HIGHLIGHTS:

A total of 66 holes for 5,558m have been completed to date as part of the ongoing RC drill programme. The drill results from three deposits being targeted confirm the outstanding potential of Mina do Barroso. Savannah believes these intercepts represent some of the best lithium spodumene intersections ever reported for a European deposit.

  • Grandao:

Key results include:

109m at 1.04% Li2O from surface (uncut), including 52m at 1.32% Li2O,
71m at 1.06% Li2O from 88m, including 57m at 1.2% Li2O

31m at 1.2% Li2O from surface 25m at 1.15% Li2O from 36m

New high - grade zone discovered: drill testing of a newly identified sub - vertical pegmatite body has been successful, identifying a new high - grade zone of mineralisation. Results from the first drill hole include:

25m at 1.49% Li2O from 32m including 14m at 2.1% Li2O

Drill programme extended – an additional 16 holes have been added to the drilling programme to help outline the full potential of the Grandao deposit

  • Reservatorio:

Deposit expanded – assay results confirm that the lithium mineralisation extends to over 400m strike length, with good down dip extensions of at least 100m. New assay results include:

32m at 1.05% Li2O from 78m 15m at 1.19% Li2O from 79m

Maiden Mineral Resource Estimate for Reservatorio, expected by the end of 2017

  • NOA:

Further drilling and results pending: drilling of a further 6 holes has confirmed the presence of lithium mineralisation over a 200m strike length together with good down dip extensions of at least 50m and pegmatite widths up to 15m Phase 2 of the metallurgical test work programme underway – samples taken from Grandao, Reservatorio and NOA being tested with results expected in early 2018.

Mina do Barroso.jpg

Savannah’s CEO, David Archer said: “We believe these outstanding results represent some of the best lithium spodumene intersections ever reported for a European deposit. Additionally, they highlight the potential of the extensive pegmatite systems in the northern part of Portugal to host major deposits of lithium. The results from Grandao are particularly exciting as there are some exceptional widths and high - grades reported and the geometry of what we are seeing suggests that there is potential for a low stripping ratio, open - cut mine development. It is important to remember that all of the results are from deposit areas for which we have a granted mining lease."

“These results continue to underscore the potential of the Mina do Barroso Project to be a strategic upstream feature in the European lithium value chain. From an investment perspective, we see the Project as 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. Ongoing drilling and metallurgical test work will be used to support an early scoping study around a potential mine development.”