REG - Savannah Resources - NOA Resource update and latest drilling results
02/05/2024 07:15
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RNS Number : 9789M Savannah Resources PLC 02 May 2024
02 May 2024
Savannah Resources Plc
(AIM: SAV, FWB: SAV and SWB: SAV) ('Savannah', or the 'Company')
NOA JORC Resource Upgrade and Further Broad Lithium Intersections at
Reservatório and Grandão
Savannah Resources Plc, the developer of the Barroso Lithium Project (the
'Project') in Portugal, Europe's largest spodumene lithium deposit, is pleased
to announce as part of its ongoing work towards a Definitive Feasibility Study
('DFS') on the Project, an upgrade to the JORC 2012 compliant Resource for the
NOA orebody together with further results from the current drilling programme.
Highlights:
NOA Resource Upgrade:
· NOA resource upgrade completed following recent drilling with 93% of
the total resource now in the Indicated category (previously 67%), increasing
the overall geological confidence in the resource and meeting the requirements
for inclusion in the DFS.
· JORC 2012 Compliant Resource now 661,000 tonnes at 1.03% Li(2)O,
containing 6,800 tonnes of Li(2)O.
· The size of the resource has increased by 3% due to extending the
mineralisation on the western pegmatite.
· Further exploration potential outlined to the west, as the pegmatite
is still open along strike to the west and at depth to the north.
Reservatório and Grandão Significant Drill Results:
· Assays from 7 diamond drill holes at the Reservatório orebody have
now been received, which confirm the lithium mineralisation at depth and the
potential for further resource expansions.
· The best results received, with key lithium intersections include:
o 36.48m @ 1.34% Li(2)O from 31.05m in 23RESDD009
o 36m @ 1.28% Li(2)O from 151m in 23RESRC039
o 21.8m @ 1.37% Li(2)O from 132.3m plus 9.2m @ 1.08% Li(2)O from 157m in
23RESRC041
· Results received from two Reverse Circulation holes drilled at
Grandão at the margins of the pegmatite confirm the continuity of the lithium
mineralisation to the north. The best result recorded was:
o 18m @ 0.93% Li(2)O from 35m in 24GRARC132.
Dale Ferguson, Savannah's Technical Director, said, "We are very pleased to
have completed the first of the upgraded JORC Resource estimates for the
orebodies at our Project, which are a key part of the work we are doing
towards the DFS. There were no expectations to significantly increase the
overall tonnage at NOA through this drilling programme, our primary objective
being to upgrade as much of the tonnage as we can into the Indicated category,
which we have achieved. This is particularly important as only resources in
the Indicated and higher, Measured, categories can be used under the relevant
guidelines in the Project's maiden JORC Reserve estimate, which will be the
extractable tonnage of ore that will underpin all other technical aspects of
the DFS. With 93% of the ore now in the Indicated category, the vast majority
of the currently defined orebody can be considered in the future reserve
estimation work. However, it is equally important to note that this orebody
remains open along strike and at depth for the definition of additional ore in
the future.
Away from NOA, we have also received further assays from holes previously
drilled at the Reservatório and Grandão orebodies. These have demonstrated
further lithium mineralisation, above the average grade for the Project at
depth at Reservatório, and to the north along strike at Grandão.
Looking ahead we will have further assays to release over the next couple of
months from both Reservatório and Pinheiro, where we are targeting further
extensions of the high-grade mineralisation noted in our 12 March 2024 RNS as
we work towards resource upgrades for the other deposits by the end of Q3
2024".
Further Information
With the completion of resource-related drilling in phase 1 of the current
drill programme at the Project, an updated JORC 2012 compliant Mineral
Resource Estimation could be made for the NOA deposit (Figure 1). The purpose
of the drill programme was to infill the Project's geological database to
classify the resources in the Indicated or Measured categories and to fulfill
requirements for the DFS.
In addition, further assay results from the recent drilling at Reservatório
(7 diamond drill core holes) and Grandão (2 Reverse Circulation ('RC') drill
holes) have been received and confirm that the lithium mineralisation is
continuing at depth and along strike.
NOA
From the results of the drilling at NOA, Savannah's resource consultant has
been able to increase the geological confidence of the resource. Now 93% of
the total resource has been classified in the Indicated category (previously
67%). The remaining 7% of the new estimate represents extra tonnes identified
in extensions of the pegmatite bodies, particularly at the western end of the
deposit area, and is classified in the Inferred category.
Figure 1. Barroso Lithium Project summary map showing deposits and drill hole
locations.
The Mineral Resource Estimate at NOA has been classified as Indicated or
Inferred in accordance with the JORC code, 2012 edition and is summarised in
Table 1 and Appendix 1 and 4.
Table 1 Updated 2024 Resource Estimation Summary for the NOA Deposit at 0.5%
Li(2)O Cut-off
Indicated Inferred Total
Mineralisation Tonnes Li(2)O Fe(2)O(3) Tonnes Li(2)O Fe(2)O(3) Tonnes Li(2)O Fe(2)O(3) Li(2)O
Type (t) (%) (%) (t) (%) (%) (t) (%) (%) Tonnes
Transitional 52,000 1.03 0.97 100 0.89 0.85 52,000 1.03 0.97 500
Primary 563,000 1.03 0.83 46,000 0.95 0.45 609,000 1.03 0.80 6,300
Total 614,000 1.03 0.84 46,000 0.95 0.45 661,000 1.03 0.82 6,800
Note: Minor errors occur in final resource figures due to rounding
Reservatório
Preliminary indications are that the dip of the pegmatite is becoming
shallower at depth and confirms the extension of the Reservatório
mineralisation at least a further 100m down dip, pointing towards a potential
extension of the resource. Key lithium intersections returned in the latest
batch of assays include:
· 36.5m @ 1.34% Li(2)O from 31.05m in 23RESDD009
· 36m @ 1.28% Li(2)O from 151m in 23RESRC039
· 26m @ 0.85% Li(2)O from 155m in 23RESRC040
· 21.8m @ 1.37% Li(2)O from 132.3m plus 9.2m @ 1.08% Li(2)O from 157m
in 23RESRC041
Drill hole 23RESDD009 was drilled in an area that is representative of the
first phase of mining and the samples will also be used for metallurgical
testing purposes.
Figure 2. Location of Phase 1 drilling at Reservatório with latest
significant intercepts.
Figure 3. A-A' cross section of Reservatório showing latest significant
assays.
Figure 4. B-B' cross section showing latest significant assays at
Reservatório.
Grandão
At Grandão, the results of two RC drill holes have been received. The holes
were planned to test the southern and northern margins of the main pegmatite
with only the northern hole (24GRARC132) containing significant lithium
mineralisation. The key lithium intersection returned in the latest batch of
assays was 18m @ 0.93% Li(2)O from 35m in 24GRARC132.
Future Drilling
The second phase of the current drilling programme will target Reservatório,
Pinheiro and Grandão to further upgrade the resources at these deposits by
the end of Q3 2024. Details for the second phase of the programme will be
finalised once all results from the first phase have been received and
reviewed.
Figure 5. Map of Grandão drilling showing location of Phase 1 drilling and
significant intercepts
Competent Person and Regulatory Information
The information in this release that relates to Mineral Resources 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 an 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 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.
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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(http://www.savannahresources.com) or contact:
Savannah Resources PLC Tel: +44 20 7117 2489
Emanuel Proença, CEO
SP Angel Corporate Finance LLP (Nominated Advisor & Joint Broker) Tel: +44 20 3470 0470
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LPM (Portugal Media Relations) Tel: +351 218 508 110
Herminio Santos/ Jorge Coelho/ Margarida Pinheiro
About Savannah
Savannah Resources is a mineral resource development company and the sole
owner of the Barroso Lithium Project in northern Portugal, the largest battery
grade spodumene lithium resource outlined to date in Europe.
Through the Barroso Lithium Project (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 rapidly developing lithium battery
value chain. After the Environmental Licence was granted in May 2023 and the
Scoping Study confirmed the economic potential of the Project in June 2023,
production is now targeted and on track to begin in 2026. At that stage,
Savannah will start producing enough lithium for approximately half a million
vehicle battery packs per year, equal to a significant portion of the European
Commission's Critical Raw Material Act goal of a minimum 10% of European
endogenous lithium production set for 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 the Company's ordinary shares are also available
on the Quotation Board of the Frankfurt Stock Exchange (FWB) under the symbol
FWB: SAV, and the Börse Stuttgart (SWB) under the ticker "SAV".
Appendix 1: Key Resource Calculation Information
Geology and Geological Interpretation
At the Barroso Lithium 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 steeply dipping, northwest
trending body which is 5m-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.
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.
Drilling Techniques
RC drilling used a 120mm bit diameter. Diamond core drilling was carried out
using PQ core diameter and reduced to HQ triple tube core barrel when
competent rock was intersected.
Classification Criteria
Mineral Resource classification was considered on the basis of drill hole
spacing, continuity of mineralisation and data quality. At NOA, the continuity
of the controlling pegmatite appears to be good. Where the pegmatite is
exposed, the interpretation is supported by mapped contacts at surface and
within the small pit being mined.
The portion of the NOA pegmatite defined by 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.
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.
Estimation Methodology
The Mineral Resource was estimated within wireframes prepared using nominal
0.35% Li(2)O envelopes within the broader pegmatites. The pegmatites at both
the NOA deposit were estimated using ordinary kriging ("OK") grade
interpolation with interpolation parameters based on the geometry of each
zone. No high-grade cuts were applied to Li(2)O due to the uniformly low
coefficient of variation ("CV") of the data. A high grade cut of 100ppm was
applied to Ta values.
The block dimensions used in the model were based on deposit geometry and
drill hole spacing and confirmed with Kriging Neighbourhood Analysis ("KNA").
Parent block sizes used at the NOA deposit were 5m NS by 10m EW by 5m with
sub-celling to 1.25m by 2.5m by 1.25m.
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. Densities applied
were 2.5t/m(3) for oxide lithologies, 2.65t/m(3) for unoxidised pegmatite and
2.67t/m(3) for unoxidised schist.
Cut-off Grade
The Statement of Mineral Resources has been constrained by the mineralisation
solids and reported above a cut-off grade of 0.5% Li(2)O. The cut-off grade is
supported by previous mining studies.
Mining and Metallurgical Methods and Parameters
Previous high-level mining optimisation work indicates the vast majority of
the NOA Mineral Resource can be mined using open pit techniques as part of the
larger operation at the Project.
Metallurgical test work has been conducted by Savannah 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.
APPENDIX 2 - Drill hole locations of Phase 1 RC and Diamond Resource Holes.
Hole_ID Prospect Hole Type Total Depth East (mE) North (mN) Elevation (mASL) Dip Azimuth
23NOARC026 NOA RC 111 599104 4609510 677 -60 198
23NOARC027 NOA RC 40 599015 4609572 689 -60 198
23NOARC028 NOA RC 40 599047 4609565 692 -60 198
23NOARC029 NOA RC 42 599025 4609498 693 -60 200
23NOARC030 NOA RC 35 598992 4609575 686 -60 200
23NOARC031 NOA RC 30 598988 4609559 687 -60 200
23NOARC032 NOA RC 123 599086 4609555 691 -60 200
23NOARC033 NOA RC 20 598985 4609540 688 -60 200
23NOARC034 NOA RC 40 598894 4609584 687 -60 200
23NOARC035 NOA RC 43 598900 4609610 683 -60 200
23NOARC036 NOA RC 35 598916 4609606 679 -60 200
23NOARC037 NOA RC 67 598916 4609589 678 -60 200
23NOARC038 NOA RC 35 599205 4609406 691 -60 200
23NOARC039 NOA RC 61 599238 4609389 687 -60 200
23NOARC040 NOA RC 45 599174 4609436 687 -60 200
23NOARC041 NOA RC 60 599135 4609470 681 -60 200
23NOARC042 NOA RC 85 599190 4609491 673 -60 200
23NOARC043 NOA RC 130 599074 4609531 689 -60 200
23NOARC044 NOA RC 35 599100 4609457 674 -60 200
23NOARC045 NOA RC 35 599112 4609440 674 -60 200
23NOARC046 NOA RC 35 598943 4609589 678 -60 200
23NOARC047 NOA RC 25 598938 4609573 679 -60 200
23NOARC048 NOA RC 105 599157 4609520 666 -60 200
23RESRC038 Reservatório RC 207 599510 4609249 655 -90 0
23RESRC039 Reservatório RCDD 135 599511 4609246 655 -70 150
23RESRC040 Reservatório RCDD 120 599557 4609245 649 -90 0
23RESRC041 Reservatório RCDD 120 599559 4609241 649 -70 150
23RESRC042 Reservatório RC 12 599650 4609094 594 -60 150
23RESRC043 Reservatório RC 9 599687 4609109 591 -60 150
23RESRC044 Reservatório RC 18 599618 4609011 599 -60 150
23RESRC045 Reservatório RC 130 599679 4609231 619 -90 0
23RESDD009 Reservatório DD 90.5 599764 4609176 611 -60 150
24RESDD010 Reservatório DD 40 599688 4609110 590 -60 150
24RESDD011 Reservatório DD 50 599617 4609016 599 -60 150
24RESDD012 Reservatório DD 50 599661 4609070 590 -60 150
24PNRRC020 Pinheiro RC 110 601380 4606960 542 -60 270
24PNRRC021 Pinheiro RC 113 601402 4606933 543 -60 220
24PNRRC022 Pinheiro RC 100 601401 4606936 543 -60 265
24PNRRC023 Pinheiro RC 138 601408 4606892 547 -60 190
24PNRRC024 Pinheiro RC 144 601406 4606893 547 -65 220
24PNRRC025 Pinheiro RC 100 601402 4606931 543 -55 290
24GRARC132 Grandão RC 90 601743 4608177 521 -90 0
24GRARC133 Grandão RC 39 601919 4607864 563 -90 0
APPENDIX 3 - Summary of Recent Significant Intercepts using a 0.5% Li(2)O Cutoff.
Hole_ID Prospect From (m) To (m) Interval (m) Grade Li(2)O%
24PNRRC025 Pinheiro No Significant Assays
24GRARC132 Grandão 35 53 18 0.93
24GRARC133 Grandão No Significant Assays
23RESRC039 Reservatório 151 187 36 1.28
23RESRC040 Reservatório 155 181 26 0.85
23RESRC040 Reservatório 184 186.25 2.25 0.6
23RESRC041 Reservatório 132.3 154.1 21.8 1.37
23RESRC041 Reservatório 157 166.2 9.2 1.08
23RESDD009 Reservatório 31.05 67.53 36.48 1.34
24RESDD010 Reservatório 8.2 12.7 4.5 0.41
24RESDD010 Reservatório 15.85 23.6 7.75 0.83
24RESDD010 Reservatório 26.9 31.24 4.34 0.83
24RESDD011 Reservatório No Significant Assays
24RESDD012 Reservatório No Significant Assays
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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