TIDMSAV
RNS Number : 5826G
Savannah Resources PLC
05 March 2018
5 March 2018
Savannah Resources Plc
Metallurgical Testing Provides Further Positive Results
Mina do Barroso Lithium Project, Portugal
Savannah Resources plc (AIM: SAV and SWB: SAV) ('Savannah' or
the 'Company'), the AIM quoted resource development company, is
pleased to announce that Phase 2 metallurgical test work has
returned encouraging results at the Mina do Barroso Lithium Project
('Mina do Barroso' or the 'Project'), located in Portugal (Figure
1). Further follow up work is now underway. To view the press
release with the illustrative maps and diagrams please use the
following link:
http://www.rns-pdf.londonstockexchange.com/rns/5826G_-2018-3-2.pdf
HIGHLIGHTS:
-- Analysis confirms high-grade spodumene mineralisation with a
lithium content of around 1.7% Li(2) O and low impurities - less
than 0.5% Fe(2) O(3)
-- Mineralogy analysis confirms spodumene is the dominant lithium mineral with low contaminants
-- Test work continues to confirm well proven, conventional
metallurgical processes will produce a spodumene concentrate
-- Preliminary test work suggests that by using a process route
combining both gravity separation and flotation that a total
recovery of at least 80% at a concentrate grade of over 6% Li(2) O
is likely to be achieved
-- Heavy Liquid Separation (HLS) testing and small-scale pilot
testing confirms industry benchmark, low-iron, 6% Li(2) O
concentrate can be produced by low cost gravity processing
-- Test work completed to date suggest at least 40% of the
contained lithium can be recovered via gravity processing
-- Preliminary tests show that over 70% of lithium not recovered
by gravity can be recovered by flotation at a grade of over 6%
Li(2) O
-- Further improvements are expected as part of Phase 3 of the
test work programme currently underway - diamond drilling is
underway at Grandao and Reservatorio to collect additional samples
for the Phase 3 test programme, with results expected in Q3
2018
-- Mr Noel O'Brien, a metallurgist and lithium processing expert
with over 35 years' experience has been appointed as a technical
consultant to direct Savannah's metallurgical test work
programme
Savannah's CEO, David Archer said: "We are delighted to see the
results to date show that Mina do Barroso continues to demonstrate
impressive metallurgical results, with spodumene being the dominant
lithium mineral that can be recovered using conventional processing
techniques to produce an industry benchmark product with low
contaminants at good recoveries.
"Mina do Barroso continues to shape up as a European
near-analogue to the highly successful Western Australian spodumene
producers. It is also important to remember that globally, ALL
significant hard-rock lithium mines currently supplying the makers
of lithium carbonate extract spodumene.
"We hope that more metallurgical work will continue to refine
and improve these already excellent results and we are delighted to
welcome Noel O'Brien as a technical consultant to direct this
programme."
Figure 1. Mina do Barroso Project Summary Map showing prospects
and drilling completed to date
Summary of Phase 2 Metallurgical Test Work Programme and
Results
The first series of testing involved conducting sighter tests on
a combined sample of mineralisation from Grandao, NOA and
Reservatorio to establish metallurgical response and to determine
the dominant lithium minerals.
The samples were crushed to 10mm, 6.3mm and 4mm and screened at
0.5mm. The crushed samples were subjected to densimetric profiling
tests using Heavy Liquid Separation (HLS) at four densities of
2.9,2.8,2.7 and 2.6.
Each HLS SG fraction was examined by X-Ray Diffraction ("XRD")
to establish the dominant lithium minerals.
Crush HLS Fractions Grade Grade Mass Li(2) Spodumene Petalite Lepidolite
Size % Li(2) % Fe(2) % Distribution O % Distribution Content Content Content
O 0(3)
------ --------------- --------- --------- ---------------- ----------------- ---------- --------- -----------
10
mm 2.9 product 5.89 0.37 7.4 25.3 77% - 1%
2.9 middlings 4.14 0.32 14.1 33.7 51% - 1%
2.8 middlings 2.60 0.36 18.9 28.4 44% 1% 1%
2.7 residue 0.44 0.27 45.8 11.6 8% - -
2.6 residue 0.12 0.13 13.8 1.0 2% 1% -
------ --------------- --------- --------- ---------------- ----------------- ---------- --------- -----------
6.3mm 2.9 product 6.00 0.40 8.1 29.2 79% - 1%
2.9 middlings 4.22 0.34 13.0 33.0 59% - 1%
2.8 middlings 2.54 0.39 16.3 24.9 38% - -
2.7 residue 0.41 0.26 47.2 11.8 6% - 1%
2.6 residue 0.12 0.14 15.4 1.1 2% - -
------ --------------- --------- --------- ---------------- ----------------- ---------- --------- -----------
4 mm 2.9 product 6.19 0.39 10.2 37.3 78% - 1%
2.9 middlings 4.26 0.34 11.9 29.8 58% - 1%
2.8 middlings 2.56 0.40 13.7 20.7 37% - 1%
2.7 residue 0.40 0.25 47.0 11.1 5% - -
2.6 residue 0.11 0.14 17.3 1.1 - - -
------ --------------- --------- --------- ---------------- ----------------- ---------- --------- -----------
These results are extremely encouraging and established the key
attributes of:
-- The dominant lithium mineral is spodumene. There is very
little petalite and this is confirmed by the low Li(2) O assays in
the 2.7 and 2.6 float fractions. Petalite is a light mineral that
has a lower lithium content and if present, will show up in these
light fractions.
-- The HLS results show improving lithium recovery and grades as
the crush size decreases. At a 4mm crush size, 37% of the lithium
in the +0.5mm fraction has been recovered at a grade of 6.19%.
-- There are low impurities and an iron content in the spodumene
of less than 0.5% Fe(2) O(3) which is well below the threshold of
1.4% Fe(2) O(3) demanded by most off-takers.
-- An overall head grade of 1.7% Li(2) O was obtained for the
composite sample which was higher than expected based on the past
rock chip results
A second series of tests were conducted on a larger composite of
the ore. This had a head grade of 1.73% Li(2) O. Sub-samples were
crushed to 4mm and 3.35mm and screened at 0.5mm.
Samples were processed in a small-scale gravity DMS pilot plant
that has a 100mm cyclone.
The following results were obtained:
Crush Medium Grade Grade Mass% Li(2)
Size SG % Li(2) % Fe(2) Distribution O % Distribution
O O(3)
--------- --------------- --------- --------- -------------- ------------------
-4+0.5mm 2.9 product 5.54 0.40 8.23 26.28
2.9 middlings 3.36 0.35 29.39 55.20
2.7 residue 0.52 0.23 62.37 18.52
--------- --------------- --------- --------- -------------- ------------------
-3.35+ 2.9 product 5.90 0.72 9.35 32.43
0.5mm
2.9 middlings 3.12 0.36 27.05 49.64
2.7 residue 0.48 0.21 63.60 17.93
--------- --------------- --------- --------- -------------- ------------------
The concentrate from the 3.35mm test was subjected to magnetic
separation to remove iron minerals and residual mica. The grade of
the concentrate increased to 6.03% Li(2) O, with a loss of only
0.8% of the mass.
These results confirmed the findings of the HLS tests and
indicated 30%-40% of the lithium can be recovered by gravity as 6%
concentrates. It also indicated that significant mass rejection of
low grade lithium residue of around 60% may be possible by using
up-front gravity separation.
This work is far from optimised and further improvements are
expected.
The intermediate SG fractions (2.9 middlings), still contain
3%-4% Li(2) O and represent around 50%-55% of the contained
lithium. Further work is required to follow up on the favourable
phase 1 results to determine the best way to process this material
and improve the overall lithium recovery to over 80%.
Established methods are:
-- Re-crushing of the middlings material and put it back through
the DMS. This technique has been successfully implemented by other
operators.
-- Investigate fines DMS which is a new technique that uses
gravity separation down to 0.3mm. The technology is advanced and
one plant in Australia is about to install a circuit.
-- Use the well-established, conventional method of flotation to
process fines. This requires milling to less than 180 microns which
is a well-established practice.
A preliminary un-optimised flotation test was done on the ore to
determine whether could be utilised to recover the lithium from the
middlings material. At a grind size of 180 microns, a very high
figure of 71.4% of the lithium was recovered into a mass yield of
31% at a grade of 6.04% Li(2) O.
This is a very encouraging result and moving forward, the use of
flotation for further lithium recovery and for feldspar recovery,
will be studied in far greater depth.
Lithium Expert Joins the Savannah Technical Team
Mr Noel O'Brien has been appointed as a technical consultant to
direct Savannah's metallurgical test work programme, he is a
metallurgist and lithium processing expert with over 35 years'
experience. Mr O'Brien is currently a technical adviser to Tawana
Resources Limited on its Bald Hill Lithium Project and Kidman
Resources Limited on the Mount Holland Lithium Project. Previously,
Mr O'Brien was a technical consultant to the Galaxy Resources
Lithium Project in Western Australia and the Bikita Minerals
Lithium Project in Zimbabwe.
Competent Person and Regulatory Information
The information in this announcement that relates to exploration
results is based upon information compiled by Mr Dale Ferguson,
Technical Director of Savannah Resources Limited. Mr Ferguson is a
Member of the Australasian Institute of Mining and Metallurgy
(AusIMM) and has sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration and
to the activity which he is undertaking to qualify as a Competent
Person as defined in the December 2012 edition of the "Australasian
Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves" (JORC Code). Mr Ferguson consents to the inclusion in
the report of the matters based upon the information in the form
and context in which it appears.
The information in this announcement that relates to
metallurgical results is based upon information compiled by Mr Noel
O'Brien, Director of Trinol Pty. Limited. Mr O'Brien is a Fellow of
the Australasian Institute of Mining and Metallurgy (AusIMM) and
has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined in the December 2012 edition of the "Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore
Reserves" (JORC Code). Mr Ferguson consents to the inclusion in the
report of the matters based upon the information in the form and
context in which it appears.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**ENDS**
For further information please visit www.savannahresources.com
or contact:
David Archer Savannah Resources Tel: +44 20
plc 7117 2489
David Hignell / Dugald Northland Capital Tel: +44 20
J. Carlean (Nominated Partners Ltd 3861 6625
Adviser)
Christopher Raggett finnCap Ltd Tel: +44 20
/ Emily Morris (Broker) 7220 0500
Charlotte Page / St Brides Partners Tel: +44 20
Lottie Wadham Ltd 7236 1177
(Financial PR)
About Savannah
We are a diversified resources group (AIM: SAV) with a portfolio
of energy metals projects - lithium in Portugal and copper in Oman
- together with the world-class Mutamba Heavy Mineral Sands Project
in Mozambique, which is being developed in a consortium with the
global major Rio Tinto. We are committed to serving the interests
of our shareholders and to delivering outcomes that will improve
the lives of our staff and the communities we work with.
The group is listed and regulated on AIM and the Company's
ordinary shares are also available on the Börse Stuttgart (SWB)
under the ticker "SAV"
This information is provided by RNS
The company news service from the London Stock Exchange
END
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