TIDMSAV
RNS Number : 0984R
Savannah Resources PLC
04 March 2021
4 March 2021
Savannah Resources Plc
Mina do Barroso Lithium Project Update
Further Refinements to the Metallurgical Flow Sheet
Potential for Lower Capital and Operating Costs
Savannah Resources plc (AIM: SAV, FWB: SAV and SWB: SAV)
('Savannah' or the 'Company'), the AIM quoted resource development
company, which is focused on becoming Europe's most significant
producer of spodumene lithium from its Mina do Barroso Project in
Portugal ('Mina do Barroso', 'MdB' or the 'Project'), is pleased to
announce that its ongoing metallurgical test work programme
continues to successfully improve and refine the process
flowsheet.
Highlights
-- Excellent progress made with metallurgical test work,
underlining the Project's potential to become a key supplier of
spodumene lithium to the European battery value chain.
-- Initial results from pilot scale Dense Media Separation
('DMS') indicate 20% to 25% of the plant feed can be rejected
utilising a single stage of DMS pre-concentration, with only minor
losses of contained lithia (Li2O).
-- The results are significant, indicating that a large portion
of the waste material can be rejected via the DMS before the
spodumene flotation stage of the process.
-- Reducing the volume of ore to be processed has the potential
to reduce the capital and operating costs associated with the
concentrator.
-- Savannah continues to de-risk the Project by building up a
comprehensive understanding of how best to manage the metallurgical
outcomes for the various Mina do Barroso orebodies.
-- Minsol Engineering Pty Ltd ('Minsol') has been appointed to
further aid the Company in identifying an optimal metallurgical
testing process.
-- Significant scope remains to further optimise and improve
upon these results during the ongoing metallurgical test work
programmes - further results will be announced as they become
available.
To view the full press release including any maps, figures or
tables, please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/0984R_1-2021-3-3.pdf
Savannah's CEO, David Archer said: "These initial results from
the latest phase of the Mina do Barroso metallurgical test work
programme are very encouraging. Removal of up to one quarter of the
ore feed going into the flotation circuit could have significant
positive implications for the capital and operating costs of this
section of the concentrator and the Project overall.
"This release marks the first of a number of announcements we
expect to make regarding metallurgical test work for Mina do
Barroso during the year, as we look to optimise the processing
route and engage with potential equipment suppliers for the Mina do
Barroso plant. In the months ahead, the option of introducing a
pre-concentration step will be thoroughly evaluated along with all
other aspects of the process, including the use of environmentally
friendly reagents and water collected from on-site sources.
"To help us in our efforts to identify a metallurgical process
which prioritises both the environment and delivery of a high spec
product to our commercial partners, such as Galp, we have appointed
Minsol Engineering Pty Ltd to advise us on the programme. Minsol's
principals have been involved in the design of both lithium
concentrators and lithium chemical plants in Australia, so will
provide Savannah with a wealth of experience and knowledge for this
crucial part of the Project.
"The global lithium market has enjoyed a resurgence in recent
months with raw material prices rising rapidly as demand from the
battery and electric vehicle markets grow. Against this backdrop,
2021 is going to be a very busy year for Savannah as we look to
secure Mina do Barroso's position in the rapidly evolving European
lithium battery value chain. We will continue to make regular
updates to the market on our progress."
Test work Programme
Savannah has appointed MinSol Engineering Pty Ltd to design and
supervise a detailed metallurgical test programme, to be undertaken
at Nagrom Laboratories in Perth, Western Australia. Minsol's
Principals have significant experience in the lithium sector,
having been involved in the development of numerous Lithium
Concentrator Plants and Lithium Hydroxide Processing Plants in
Western Australia and overseas over the past 15 years.
The test work has been designed to build on the work previously
undertaken and reported and to confirm the final process flowsheet,
process design criteria and product quality for subsequent project
development activities. The test work will treat a master drill
core composite sample from Grandao previously used in test work
reported in March 2019 and assayed at 1.3% Li(2) O content.
Test work will initially focus on fresh Grandao ore. Grandao is
expected to provide approximately 65% of the total ore to be mined
and the majority of the ore scheduled for treatment in the first
ten years of operation.
Initial results from pilot scale Dense Media Separation have
indicated:
-- 20% to 25% of the plant feed can be rejected utilising a
single stage of DMS pre-concentration.
-- Global Lithia loss in the DMS step to floats will be as low
as 3.5% to 5.0% of the total contained lithia.
-- The pilot scale results are consistant with Heavy Liquid
Separation ( HLS) and DMS work from historical testwork.
Correlation between the DMS and HLS results indicate a clean
test sample yielding high separation efficiency.
Based on the historical and current test results for
pre-concentration at SG2.65, a relationship between the reject
losses and the ore head grade is shown below.
The graph can be viewed through the PDF link above.
The DMS results are highly encouraging and have the potential to
reduce the capital and operating costs for the project, through
lower ore treatment rates for milling, flotation, filtration and
water circuits.
The test programme is ongoing, with the primary objectives as
follows:
-- Optimise flotation configuration and conditions.
-- Develop a flotation reagent and processing chemical regime with low environmental impact.
-- Establish the impact on the flotation process of using water sourced on site.
-- Generate samples for subsequent testing with select equipment
suppliers for the purpose of detailed equipment selection and
sizing.
-- Generate product samples for downstream lithium conversion
test work for production of lithium hydroxide.
Results from the ongoing programme will be reported as they
become available and the overall findings will be fed into the
Definitive Feasibility Study on the Project. Product samples will
be supplied to Galp Energia, SGPS, S.A, and other potential
commercial partners, for their own evaluation of Mina do Barroso's
concentrate product and planning purposes.
Competent Person Statement
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 release that relates to metallurgy and
metallurgical test work has been reviewed by Mr Robert Simmons,
MAusIMM, B. Eng. (Chemical Engineering). Mr Simmons is not an
employee of the company, but is employed as a contract consultant.
Mr Simmons is a Member of the Australasian Institute of Mining and
Metallurgy, he has sufficient experience with the style of
processing response and type of deposit under consideration, and to
the activities undertaken, to qualify as a competent person as
defined in the 2012 edition of the "Australian Code for the
Reporting of Exploration Results, Mineral Resources and Ore
Reserves" (The JORC Code). Mr Simmons consents to the inclusion in
this report of the contained technical information in the form and
context as it appears.
Regulatory Information
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**S**
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For further information please visit www.savannahresources.com
or contact:
Savannah Resources PLC Tel: +44 20 7117 2489
David Archer, CEO
SP Angel Corporate Finance LLP (Nominated Tel: +44 20 3470 0470
Advisor)
David Hignell / Charlie Bouverat
finnCap Ltd (Joint Broker) Tel: +44 20 7220 0500
Christopher Raggett/ Tim Redfern
WH Ireland Limited (Joint Broker) Tel: +44 20 7220 1698
James Joyce/ Jessica Cave (Corporate Finance)
Adam Pollock/ Jasper Berry (Corporate
Broking)
Camarco (Financial PR) Tel: +44 20 3757 4980
Nick Hennis / Gordon Poole
About Savannah
Savannah is a diversified resources group (AIM: SAV) with two
development stage projects, a hardrock lithium project in Portugal
which has the largest spodumene lithium resource in Europe, and the
world-class Mutamba Heavy Mineral Sands Project in Mozambique,
which is being developed in a consortium with the global major, Rio
Tinto. The Board is committed to serving the interests of its
shareholders and to delivering outcomes that will improve the lives
of the communities we work with and our staff.
The Company is listed and regulated on AIM and the Company's
ordinary shares are also available on the Quotation Board of the
Frankfurt Stock Exchange (FWB) under the symbol FWB: SAV, and the
Börse Stuttgart (SWB) under the ticker "SAV".
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