Savannah Resources has intersected further lithium mineralisation at the Mina do Barroso lithium project in Portugal, and is upbeat about the potential for future resource expansions and upgrades.

The company is also undertaking reverse circulation (RC) and diamond drilling at the Grandao deposit of the project.

“Mina do Barroso continues to deliver, underscoring its increasing strategic significance to the European lithium value chain.”

The programme has resulted in higher-grade lithium mineralisation intersection over significant widths, claimed to be the widest intersection recorded so far at the project.

Highlights from the drilling at Grandao included grades between 1.14% Li₂O and 1.46% Li₂O.

Savannah Resources CEO David Archer said: “We believe this study will continue to underpin the significant value potential of our flagship Mina do Barroso lithium project as we continue to advance towards making a development decision next year.

“With additional highly prospective targets now also beginning to be tested and positive progress being made as we continue to advance development aspects of the project, Mina do Barroso continues to deliver, underscoring its increasing strategic significance to the European lithium value chain as Western Europe’s largest spodumene lithium deposit.”

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The company noted that drilling operations are continuing at its primary Grandao and Reservatorio targets.

So far, drilling has defined a virtually continuous zone of shallowly westerly dipping pegmatite from surface to a vertical depth of more than 150m.

According to the company, the positive drill results support a fourth mineral resource estimation which is to be reported shortly.

Meanwhile, the third phase of the metallurgical test work programme is in progress and is anticipated to be completed in the fourth quarter of this year. Savannah added that a feasibility study is progressing well.