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Bloomberg


Paulo Zacarias Gomes May 25th, 2017 at 1:55 PM



PUB
London-based Savannah mining company has become the latest operator to enter lithium prospecting in Portugal, the metallic mineral used in the manufacture of batteries used in automotive and domestic electrification.


The company announced on Thursday 25 May that it will acquire a 75% majority stake in Slipstream Investments , the company that holds the rights to exploit quartz, feldspar and lithium at Barroso Mine, in the municipality of Boticas, Trás- Os-Montes.

According to a statement posted on the company's website, there is an area of 542.12 hectares (5.42 square kilometers), in addition to four areas where licenses still need to be obtained and totaling over 1,018 kilometers. Barroso, Serra d'Arga, Barca d'Arga and Tâmega.




The mine will already have an approved mining plan in addition to the environmental impact study and license valid for 30 years from the date of concession, until 2036. And it will be "one of the most advanced lithium development projects in Europe with the greatest potential to quickly pass To the production stage. "

Multinational companies in Barroso

In less than a year it is the second multinational to enter Portugal in search of lithium for use in batteries in the zone of Barroso, after the Australian Dakota Minerals . According to data from the Directorate General for Energy and Geology, quoted by Público this week, the inferred resource for the Barroso / Alvão region is 14 million tonnes of ore with an average content of 1% lithium.

"Savannah Resources Plc is preparing to become a substantial lithium producer for batteries with the purchase of an asset close to the production phase in Portugal ... We believe that prospecting at the Barroso Mine can transform European industry Lithium or the electric vehicle industry, by becoming the first producer of quality lithium batteries in Europe, "reads the statement.

The report also notes that the lithium content identified in the drillings already performed (more than 6% lithium oxide) indicates the high possibility of producing clean concentrate of that mineral. By the end of 2018, the company hopes to make the decision to move to production.

Business can exceed 6 million euros

If the viability of extraction - namely the potential of 7.5 million tonnes of ore with a lithium oxide content of not less than 1% - is proven, the three stages of payment to the seller will lead to a figure of 10, 1 million Australian dollars (6,72 million euros at the current quotation), between cash payments (2.66 million euros) and in shares (60 million new shares, valued at around 4 million euros).

The first transaction has already led Savannah to pay A $ 1 million (around € 665,000 at the current rate), in addition to the issuance of 20 million new shares. Values are not advanced for future exploration investments.

On March 14 of this year, the Diário da República reported that Imerys Ceramics Portugal had transmitted its contractual position at Mina do Barroso to Slipstream Resources Portugal Unipessoal, Lda, based in Braga and of Australian origin. Previously developed works on the site predicted the use of minerals in the production of ceramics (where lithium helps lower the melting point of pastes, reducing energy expenditure) and not in the battery market.

Portugal after Mozambique, Oman and Finland

Savannah has, in addition to the operation now purchased in Portugal, ongoing projects in Mozambique (in Mutamba, in consortium with Rio Tinto, for the exploration of heavy sands and extraction of metals such as ilmenite, rútilo and zircon), in Oman Gold and copper) and Finland, where it develops two lithium prospecting projects.

The largest shareholder of the company is Al Marjan, with 29.9% of the capital. Savannah is listed in London at AIM, where according to Bloomberg it has a market capitalization of 30.2 million pounds. In Thursday's session, the shares remain unchanged at 5.875 pence, in three-month highs, after yesterday they rose 4.44%.

According to Público, last year the General Directorate of Energy and Geology received 30 applications for the right to prospect and research lithium, representing a total of 3.8 million euros of investment in an area of 2,500 square kilometers.

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RNS Number : 1749G
Savannah Resources PLC
25 May 2017



Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining



25 May 2017

Savannah Resources Plc

Strategic Lithium Project Acquisition with Near-Term Production Potential, Portugal



Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), is pleased to announce that it has entered into an agreement with a consortium of vendors led by Slipstream Resources Investments Pty Ltd ('Vendors' or 'Slipstream') to acquire a series of highly prospective lithium projects with near-term production potential in the north of Portugal (the "Transaction"). To view the press release with the illustrative maps and diagrams please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/1749G_-2017-5…



TRANSACTION HIGHLIGHTS

· Strategic opportunity to become the first significant lithium producer in Europe having acquired the Mina do Barroso prospect in northern Portugal;

· Approved Mining Plan ('MP'), Environmental Impact Assessment ('EIA') and a 30-year mining concession/Mining Licence ('ML') means that with a defined JORC resource a development decision could be made by the end of 2018;

· Significant exploration results include:

o Due diligence rock chip sampling identifying desirable spodumene pegmatites >70m wide with Li2O grades > 3.12%

o Continuous rock chipping returning broad zones of lithium mineralisation including 30m at 1.18% Li2O, 30m at 1.35% Li2O and 35m at 1.67% Li2O

o High-grade drill results which commence from at or near surface including 32m at 1.16% Li2O from 20m, 12m at 1.6% Li2O from 1m and 16m at 1.35% Li2O from surface;

· Preliminary metallurgical test work has indicated that a high-grade (over 6% Li2O), clean, low iron, lithium concentrate can be produced;

· Further exploration underway including mapping and rock chip sampling with drilling expected to commence in around two weeks with the initial focus on defining a JORC resource at Mina do Barroso to support a potential mine development;

· Acquisition is part of an enlarged acquisition that included a 75% interest in four project areas covering up to 1,018km2 of tenure with proven high-grade lithium mineralisation offering additional upside potential;

· Secured Portuguese operating partner Mineralia Minas, Geotecnia e Construcoes, Lda., which has commissioned over 11 quarries and mines in Portugal;

· Portugal has consistently ranked highly in the world for desirability for investment (2016 Fraser Institute study) and is in the top 7 lithium-producing countries (linked to the ceramics industry); and

· Consideration for the Transaction will comprise of initial cash consideration of AUD$1.0million plus the issue of 20,000,000 ordinary shares of 1p each in Savannah ('Ordinary Shares') to the Vendors.

· Additional milestone based, conditional consideration, as summarised below, which could lead to an aggregate consideration of AUD$10.1m (£5.8m) (cash and shares) based on Savannah's closing share price on 24 May 2017.





Savannah's CEO, David Archer said: "This transaction provides Savannah with a unique opportunity to secure what we believe to be one of the most advanced lithium mining concessions in Europe, in a low-cost and stable political environment. With an approved Mining Plan, Environmental Impact Assessment, Mining Licence and the potential to produce high grade lithium product, we believe the Mina do Barroso prospect could transform the European lithium / Electric Vehicle ('EV') industry by becoming the first producer of battery quality lithium in Europe.



"Mainland Europe currently consumes around 25% of the world's lithium and is an early adopter of EVs and battery storage solutions. With battery production by major European manufacturers rapidly expanding, any potential local supplies from mainland Europe are being keenly sought and we believe the Mina do Barroso, together with our enlarged portfolio of lithium assets in Portugal, is ideally situated to address this strategic need. Work is now underway to define a JORC resource at Mina do Barroso so that we may be in a position to make a development decision by the end of 2018. This is undoubtedly a highly strategic and valuable growth opportunity for Savannah."



FURTHER INFORMATION



Savannah is acquiring a 75% interest in actual and contingent assets spread over four project areas with over 1,018km2 of tenure including: one granted mining concession (5.42km2), and nine pending exploration licence applications (the 'Projects').



Of the 1,018km2 Project area relating to the pending applications: 348km2 is on track for government approval and 670km2 is currently subject in part to overlapping exploration licence applications from third parties.



1) TECHNICAL INFORMATION ON THE PROJECTS

The advanced nature of the Mina do Barroso prospect, with an approved ML, MP and EIA means that with the definition of a JORC resource, a development decision could potentially be made by the end of 2018. Mina do Barroso is part of the enlarged Covas do Barroso Project area.

Figure 1. Mining Licence Details

Region
Concession Name
Area
Expiry*
Covas do Barroso
C-100: 'Mina do Barroso'
5.42km2
12/05/2036


*Mining licence may benefit from a contract extension of 20 years at agreement of licence holder and Portuguese State.


The Barroso-Alvão region is characterised by the presence of a large field of several dozen pegmatite and aplite-pegmatite dykes of granitic composition. Pegmatite dykes are mainly intruded in the granitic rocks of the region whilst aplite-pegmatite dykes are hosted by low- to medium-grade metasedimentary rocks of Silurian age that are strongly deformed (B. CHAROY et al.,1992). The thickness of these dykes ranges from less than 1m up to 70m with the primary focus on lithium rich spodumene-rich aplite-pegmatite dykes.



Mina Do Barroso Prospect

Based on the work Savannah has undertaken to date, the Directors believe that the Mina Do Barroso prospect is arguably one of the most advanced lithium development projects in Europe with the potential to be fast tracked into production.



Past Exploration

Previous work on the prospect has focused on the production of ceramics and not lithium. As a result, the lithium work is largely unstructured but points to significant potential in a relatively underexplored series of pegmatites that have not had their strike, width or down dip potential defined. Work has included reconnaissance geological mapping, trenching, drilling and preliminary metallurgical test work.



Geology and Rock Chip Sampling

The Mina do Barroso Prospect comprises a series of well-defined pegmatites up to 50m in width and 400m in length, with past exploration confirming the presence of lithium within the pegmatites. A series of high priority opportunities have been defined within the prospect area (Savannah Rock Chips Appendix 2A, Vendor Rock Chips Appendix 2B), these include:



NOA

Rock chip sampling by Savannah during April 2017 including continuous rock chips and scattered rock chips average 1.5% Li2O. The continuous rock chipping outlined significant widths of mineralisation including:

- 30m at 1.18% Li2O in NOA 1

- 30m at 1.35% Li2O in NOA 2

- 35m at 1.67% Li2O in NOA 3



This sampling confirms the prospectivity of the NOA area with a series of pegmatites in the area which require further detailed and systematic exploration.





Reservatorio

Rock chip sampling by Savannah during April 2017 targeting spodumene bearing pegmatites has confirm the prospectivity of the Reservatorio Lens as the samples ranged from 0.87% Li2O to 2.7% Li2O and averaged 1.6% Li2O. Significant potential exists in the Reservatorio area with the potential for the pegmatite to extend over 400m in strike length.



Grandao

The Grandao area contains some of the most extensive pegmatite outcrop in the Mina do Barroso prospect area. Recent rock chip sampling by Savannah in April 2017 in the area returned results of 1.41% Li2O to 2.07% Li2O with an average 1.79% Li2O, the highest average grade for any of the Mina do Barroso aplo-pegmatites. However, it should be noted that there is only limited sampling to date and further work is required to determine the potential of the area.



Figure 5. Two zones of pegmatites within the metasedimentary sequence in the Minas do Barroso area - see PDF link





Figure 6. Below Left: Coarse-grained Lithium bearing pegmatites from the Mina do Barroso tenement.

Below Right: Close-up of coarse-grained spodumene from the Mina do Barroso tenement - see PDF link



Figure 7. Mina Do Barroso Prospect exploration results summary map - see PDF link



Trenching

A programme of 26 trenches was completed during 2002 ranging from 10m to 125m in length has identified a series of pegmatites ranging from 10-50m in width and up to 400m in length. The trenching was focused on identifying the pegmatites and testing the near surface material for ceramics properties, no lithium sampling was completed.



Figure 8. 2002 trenching being conducted - see PDF link



Drilling

Exploration work by past explorers has included a series of shallow drill holes (115 holes ranging from 7m to 84m in depth, with 75 holes confirmed to contain anomalous lithium) targeting near surface ceramic material (refer to Appendix 1). Lithium analysis has highlighted significant anomalies including:



· 10m at 1.1% Li2O from surface in CB2 (EOH)
· 19m at 1.03% Li2O from 21m in RES01C
· 7m at 1.22% Li2O from surface in CB2 (EOH)
· 8.5 at 1% Li2O from 2m RES06 (EOH)
· 16m at 1.35% Li2O from surface in GRA05
· 14m at 1.04% Li2O from surface in RES07
· 17m at 1% Li2O from 7m GRA15
· 32m at 1.16% Li2O from 20m in RES019
· 8m at 1.43% Li2O from 32m in GRA028
· 11m at 1.1% Li2O from 43m in RES023
· 22m at 1.1% Li2O from 3m in NOA01 (EOH)
· 12m at 1.6% Li2O from 1m in RES030
· 15m at 1% Li2O from 7m in NOA13
· 12m at 1.22% Li2O from 16m in SAC01 (EOH)
· 10m at 1.5% Li2O from 2m in RES01 (EOH)
· 13m at 1.24% Li2O from surface in SP2(EOH)


Note: Intercepts calculated using a 0.7% Li2O cut-off with no more than 1m of internal dilution and a minimum mineralised width of 7m and an average grade of over 1% Li2O.



Preliminary Metallurgy

Initial preliminary metallurgical test work has been completed by past explorers which indicates that a clean, high quality spodumene product (over 6% Li2O) can be produced from the mineralised rock. The mineralisation at Mina do Barroso compares very favourably to the mineralisation at the Pilgangoora deposits of both Altura and Pilbara Minerals in Australia, and a simple comparison is provided below.

· Altura, Pilgangoora: Resource Grade 1.15% Li2O, 1.7% Fe2O3; concentrate grade >6% Li2O

· Pilbara Minerals, Pilgangoora: Resource Grade 1.29%Li2O, 1.19% Fe2O3; concentrate grade >6% Li2O

· Mina do Barroso: Mineralisation Grade approximately 1.1% Li2O, 0.5%Fe2O3; concentrate grade >6%Li2O



Approved 30 Year Mining Licence, Mine Plan and Environmental Impact Assessment

One of the significant advantages of the Mina do Barroso project is the approved Environmental Impact Assessment and Mine Plan to remove approximately 7Mt of lithium, quartz and feldspar from seven pegmatites within the approved mining licence. The term of the current licence is 30 years: commencing in 2006 and expiring in 2036.



The approvals would need to be modified for the extraction of additional material and to build a plant specific to lithium processing, with this process expected to take in the order of 6-8 months as the changes are an amendment to the existing approvals.





Reigoso Prospect

Field reconnaissance at the Reigoso Prospect highlighted an area of at least, 3 x 1.5km with many outcrops of large pegmatites rich in coarse spodumene. The larger pegmatites seem to be sub-horizontal "sills", indicating that they may have large volumes of pegmatite near surface following the down dip extension of the bodies. The main body seems to be quite extensive with at least one of the bodies with the potential to be at over 50m width and 500m in strike at surface with many other smaller pegmatite bodies. Detailed mapping and sampling of the area is now required to determine the potential of the area.



Figure 9. Reigoso main outcropping pegmatite - see PDF link



Figure 10. Reigoso Prospect, massive spodumene crystals up to 1m in size - see PDF link



(iii) Serra d'Arga Project

Savannah has pegged three tenements in the Serra d'Arga area including Calvelo, Ponte de Lima and Caminha. The Serra d'Arga project area covers a swarm of sills associated with the evolution of the diapiric Serra d'Arga granite. The sills exhibit complex associations of lithium minerals.



The spodumene-bearing bodies of aplite and pegmatite can occur intra-granitic, but are mainly found beyond the pluton. In the coastal area north of Viana do Castelo, the bodies of aplite-pegmatite are enclosed in well-exposed metasedimentary host rocks where spodumene may account for up to 20% of the volume of the bodies, and crystals may attain 30cm in length (Gomes & Nunes 1990, Gomes 1992).



The modal proportion of petalite attains 15% in some bodies in the Formigoso area. Some bodies of homogeneous aplite and pegmatite approach 8,000ppm lithium, contain disseminated spodumene-petalite, and lepidolite-bearing pegmatites in the same field may exceed 12,000ppm lithium.



From this exploration, a large pegmatite (>80m) can be seen and the surface indications for W and E indicate that it has, at least, >400m length (see Figures 11 and 12). These bodies seem to be sub-horizontal, so they may have more volume of pegmatite near the surface, following the dip. The presence of feldspar is actually very rare and the percentage of spodumene in this body seems to be around 30 - 40%.



Figure 11. Outcropping spodumene bearing pegmatite in Caminha permit - see PDF link



Figure 12. Outcropping spodumene bearing pegmatite in Caminha permit - see PDF link



Figure 13. Serra D'Agra Project exploration results summary map - see PDF link



(iv) Barca d'Alva Project

The Almendra-Souto (AS) region is a high priority for lithium resources. Surrounded by highly evolved granitoids, it is a region with metalogenic potential, known by its Sn, W and lithium mineralisation. The region is well known for the presence of pegmatite-aplite veins with the lithium minerals lepidolite, spodumene and petalite (Gaspar 1997; Charoy & Noronha 1999). Savannah has pegged two tenements in the region, Meda and Almendra, covering a number of known swarms.



The Meda project surrounds a small mining lease that covers one of the larger veins of this pegmatite-aplite field (an open pit for the ceramic industry known as Bajoca mine). This vein has an extension of 700m, with variable thickness between a few metres to more than 30m. There are many other lithium occurrences in the area but to date they have been largely explored for ceramic mate rial with little exploration directed toward the supply of lithium carbonate for the battery industry.



(v) Tâmega Project

The area contains numerous pegmatite-aplite veins and rare-element-rich granites. Lithium minerals are dominated by layered petalite, spodumene and montebraisite, hosted in NW-trending aplite-pegmatites that surround a leucogranite. Reserves of lithium as spodumene were mined from the Vieiros tin mines 10km to the NW. Slipstream has pegged the Caramos tenement.



Portuguese Operating Partner



Savannah has formed a strong working and business relationship in Portugal with Mineralia Minas, Geotecnia e Construcoes, Lda. ('Mineralia'). Mineralia is a geological and engineering firm that has commissioned over 11 quarries and mines in Portugal and has been involved in the local mining industry for over 50 years.



Current Valuation

The Projects are not currently capitalised in the financial accounts of the Vendors but costs incurred in relation to previous exploration programmes have been expensed both by the Vendors and by the previous owners of the Projects.



The Company commissioned an independent valuation report utilising the Kilburn Geosciences Rating Method indicating that the value of the Covas do Barroso tenements is between USD851,000 - USD2,240,000 in their current state. In addition, the Company understands that historical expenditure by the prior owner of the Projects prior to Slipstream's ownership (mapping, assaying, drill testing, metallurgical testwork, market studies, and activities associated in applying for and being granted mining licenses and associated environmental and technical studies) was significantly in excess of Slipstream's costs.



2) KEY COMMERCIAL TERMS OF THE TRANSACTION



Savannah has acquired the Portuguese assets through the purchase of an effective 75% shareholding in Slipstream Resources Unipessoal Lda (the registered holder of the Mina do Barroso Mining Licence and the registered applicant for the above mentioned nine pending exploration licence applications).



Savannah acquired its equity interest in Slipstream Resources Unipessoal Lda through a transaction with a consortium of vendors led by Slipstream Resources Investments Pty Ltd ('Vendors').



Savannah and the Vendors will form a joint-venture in relation to both the Mina do Barroso Mining Licence and the remaining exploration licence applications, with Savannah taking 75% controlling equity interest in Slipstream Resources Unipessoal Lda. Savannah shall fund the operations of the joint venture up until a decision to mine is made, after which funding of the joint venture shall be shared pro-rata to respective equity interests.



Consideration

The initial consideration for the Transaction is a mixture of cash and the issue of Ordinary Shares to the Vendors, being AUD $1.0m purchase price and the issue of 20,000,000 Ordinary Shares at the current market price at the time of issue. These 20,000,000 Ordinary Shares (to be held in escrow for six months from the date of issue) will be issued to the Vendors shortly and a further announcement will be made at that time.



Deferred consideration of AUD$1.5m cash and a further 20,000,000 Ordinary Shares of the Company (to be subject to orderly market provisions for six months) has also been agreed to be paid to the Vendors upon the announcement by Savannah of a JORC-compliant Indicated Mineral Resource of 7.5 million tonnes at no less than 1% Li2O ('Milestone 1').



In addition, upon the announcement by Savannah of a further JORC-compliant Indicated Mineral Resource of a minimum of 7.5m tonnes at no less than 1% lithium; final consideration of AUD$1.5m cash and an additional 20,000,000 Ordinary Shares (to be subject to orderly market provisions for six months) be paid to the Vendors ('Milestone 2') (together with Milestone 1, 'the Milestones').



Assuming the Milestones are achieved, the total consideration for the Transaction could equate to an aggregate value of AUD$10.1m (£5.8m) based on the deferred consideration being calculated using the Company's closing share price on 24 May 2017. The consideration is heavily geared towards the Vendors' receipt of Ordinary Shares in Savannah, which will align the respective parties Joint Venture interests and therefore further improve business cooperation in respect of the Projects.



A majority of the consideration paid pursuant to the terms of the Transaction is subject to the successful development of the Project(s) as a result of the Milestones (outlined above), thus minimising initial cost of the Transaction and linking future consideration to a successful Joint Venture and the increase in value in the Project(s).



Mr Dale Ferguson

Mr Dale Ferguson, the Company's Technical Director, is also a Director of and minority shareholder in Slipstream Resources Investments Pty Ltd (one of the Vendors).



As such, Dale Ferguson has been excluded from any of Savannah's commercial negotiations with the Vendors and is precluded from voting on any matters relating to the sale and purchase agreement between Savannah and the Vendors.



Furthermore, as part of the technical due diligence process, Savannah engaged Wardell Armstrong International to prepare a technical report on the Projects.



3) DEMAND FOR LITHIUM



The Directors believe there is a revolution underway in how we generate and use energy. As such, the demand for materials such as lithium, which is a key component in new energy storage solutions, is rising at record rates.



Respected US group, Morningstar Institutional Equity Research, made the following comments in November 2016: "Accelerating electric vehicle adoption will drive global lithium demand far beyond consensus expectations, affording attractive investment opportunities for long-term investors. We expect EV penetration to surge from less than 1% of global auto sales in 2015 to 10% in 2025, well ahead of the market view for only 4%-6% penetration by 2025. We forecast 16% annual lithium demand growth over the next decade, faster than we've witnessed for almost any major commodity over the past century."



Figure 14. Projected increasing lithium demand, Morningstar Institutional research Nov 2016 - see PDF link



Highlight Issued of the European Lithium Market:



· apart from small Iberian production for local ceramics/glass use, the EU has no internal lithium supply;

· the EU is a major importer of lithium consuming 24% of global market (second only to China); and

· lithium processing sites from imported material in several EU countries.



Most of the large car manufacturers are launching models that integrate lithium ion battery technology whilst Tesla, Inc. is aiming to bring electric vehicles to the mass market by lowering costs and entering into battery manufacture with their 'Gigfactory' in Nevada which will initially produce 500,000 units per annum.


For further information please visit www.savannahresources.com or contact:



David Archer
Savannah Resources plc
Tel: [phone]
David Hignell / Gerry Beaney (Nominated Adviser)
Northland Capital Partners Ltd
Tel: [phone]
Jon Belliss / Elliot Hance
(Corporate Broker)
Beaufort Securities Ltd
Tel: [phone]
Charlotte Page /
Lottie Brocklehurst
St Brides Partners Ltd
Tel: [phone]


Notes

Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, mineral development company.



Mozambique

Savannah operates the Mutamba heavy mineral sands project in Mozambique in collaboration with Rio Tinto, and can earn a 51% interest in the related Consortium, which has an established initial Indicated and Inferred Mineral Resource Estimate of 3.5 billion tonnes at 3.8% THM over the Jangamo and Dongane deposits. Under the terms of the Consortium Agreement with Rio Tinto, upon delivery by Savannah of the following Savannah will earn the corresponding interest in the Mutamba Project: scoping study - 20%; pre-feasibility study - 35%; feasibility study - 51%. Additionally, the Consortium Agreement includes an offtake agreement on commercial terms for the sale of 100% of production to Rio Tinto (or an affiliate).



Oman

Savannah has interests in two copper blocks in the highly prospective Semail Ophiolite Belt in Oman. The projects, which have an Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% copper and high-grade intercepts of up to 56.35m at 6.21% Cu, with gold credits, provide Savannah with an excellent opportunity to potentially evolve into a mid-tier copper and gold producer in a relatively short time frame. Together with its Omani partners, Savannah aims to outline further mineral resources to provide the critical mass for a central operating plant to develop the deposits and in December 2015 outlined exploration targets of between 10,700,000 and 29,250,000 tonnes grading between 1.4% and 2.4% copper.



Portugal

Savannah holds a 75% interest one mining licence and nine prospective applications for the exploration and development of lithium, covering an area in excess of 1,018km2 in northern Portugal. This includes the highly strategic Mina do Barroso prospect, which with an approved Mining Plan ('MP'), Environmental Impact Assessment ('EIA') and a 30-year mining concession/Mining Licence ('ML'), means that with a defined JORC resource a development decision could be made as early as Q4 2018.



Finland

Savannah has Reservation Permits over two new lithium projects, Somero and Erajarvi, covering an area of 159km² in Finland. Savannah holds a 100% interest in these projects through its Finnish subsidiary Finkallio Oy. Geological mapping by the Finnish Government within the project areas has highlighted the presence of lithium minerals spodumene, lepidolite and petalite with the Government also identifying Somero and Erajarvi as one of the most prospective areas to discover lithium deposits in Finland. Savannah plans to initiate an exploration programme including data compilation, geological mapping and surface sampling with the aim of generating drill ready targets during 2016.
· Measures taken to ensure that the sampling is representative
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This information is provided by RNS
The company news service from the London Stock Exchange

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