TIDMSAV
RNS Number : 5746Z
Savannah Resources PLC
18 December 2017
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector:
Mining
18 December 2017
Savannah Resources Plc
Maiden Lithium Resource of 3.2Mt for the Mina do Barroso Lithium
Project, Portugal with Significant Expansion Potential
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'),
the AIM quoted resource development company, is pleased to announce
a maiden Mineral Resource Estimate of 3.2 million tonnes for the
Reservatorio Deposit, which is one of three targets currently being
advanced as part of the ongoing exploration and development
programme for the Mina do Barroso Lithium Project ('Mina do
Barroso' or the 'Project') in northern Portugal (Figure 1).
Crucially further upside remains as the drill programme is ongoing,
with the aim of further expanding the Reservatorio Mineral Resource
and defining new JORC - 2012 compliant Mineral Resource Estimates
at other deposits. To view the press release with the illustrative
maps and diagrams please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/5746Z_-2017-12-17.pdf
HIGHLIGHTS:
-- Initial Inferred Mineral Resource of 3.2Mt at 1.0% Li O
containing 32,000t of Li O for Reservatorio Deposit
-- Reservatorio is one of at least eight pegmatite deposits on
the Mina do Barroso Mining Lease and one of three deposits
currently being drilled
-- Further drilling is now planned both down dip and targeting
the potential eastern extension of the deposit where higher lithium
grades occur
-- Mineral Resource updates are likely for Reservatorio during
2018 as the drilling programme continues
-- A maiden Mineral Resource Estimate for the Grandao deposit is expected during Q1 2018
-- Drilling is ongoing and will take a short break over
Christmas before commencing again in early January at which time a
second rig will be introduced to accelerate the drilling
programme
Savannah's CEO, David Archer said: "That we have an estimated
3.2 million tonne Resource from just one of at least eight
pegmatite deposits at our Mina do Barroso Lithium Project gives an
indication of the potential scale of this project. We are now
focused on defining a significant aggregate Mineral Resource from
the multiple pegmatites that sit within the major lithium
mineralised corridor that runs through our Mining Lease. The first
to add to this aggregate Mineral Resource will be the high-grade
(up to 2.1% Li O) Grandao deposit where we have completed extensive
drilling and expect to deliver a Resource Estimate in the first
quarter of 2018.
"The drilling results announced to date continue to underscore
the potential of the Mina do Barroso Lithium Project to be a
strategic upstream feature in the European lithium value chain. We
believe Mina do Barroso is the closest European analogue to the
very successful Australian hard-rock, open cut mine developments,
which produce highly sought-after lithium spodumene concentrates
for international markets. Our focus is therefore on rapidly
advancing the project so that we can look to provide a European
source of battery-grade lithium to supply the growing number of
European battery manufacturers. With this in mind, we look forward
to continuing to advance at pace our drilling and metallurgical
test work programmes, which will be used to support an early
scoping study around a potential mine development."
Figure 1. Mina do Barroso Project Summary Map showing prospects
and 2017 drilling
Mineral Resource Estimate
A Mineral Resource Estimate for the Reservatorio lithium deposit
(Table 1-2 and Figures 2-4) has been completed by Payne Geological
Services Pty. Ltd, an external and independent mining consultancy.
The Reservatorio deposit forms part of Savannah's Mina do Barroso
project in northern Portugal. The deposit largely comprises a
single, tabular pegmatite dyke with minor splays and the estimate
is based entirely on results from 20 reverse circulation holes
drilled by Savannah in 2017. The deposit outcrops over a strike
length of approximately 500m and remains open, particularly at
depth.
The Mineral Resource has been classified as Inferred Mineral
Resource in accordance with the JORC Code, 2012 Edition.
Table 1. Reservatorio Deposit Inferred Mineral Resource Summary
(above 0.5% Li(2) O cut-off grade)
Reservatorio Deposit Li(2) Fe(2) Li(2)
Tonnes O O(3) O
----------------------
Mt % % Tonnes
---------------------- ------- ------ ------ -------
3.2 1.00 1.4 32,000
---------------------- ------- ------ ------ -------
Figure 2. Reservatorio Deposit - Geology and Drill Plan
Figure 3. Reservatorio Deposit - Mineral Estimate Model looking
South
Figure 4. Reservatorio Deposit - Cross Section through the
resource model
Table 2.
Reservatorio December 2017 Inferred Mineral Resource
Estimate
0.5% Li(2) O Cut-off
Bench Weathered 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
------ -------- ------ ------ ------ ---------- ------ ------ ------ ---------- ------ ------ ------ -------
610 1,000 1.20 21 1.4 1,000 1.20 21 1.4
600 87,000 1.06 19 1.3 7,000 1.38 15 1.5 94,000 1.09 18 1.3 1,000
590 97,000 1.03 20 1.3 124,000 1.19 21 1.4 221,000 1.12 20 1.3 2,500
580 19,000 0.88 17 1.2 284,000 1.12 20 1.4 303,000 1.11 20 1.4 3,400
570 5,000 0.96 20 1.5 381,000 1.04 18 1.4 387,000 1.04 18 1.4 4,000
560 24,000 0.95 18 1.4 485,000 1.01 16 1.4 509,000 1.00 16 1.4 5,100
550 15,000 0.80 14 1.3 495,000 1.00 17 1.4 510,000 0.99 17 1.4 5,100
540 1,000 0.83 14 1.5 415,000 0.97 16 1.4 417,000 0.97 16 1.4 4,100
530 361,000 0.96 15 1.4 361,000 0.96 15 1.4 3,500
520 208,000 0.91 15 1.3 208,000 0.91 15 1.3 1,900
510 119,000 0.85 14 1.3 119,000 0.85 14 1.3 1,000
500 54,000 0.88 14 1.3 54,000 0.88 14 1.3 500
490 7,000 0.93 14 1.3 7,000 0.93 14 1.3 100
Total 250,000 1.01 19 1.3 2,940,000 1.00 17 1.4 3,190,000 1.00 17 1.4 32,000
------ -------- ------ ------ ------ ---------- ------ ------ ------ ---------- ------ ------ ------ -------
Resource Summary - Reservatorio Lithium Deposit
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. The Reservatorio
pegmatite is quite tabular and continuous and varies in thickness
from 10m-30m. It strikes broadly NE-SW and dips to the NW at 25(o)
to 40(o) .
Lithium is present in pegmatite bodies which are typically of
aplite compositions and laboratory test work confirms that the
lithium is almost exclusively within spodumene. Distinct lithium
grade zonation occurs within the pegmatite, with weakly mineralised
zones often evident at the margins of the dyke. Minor xenoliths and
inliers of schist are observed on occasions.
The weathering profile comprises a shallow, surficial zone of
weak to moderate oxidation, particularly of the schistose country
rock. A zone of deeper weathering exists in the vicinity of an
interpreted fault.
Drilling
A total of 20 reverse circulation (RC) holes define the
Reservatorio Mineral Resource. The holes were drilled on an
approximate grid spacing of 40m spaced holes on 80m spaced cross
sections. All holes were drilled by Savannah in 2017 and all drill
hole information and results have been previously reported to the
market.
Drill collar locations are recorded in UTM coordinates using
hand-held GPS, with elevations adjusted to a regional topographic
DTM. All Savannah drilling has been down-hole surveyed using a
gyroscopic tool.
Sampling and Sub-Sampling Techniques
For the Savannah 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. The
1m samples were collected through a rig-mounted rotary splitter and
were 4-6kg 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.
Sample Analysis Method
For all Savannah drilling, whole samples were crushed then
riffle split to produce a 250g split for pulverizing and analysis
at the ALS Laboratories facility in Seville, Spain.
The samples were analysed using ALS laboratories ME-MS89L Super
Trace method, which combines a sodium peroxide fusion with ICP-MS
analysis. A multi-element suite is analysed.
QAQC protocols were in place for the drilling programs and
included the used of standards, blanks and field duplicates. The
data has confirmed the quality of the sampling and assaying for use
in Mineral Resource estimation.
Estimation Methodology
For the Reservatorio Mineral Resource, a Surpac block model was
constructed with block sizes of 40m (EW) by 10m (NS) by 5m
(elevation) with sub-celling to 10m by 2.5m by 1.25m. The typical
drill hole spacing is 80m (EW) by 40m (NS).
Interpretation of the pegmatite dykes was completed using
detailed geological logging. 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.
Pegmatite and mineralisation domains were extrapolated up to 80m
down-dip of the drill hole intersections and 40m along strike.
Sample data was composited into 1m intervals then block model
grades estimated using inverse distance squared (ID2) grade
interpolation. A first pass search range of 120m 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 resource (98%) was
estimated in the first pass with an expanded search radius of 240m
used for the few blocks not estimated in the first pass. No
high-grade cuts were applied to the estimate.
Iron within the pegmatite is uniformly low, with a mean Fe(2)
O(3) grade of 1.4%. Other similar deposits have reported that a
large proportion of the assayed iron is due to contamination from
the abrasion of steel drilling and sample preparation equipment and
this will be investigated as part of ongoing studies at the
project.
No bulk density data is available for the deposit, so values
were derived from similar deposits, which have been recently
estimated. Bulk density values applied to the Reservatorio estimate
were 2.2t/m(3) for oxide lithologies, 2.6t/m(3) for unoxidized
pegmatite and 2.8t/m(3) for unoxidized schist.
Mineral Resource Classification
The Mineral Resources 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 Reservatorio has been defined by 40m
spaced drill holes on 80m spaced sections. The two easternmost
sections are defined by single drill holes. Within the main
pegmatite, the continuity of lithium mineralisation is good,
however due to the broad drill hole spacing, the entire deposit has
been classified as Inferred Mineral Resource.
The Mineral Resource has been reported to a depth of 130m
vertical.
Cut-off Grades
The shallow, outcropping nature of the deposit and moderate to
gentle dip 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.
Metallurgy
Metallurgical test work has been conducted by Savannah on
representative mineralisation at the Mina Do Barroso project. 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.
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.
Preliminary Metallurgical Test Work (previously reported
26/06/17)
-- Results from the preliminary ore characterisation
metallurgical test work on a composite sample from Mina do Barroso
to determine if the lithium bearing minerals can be recovered from
the rock using commercially available technology and a saleable
product produced have been received.
-- Work confirms that a high grade very pure low iron spodumene
concentrate can be produced from the Mina do Barroso lithium
mineralisation.
-- Single analysis of the combined sample confirmed a high Li(2)
O head grade (1.95% Li(2) O) and low Fe(2) O(3) head grade
(0.9%)
-- Heavy Liquid Separation ("HLS") shows a very pure (8%) Li(2) O product can be produced
-- Flotation results utilising a simple one stage float without
any optimisation achieved 83.7% Li(2) O recovery at 5.9% Li(2) O,
this is very positive and can be improved through optimisation
-- Microscopy confirmed that the concentrate was almost entirely
spodumene with only very minor amounts of petalite
-- Test work confirms that a high quality spodumene concentrate
can be produced using conventional commercially available
processing technologies.
Competent Person and Regulatory Information
The information in this report that relates to exploration
results is based on, and fairly represents information and
supporting documentation prepared by Mr Dale Ferguson, a Competent
Person who is a member of The Australasian Institute of Mining and
Metallurgy. Mr Ferguson is a director of Savannah Resource plc and
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 Resource and Ore Reserves". Mr
Ferguson consents to the inclusion in this report of the matters
based on his information in the form and context in which it
appears.
The Information in this report that relates to Mineral Resources
is based on information compiled by Mr Paul Payne, a Competent
Person who is a Fellow of the Australasian Institute of Mining and
Metallurgy. Mr Payne is a full-time employee of Payne Geological
Services. Mr Payne has sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration
and to the activity being undertaken to qualify as a Competent
Person as defined in the 2012 Edition of the "Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves". Mr Payne consents to the inclusion in the report of the
matters based on his information in the form and context in which
it appears.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**S**
For further information please visit www.savannahresources.com
or contact:
David Archer Savannah Resources Tel: +44 20
plc 7117 2489
David Hignell / Gerry Northland Capital Tel: +44 20
Beaney (Nominated Partners Ltd 3861 6625
Adviser)
Christopher Raggett finnCap Ltd Tel: +44 20
/ Emily Morris (Joint 7220 0500
Broker)
Jon Belliss Beaufort Securities Tel: +44 20
(Joint Broker) Ltd 7382 8300
Charlotte Page / St Brides Partners Tel: +44 20
Lottie Wadham Ltd 7236 1177
(Financial PR)
About Savannah
We are a diversified resources group (AIM: SAV) with a portfolio
of energy metals projects - lithium in Portugal and copper in Oman
- together with the world-class Mutamba Heavy Mineral Sands Project
in Mozambique, which is being developed in a consortium with the
global major Rio Tinto. We are committed to serving the interests
of our shareholders and to delivering outcomes that will improve
the lives of our staff and the communities we work with.
APPIX 1 - JORC 2012 Table 1
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Sampling
techniques * Nature and quality of sampling (eg cut channels, * Reverse circulation (120mm size) samples were taken
random chips, or specific specialised industry on either 1 intervals for pegmatite or 4m composites
standard measurement tools appropriate to the in surrounding schist. RC samples were collected in
minerals under investigation, such as down hole gamma large plastic bags from an onboard rig splitter and a
sondes, or handheld XRF instruments, etc). These 4-6kg representative sample taken for analysis.
examples should not be taken as limiting the broad
meaning of sampling.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Include reference to measures taken to ensure sample * Drilling was conducted on a nominal 80m by 40m
representivity and the appropriate calibration of any spacing based on geological targets using RC drilling
measurement tools or systems used. technology, an industry standard drilling technique.
Drilling rods are 3m long and 1 sample is taken for
each rod interval.
* Collar surveys are carried using hand held GPS with
an accuracy to within 5m, and the z direction was
determined by satellite derived elevation data and is
accurate to less than a metre.
* A downhole survey for each hole was completed
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Aspects of the determination of mineralisation that * The lithium mineralization is predominantly in the
are Material to the Public Report. form of Spodumene-bearing pegmatites, the pegmatites
are unzoned and vary in thickness from 15m-39m.
* In cases where 'industry standard' work has been done
this would be relatively simple (eg 'reverse * Down hole sampling is carried out on either a 1 or 4m
circulation drilling was used to obtain 1 m samples interval from which 4-6kg of pulverized material (RC)
from which 3 kg was pulverised to produce a 30 g was pulverized to produce a 50g charge for assaying
charge for fire assay'). In other cases more
explanation may be required, such as where there is
coarse gold that has inherent sampling problems.
Unusual commodities or mineralisation types (eg
submarine nodules) may warrant disclosure of detailed
information.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Drilling
techniques * Drill type (eg core, reverse circulation, open-hole * RC drilling at a diameter of 120mm is a form of
hammer, rotary air blast, auger, Bangka, sonic, etc) reverse circulation drilling requiring annular drill
and details (eg core diameter, triple or standard rods. Compressed air is pumped down the outer tube
tube, depth of diamond tails, face-sampling bit or and the sample is collected from the open face
other type, whether core is oriented and if so, by drilling bit and blown up the inner tube.
what method, etc).
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Drill
sample * Method of recording and assessing core and chip * Field assessment of sample volume. A theoretical
recovery sample recoveries and results assessed. dried sample mass was estimated to be within the
range of 18 kg to 24 Kg, 70% of samples are within
the expected range. Lower than average sample
recovery is recorded only for the very top of the
drill hole due to air and sample losses into the
surrounding soil
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Measures taken to maximise sample recovery and ensure * RC drilling sample weights were monitored to ensure
representative nature of the samples. samples were maximized. Samples were carefully loaded
into a splitter and split in the same manner ensuring
that the sample split to be sent to the assay
laboratories were in the range of 4-6kg.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Whether a relationship exists between sample recovery * No obvious relationships
and grade and whether sample bias may have occurred
due to preferential loss/gain of fine/coarse
material.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Logging
* Whether core and chip samples have been geologically * RC holes were logged in the field at the time of
and geotechnically logged to a level of detail to sampling.
support appropriate Mineral Resource estimation,
mining studies and metallurgical studies.
* Each 1m sample interval was carefully homogenized and
assessed for lithology, colour, grainsize, structure
* Whether logging is qualitative or quantitative in and mineralization.
nature. Core (or costean, channel, etc) photography.
* A representative chip sample produced from RC
* The total length and percentage of the relevant drilling was washed and taken for each 1m sample and
intersections logged. stored in a chip tray which was photographed
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * 1m RC samples were split by the rotary splitter on
and sample half or all core taken. the drill rig and sampled dry
preparation
* If non-core, whether riffled, tube sampled, rotary * The 4m composites were collected using a spear with
split, etc and whether sampled wet or dry. the spear inserted into the bag at a high angle and
pushed across the sample to maximise representivity
of the sample
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* For all sample types, the nature, quality and * The sampling was conducted using industry standard
appropriateness of the sample preparation technique. techniques and were considered appropriate
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Quality control procedures adopted for all * Field duplicates were used to test repeatability of
sub-sampling stages to maximise representivity of the sub-sampling and were found to be satisfactory
samples.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Measures taken to ensure that the sampling is * Every effort was made to ensure that the samples were
representative of the in situ material collected, representative and not biased in any way
including for instance results for field
duplicate/second-half sampling.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Whether sample sizes are appropriate to the grain * All samples were taken once they went through the
size of the material being sampled. onboard splitter from the drill rig. Depending on the
rock types on average a 4-6kg sample was sent to the
lab for analysis and the remaining material averaged
18-24kg and remains stored on site for any further
analysis required
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Quality
of assay * The nature, quality and appropriateness of the * Samples were received, sorted, labelled and dried
data and assaying and laboratory procedures used and whether
laboratory the technique is considered partial or total.
tests * Samples were crushed to 70% less than 2mm, riffle
split off 250g, pulverize split to better than 85%
passing 75 microns and 5g was split of for assaying
* The samples were analysed using ALS laboratories
ME-MS89L Super Trace method which combines a sodium
peroxide fusion with ICP-MS instrumentation utilizing
collision/reaction cell technologies to provide the
lowest detection limits available.
* A prepared sample (0.2g) is added to sodium peroxide
flux, mixed well and then fused in at 670degC. The
resulting melt is cooled and then dissolved in 30%
hydrochloric acid. This solution is then analyzed by
Inductively Coupled Plasma - Mass Spectrometry and
the results are corrected for spectral inter-element
interferences.
* The final solution is then analyzed by ICP-MS, with
results corrected for spectral inter-element
interferences.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Not used
* For geophysical tools, spectrometers, handheld XRF
instruments, etc, the parameters used in determining
the analysis including instrument make and model,
reading times, calibrations factors applied and their
derivation, etc.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Nature of quality control procedures adopted (eg * Standards/blanks and duplicates we inserted on a 1:20
standards, blanks, duplicates, external laboratory ratio for both to samples taken
checks) and whether acceptable levels of accuracy (ie
lack of bias) and precision have been established.
* Duplicate sample regime is used to monitor sampling
methodology and homogeneity.
* A powder chip tray for the entire hole is completed
for both RC and RAB. A sub-sample is sieved from the
large RC bags at site into chip trays over the
pegmatite interval to assist in geological logging.
These are photographed and kept on the central
database
* Routine QA/QC controls for the method ME-MS89L
include Blanks, certified reference standards of
Lithium and duplicate samples. Samples are assayed
within runs or batches up to 40 samples. At the
fusion stage that quality control samples are
included together with the samples so all samples
follow the same procedure until the end. Fused and
diluted samples are prepared for ICP-MS analysis. ICP
instrument is calibrated through appropriate
certified standards solutions and interference
corrections to achieve strict calibration fitting
parameters. Each 40 samples run is assayed with 2
blanks, 2 certified standards and one duplicate
samples and results are evaluated accordingly.
* A QA/QC review of all information indicated that all
assays we inside reasonable tolerance levels.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Verification
of sampling * The verification of significant intersections by * All information was internally audited by company
and assaying either independent or alternative company personnel. personnel
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* The use of twinned holes. * Several historical holes were twinned for comparison
purposes with the modern drilling
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Documentation of primary data, data entry procedures, * Savannah's experienced project geologists supervised
data verification, data storage (physical and all processes.
electronic) protocols.
* All field data is entered into a custom log sheet and
then into excel spreadsheets (supported by look-up
tables) at site and subsequently validated as it is
imported into the centralized Access database.
* Hard copies of logs, survey and sampling data are
stored in the local office and electronic data is
stored on the main server.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
* Discuss any adjustment to assay data. * Results were reported as Li(ppm) and were converted
to a percentage by dividing by 10,000 and then to
Li2O% by multiplying by 2.153
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Location
of data * Accuracy and quality of surveys used to locate drill * The coordinate of each drill hole was taken at the
points holes (collar and down-hole surveys), trenches, mine time of collecting using a handheld GPS with an
workings and other locations used in Mineral Resource accuracy of 5m.
estimation.
* The grid system used is WSG84
* Specification of the grid system used.
* Topographic accuracy was +/- 5m
* Quality and adequacy of topographic control.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Data spacing
and * Data spacing for reporting of Exploration Results. * Drilling was on a nominal 80m by 40m spacing and
distribution based on geological targets
* Whether the data spacing and distribution is
sufficient to establish the degree of geological and * Drill data is at sufficient spacing to define an
grade continuity appropriate for the Mineral Resource Inferred Mineral Resource.
and Ore Reserve estimation procedure(s) and
classifications applied.
* Some samples were composited on a 4m basis based on
geological criteria, these areas were all outside the
* Whether sample compositing has been applied. pegmatite bodies where 1m sampling was completed
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Orientation
of data * Whether the orientation of sampling achieves unbiased * Drilling was orientated perpendicular to the known
in relation sampling of possible structures and the extent to strike of the pegmatites
to which this is known, considering the deposit type.
geological
structure * Drill holes were orientated at either -60 degrees or
* If the relationship between the drilling orientation -90 degrees depending on the dip of the pegmatite in
and the orientation of key mineralised structures is an attempt to get drill holes as close to true width
considered to have introduced a sampling bias, this as possible
should be assessed and reported if material.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Sample
security * The measures taken to ensure sample security. * Samples were delivered to a courier and chain of
custody is managed by Savannah.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Audits * Internal company auditing
or reviews * The results of any audits or reviews of sampling
techniques and data.
------------- ------------------------------------------------------------ -----------------------------------------------------------------------
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this
section.)
Criteria JORC Code explanation Commentary
--------------- --------------------------------------------------------------- --------------------------------------------------------------------
Mineral
tenement * Type, reference name/number, location and ownership * All work was completed inside the Mina do Barroso
and land including agreements or material issues with third project C-100
tenure parties such as joint ventures, partnerships,
status overriding royalties, native title interests,
historical sites, wilderness or national park and * Savannah has received written confirmation from the
environmental settings. DGEG that under article 24 of Decree-Law no. 88/90 of
March 16 being relevant justification based on the
resources allocated exploited and intended, Savannah
* The security of the tenure held at the time of has been approved an expansion up to 250m of C100
reporting along with any known impediments to mining concession in specific areas where a resource
obtaining a license to operate in the area. has been defined and the requirement for the
expansion can be justified
--------------- --------------------------------------------------------------- --------------------------------------------------------------------
Exploration * N/A
done by * Acknowledgment and appraisal of exploration by other
other parties.
parties
--------------- --------------------------------------------------------------- --------------------------------------------------------------------
Geology
* Deposit type, geological setting and style of * The lithium mineralization is predominantly in the
mineralisation. form of Spodumene-bearing pegmatites which are hosted
in meta-pelitic and mica schists, and occasionally
carbonate schists of upper Ordovician to lower
Devonian age. The pegmatites are unzoned and vary in
thickness from 15m-109m. Lithium is present in most
aplite compositions.
--------------- --------------------------------------------------------------- --------------------------------------------------------------------
Drill hole
Information * A summary of all information material to the * Grid used WSG84
understanding of the exploration results including a
tabulation of the following information for all
Material drill holes: * No material data has been excluded from the release
o easting and northing of * Drill hole intersections used in the resource have
the drill hole collar been previously reported.
o elevation or RL (Reduced
Level - elevation above sea
level in metres) of the drill
hole collar
o dip and azimuth of the hole
o down hole length and interception
depth
o hole length.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
--------------- ----------------------------------------------------------------- ------------------------------------------------------------------
Data
aggregation * In reporting Exploration Results, weighting averaging * No new exploration results have been reported in this
methods techniques, maximum and/or minimum grade truncations release.
(eg cutting of high grades) and cut-off grades are
usually Material and should be stated.
* Where aggregate intercepts incorporate short lengths
of high grade results and longer lengths of low grade
results, the procedure used for such aggregation
should be stated and some typical examples of such
aggregations should be shown in detail.
* The assumptions used for any reporting of metal
equivalent values should be clearly stated.
--------------- ----------------------------------------------------------------- ------------------------------------------------------------------
Relationship
between * These relationships are particularly important in the * Exploration results are reported as down hole
mineralisation reporting of Exploration Results. intercepts
widths and
intercept
lengths * If the geometry of the mineralisation with respect to * No metal equivalent values have been used.
the drill hole angle is known, its nature should be
reported.
* The drill holes are detailed in the table in the main
release and the pegmatite at Reservatorio appears to
* If it is not known and only the down hole lengths are dip at around 40 degrees to the north west and at
reported, there should be a clear statement to this Grandao it is sub horizontal
effect (eg 'down hole length, true width not known').
--------------- ----------------------------------------------------------------- ------------------------------------------------------------------
Diagrams
* Appropriate maps and sections (with scales) and * Relevant diagrams and maps have been included in the
tabulations of intercepts should be included for any main body of the release.
significant discovery being reported These should
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views.
--------------- ----------------------------------------------------------------- ------------------------------------------------------------------
Balanced
reporting * Where comprehensive reporting of all Exploration * All relevant results available have been previously
Results is not practicable, representative reporting reported.
of both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
--------------- ----------------------------------------------------------------- ------------------------------------------------------------------
Other
substantive * Other exploration data, if meaningful and material, * The interpretation of the results is consistent with
exploration should be reported including (but not limited to): the observations and information obtained from the
data geological observations; geophysical survey results; data collected.
geochemical survey results; bulk samples - size and
method of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
--------------- ----------------------------------------------------------------- ------------------------------------------------------------------
Further work
* The nature and scale of planned further work (eg * Further rock chip sampling, channel sampling and RC
tests for lateral extensions or depth extensions or drilling. Once planning has been completed the detail
large-scale step-out drilling). will be provided
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
--------------- ----------------------------------------------------------------- ------------------------------------------------------------------
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.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Geological
interpretation * Confidence in (or conversely, the uncertainty of) the * The pegmatite dyke hosting the Reservatorio
geological interpretation of the mineral deposit. mineralisation is well defined in outcrop and in
drilling.
* Nature of the data used and of any assumptions made.
* The shape and extent of the high grade lithium
mineralisation is clearly controlled by the general
* The effect, if any, of alternative interpretations on geometry of the pegmatite.
Mineral Resource estimation.
* 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 * The Reservatorio deposit has a strike extent of 540m,
expressed as length (along strike or otherwise), plan a dip extent of 210m and a maximum vertical depth of
width, and depth below surface to the upper and lower 130m. The thickness of the mineralisation ranges from
limits of the Mineral Resource. 5m to 30m.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Estimation and
modelling * The nature and appropriateness of the estimation * Inverse distance squared (ID2) was used to estimate
techniques technique(s) applied and key assumptions, including average 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 the estimate.
estimates and/or mine production records and whether
the Mineral Resource estimate takes appropriate
account of such data. * The parent block dimensions were 40m EW by 10m NS by
5m vertical with sub-cells of 10m by 2.5m by 1.25m.
Cell size was based on 50% of the average drill hole
* The assumptions made regarding recovery of spacing.
by-products.
* No previous resource estimates have been prepared for
* Estimation of deleterious elements or other non-grade the deposit.
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 Fe2O3 was estimated for the deposit,
with a mean grade of 1.4% being estimated.
* Any assumptions behind modelling of selective mining
units. * An orientated ellipsoid search was used to select
data and was based on drill hole spacing and the
geometry of the pegmatite dyke.
* Any assumptions about correlation between variables.
* A search of 120m was used with a minimum of 10
* Description of how the geological interpretation was samples and a maximum of 24 samples which resulted in
used to control the resource estimates. 98% of blocks being estimated. The remaining blocks
were estimated with a search radius of 240m.
* Discussion of basis for using or not using grade
cutting or capping. * Selective mining units were not modelled in the
Mineral Resource model. The block size used in the
model was based on drill sample spacing and deposit
* The process of validation, the checking process used, geometry.
the comparison of model data to drill hole data, and
use of reconciliation data if available.
* The deposit mineralisation was constrained by
wireframes prepared using a 0.5% Li(2) O grade
envelope.
* For validation, a visual comparison of block grades
to assay grades was carried out along with global
comparisons. Quantitative validation was also carried
out using swath plots.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Moisture
* Whether the tonnages are estimated on a dry basis or * Tonnages and grades were estimated on a dry in situ
with natural moisture, and the method of basis. No moisture values were reviewed.
determination of the moisture content.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality * The shallow, outcropping nature of the deposit and
parameters applied. moderate to gentle dip 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% Li2O
lower cut-off grade to reflect assumed exploitation
by open pit mining.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Mining factors
or assumptions * Assumptions made regarding possible mining methods, * Based on comparison with other similar deposits, the
minimum mining dimensions and internal (or, if Mineral Resource is considered to have sufficient
applicable, external) mining dilution. It is always grade and metallurgical characteristics for economic
necessary as part of the process of determining treatment if an operation is established at the site.
reasonable prospects for eventual economic extraction
to consider potential mining methods, but the
assumptions made regarding mining methods and * No mining parameters or modifying factors have been
parameters when estimating Mineral Resources may not applied to the Mineral Resource.
always be rigorous. Where this is the case, this
should be reported with an explanation of the basis
of the mining assumptions made.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Metallurgical
factors or * The basis for assumptions or predictions regarding * Metallurgical test work has been conducted by
assumptions metallurgical amenability. It is always necessary as Savannah on representative mineralisation at the Mina
part of the process of determining reasonable Do Barroso project. The work was completed by Nagrom
prospects for eventual economic extraction to Metallurgical in Australia and confirmed that high
consider potential metallurgical methods, but the grade lithium, low grade iron concentrate can be
assumptions regarding metallurgical treatment generated from the mineralisation using conventional
processes and parameters made when reporting Mineral processing technology. Microscopy confirmed that the
Resources may not always be rigorous. Where this is concentrate was almost entirely spodumene.
the case, this should be reported with an explanation
of the basis of the metallurgical assumptions made.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
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 * No bulk density data is available for the deposit so
for the assumptions. If determined, the method used, values were derived from similar deposits which have
whether wet or dry, the frequency of the measurements been recently estimated. Bulk density values applied
, to the Reservatorio estimate were 2.2t/m3 for oxide
the nature, size and representativeness of the lithologies, 2.6t/m3 for unoxidized pegmatite and
samples. 2.8t/m3 for unoxidized 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 entire Mineral Resource was classified as
confidence in continuity of geology and metal values, Inferred on the basis of data quality, sample spacing,
quality, quantity and distribution of the data). and grade variability.
* Whether the result appropriately reflects the * The estimate has been reviewed by the Competent
Competent Person's view of the deposit. Person and the results reflect the view of the
Competent Person.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Audits or
reviews * The results of any audits or reviews of Mineral * The Mineral Resource estimate has been checked by an
Resource estimates. internal audit procedure.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
Discussion of
relative * Where appropriate a statement of the relative * The estimate utilised good estimation practices, high
accuracy/ accuracy and confidence level in the Mineral Resource quality drilling, sampling and assay data. The extent
confidence estimate using an approach or procedure deemed and dimensions of the mineralisation are sufficiently
appropriate by the Competent Person. For example, the defined by outcrop and the broad spaced drilling. The
application of statistical or geostatistical deposit is considered to have been estimated with a
procedures to quantify the relative accuracy of the high level of accuracy.
resource within stated confidence limits, or, if such
an approach is not deemed appropriate, a qualitative
discussion of the factors that could affect the * The Mineral Resource statement relates to global
relative accuracy and confidence of the estimate. estimates of tonnes and grade.
* The statement should specify whether it relates to * There is no historic production data to compare with
global or local estimates, and, if local, state the the Mineral Resource.
relevant tonnages, which should be relevant to
technical and economic evaluation. Documentation
should include assumptions made and the procedures
used.
* These statements of relative accuracy and confidence
of the estimate should be compared with production
data, where available.
--------------- ------------------------------------------------------------ -----------------------------------------------------------------
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