Savannah Resources PLC's mineral resource at its Mina do Barroso lithium project in northern Portugal increased by about 44% to 20.1 million tonnes at 1.04% lithium oxide for 209,000 contained tonnes.
The JORC 2012-compliant measured, indicated and inferred mineral resource at the Grandao deposit increased about 64% to 16.4 million tonnes at 1.04% lithium oxide for 171,400 contained tonnes.
The exploration target for the project was also updated to between 9 million and 15 million tonnes at 1.0% to 1.2% lithium oxide, for a potential mineral inventory of over 30 million tonnes.
According to a Sept. 10 release, about 90% of the mineralization within the first-stage Grandao pit is converted to a measured and indicated resource, which represents the first four to five years of the mining inventory based on average annual production of about 175,000 tonnes per annum of spodumene concentrate at 6% lithium oxide. Infill and expansion drilling is underway at the Reservatorio deposit with a view to converting more of the stage-one pit resource to the measured and indicated categories.
"The increasing mineral resource base of the project means we have a long-life asset that can anchor the up-stream end of the European lithium value chain," Savannah CEO David Archer said.
A feasibility study is on track for completion late in the first quarter of 2019. A recent scoping study pegged a posttax net present value, discounted at 8%, of US$241 million, a 48.6% internal rate of return and a 2.1-year payback period. The company still plans to make a mine development decision in 2019.