Savannah Resources has acquired an option to purchase Aldeia & Irmão’s Aldeia mining lease application near its 20Mt Mina do Barroso lithium project in Portugal.
The development comes after Savannah completed its technical and legal due diligence process, which indicated lithium prospectivity focusing on a large scale pegmatite in Block A.
Highlights include a 1.53% lithium oxide grade from rock chip sampling.
According to Savannah, the geometry and characteristics of the target appear to be similar to the 16.4Mt Grandao deposit at Mina do Barroso, with potential to develop into a significant resource.
The company is hopeful that the 2.94km² lease application area will offer additional resource upside to enhance the scale of Mina do Barroso.
Furthermore, expansion of the Mina do Barroso site footprint will allow the company to achieve savings in terms of mining and infrastructure costs.
Savannah Resources CEO David Archer said: “Our technical due diligence has highlighted the lithium prospectivity of three blocks. 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.”
Under the terms of the transaction, Savannah is required to pay €358,000 for securing the option, followed by €3.25m for the acquisition of the proposed licence area once granted. The structure of the deal involves payments in instalments.
Savannah intends to make the majority of payments from anticipated revenue generated from Mina do Barroso.