit from streamlined permitting
provisions, to ensure predictability for project promoters while safeguarding
environmental, social and governance standards. In line with the CRMA, the
permit-granting process will not exceed 27 months for extraction projects and
15 months for other projects".
Definitive Feasibility Study
The DFS is the detailed analysis of the technical, commercial and economic
feasibility of the Project. Recent progress on DFS-related matters includes:
· Drilling Programme: The second phase of drilling required to complete
updates on the Project's JORC compliant Resource as well as gathering
outstanding geotechnical and hydrogeological data continues to progress well.
With a total of 6 drill rigs (3 diamond core and 3 reverse circulation)
working across the Pinheiro, Reservatório and Grandão deposits, daily
drilling meterage has increased and, as of 2 April, a total of 71 holes have
been drilled for 6,916m. Hence, Savannah is well passed the halfway point in
its planned 117 hole/13,000m programme and has now also passed the milestone
of 40,000m of drilling on the Project to date.
Figure 1. Barroso Lithium Project summary map showing deposits and drill hole
locations.
· Significant intercepts and assays to date: Savannah reported late
last month (see 27 March 2025 RNS for full details) that it had received assay
results from the first 20 holes drilled (7 at Pinheiro, 10 at Reservatório
and 3 at Grandão) including results from 14 complete holes and 6 pre-collars
which still require diamond drill tails to fully test the pegmatite target.
Highlights of those initial results included:
o At Pinheiro, 26m @ 1.40% Li(2)O from 70m in hole 25PNRRC027 and 21m @
1.26% Li(2)O from 95m in hole 25PNRRC026, with the previous trend for
pegmatite widths being thicker and have higher lithium grades than originally
modelled, continuing from the Phase 1 programme last year. The initial results
also confirmed mineralisation continues along strike to the north and south in
both the Western and Eastern Pegmatites, further highlighting the additional
resource potential.
Figure 2. Recent Reverse Circulation drilling at Pinheiro
o At Reservatório significant mineralised intersections included, 23.1m @
1.28% Li(2)O from 99m in hole 25RESRC054 and 21m @ 1.10% Li(2)O from 68m in
hole 25RESRC053. Importantly, the RC drilling has shown good continuity of
contained lithium grades within the depth extension of the pegmatite, which
builds further confidence in the existing geological model and current JORC
(2012) compliant Resource estimate for Reservatório of 4.2Mt at 0.94% Li(2)O.
o At Grandão, initial results included 9m @ 1.38% Li(2)O from 2m in hole
25GRARC136, confirming that mineralisation continues in the shallow extensions
of the deposit.
· Future assays results: Samples from the remaining 51 holes are being
processed at the laboratory and Savannah expects to be receiving the next set
of results during the current quarter. Once reviewed and evaluated Savannah
will announce relevant results in due course.
· Site layout: Progress continues to be made on the design of the
internal and project access roads (see the Infrastructure section below for
further details about roads). Savannah expects the roads footprint to be
finalised within weeks., This will complete the required site layout which is
also an important element in the project's RECAPE.
· 3D Model: The 3D model for the Project is now complete (see Figure
3).
· Mining: Life Of Mine scheduling work continued with the objective to
obtain more detailed data on mining, drilling and explosive volumes, as well
as ex-pit haulage profiles and cycles. This data will then be used as a basis
to start preliminary market pricing exploration.
· Processing Plant: The major equipment list has been finalised and the
CAPEX estimation exercise is continuing.
· Metallurgical testwork: Further x-ray diffraction and flotation
testing are underway, with the current phase of the metallurgical testwork
programme expected to be completed in April. Additionally, further options are
being considered to treat residual water from the processing plant to increase
the water recycling capacity.
· Procurement: Budget quotation requests are being prepared for
electrical equipment, steel/pipe fabrication and installation contracts.
Engagement with potential vendors is planned to start later this month.
· Tailings and Water Storage: The preliminary designs have been
completed for the Tailings Storage Facility, water reservoirs and
environmental control dams.
· Hydrogeology: The site investigation work including drilling of water
bores and pump testing has been completed. Hydrogeological numerical modelling
is expected to be finished later this month.
· Decarbonisation: Savannah's decarbonisation strategy continues to be
focused on the processing plant and mobile mining fleet, which are the two
largest sources of CO(2) emissions. The Project's processing circuit will be
fully powered from Portugal's public grid, which has a significant percentage
of power sourced from renewable generation (e.g. 80.5% during Jan-Feb 2025,
source: APREN), guaranteeing that the Barroso Lithium Project will already
avoid a considerable amount of greenhouse gas emissions from the very start of
operations. Additionally, Savannah has engaged with leading OEMs to conduct
preliminary studies to assess the feasibility of incorporating fully
electrical mobile equipment units into the mining fleet once the project
reaches nameplate operational metrics.
· Ceramics by-products: The Company has executed an independent product
characterisation and market study with a reputable Portuguese consultant,
which will provide valuable technical and economic information to be
incorporated into the Project's DFS. In addition, the Company continues its
engagement with entities in the ceramics sector to explore business or
partnership opportunities.
Figure 3. Barroso Lithium Project 3D Model
Current JORC Resource estimate & exploration upside
Following the updated estimate for the NOA orebody made last year by Ashmore
Advisory Pty Ltd, an external and independent mining consultancy (see RNS 2
May 2024) and ahead of new JORC resource estimates for Grandão, Reservatório
and Pinheiro which are expected later in the year, the Company confirms the
current overall JORC Resource (2012) compliant estimate for the Project. The
total JORC Resource is 28Mt at 1.05% Li(2)O (See Table 1) and the Exploration
Target is maintained at 11.0-19.0Mt at 1.0-1.2% Li(2)O (See Table 2). See
Appendix 1 for further details.
Table 1. Updated Mineral Resource Estimation Summary (May 2024)
Deposit Resource Tonnes Li(2)O Fe(2)O(3) Li(2)O
Class
Mt % % Tonnes
All Deposits Measured 6.6 1.1 0.7 71,600
Indicated 12.1 1.0 0.7 121,900
Inferred 9.3 1.1 0.7 99,600
Total 28.0 1.05 0.7 293,100
*Rounding discrepancies may occur
Table 2. Exploration Target Summary (June 2023)
Deposit Tonnage Range (Mt) Li(2)O%
Lower Upper
Reservatório 5.0 7.0 1.0-1.2%
Grandão 4.0 8.0 1.0-1.2%
Aldeia 2.0 4.0 1.0-1.3%
Total Exploration Target 11.0 19.0 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.
In addition to the potential Resource expansion offered by the existing
orebodies, Savannah also reconfirmed the presence of many other mineralised
targets on the Project's two Mining Leases. As highlighted in January (RNS 22
January 2025), surface exploration identified new mineralised pegmatites at
the western end of the C-100 licence and on Aldeia Block B. Highlights from
rockchip and channel sampling included 3.01% Li(2)O from Alto dos Corticos on
the C-100 licence and 2.11% Li(2)O and 4m at 2.62% Li(2)O on Aldeia Block B.
Given Savannah's experience on the C-100 licence to date with orebodies such
as Grandão, the Company believe that the full extent of the mineralisation at
the Project is easily underestimated from outcrops alone. Hence, these
additional targets represent exciting additional exploration upside to
complement the Project's already compelling lithium development story.
Environmental Licencing
Field studies and RECAPE preparation works continued during the period. Recent
progress includes:
· Studies: Study related fieldwork and monitoring programmes has
continued across several fronts:
o Noise: Following feedback by APA's assessment committee, an additional
noise study was carried out in March. The study aimed to show, unequivocally,
that there is no noise impact on the closest populations and the results
obtained confirmed the absence of impact, as expected.
o Covas River water flow monitoring: Three flow meters were installed in the
Covas River, two upstream and one downstream, to gather data and comply with
the requirements of the project's DIA.
o Biodiversity: The final round of seasonal surveys is scheduled to take
place during the Spring, which will serve to update the data collected during
the 2024 campaign.
· Plano De Lavra (Mining Plan) Preparation of the new mining plan to
support the submission of the RECAPE is now underway.
Figure 4. Noise Monitoring Campaign as part of RECAPE studies
Figure 5. Water Flow Meter at Covas River
Infrastructure
The studies and design work for the Project's supporting infrastructure are
now well advanced, with excellent progress made on several fronts including:
· Site (Northern) access Road: Following completion of the preliminary
design work on the northern access road (11km), which will directly link the
Project to the new Boticas bypass road and ultimately the national highway
network, consultation with the relevant government agencies and stakeholders
continues prior to the execution of the required geotechnical field work for
the final design. Savannah continues its effort to expedite access to the
study area in order to accelerate the commencement of fieldwork.
· Bypass Road: The Environmental Impact Assessment ('EIA') and
accompanying Preliminary Design ('PD') report for the 16km bypass road will be
submitted to Agência Portuguesa do Ambiente, ('APA'), the Portuguese
Environmental Agency in the coming days. The bypass will join to the west with
the national road R311 to subsequently link to the Project's proposed northern
access road, and to the east with the A24 motorway that provides access to the
Inner North Freeway, towards the main port facilities.
Submission of the EIA will be a major milestone for Savannah as this step
represents the culmination of over 8 months of work by the Company's Project
team and consultants, and underlines Savannah's commitment to minimising the
impact of Project-related traffic on local communities. The EIA and the PD
have been prepared by TPF - Consultores de Engenharia e Arquitetura, S.A., one
of Portugal's leading Engineering companies and experts in the Water,
Environment, Energy, Buildings and Transport sectors. The designs were
developed through extensive interaction with Infrastructures of Portugal
('IP'), the entity responsible for managing road infrastructures in Portugal,
and are based on IP's criteria of Design Standards. The new infrastructure,
which will be made up of new and improved existing sections of road will also
benefit the region and the population, by reducing the intensity of traffic on
existing roads, through better distribution of flows.
Submission will initiate the 150-business day assessment period available to
APA and the EIA will be made public by APA once it is satisfied that the
report is in conformity with its application requirements whereupon a mandated
period of public consultation (30 business days) with stakeholders will
commence. The issue of a favourable DIA will allow Savannah to proceed to the
RECAPE and Detail Design phase for the bypass.
· Internal haul roads: Preliminary design of the Project's internal
haul roads is in progress and is expected to be completed in April.
· HV Power: The DFS level design and permitting process are continuing.
Figure 6. Map showing the potential layout of Project-related road and power
infrastructure
Land
· Land acquisitions: Savannah's land acquisition is continuing with
three further private properties acquired and multiple negotiations underway,
which Savannah expects to be converted into acquisitions in the short term.
· Additional land easement: In support of the fieldwork and
geotechnical studies required for the detailed design of the Project's
infrastructure, a second land easement application has been submitted to the
Government.
· Compulsory land acquisition process: After notifying the interested
parties in December 2024, the Company submitted its application for a
'Declaração de Utilidade Publica' (Declaration of Public Utility ('DPU')) to
the relevant governmental authorities for approval during Q1 2025. This is the
mechanism that grants public utility which is necessary for compulsory
acquisitions. Once approved, the DPU will allow the Company to compulsorily
acquire the properties that it wasn't able to do so already through its
ongoing land acquisition programme.
Recruitment
The team continues to expand to meet the Company's operational needs. In
February and March, we added five new members to the field team, including
geologists and field assistants, and also added personnel to our corporate
function.
Stakeholder Engagement
Savannah is intensifying its stakeholder engagement efforts, focusing on
meaningful and transparent communication, building trust, and deepening
community integration. Key recent actions include:
· Enhancing transparency through the distribution of information
leaflets explaining the land acquisition process, easement agreements, and
compulsory acquisition procedures.
· Increasing local presence with the hiring of a new junior community
advisor- a local resident from a neighboring parish - and the recent
refurbishment of a house in Covas do Barroso to accommodate four staff members
locally, in addition to the three existing team members who are already
residents of Covas.
· Expanding social initiatives, through sponsorships of local community
activities, and the implementation of livelihood restoration efforts directed
at enabling the continuation of agricultural activities affected by the
Project.
Key milestones and expected future news flow during H1 2025:
· Strategic Project/Critical Raw Materials Act: Engagement with the
European Commission and its relevant agencies to fully leverage the
opportunities which the new project classification provides.
· DFS:
o Completion of current drilling programme with assay results and updates
released periodically during the programme.
o Completion of updates on the Project's CAPEX and OPEX estimates based on
finalisation of designs for key Project infrastructure.
o Use of data and samples from the ongoing drilling programme to complete
the remaining metallurgical testwork and detailed geotechnical work for the
pits.
o Completion of independent product characterisation and market study for
feldspar-quartz by-product
· Environmental Licencing: Finalisation of key work streams for RECAPE
submission.
· Infrastructure: Submission of bypass road EIA and DP, completion of
haul road designs, start of geotechnical fieldwork and studies required for
the detailed design of all the project infrastructure.
· Recruitment: Continuing expansion of the technical team in support of
the current field programme and the corporate team in preparation for Final
Investment Decision, Project Financing and further strategic partnerships.
· land access: Complete processes for second land easement in relation
to northern access road and compulsory purchase of land elsewhere.
· Stakeholder engagement: Ongoing relationship building through events,
community initiatives and comprehensive communications.
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) and a Qualified Person under the AIM Rules for Companies. 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 release that relates to Mineral Resources for the NOA
deposit is based on information compiled by Mr Shaun Searle who is a Member of
the Australasian Institute of Geoscientists. Mr Searle is an employee of
Ashmore Advisory Pty Ltd and independent consultant to Savannah Resources Plc.
Mr Searle has sufficient experience, which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity
which he has undertaken to qualify as a Competent Person as defined in the
2012 Edition of the 'Australasian Code for the Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Mr Searle consents to the
inclusion in this report of the matters based on this information in the form
and context in which it appears.
The Information in this report that relates to Mineral Resources and
Exploration Targets for the Grandão, Reservatório, Pinheiro and Aldeia
deposits 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.
Regulatory Information
This Announcement contains inside information for the purposes of the UK
version of the market abuse regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").
Savannah - Enabling Europe's energy transition.
**ENDS**
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For further information please visit www.savannahresources
(http://www.savannahresources) .com or contact:
Savannah Resources PLC Tel: +44 20 7117 2489
Emanuel Proença, CEO
SP Angel Corporate Finance LLP (Nominated Advisor & Broker) Tel: +44 20 3470 0470
David Hignell/ Charlie Bouverat (Corporate Finance)
Grant Barker/Abigail Wayne (Sales & Broking)
Canaccord Genuity Limited (Joint Broker) Tel: +44 20 7523 8000
James Asensio / Charlie Hammond (Corporate Broking)
Ben Knott (Sales)
Camarco (UK Financial PR) Tel: +44 20 3757 4980
Gordon Poole/ Emily Hall / Nuthara Bandara
Portugal Media Relations
Savannah Resources: Antonio Neves Costa, Communications Manager Tel: +351 962 678 912
About Savannah
Savannah Resources is a mineral resource development company and the sole
owner of the Barroso Lithium Project (the 'Project') in northern Portugal. The
Project is the largest battery grade spodumene lithium resource outlined to
date in Europe and was classified as a 'Strategic Project' by the European
Commission under the Critical Raw Materials Act in March 2025.
Through the Project, Savannah will help Portugal to play an important role in
providing a long-term, locally sourced, lithium raw material supply for
Europe's lithium battery value chain. Once in operation the Project will
produce enough lithium (contained in c.190,000tpa of spodumene concentrate)
for approximately half a million vehicle battery packs per year and hence make
a significant contribution towards the European Commission's Critical Raw
Material Act goal of a minimum 10% of European endogenous lithium production
from 2030.
Savannah is focused on the responsible development and operation of the
Barroso Lithium Project so that its impact on the environment is minimised and
the socio-economic benefits that it can bring to all its stakeholders are
maximised.
The Company is listed and regulated on the London Stock Exchange's Alternative
Investment Market (AIM) and trades under the ticker "SAV".
Appendix 1
Mineral Resource Estimate
A Mineral Resource Estimate for the NOA Lithium Deposit was prepared by
Ashmore Advisory Pty Ltd, an external and independent mining consultancy as
announced on 02 May 2024. The Deposit forms part of Savannah's Barroso
Lithium Project, located in northern Portugal. The Mineral Resource
Estimates for the deposits at the project have been classified as Measured,
Indicated and Inferred Mineral Resource in accordance with the JORC Code, 2012
Edition and are summarised in Table 3 and Appendix 1.
Table 3. May 2024 Mineral Resource Summary (0.5% Li(2)O cut-off)
Deposit Resource Tonnes Li(2)O Fe(2)O(3) Li(2)O
Classification
Mt % % Tonnes
Grandão 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
Reservatório Measured
Indicated 3.5 0.95 0.8 33,000
Inferred 0.7 0.9 0.9 6,500
Total 4.2 0.9 0.8 39,500
Pinheiro Measured
Indicated
Inferred 2.0 1.0 0.7 20,000
Total 2.0 1.0 0.7 20,000
NOA Measured
Indicated 0.6 1.0 0.8 6,300
Inferred 0.1 0.9 0.4 900
Total 0.7 1.0 0.8 6,800
Aldeia Measured
Indicated 1.6 1.3 0.5 21,300
Inferred 1.8 1.3 0.4 23,700
Total 3.5 1.3 0.4 45,000
All Deposits Measured 6.6 1.1 0.7 71,600
Indicated 12.1 1.0 0.7 121,900
Inferred 9.3 1.1 0.7 99,600
Total 28.0 1.05 0.7 293,100
*Rounding discrepancies may occur
NOA Mineral Resource Estimate
At the NOA deposit, the host pegmatite is a steep dipping, northwest trending
body which is 5-10m in true width. It has been mapped in outcrop over much of
the interpreted 440m strike length of the Mineral Resource.
The weathering profile comprises a shallow, surficial zone of weak to moderate
oxidation, particularly of the schistose country rock. The main pegmatite zone
remains open along strike and down dip (Figures 7 to 9).
The NOA Mineral Resource Estimate is based on results from 58 RC drill holes
and 7 diamond holes. All holes were completed by Savannah in 2017, 2018 and
2023.
Figure 7. NOA pegmatite and drilling (looking SW)
Figure 8. NOA Cross Section (looking West)
Figure 9. NOA Resource Model (Main Domains) Coloured by Li(2)O content
(looking SW)
Geology
At the Mina Do Barroso Project, 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. 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 intrusions. Minor
xenoliths and inliers of schist are observed on occasions.
At the NOA deposit, the host pegmatite is a steep dipping, northwest trending
body which is 5-10m in true width. It has been mapped in outcrop over much of
the interpreted 440m strike length of the Mineral Resource. The weathering
profile comprises a shallow, surficial zone of weak to moderate oxidation,
particularly of the schistose country rock.
Drilling
The deposit is defined by a total of 58 RC drill holes and 7 diamond holes.
All holes were completed by Savannah in 2017, 2018 and 2023. The holes were
drilled on an approximate hole spacing of 25m by 20m, out to 40m by 40m.
The vast majority of holes were drilled at 60(o) to the south south-west.
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
RC drilling by Savannah was carried out using a face sampling hammer (120mm).
Savannah reported that drilling conditions were good, samples were generally
dry and measured sample recoveries were good other than some recorded sample
loss near the hole collar in some holes.
Samples were collected at 1m intervals from pegmatite zones. For the 2017
drilling, composite sampling of typically 4m was conducted in the surrounding
schists. For drilling conducted since 2018, schist was only sampled for 5m
each side of the pegmatites. The 1m samples were collected through a
rig-mounted riffle splitter and were 4-6kg in weight.
Diamond drilling commenced in PQ diameter and reduced to HQ diameter when
competent rock was intersected. Core recovery was excellent. For sampling,
core was aligned then marked with a centre line. Core was cut with a saw with
half-core taken for bulk metallurgical samples. The remaining half core was
cut again to produce quarter core samples for analysis. Samples were to
geological boundaries then typically at 1m intervals.
Sample Analysis Method
The samples were analysed using ALS Laboratories ME-MS89L Super Trace method
which combines a sodium peroxide fusion with ICP-MS instrumentation utilising
collision/reaction cell technologies to provide the lowest detection limits
available.
A prepared sample (0.2g) is added to sodium peroxide flux, mixed well and then
fused in at 670°C. 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.
QAQC protocols were in place for the drilling programmes and included the use
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 a block size of 5m NS by 10m EW by 5m with sub-celling to 1.25m by 2.5m
by 1.25m.
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.
Sample data was composited into 1m intervals. The pegmatites at the deposit
were estimated using ordinary kriging ("OK") grade interpolation. A first
pass search range of 40m was used and oriented to match the dip and strike of
the mineralisation. A minimum of 6 samples and a maximum of 16 samples were
used to estimate each block. The majority of the Mineral Resource Estimate
(91%) was completed in the first pass with expanded search radii of 80m used
for the blocks not estimated in the first pass. No extreme high grades were
present in the Li2O 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 NOA and a high grade cut of 100ppm was applied
to all Ta values.
Iron contamination via abrasion of RC drilling equipment and/or sample
preparation equipment is a recognized problem when evaluating lithium
deposits. 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 Grandão deposit.
It was concluded from the Grandão 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.
Bulk density values applied to the NOA estimate were based on values used at
the Grandão deposit which were derived from a substantial number of drill
core samples, as well as some samples obtained from NOA. Values applied to
the NOA estimate were 2.5t/m(3) for oxidised pegmatite, 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. 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.
The continuity of the NOA pegmatite is well defined within the drilled portion
of the deposit. Where the NOA pegmatite is exposed, the interpretation is
supported by mapped contacts at surface and within the small mined open pit.
The portion of the NOA pegmatite defined by 20m to 40m 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 20m 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 40m.
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 SAV on representative
mineralisation at the Grandão deposit. 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.
This test work indicates that the material can be utilised in the plant feed
to generate a spodumene concentrate of >5.5% Li(2)O. To achieve this, the
composite samples were ground to a particle size of P(80) 150µm, which
demonstrated an average Li(2)O processing recovery of 75.3%.
Additional metallurgical test work is underway and there is no reason to
consider that the NOA mineralisation will behave any differently to the
Grandão deposit.
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.
APPENDIX 4 - JORC 2012 Table 1 -DFS Infill Drilling
JORC Table 1 Section 1 Sampling Techniques and Data
Criteria JORC Code Explanation Commentary
Sampling techniques · Nature and quality of sampling (e.g. cut channels, random chips, or · The majority of holes were reverse circulation, sampled at 1m
specific specialised industry standard measurement tools appropriate to the intervals. RC samples were collected in large plastic bags from an onboard rig
minerals under investigation, such as down hole gamma sondes, or handheld XRF splitter and a 4-6kg representative sample taken for analysis.
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
· Include reference to measures taken to ensure sample representivity geological boundaries. Half core samples were collected for analysis.
and the appropriate calibration of any measurement tools or systems used.
· Drilling was predominantly on a nominal 25m by 20m spacing, out
· Aspects of the determination of mineralisation that are Material to to 40m by 40m.
the Public Report. In cases where 'industry standard' work has been done this
would be relatively simple (e.g. 'reverse circulation drilling was used to · Collar surveys are carried using differential GPS with an
obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for accuracy to within 0.2m.
fire assay'). In other cases more explanation may be required, such as where
there is coarse gold that has inherent sampling problems. Unusual commodities · A down hole survey for each hole was completed using gyro
or mineralisation types (e.g. submarine nodules) may warrant disclosure of equipment.
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 techniques · Drill type (e.g. core, reverse circulation, open-hole hammer, rotary · RC drilling used a 120mm bit diameter.
air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple
or standard tube, depth of diamond tails, face-sampling bit or other type, · Core drilling was carried out using an HQ triple tube core
whether core is oriented and if so, by what method, etc). barrel.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · RC drilling sample weights were monitored to ensure samples were
results assessed. maximised. Samples were carefully loaded into a splitter and split in the same
manner ensuring that the sample split to be sent to the assay laboratories
· Measures taken to maximise sample recovery and ensure representative were in the range of 4-6kg.
nature of the samples.
· Core recovery was measured and was found to be generally
· Whether a relationship exists between sample recovery and grade and excellent.
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 and · RC holes were logged in the field at the time of sampling. Core
geotechnically logged to a level of detail to support appropriate Mineral was logged in detail in a logging yard.
Resource estimation, mining studies and metallurgical studies.
· Each 1m sample interval was carefully homogenised and assessed
· Whether logging is qualitative or quantitative in nature. Core (or for lithology, colour, grainsize, structure and mineralisation.
costean, channel, etc) photography.
· A representative chip sample produced from RC drilling was washed
· The total length and percentage of the relevant intersections logged. and taken for each 1m sample and stored in a chip tray which was photographed.
· Core was photographed.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · 1m RC samples were split by the riffle splitter on the drill rig
taken. and sampled dry.
· If non-core, whether riffled, tube sampled, rotary split, etc and · The 4m composites were collected using a spear with the spear
whether sampled wet or dry. 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, including for instance results for field · Field duplicates were used to test repeatability of the
duplicate/second-half sampling. sub-sampling and were found to be satisfactory.
· Whether sample sizes are appropriate to the grain size of the · Every effort was made to ensure that the samples were
material being sampled. representative and not biased in any way.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · Samples were received, sorted, labelled and dried.
laboratory procedures used and whether the technique is considered partial or
total. · Samples were crushed to 70% less than 2mm, riffle split off 250g,
pulverise split to better than 85% passing 75 microns and 5g was split of for
· For geophysical tools, spectrometers, handheld XRF instruments, etc, assaying.
the parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc. · The samples were analysed using ALS Laboratories ME-MS89L Super
Trace method which combines a sodium peroxide fusion with ICP-MS
· Nature of quality control procedures adopted (e.g. standards, blanks, instrumentation utilising collision/reaction cell technologies to provide the
duplicates, external laboratory checks) and whether acceptable levels of lowest detection limits available.
accuracy (i.e. 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 670°C. 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 and assaying · The verification of significant intersections by either independent · All information was internally audited by company personnel.
or alternative company personnel.
· Savannah's experienced project geologists supervised all
· The use of twinned holes. processes.
· Documentation of primary data, data entry procedures, data · All field data is entered into a custom log sheet and then into
verification, data storage (physical and electronic) protocols. 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 holes (collar · The coordinate of each drill hole was taken at the time of
and down-hole surveys), trenches, mine workings and other locations used in collecting using a handheld GPS with an accuracy of 5m. All collars were
Mineral Resource estimation. subsequently 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 distribution · Data spacing for reporting of Exploration Results. · Drilling was predominantly on a nominal 25m by 20m spacing, out
to 40m by 40m.
· Whether the data spacing and distribution is sufficient to establish
the degree of geological and grade continuity appropriate for the Mineral · Drill data is at sufficient spacing to define Indicated and
Resource and Ore Reserve estimation procedure(s) and classifications applied. Inferred Mineral Resource.
· Whether sample compositing has been applied. · Compositing to 1m has been applied prior to resource estimation.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · At NOA, drilling was generally angled to the SW and intersected
possible structures and the extent to which this is known, considering the the moderately dipping deposit at close to orthogonal to the known dip of the
deposit type. main pegmatite. At Reservatório the holes were generally drilled at an
azimuth of 150° with a dip that varied from -60° to vertical. At Grandão
· If the relationship between the drilling orientation and the the drill holes were vertical.
orientation of key mineralised structures is considered to have introduced a
sampling bias, this should be assessed and reported if material. · Intersections were close to true width for the NOA pegmatite.
· 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 techniques and data. · Internal company auditing and a review by Ashmore 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 land tenure status · Type, reference name/number, location and ownership including · All work was completed inside the Barroso Lithium Project C-100.
agreements or material issues with third parties such as joint ventures,
partnerships, overriding royalties, native title interests, historical sites, · Savannah has received written confirmation from the DGEG that
wilderness or national park and environmental settings. under article 24 of Decree-Law no. 88/90 of March 16 being relevant
justification based on the resources allocated exploited and intended,
· The security of the tenure held at the time of reporting along with any Savannah has been approved an expansion up to 250m of C100 mining concession
known impediments to obtaining a license to operate in the area. in specific areas where a resource has been defined and the requirement for
the expansion can be justified.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · Limited exploration work has been carried out by previous
operators.
· No historic information has been included in the Mineral Resource
estimates.
Geology · Deposit type, geological setting and style of mineralisation. · The lithium mineralisation is predominantly in the 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 under-standing of the · Grid used WSG84.
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 methods · In reporting Exploration Results, weighting averaging techniques, · Length weighted average grades have been reported.
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 · Metal equivalent values are not being reported.
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 mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · The majority of holes have been drilled at angles to intersect the
Exploration Results. mineralisation approximately perpendicular to the orientation of the
mineralised trend.
· 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 tabulations of · A relevant plan showing the drilling is included within this
intercepts should be included for any significant discovery being reported. release.
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 holes (collar · All relevant results available have been previously reported.
and down-hole surveys), trenches, mine 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 exploration data · Other exploration data, if meaningful and material, should be reported · Geological mapping and rock chip sampling has been conducted over
including (but not limited to): geological observations; geophysical survey the project area.
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. tests for lateral · Further RC and DD drilling to test for further extensions and to
extensions or depth extensions or large- scale step-out drilling). increase confidence.
· Diagrams clearly highlighting the areas of possible extensions, · Economic evaluation of the defined Mineral Resources.
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 corrupted by, for · The assay data was captured electronically to prevent
example, transcription or keying errors, between its initial collection and transcription errors.
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 Competent Person and the · Numerous site visits were undertaken by Dale Ferguson in 2017
outcome of those visits. which included an inspection of the drilling process, outcrop area and
confirmation that no obvious impediments to future exploration or development
· If no site visits have been undertaken indicate why this is the case. were present.
· A site visit by an Ashmore associate 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 geological · The pegmatite dykes hosting the NOA mineralisation are defined in
interpretation of the mineral deposit. 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 geometry of the pegmatites.
· The effect, if any, of alternative interpretations on Mineral
Resource estimation. · Zonation of lithium within the pegmatite is evident, and
typically the margins are weakly mineralised.
· The use of geology in guiding and controlling Mineral Resource
estimation.
· The factors affecting continuity both of grade and geology.
Dimensions · The extent and variability of the Mineral Resource expressed as · The pegmatite at Noa has a drilled extent of 440m east-west and a
length (along strike or otherwise), plan width, and depth below surface to the maximum vertical depth of 145m. The thickness of the mineralisation ranges
upper and lower limits of the Mineral Resource. from 10m to 20m.
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) applied · Inverse distance squared interpolation was used to estimate block
and key assumptions, including treatment of extreme grade values, domaining, 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 sample
· The availability of check estimates, previous estimates and/or mine lengths. Due to the extremely low CV of the data no high-grade cuts were
production records and whether the Mineral Resource estimate takes appropriate applied to Li(2)O in the estimate. A cut of 100ppm was applied to Ta values.
account of such data.
· At NOA the parent block dimensions were 10m EW by 5m NS by 5m
· The assumptions made regarding recovery of by-products. vertical with sub-cells of 5m by 1.25m by 1.25m.
· Estimation of deleterious elements or other non-grade variables of · The previous resource estimate for NOA was reported in March
economic significance (e.g. sulphur for acid mine drainage characterisation). 2019.
· In the case of block model interpolation, the block size in relation · No assumptions have been made regarding recovery of by-products.
to the average sample spacing and the search employed.
· The grade of Fe(2)O(3) was estimated for the deposit, using
· Any assumptions behind modelling of selective mining units. factored Fe data to eliminate Fe introduced in the sample preparation stage.
The mean grade of Fe(2)O(3) was determined to be 0.82% at NOA.
· Any assumptions about correlation between variables.
· An orientated ellipsoid search was used to select data and was
· Description of how the geological interpretation was used to control based on drill hole spacing and the geometry of the pegmatite dyke.
the resource estimates.
· A search of 40m was used with a minimum of 6 samples and a
· Discussion of basis for using or not using grade cutting or capping. maximum of 16 samples which resulted in 91% of blocks being estimated. The
remaining blocks were estimated with search radii of 80m.
· The process of validation, the checking process used, 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 nominal 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 with natural · Tonnages and grades were estimated on a dry in situ basis. No
moisture, and the method of determination of the moisture content. moisture values were reviewed.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters · The shallow, outcropping nature of both deposit suggests good
applied. 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, minimum mining · Based on comparison with other similar deposits, the Mineral
dimensions and internal (or, if applicable, external) mining dilution. It is Resource is considered to have sufficient grade and metallurgical
always necessary as part of the process of determining reasonable prospects characteristics for economic treatment if an operation is established at the
for eventual economic extraction to consider potential mining methods, but the site.
assumptions made regarding mining methods and parameters when estimating
Mineral Resources may not always be rigorous. Where this is the case, this · No mining parameters or modifying factors have been applied to
should be reported with an explanation of the basis of the mining assumptions the Mineral Resource.
made.
· Previous high-level mining optimisation work indicates the vast
majority of the Mineral Resource can be mined using open pit techniques.
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical · Metallurgical test work has been conducted by Savannah on
amenability. It is always necessary as part of the process of determining representative mineralisation at the Grandão deposit. The work was completed
reasonable prospects for eventual economic extraction to consider potential by Nagrom Metallurgical in Australia and confirmed that high grade lithium,
metallurgical methods, but the assumptions regarding metallurgical treatment low grade iron concentrate can be generated from the mineralisation using
processes and parameters made when reporting Mineral Resources may not always conventional processing technology. Microscopy confirmed that the concentrate
be rigorous. Where this is the case, this should be reported with an was almost entirely spodumene.
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 Grandão deposit.
Environmental factors or assumptions · Assumptions made regarding possible waste and process residue · The area is not known to be environmentally sensitive and there
disposal options. It is always necessary as part of the process of determining is no reason to think that proposals for development including the dumping of
reasonable prospects for eventual economic extraction to consider the waste would not be approved if planning and permitting guidelines are
potential environmental impacts of the mining and processing operation. While followed.
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 for the · Bulk density values from the Grandão deposit were applied to the
assumptions. If determined, the method used, whether wet or dry, the frequency NOA deposit.
of the measurements, the nature, size and representativeness of the samples.
· The Grandão densities were based on determinations using 3,370
· The bulk density for bulk material must have been measured by methods core samples, as well as 160 samples obtained from NOA.
that adequately account for void spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within the deposit. · Bulk density values applied to the estimate were 2.5t/m(3) for
transitional lithologies, 2.65t/m(3) for unoxidised pegmatite and 2.67t/m(3)
· Discuss assumptions for bulk density estimates used in the evaluation for unoxidised schist.
process of the different materials.
Classification · The basis for the classification of the Mineral Resources into · The Mineral Resource was classified in accordance with the
varying confidence categories. Australasian Code for the Reporting of Exploration Results, Mineral Resources
and Ore Reserves (JORC, 2012).
· Whether appropriate account has been taken of all relevant factors
(i.e. relative confidence in tonnage/grade estimations, reliability of input · The portion of the NOA pegmatite defined by 20m to 40m spaced
data, confidence in continuity of geology and metal values, quality, quantity drill holes and showing good continuity of pegmatite and Li(2)O distribution
and distribution of the data). has been classified as Indicated Mineral Resource. The Indicated portion was
extended for the full length of the pegmatite which had been exposed and
· Whether the result appropriately reflects the Competent Person's view mapped in the pit and was extrapolated up to 20m past drill hole
of the deposit. intersections.
· The remainder of the Mineral Resource at NOA was classified as
Inferred due the broader spaced drilling.
· The results reflect the view of the Competent Person.
Audits or reviews · The results of any audits or reviews of Mineral Resource estimates. · The Mineral Resource estimate has been checked by an internal
audit procedure.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and confidence · The estimate utilised good estimation practices, high quality
level in the Mineral Resource estimate using an approach or procedure deemed drilling, sampling and assay data. The extent and dimensions of the
appropriate by the Competent Person. For example, the application of mineralisation are sufficiently defined by outcrop and the detailed drilling.
statistical or geostatistical procedures to quantify the relative accuracy of The deposit is considered to have been estimated with level of accuracy
the resource within stated confidence limits, or, if such an approach is not reflected in the resource classification.
deemed appropriate, a qualitative discussion of the factors that could affect
the relative accuracy and confidence of the estimate. · The Mineral Resource statement relates to global estimates of
tonnes and grade.
· The statement should specify whether it relates to global or local
estimates, and, if local, state the relevant tonnages, which should be · The has been small scale mining conducted at NOA, with
relevant to technical and economic evaluation. Documentation should include approximately 22,000t mined at an average Li(2)O grade of 1.24%.
assumptions made and the procedures used.
· These statements of relative accuracy and confidence of the estimate
should be compared with production data, where available.
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AnnouncementREG - Savannah Resources - Holding(s) in Company
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