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High Grade Lithium Discovered, Portugal

RNS Announcement

RNS Number : 8680J

Savannah Resources PLC

05 April 2018

5 April 2018

Savannah Resources Plc

Grandao Extended - High Grade Lithium Discovered at the Mina do Barroso Lithium Project, Portugal

Savannah Resources plc (AIM: SAV and SWB: SAV) ('Savannah' or the 'Company'), the AIM quoted resource development company, is pleased to announce further results from the ongoing reverse circulation ('RC') drill programme at the Mina do Barroso Lithium Project ('Mina do Barroso' or the 'Project') in Portugal (Figure 1 - See PDF), where an area of new high-grade lithium mineralisation has been discovered. To view the press release with the illustrative maps and diagrams please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/8680J_-2018-4-4.pdf

HIGHLIGHTS:

· Drill testing of the Exploration Target to the west and southwest of the main Grandao Deposit has led to the discovery of new high-grade lithium mineralisation which has been named "Grandao Extended"

· Key results include:

- 90m at 0.96% Li₂O from surface including 31m at 1.06% Li₂O from surface and 34m at 1.37% Li₂O from 50m in 18GRARC65

- 31m at 1.42% Li₂O from 47m in 18GRARC63

- 18m at 1.52% Li₂O from 24m in 18GRARC50

- 25m at 1.27% Li₂O from 34m in 18GRARC53

- 11m at 1.71% Li₂O from 45m in 18GRARC46

· Drilling to date at Grandao Extended has defined a zone of pegmatite approximately 300m long and 200m wide confirming the excellent potential of the zone

· Total of 120 holes for 9,600m drilled to date as part of the ongoing RC drill programme across three primary targets of Grandao, Reservatorio and NOA

· Drill testing of Piagro Negro, Campo de Futebol and Romainho returned encouraging first pass results including:

- 15m at 0.4% Li₂O from surface in 18PGNRC01 (Piagro Negro)

- 13m at 0.5% Li₂O from 2m in 18CAMRC02 (Campo de Futebol)

- 6m at 0.85% Li₂O from surface in 18ROMRC05 (Romainho)

· The Hatch Scoping Study is on schedule to be completed towards the end of Q2 2018 together with a further Mineral Resource update

· Phase 3 of the metallurgical test work programme is progressing well and on schedule to be completed during Q3 2018 - six (480m drilled) out of the eight planned diamond holes to collect metallurgical drill samples at the Grandao and Reservatorio deposits have been completed

Savannah's CEO, David Archer said: "We are delighted with the consistently excellent results we are seeing from the drilling of the Grandao system. The main Grandao Deposit already extends over a large area of 400m north-south and 330m east-west. Grandao Extended is adding to this with a 300m extension to the southwest which suggests that much of the Exploration Target in this area has the potential to be converted to additional Mineral Resource. It is particularly encouraging to see the excellent grades being reported as we believe this will only add to the economic appeal of a mine development at Grandao which already benefits from near surface mineralisation which should be able to be mined with a very low stripping ratio.

"In parallel, our metallurgical and Scoping Study work continues, and we are on track to take the project towards an early development decision regarding a mine that we believe has the potential to be the most significant near-term lithium development in Europe.

"First pass exploration drilling of three other deposits within our project (Campo de Futebol, Piagro Negro and Romainho) produced encouraging results despite the limitations resulting from the necessity of siting the holes on existing tracks. I look forward to providing further updates from Mina do Barroso as we continue to unlock the value in this exciting project."

Figure 1. Mina do Barroso Project Summary Map showing prospects and drilling completed to date - See PDF

Grandao

A total of 76 drill holes for 6,711m (17GRARC01-76) have been completed and results for drill holes 17GRARC43 to 65 have now been received and returned further very encouraging results (Table 1 and Figures 2-3 See PDF).

Drilling targeting the defined Exploration Target to the west and southwest of the main Grandao deposit has been successful in defining a potentially significant extension to the Grandao mineralisation, "Grandao Extended". All holes completed in the area to date have intersected significant mineralisation with recent results pointing towards the potential for the zone to be of higher grade than the current Grandao Mineral Resource.

Drilling to date has defined a zone around 300m long and 200m wide with the widest intercept returned to date being 90m in 18GRARC65.

Table 1. Summary of drill results for Grandao flat lying pegmatite using a 0.2% and 0.5% Li₂O cut-off

Hole ID	0.2% Li₂O Cut-Off			0.5% Li₂O Cut-Off
Hole ID	From	Width	Li₂O	From	Width	Li₂O
18GRARC43	32	15	0.79	34	12	0.88
18GRARC43	51	7	0.56	53	4	0.8
18GRARC44	8	12	1.06	10	10	1.23
18GRARC44	25	2	0.28
18GRARC45	30	16	1.22	30	16	1.22
18GRARC45	50	8	0.93	50	7	1.01
18GRARC46	0	4	0.77	0	2	1.15
18GRARC46	38	23	0.9	45	11	1.71
18GRARC46	68	1	0.92	68	1	0.92
18GRARC46	74	7	0.95	75	6	1.05
18GRARC47	1	7	0.43	1	2	1.03
18GRARC48	47	17	1.13	47	16	1.19
18GRARC49	24	16	0.51	26	7	0.58
				37	2	1.07
18GRARC50	6	2	0.5	6	1	0.78
18GRARC50	24	19	1.46	24	18	1.52
18GRARC53	29	36	0.95	34	25	1.27
18GRARC55	14	13	0.48	22	5	0.87
18GRARC58	38	6	1.09	38	5	1.24
18GRARC58	77	7	0.44	79	5	0.55
18GRARC62	14	8	0.27	43	1	0.51
18GRARC62	32	20	0.26	63	1	0.5
18GRARC62	63	1	0.5	72	1	0.5
18GRARC62	72	1	0.5
18GRARC63	43	40	1.16	47	31	1.42
18GRARC64	81	23	0.97	83	20	1.06
18GRARC65	0	90	0.96	0	31	1.06
				54	34	1.37

Figure 2. Summary of drilling at Grandao showing significant assay results, with surface pegmatite bodies shown in pink shading - See PDF

Figure 3. 3D model of the Grandao Resource Model and Exploration Target showing new intersections - See PDF

Piagro Negro

The pegmatites at Piagro Negro occur as folded northwest to southeast trending gentle anticlines and synclines plunging towards northwest. Drilling of six holes (18PGNRC01-06) for 270m targeted at the eastern part of the prospect where access was easy, and results intersected good widths of mineralized pegmatite (Table 2 and Figure 4). Further detailed work is now required with a focus on accessing the western part of the prospect.

Table 2. Summary of drill results for Piagro Negro reported at a 0.2% and 0.5% Li₂O cut-off

Hole ID	0.2% Li₂O Cut-Off			0.5% Li₂O Cut-Off
Hole ID	From	Width	Li₂O%	From	Width	Li₂O%
18PGNRC01	0	15	0.4	0	8	0.52
18PGNRC02	23	7	0.32	26	1	0.87
18PGNRC04	0	2	0.24
18PGNRC04	25	1	0.2
18PGNRC04	34	2	0.2
18PGNRC05	15	12	0.29	19	1	1.1
18PGNRC06	1	12	0.44	2	2	1.4
18PGNRC06	19	11	0.31	24	1	0.56
				27	1	0.72

Figure 4. Summary of recent drilling at Piagro Negro, showing drilling completed and significant assays received, with surface pegmatite bodies shown in pink shading - See PDF

Campo de Futebol

The Lithium pegmatite of Campo Futebol shows a classic S-type fold geometry which are typical of a major structural zone like the one at Mina do Barroso which hosts the majority of the pegmatites within the project area. A total of three holes (18CAMRC01-03) for 145m were completed with drilling intersecting good widths of mineralized pegmatites and further work is required to further access the potential of the prospect area (Table 3 and Figure 5).

Table 3. Summary of drill results, Campo de Futebol reported at a 0.2% and 0.5% Li₂O cut-off

Hole ID	0.2% Li₂O Cut-Off			0.5% Li₂O Cut-Off
Hole ID	From	Width	Li₂O%	From	Width	Li₂O%
18CAMRC01	16	2	0.22
18CAMRC01	26	3	0.22
18CAMRC02	2	13	0.5	6	2	1.26
				12	2	0.72
18CAMRC03	3	11	0.43	5	4	0.77

Figure 5. Summary of recent drilling at Campo de Futebol, showing drilling completed and significant assays received, with surface pegmatite bodies shown in pink shading - See PDF

Romainho

Drilling of five holes (18ROMRC01-05) for 257m at Romainho targeting a series of pegmatites with an apparent width of over 20m has intersected a thin sub horizontal pegmatite body up to 6m in width (Table 4 and Figure 6 see PDF). The flat nature of the pegmatite body has given an exaggerated surface expression of the body. Further mapping and evaluation of the prospect will now be completed to determine what additional work is required.

Table 4. Summary of drill results for Romainho reported at a 0.2% and 0.5% Li₂O cut-off

Hole ID	0.2% Li₂O Cut-Off			0.5% Li₂O Cut-Off
Hole ID	From	Width	Li₂O%	From	Width	Li₂O%
18ROMRC03	0	2	0.67	0	2	0.67
18ROMRC04	14	2	0.2
18ROMRC05	0	6	0.85	1	4	1.07

Figure 6. Summary of recent drilling at Romainho, showing drilling completed and significant assays received, with surface pegmatite bodies shown in pink shading - See PDF

Ongoing Drill Programme

Based on the new results additional RC drill holes have been added to the programme at Grandao, in order to further evaluate the potential of Grandao Extended and the wider project area.

Following the completion of the diamond drilling for the phase 3 metallurgical test work programme, the diamond rig will complete the extension of six existing RC holes to depth to target the newly identified broad zone of sub-vertical lithium mineralisation identified at depth below the main tabular, near surface Grandao Deposit.

Metallurgical Test Work

Diamond drilling at both the Reservatorio and Grandao deposits is progressing well, with four diamond holes now completed at Reservatorio. The drill core from these holes is currently being cut and prepared for shipment to Nagrom in Perth for test work and an additional two holes of a four-hole programme completed at Grandao (Figure 7 - See PDF). Work is on track to be completed in Q3 2018.

Figure 7. Spodumene bearing pegmatite, diamond drill core from the main Grandao Deposit, dry core on the left and wet core on the right - See PDF

Competent Person and Regulatory Information

The information in this announcement that relates to exploration results is based upon information compiled by Mr Dale Ferguson, Technical Director of Savannah Resources plc. Mr Ferguson is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Ferguson consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

**ENDS**

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

David Archer	Savannah Resources plc	Tel: +44 20 7117 2489
David Hignell / Dugald J. Carlean (Nominated Adviser)	Northland Capital Partners Ltd	Tel: +44 20 3861 6625
Christopher Raggett / Emily Morris (Broker)	finnCap Ltd	Tel: +44 20 7220 0500
Charlotte Page / Lottie Wadham (Financial PR)	St Brides Partners Ltd	Tel: +44 20 7236 1177

About Savannah

We are a diversified resources group (AIM: SAV) with a portfolio of energy metals projects - lithium in Portugal and copper in Oman - together with the world-class Mutamba Heavy Mineral Sands Project in Mozambique, which is being developed in a consortium with the global major Rio Tinto. We are committed to serving the interests of our shareholders and to delivering outcomes that will improve the lives of our staff and the communities we work with.

The group is listed and regulated on AIM and the Company's ordinary shares are also available on the Börse Stuttgart (SWB) under the ticker "SAV".

APPENDIX 1 - JORC 2012 Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

Criteria	JORC Code explanation	Commentary
Sampling techniques	· Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.	· Reverse circulation (HQ size) samples were taken on either 1 intervals for pegmatite or 4m composites in surrounding schist. RC samples were collected in large plastic bags from an on-board rig splitter and a 4-6kg representative sample taken for analysis.
	· Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	· Drilling was conducted on a nominal 80m by 40m spacing based on geological targets using RC drilling technology, an industry standard drilling technique. Drilling rods are 3m long and 1 sample is taken for each rod interval. · Collar surveys are carried using hand held GPS with an accuracy to within 5m, and the z direction was determined by satellite derived elevation data and is accurate to less than a metre. · A downhole survey for each hole was completed
	· Aspects of the determination of mineralisation that are Material to the Public Report. · In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	· The lithium mineralization is predominantly in the form of Spodumene-bearing pegmatites, the pegmatites are unzoned and vary in thickness from 15m-39m. · Down hole sampling is carried out on either a 1 or 4m interval from which 4-6kg of pulverized material (RC) was pulverized to produce a 50g charge for assaying
Drilling techniques	· Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	· RC drilling at a diameter of 120mm is a form of reverse circulation drilling requiring annular drill rods. Compressed air is pumped down the outer tube and the sample is collected from the open face drilling bit and blown up the inner tube.
Drill sample recovery	· Method of recording and assessing core and chip sample recoveries and results assessed.	· Field assessment of sample volume. A theoretical dried sample mass was estimated to be within the range of 18 kg to 24 Kg, 70% of samples are within the expected range. Lower than average sample recovery is recorded only for the very top of the drill hole due to air and sample losses into the surrounding soil
	· Measures taken to maximise sample recovery and ensure representative nature of the samples.	· RC drilling sample weights were monitored to ensure samples were maximized. Samples were carefully loaded into a splitter and split in the same manner ensuring that the sample split to be sent to the assay laboratories were in the range of 4-6kg.
	· Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	· No obvious relationships
Logging	· Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. · Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. · The total length and percentage of the relevant intersections logged.	· RC holes were logged in the field at the time of sampling. · Each 1m sample interval was carefully homogenized and assessed for lithology, colour, grainsize, structure and mineralization. · A representative chip sample produced from RC drilling was washed and taken for each 1m sample and stored in a chip tray which was photographed
Sub-sampling techniques and sample preparation	· If core, whether cut or sawn and whether quarter, half or all core taken. · If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	· RC samples were split by the rotary splitter on the drill rig and sampled dry
	· For all sample types, the nature, quality and appropriateness of the sample preparation technique.	· The sampling was conducted using industry standard techniques and were considered appropriate
	· Quality control procedures adopted for all sub-sampling stages to maximise representativeness of samples.	· The 4m composites were collected using a spear with the spear inserted into the bag at a high angle and pushed across the sample to maximise representativeness of the sample
	· Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.	· Every effort was made to ensure that the samples were representative and not bias in anyway
	· Whether sample sizes are appropriate to the grain size of the material being sampled.	· All samples were taken once they went through the on-board splitter from the drill rig. Depending on the rock types on average a 4-6kg sample was sent to the lab for analysis and the remaining material averaged 18-24kg and remains stored on site for any further analysis required
Quality of assay data and laboratory tests	· The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	· Samples were received, sorted, labelled and dried · Samples were crushed to 70% less than 2mm, riffle split off 250g, pulverize split to better than 85% passing 75 microns and 5g was split of for assaying · The samples were analysed using ALS laboratories ME-MS89L Super Trace method which combines a sodium peroxide fusion with ICP-MS instrumentation utilizing collision/reaction cell technologies to provide the lowest detection limits available. · A prepared sample (0.2g) is added to sodium peroxide flux, mixed well and then fused in at 670°C. The resulting melt is cooled and then dissolved in 30% hydrochloric acid. This solution is then analysed by Inductively Coupled Plasma - Mass Spectrometry and the results are corrected for spectral inter-element interferences. · The final solution is then analysed by ICP-MS, with results corrected for spectral inter-element interferences.
	· For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	· Not used
	· Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	· Standards/blanks and duplicates we inserted on a 1:20 ratio for both to samples taken · Duplicate sample regime is used to monitor sampling methodology and homogeneity. · A powder chip tray for the entire hole is completed for both RC and RAB. A sub-sample is sieved from the large RC bags at site into chip trays over the pegmatite interval to assist in geological logging. These are photographed and kept on the central database · Routine QA/QC controls for the method ME-MS89L include Blanks, certified reference standards of Lithium and duplicate samples. Samples are assayed within runs or batches up to 40 samples. At the fusion stage that quality control samples are included together with the samples so all samples follow the same procedure until the end. Fused and diluted samples are prepared for ICP-MS analysis. ICP instrument is calibrated through appropriate certified standards solutions and interference corrections to achieve strict calibration fitting parameters. Each 40 samples run is assayed with 2 blanks, 2 certified standards and one duplicate samples and results are evaluated accordingly. · A QA/QC review of all information indicated that all assays were inside reasonable tolerance levels.
Verification of sampling and assaying	· The verification of significant intersections by either independent or alternative company personnel.	· All information was internally audited by company personnel
	· The use of twinned holes.	· Several historical holes we twinned for comparison purposes with the modern drilling
	· Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	· Savannah's experienced project geologists supervise all processes. · All field data is entered into a custom log sheet and then into excel spreadsheets (supported by look-up tables) at site and subsequently validated as it is imported into the centralized Access database. · Hard copies of logs, survey and sampling data are stored in the local office and electronic data is stored on the main server.
	· Discuss any adjustment to assay data.	· Results were reported as Li(ppm) and were converted to a percentage by dividing by 10,000 and then to Li₂O% by multiplying by 2.153
Location of data points	· Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. · Specification of the grid system used. · Quality and adequacy of topographic control.	· The coordinate of each drill hole was taken at the time of collecting using a handheld GPS with an accuracy of 5m. · The grid system used is WSG84 · Topographic accuracy was +/- 5m
Data spacing and distribution	· Data spacing for reporting of Exploration Results. · Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. · Whether sample compositing has been applied.	· Drilling was on a nominal 80m by 40m spacing and based on geological targets · Drill data is not currently at sufficient spacing to define a mineral resource. · Some samples were composited on a 4m basis based on geological criteria, these areas were all outside the pegmatite bodies where 1m sampling was completed
Orientation of data in relation to geological structure	· Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. · If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	· Drilling was orientated perpendicular to the known strike of the pegmatites · Drill holes we orientated at either -60 degrees or -90 degrees depending on the dip of the pegmatite in an attempt to get drill holes as close to true width as possible
Sample security	· The measures taken to ensure sample security.	· Samples were delivered to a courier and chain of custody is managed by Savannah.
Audits or reviews	· The results of any audits or reviews of sampling techniques and data.	· Internal company auditing

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

· Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

· The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.

· All work was completed inside the 75% owned Mina do Barroso project C-100

Exploration done by other parties

· Acknowledgment and appraisal of exploration by other parties.

· N/A

Geology

· Deposit type, geological setting and style of mineralisation.

· The lithium mineralization is predominantly in the form of Spodumene-bearing pegmatites which are hosted in meta-pelitic and mica schists, and occasionally carbonate schists of upper Ordovician to lower Devonian age. The pegmatites are unzoned and vary in thickness from 15m-109m. Lithium is present in most aplite compositions.

Drill hole Information

· A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

o dip and azimuth of the hole

o down hole length and interception depth

o hole length.

· If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

· Grid used WSG84

· No material data has been excluded from the release

Hole ID Actual	WGS84_East	WGS84_North	Elevation	Depth (m)	Azimuth	Dip
18GRARC43	601803	4608047	573	72	0	-90
18GRARC44	601895	4608142	562	60	0	-90
18GRARC45	601712	4607960	525	78	0	-90
18GRARC46	601692	4608046	523	99	0	-90
18GRARC47	601852	4608179	544	50	0	-90
18GRARC48	601824	4608135	546	85	0	-90
18GRARC49	601761	4608107	538	58	0	-90
18GRARC50	601724	4608123	494	45	0	-90
18GRARC51	601605	4608028	506	51	0	-90
18GRARC52	601634	4607947	522	48	0	-90
18GRARC53	601697	4607869	543	75	0	-90
18GRARC54	601872	4607857	553	48	0	-90
18GRARC55	601824	4607835	546	50	0	-90
18GRARC56	601833	4608221	550	50	0	-90
18GRARC58	601645	4608208	498	114	0	-90
18ROMRC03	601522	4608281	549	63	0	-90
18ROMRC04	601491	4608398	537	60	0	-90
18ROMRC05	601440	4608336	534	50	0	-90
18PNGRC01	600393	4608874	529	50	0	-90
18PNGRC02	600351	4608898	538	50	0	-90
18PNGRC03	600296	4608888	536	40	0	-90
18PNGRC04	600361	4608917	536	50	0	-90
18PNGRC05	600319	4608924	528	40	0	-90
18PNGRC06	600322	4608955	505	40	232	-60
18CAMRC01	601014	4608562	550	50	162	-60
18CAMRC02	600952	4608410	558	50	156	-60
18CAMRC03	600894	4608435	540	45	172	-60
18GRARC62	601717	4607853	541	90	0	-90
18GRARC63	601664	4607904	559	95	0	-90
18GRARC64	601663	4607847	539	120	0	-90
18GRARC65	601788	4607823	552	110	0	-90

Data aggregation methods

· In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

· Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

· The assumptions used for any reporting of metal equivalent values should be clearly stated.

· Low Grade Intercepts are weighted averages using a 0.2% Li₂O cut off with no more than 3m of internal dilution

· High Grade Intercepts are weighted averages using a 0.5% Li₂O cut off with no more than 2m of internal dilution

· Narrow zones of schist (less than 5m) have been included in the significant intercepts where they are mineralised

Relationship between mineralisation widths and intercept lengths

· These relationships are particularly important in the reporting of Exploration Results.

· If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

· If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').

· Exploration results are reported as down hole intercepts

· No metal equivalent values have been used.

· The drill holes are detailed in the table in the main release and the pegmatite at Reservatorio appears to dip at around 40degrees to the north west and at Grandao it is sub horizontal

Diagrams

· Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

· Relevant diagrams and maps have been included in the main body of the release.

Balanced reporting

· Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

· All relevant results available have been reported.

Other substantive exploration data

· Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

· The interpretation of the results is consistent with the observations and information obtained from the data collected.

Further work

· The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).

· Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

· Further rock chip sampling, channel sampling and RC drilling. Once planning has been completed the detail will be provided

This information is provided by RNS

The company news service from the London Stock Exchange

END

DRLZMGGDVDRGRZM

RNS metadata

Title: High Grade Lithium Discovered, Portugal
Time: 08:00:02
Date: 5 Apr 2018
Category: Corporate updates
ID: 8680J