Savannah Resources Plc (LON:SAV) has acquired an option to buy the 2.94-square kilometre Aldeia Mining Lease application proximal to the 20mln tonne Mina do Barroso lithium project in Portugal.
Savannah’s technical and legal due diligence has highlighted excellent lithium prospectivity focusing on a large scale pegmatite in Block A.
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Among the highlights from test work was a sample grading 1.53% Li2O.
Reconnaissance geological mapping and air photography interpretation suggest a pegmatite body of up to 300m long and 25m wide is present at Aldeia, and the geometry and characteristics of the body appear to be similar to the 16.4mln tonne Grandao deposit at Mina do Barroso.
The thinking is that Aldeia could be developed into a significant resource amenable to open pit mining.
All payments under the deal are structured to be staged, with the majority of payments expected to be made from anticipated revenue generated from Mina do Barroso.
"Our technical due diligence has highlighted the lithium prospectivity of three blocks,” said chief executive David Archer.
“The blocks are highly accretive to our Mina do Barroso project, bringing the potential for further lithium resources and extra area for mine infrastructure. This new ground further strengthens an already highly attractive mine development project, which we believe has the potential to be Western Europe's largest, near-term producer of spodumene lithium."