Savannah Resources Plc (LON:SAV) has revealed what it describes as encouraging drilling results from the Mina do Barroso lithium project in Portugal.
The drill campaign is intended to provide the basis to a JORC compliant mineral resource estimate and work so far has unearthed significant intersections of lithium mineralisation.
WATCH: Commissioning well underway at Savannah Resources' Mutamba pilot plant
Wednesday’s drill findings have included an extension to the mineralisation at the Reservatorio deposit area, which is now seen to have more than 400 metres of strike length.
At the same time, drilling at the NOA deposit area confirmed lithium mineralisation over a 100m strike length together with good down dip extensions of at least 50m.
Savannah highlighted that the Reservatorio, Grandao and NOA deposit areas all remain open along strike.
The maiden resource estimate is now expected before the end of this year.
"The drilling results to date continue to underscore the potential of the Mina do Barroso Project to be a strategic upstream feature in the European lithium value chain,” said David Archer, Savannah chief executive.
READ: Savannah Resources says high-grade copper deposits in Oman awarded environmental permits
“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.
"Drilling and metallurgical test work is ongoing and will be used to support an early scoping study around a potential mine development."