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Portugal Update - Mineral Resource Increase

RNS Announcement

RNS Number : 6770A

Savannah Resources PLC

31 May 2019

Savannah Resources Plc

Mineral Resource Increase to 27Mt

with Significant Scope for Further Expansion of Overall Resource at

Mina do Barroso Lithium Project

Highlights

· Continued resource expansion at Mina do Barroso confirming its position as Western Europe's most significant spodumene lithium mineral resource

· ~15% increase in overall Mineral Resource Estimate which now stands at 27Mt at 1.06% Li₂O for 285,900t of contained Li₂O

· Maiden Indicated and Inferred Mineral Resource established at Aldeia of 3.5Mt at 1.3% Li₂O

· Aldeia resource over 25% higher in overall grade than other deposits previously defined at Mina do Barroso

· Ongoing metallurgical and economic evaluations

· Upgraded Exploration Target* for Mina do Barroso, now calculated at 11-19Mt at 1.0-1.2% Li₂O, giving a potential project mineral inventory range of 38 - 47Mt

· Current indications suggest that significant increases to total resources are achievable with further exploration

*Cautionary Statement: The potential quantity and grade of the Exploration Targets is conceptual in nature, there has been insufficient exploration work to estimate a mineral resource and it is uncertain if further exploration will result in defining a mineral resource.

Savannah Resources plc (AIM: SAV, FWB: SAV and SWB: SAV) ('Savannah' or the 'Company'), the resource development company, is pleased to announce a significant increase in the JORC (2012) Compliant Measured, Indicated and Inferred Mineral Resource Estimate, with an additional upgrade in Exploration Target at the Company's flagship asset, the Mina do Barroso Lithium Project ('Mina do Barroso' or the 'Project'), located in northern Portugal (Figure 1 and Table 1-2).

To view the press release with the illustrative maps and diagrams please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/6770A_1-2019-5-30.pdf

Savannah's CEO, David Archer said: "We continue to be encouraged by our extensive resource drilling programme which is increasing the mine life of the Project, in addition to providing an inventory of higher-grade material. This 15% increase in overall Mineral Resource Estimate to 27Mt at 1.06% Li₂O for 285,900t of contained Li₂O represents the fifth major mineral resource increase in just 15 months at Mina do Barroso.

"With the Project's development and commissioning targeted for next year, Mina do Barroso is moving closer to meeting its objective of becoming a key strategic supplier of lithium spodumene for the fast-growing European lithium ion battery and electric vehicle industries - by the year 2025, European lithium ion batteries are expected to represent a market worth €250bn annually. Mina do Barroso has the potential to supply c.40% of the forecast lithium demand from Europe's automotive industry in 2025, and this latest resource and exploration target upgrade supports this potential.

"It is evident that Mina do Barroso could support the development of a mineral conversion plant with the required tonnages of the lithium raw material inputs of spodumene concentrates to act as a base load for a major lithium hydroxide production plant and a new industry for Portugal. Through the ongoing work and development programme we are gaining a firmer understanding of Mina do Barroso's outstanding potential. As we continue to make progress on site, I look forward to updating shareholders with all key developments."

Savannah's corporate presentation, published on the Company's website earlier this month, has been updated to incorporate the updated Mineral Resource Estimate figures.

Figure 1. Mina do Barroso Project Summary Map showing key deposits and drilling completed to date

Mineral Resource Summary

Table 1. Updated Mineral Resource Estimation Summary

Deposit	Resource Class	Tonnes	Li₂O	Fe₂O₃	Li₂O
Deposit	Resource Class	Mt	%	%	Tonnes
All Deposits	Measured	6.6	1.1	0.7	71,600
	Indicated	8.4	1.0	0.7	86,700
	Inferred	12.0	1.1	0.9	127,600
	Total	27.0	1.06	0.8	285,900

*Rounding discrepancies may occur

Table 2. Exploration Target Summary

Deposit	Tonnage Range (Mt)		Li₂O %
Deposit	Lower	Upper	Li₂O %
Reservatorio	5.0	7.0	1.0-1.2%
Grandao	4.0	8.0	1.0-1.2%
Aldeia	2.0	4.0	1.0-1.3%
Total Mina do Barroso Exploration Target	11.0	19.0	1.0-1.2%

Mineral Resource Estimate

A Mineral Resource Estimate for the Aldeia Lithium Deposit has been prepared by Payne Geological Services Pty Ltd, ('Payne Geological Services') an external and independent mining consultancy - http://www.paynegeo.com.au/paul-payne. The Deposit forms part of Savannah's Mina do Barroso Lithium Project, located in northern Portugal. The Mineral Resource Estimates for the Aldeia Deposit and other deposits at the project have been classified as Measured, Indicated and Inferred Mineral Resource in accordance with the JORC Code, 2012 Edition and are summarised in Table 3 and Appendix 1.

Table 3. May 2019 Mineral Resource Summary (0.5% Li₂O cut-off)

Deposit	Resource Classification	Tonnes	Li₂O	Fe₂O₃	Li₂O
Deposit	Resource Classification	Mt	%	%	Tonnes
Grandao	Measured	6.6	1.1	0.7	71,600
	Indicated	6.4	1.0	0.8	61,300
	Inferred	4.8	1.0	0.7	48,900
	Total	17.7	1.04	0.7	181,800
Reservatorio	Measured
	Indicated
	Inferred	3.2	1.0	1.4	32,000
	Total	3.2	1.0	1.4	32,000
Pinheiro	Measured
	Indicated
	Inferred	2.0	1.0	0.7	20,000
	Total	2.0	1.0	0.7	20,000
NOA	Measured
	Indicated	0.4	1.2	0.8	4,200
	Inferred	0.3	1.0	0.9	2,900
	Total	0.6	1.1	0.9	7,100
Aldeia	Measured
	Indicated	1.6	1.3	0.5	21,300
	Inferred	1.8	1.3	0.4	23,700
	Total	3.5	1.3	0.4	45,000
All Deposits	Measured	6.6	1.1	0.7	71,600
	Indicated	8.4	1.0	0.7	86,700
	Inferred	12.0	1.1	0.9	127,600
	Total	27.0	1.06	0.8	285,900

*Rounding discrepancies may occur

Aldeia Mineral Resource Estimate

The Aldeia Deposit comprises one main pegmatite and several minor parallel pegmatite bodies striking broadly NS and dipping at 35^o to the west. The orientation and extent of the pegmatites have been sufficiently defined by drilling for resource estimation. The pegmatites have been defined over a strike of 250m and a dip extent of 340m with a typical thickness of 15m-30m. The pegmatite mineralisation is predominantly fresh with a shallow weathering profile affecting the material 10-20m below surface. The main pegmatite zone remains open along strike to the north and down dip. (Figures 2 to 4).

Figure 2. Aldeia pegmatite and drilling (looking north)

Figure 3. Aldeia Cross Section (Southernmost Oblique Section) (looking NE)

The Aldeia Mineral Resource Estimate is based on results from 18 reverse circulation ("RC") drill holes, 5 diamond holes and 6 RC holes with diamond tails. All holes were completed by Savannah in 2019 and the main modeled pegmatite zone remains open along strike to the north and down dip.

Figure 4. Aldeia Resource Model coloured by Li₂O content (looking North)

Geology

At Mina do Barroso, lithium mineralisation occurs predominantly in the form of spodumene-bearing pegmatites, which are hosted in metapelitic and mica schists, and occasionally carbonate schists of upper Ordovician to lower Devonian age.

The Aldeia deposit is contained largely within a single moderately west dipping tabular body defined over an area of 250m north-south with a dip extent of 340m. The body appears to bifurcate and varies in thickness from 10m-45m and is typically mineralised across the full width. The main pegmatite extends to surface and is visible in outcrop over a portion of the deposit. The pegmatite is also exposed in a small quarry in the central portion of the resource where the geometry of the main pegmatite is visible. (Figure 5). A number of minor pegmatites are also defined at the deposit.

Figure 5. Aldeia Geological Model and Mapped Pegmatites

At the Project, lithium is present in most pegmatite compositions and laboratory test work confirms that the lithium is almost exclusively within spodumene. Limited lithium grade zonation occurs within the Aldeia pegmatites. Minor xenoliths and inliers of schist are observed within the pegmatite.

The weathering profile comprises a shallow, surficial zone of weak to moderate oxidation, particularly of the schistose country rock with moderate oxidation to a depth of up to 20m.

Drilling

The deposit is defined by a total of 18 RC drill holes, 5 diamond holes and 6 RC holes with diamond tails. All holes were completed by Savannah in 2019. The holes were drilled on an approximate grid spacing of 20m-40m holes on 60m to 80m spaced cross sections.

The majority of holes are vertical, however a small number of east dipping and west dipping holes were completed.

Drill collar locations are recorded in Universal Traverse Mercator ("UTM") coordinates using differential GPS. All Savannah drilling has been down-hole surveyed using a gyroscopic tool.

Sampling and Sub-Sampling Techniques

For the Savannah RC drilling, a face-sampling hammer was used with samples collected at 1m intervals from pegmatite zones and the surrounding 5m either side of the pegmatite. The rest of the schist remains unsampled. The 1m samples were collected through a rig-mounted splitter and were 4kg-6kg in weight. Samples were weighed to assess the sample recovery which was determined to be satisfactory.

Core was HQ in size and sampled to geological boundaries. Core was cut using a diamond saw, and half core was collected for assay.

Sample Analysis Method

For all Savannah drilling, whole samples were crushed then riffle split to produce a 250g split for pulverising and analysis.

The samples were analysed using ALS laboratories ME-MS89L Super Trace method which combines a sodium peroxide fusion with ICP-MS analysis and a multi-element suite was analysed.

Quality Assurance/Quality Control, ("QAQC") protocols were in place for the drilling programmes and included the use of blanks, standards and field duplicates. The data has confirmed the quality of the sampling and assaying for use in Mineral Resource estimation.

Estimation Methodology

For the Aldeia Mineral Resource Estimate, a Surpac block model was constructed with block sizes of 20m (EW) by 20m (NS) by 5m (elevation) with sub-celling to 5m by 5m by 1.25m.

Interpretation of the pegmatite dykes was completed using detailed geological logging and Fe geochemistry. Wireframes of the pegmatites were prepared and within those the sample data was extracted and analysed. A clear break in the grade distribution occurs at 0.5% Li₂O and this grade threshold was used to prepare the internal grade domains for estimation.

Sample data was composited into 1m intervals then block model grades estimated using inverse distance squared ("ID2") grade interpolation due to the small number of drill holes and limited extent of mineralisation. A first pass search range of 70m was used and oriented to match the dip and strike of the mineralisation. A minimum of 10 samples and a maximum of 24 samples were used to estimate each block. The majority of the Mineral Resource Estimate (91%) was completed in the first pass with expanded search radii of 140m used for the blocks not estimated in the first pass. No extreme high grades were present in the Li₂O and Fe data, and the coefficient of variation ("CV") of less than 1 for all elements suggested that high grade cuts were not required. However, a small number of outliers of Ta were present at Aldeia and a high grade cut of 100ppm was applied to all Ta values.

Iron contamination via abrasion of RC drilling equipment and/or sample preparation equipment is a recognized problem when evaluating lithium deposits. To test the potential for iron contamination at the Mina do Barroso project, the Company carried out a preliminary program of check assays and a series of comparisons were undertaken on samples from the Grandao deposit.

It was concluded from the Grandao study that a significant proportion of the iron being reported in the drilling assay data was introduced as contamination during the sample preparation process. It was determined that the amount of contamination was proportional to the lithium content of the samples. A regression formula was calculated using all samples, with the derived regression formula being:

Fe_contamination = (0.1734 * Li₂O grade) + 0.2308.

The amount of Fe contamination was determined using the derived regression formula. A new field "Fe_factored" was inserted into the drill hole database, and the original Fe value minus the calculated contamination was stored in that field. This allowed a "Fe_factored" value to be extracted from the database and used for grade estimation in the Mineral Resource for all of the deposits.

Bulk density determinations using the immersion method were carried out on 280 half core samples from the Aldeia pegmatite. Results from these tests were consistent with those from the extensive density data throughout the project. Values applied to the Aldeia estimate were 2.5t/m³ for oxide lithologies, 2.65t/m³ for unoxidised pegmatite and 2.67t/m³ for unoxidised schist.

Mineral Resource Classification

The Mineral Resource Estimate was classified in accordance with the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves JORC, (2012).

Mineral Resource classification was considered on the basis of drill hole spacing, continuity of mineralisation and data quality. Accurate drill hole collar and topographic surveys have been obtained for the deposit, so the spatial location of data and topography has a high level of confidence. The quality of the drilling and assaying has been confirmed through independent verification of procedures and through a satisfactory QAQC protocol.

The continuity of the Aldeia pegmatite is well defined within the upper portion of the deposit. Drilling is typically at spacings of 20m to 40m on cross sections and the geometry of the zone is consistent. This portion of the deposit has been classified as Indicated Mineral Resource.

The lower portion of the deposit has been drilled with holes at spacings of 40m or greater. The pegmatite at depth is interpreted to form large splays or parallel intrusions but the geometry is not confidently defined. Consequently, the lower portion of the deposit has been classified as Inferred Mineral Resource.

Cut-off Grades

The shallow nature of the main Aldeia pegmatite suggests good potential for open pit mining if sufficient resources can be delineated to consider a mining operation. As such, the Mineral Resource Estimate has been reported at a 0.5% Li₂O lower cut-off grade to reflect assumed exploitation by low-cost mining methods.

Metallurgy

Metallurgical test work has been conducted by Savannah on representative mineralisation at Mina do Barroso. The work was completed by Nagrom Metallurgical in Australia and confirmed that high-grade lithium, low-grade iron concentrate can be generated from the mineralisation using conventional processing technology. Although no samples from the Aldeia deposit have been tested, initial assessments of the mineralogy and chemistry suggest mineralisation is broadly similar to other deposits at Mina do Barroso. Samples have been collected from the Aldeia deposit are currently being tested to determine their exact processing requirement.

Modifying Factors

No modifying factors were applied to the reported Mineral Resource Estimate. Parameters reflecting mining dilution, ore loss and metallurgical recoveries will be considered during the any future mining evaluation of the Project.

Aldeia Exploration Target*

The Aldeia Mineral Resource was modelled and estimated for the full extent of the drilling and the Inferred Mineral Resource Estimate was extended between 40m and 100m down dip from the deepest drill holes.

At present, Savannah has seen no information to suggest that the pegmatite and lithium mineralisation does not continue down dip and along strike to the north with the same characteristics and grade as the drilled portion. Faulting is interpreted by Savannah to offset the mineralisation on the south western limit of the deposit.

As a result, it is considered that good potential exists to at least double the extent of the deposit with further drilling down dip and to the north. The grade of any additional mineralisation defined at Aldeia is expected to be consistent with the other deposits delineated at the Project. This represents an Exploration Target of 2Mt to 4Mt at a grade of 1.0% to 1.3%.

Aldeia Licence Area

On 25 September 2018 Savannah announced that it had acquired an option to acquire the adjacent Aldeia tenement blocks (to Mina do Barroso) which are currently subject to a separate Mining Lease application.

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 Limited. 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.

The Information in this report that relates to Mineral Resources is based on information compiled by Mr Paul Payne, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Payne is a full-time employee of Payne Geological Services. Mr Payne has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Payne consents to the inclusion in the report of the matters based on his 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 / Charlie Bouverat (Nominated Adviser)	SP Angel Corporate Finance LLP	Tel: +44 20 3470 0470
Christopher Raggett (Broker)	finnCap Ltd	Tel: +44 20 7220 0500
Grant Barker (Equity Adviser)	Whitman Howard	Tel: +44 20 7659 1225
Melissa Hancock / Cosima Akerman (Financial PR)	St Brides Partners Ltd	Tel: +44 20 7236 1177

About Savannah

Savannah is 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. The Board is committed to serving the interests of its shareholders and to delivering outcomes that will improve the lives of the communities we work with and our staff.

The Company is listed and regulated on AIM and the Company's ordinary shares are also available on the Quotation Board of the Frankfurt Stock Exchange (FWB) under the symbol FWB: SAV, and the Börse Stuttgart (SWB) under the ticker "SAV".

Appendix 1: Detailed Mineral Resource Tables

Aldeia April 2019 - Total Mineral Resource
0.5% Li₂O Cut-off
	Transitional				Fresh				Total
Bench	Tonnes	Li₂O	Ta₂O₅	Fe₂O₃	Tonnes	Li₂O	Ta₂O₅	Fe₂O₃	Tonnes	Li₂O	Ta₂O₅	Fe₂O₃
Top RL	t	%	ppm	%	t	%	ppm	%	t	%	ppm	%
620	2,600	1.06	29	0.8	11,000	1.08	29	0.9	13,000	1.08	29	0.9
610					38,000	1.1	30	0.8	38,000	1.12	30	0.8
600	200	1.14	28	0.8	70,000	1.2	30	0.6	70,000	1.17	30	0.6
590	300	1.27	34	0.4	94,000	1.2	30	0.6	94,000	1.19	30	0.6
580	200	1.13	21	0.5	140,000	1.2	31	0.5	141,000	1.22	31	0.5
570					172,000	1.3	33	0.5	172,000	1.27	33	0.5
560					160,000	1.3	34	0.5	160,000	1.32	34	0.5
550					183,000	1.3	30	0.5	183,000	1.28	30	0.5
540					218,000	1.2	26	0.5	218,000	1.21	26	0.5
530					247,000	1.2	24	0.5	247,000	1.20	24	0.5
520					261,000	1.2	23	0.5	261,000	1.25	23	0.5
510					259,000	1.3	21	0.5	259,000	1.32	21	0.5
500					229,000	1.3	18	0.5	229,000	1.32	18	0.5
490					198,000	1.3	17	0.5	198,000	1.35	17	0.5
480					180,000	1.4	19	0.3	180,000	1.42	19	0.3
470					178,000	1.4	20	0.3	178,000	1.45	20	0.3
460					177,000	1.4	22	0.2	177,000	1.41	22	0.2
450					173,000	1.4	24	0.2	173,000	1.38	24	0.2
440					165,000	1.3	27	0.2	165,000	1.32	27	0.2
430					143,000	1.3	28	0.2	143,000	1.28	28	0.2
420					101,000	1.2	29	0.2	101,000	1.23	29	0.2
410					51,000	1.2	27	0.2	51,000	1.23	27	0.2
400					17,000	1.3	27	0.2	17,000	1.29	27	0.2
390					2,000	1.2	26	0.2	2,000	1.19	26	0.2
Total	3,400	1.09	29	0.8	3,466,000	1.3	25	0.4	3,469,000	1.30	25	0.4

APPENDIX 2 - JORC 2012 Table 1 - Aldeia

JORC Table 1 Section 1 Sampling Techniques and Data

Criteria	JORC Code Explanation	Commentary
Sampling techniques	· Nature and quality of sampling (eg 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. · Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. · 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 (eg '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 (eg submarine nodules) may warrant disclosure of detailed information.	· The majority of holes were reverse circulation, sampled at 1m intervals. RC samples were collected in large plastic bags from an onboard rig splitter and a 4-6kg representative sample taken for analysis. · A number of diamond holes were also completed. Core was HQ size, sampled at 1m intervals in the pegmatite, with boundaries sampled to geological boundaries. Half core samples were collected for analysis. · Drilling was on a nominal 40m spacing on 80m spaced cross sections with selected infill to 20m spacings. · The majority of holes were vertical, with some angled to the east and west to minimise pad preparation. · Collar surveys are carried using differential GPS with an accuracy to within 0.2m. · A down hole survey for each hole was completed using gyro equipment. · The lithium mineralisation is predominantly in the form of Spodumene-bearing pegmatites, the pegmatites are unzoned and vary in thickness from 10m-45m.
Drilling techniques	· Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg 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 used a 120mm bit diameter. · Core drilling was carried out using an HQ wireline tube core barrel.
Drill sample recovery	· Method of recording and assessing core and chip sample recoveries and results assessed. · Measures taken to maximise sample recovery and ensure representative nature of the samples. · 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.	· RC drilling sample weights were monitored to ensure samples were maximised. 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. · Core recovery was measured and was found to be generally excellent. · No obvious relationships between sample recovery and grade.
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. Core was logged in detail in a logging yard. · Each 1m sample interval was carefully homogenised and assessed for lithology, colour, grainsize, structure and mineralisation. · 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. · Core 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. · For all sample types, the nature, quality and appropriateness of the sample preparation technique. · Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. · 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. · Whether sample sizes are appropriate to the grain size of the material being sampled.	· 1m RC samples were split by the riffle splitter on the drill rig and sampled dry. · Core was cut in half using a diamond saw with 1m half core samples submitted for analysis. · The sampling was conducted using industry standard techniques and were considered appropriate. · Field duplicates were used to test repeatability of the sub-sampling and were found to be satisfactory. · Every effort was made to ensure that the samples were representative and not biased in any way.
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. · 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. · Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	· Samples were received, sorted, labelled and dried. · Samples were crushed to 70% less than 2mm, riffle split off 250g, pulverise 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 utilising 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 ICP-MS 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. · Standards/blanks and duplicates were inserted on a 1:20 ratio. · Duplicate sample regime is used to monitor sampling methodology and homogeneity. · 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 sample run is assayed with two blanks, two certified standards and one duplicate sample and results are evaluated accordingly. · A QA/QC review of all information indicated that all assays were satisfactory.
Verification of sampling and assaying	· The verification of significant intersections by either independent or alternative company personnel. · The use of twinned holes. · Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. · Discuss any adjustment to assay data.	· All information was internally audited by company personnel. · Savannah's experienced project geologists supervised 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 centralised 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. · 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. All collars were subsequently surveyed using DGPS with an accuracy of 0.2m. · The grid system used is WSG84. · Topographic control was based on surveyed drill hole collars and is adequate for this stage of the evaluation.
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 40m spacing on 80m spaced cross sections with selected infill to 20m spacings. · Drill data is at sufficient spacing to define Indicated and Inferred Mineral Resource. · Compositing to 1m has been applied prior to resource estimation.
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 generally vertical and intersected the gently dipping deposit at close to orthogonal to the known dip of the main pegmatite. A number of angled holes were completed to minimise pad requirements. · Intersections were close to true width for the main pegmatite. In the few west dipping holes, the true thickness is approximately half of the down hole thickness · No orientation-based sampling bias has been identified in the data.
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 and a review by PayneGeo during the April 2018 site visit found that all data collection and QA/QC procedures were conducted to industry standards.

JORC Table 1 Section 2 Reporting of Exploration Results

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 Aldeia Block A licence which forms part of the Aldeia option agreement.
Exploration done by other parties	· Acknowledgment and appraisal of exploration by other parties.	· Limited exploration work has been carried out by previous operators. · No historic information has been included in the Mineral Resource estimates.
Geology	· Deposit type, geological setting and style of mineralisation.	· The lithium mineralisation 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 vary in thickness from 15m-45m.
Drill hole information	· A summary of all information material to the under-standing of the exploration results including a tabulation of the following information for all Material drill holes: · easting and northing of the drill hole collar · elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar · dip and azimuth of the hole · down hole length and interception depth · 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. · Drill hole intersections used in the resource have been previously reported.
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.	· Length weighted average grades have been reported. · No high-grade cuts have been applied to reported grades. · Metal equivalent values are not being reported.
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').	· The majority of holes have been drilled at angles to intersect the mineralisation approximately perpendicular to the orientation of the mineralised trend.
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.	· A relevant plan showing the drilling is included within this release.
Balanced Reporting	· 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. · 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 previously 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.	· Geological mapping and rock chip sampling has been conducted over the project area.
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 RC and DD drilling to test for further extensions and to increase confidence. · Economic evaluation of the defined Mineral Resources.

JORC Table 1 Section 3 Estimation and Reporting of Mineral Resources

Criteria	JORC Code explanation	Commentary
Database integrity	· Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes. · Data validation procedures used.	· The assay data was captured electronically to prevent transcription errors. · Validation included visual review of results.
Site visits	· Comment on any site visits undertaken by the Competent Person and the outcome of those visits. · If no site visits have been undertaken indicate why this is the case.	· Numerous site visits were undertaken by Dale Ferguson in 2017 which included an inspection of the drilling process, outcrop area and confirmation that no obvious impediments to future exploration or development were present. · A site visit by Paul Payne was undertaken in April 2018 to confirm geological interpretations, drilling and sampling procedures and general site layout.
Geological interpretation	· Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit. · Nature of the data used and of any assumptions made. · The effect, if any, of alternative interpretations on Mineral Resource estimation. · The use of geology in guiding and controlling Mineral Resource estimation. · The factors affecting continuity both of grade and geology.	· The pegmatite dykes hosting the Aldeia mineralisation are well defined in drilling and boundaries are generally very sharp and distinct. · The shape and extent of the >0.5% Li₂O mineralisation is clearly controlled by the general geometry of the pegmatites. · No zonation of lithium within the pegmatite is evident, and typically the pegmatite is mineralised across the entire width. · Xenoliths or inliers of barren schist country rock occur within the pegmatite, and these have been excluded from the estimate where large enough to model.
Dimensions	· The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.	· The Aldeia main pegmatite has a drilled extent of 250m NS and 340m down dip and has a maximum vertical depth of 200m. The thickness of the mineralisation ranges from 10m to 60m.
Estimation and modelling techniques	· The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used. · The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data. · The assumptions made regarding recovery of by-products. · Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation). · In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed. · Any assumptions behind modelling of selective mining units. · Any assumptions about correlation between variables. · Description of how the geological interpretation was used to control the resource estimates. · Discussion of basis for using or not using grade cutting or capping. · The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.	· Inverse distance squared interpolation was used to estimate block grades within the resource. · Surpac software was used for the estimation. · Samples were composited to 1m intervals to match the sample lengths. Due to the extremely low CV of the data no high grade cuts were applied to Li₂O in the estimate. A cut of 100ppm was applied to Ta values. · At Aldeia the parent block dimensions were 20m EW by 20m NS by 5m vertical with sub-cells of 5m by 5m by 2.5m. · There have been no previous estimates for the deposit. · No assumptions have been made regarding recovery of by-products. · The grade of Fe₂O₃ was estimated for the deposit, using factored Fe data to eliminate Fe introduced in the sample preparation stage. The with a mean grade of Fe₂O₃ was determined to be 0.4%. · An orientated ellipsoid search was used to select data and was based on drill hole spacing and the geometry of the pegmatite dyke. · A search of 70m was used with a minimum of 10 samples and a maximum of 24 samples which resulted in 91% of blocks being estimated. The remaining blocks were estimated with search radii of 140m. · Selective mining units were not modelled in the Mineral Resource model. The block size used in the model was based on drill sample spacing and deposit geometry. · The deposit mineralisation was constrained by wireframes prepared using a 0.5% Li₂O grade envelope. · For validation, quantitative spatial comparison of block grades to assay grades was carried out using swath plots. · Global comparisons of drill hole and block model grades were also carried out.
Moisture	· Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.	· Tonnages and grades were estimated on a dry in situ basis. No moisture values were reviewed.
Cut-off parameters	· The basis of the adopted cut-off grade(s) or quality parameters applied.	· The shallow, outcropping nature of the deposit and in particular the flat lying, shallow geometry suggests good potential for open pit mining if sufficient resources can be delineated to consider a mining operation. As such, the Mineral Resource has been reported at a 0.5% Li₂O lower cut-off grade to reflect assumed exploitation by open pit mining.
Mining factors or assumptions	· Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.	· Based on comparison with other similar deposits, the Mineral Resource is considered to have sufficient grade and metallurgical characteristics for economic treatment if an operation is established at the site. · No mining parameters or modifying factors have been applied to the Mineral Resource.
Metallurgical factors or assumptions	· The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.	· Metallurgical test work has been conducted by Savannah on representative mineralisation at the project. The work was completed by Nagrom Metallurgical in Australia and confirmed that high grade lithium, low grade iron concentrate can be generated from the mineralisation using conventional processing technology. Microscopy confirmed that the concentrate was almost entirely spodumene. · No test work has been completed on the Aldeia mineralisation however it is assumed to have the same metallurgical response as the other spodumene pegmatites at the project.
Environmental factors or assumptions	· Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.	· The area is not known to be environmentally sensitive and there is no reason to think that proposals for development including the dumping of waste would not be approved if planning and permitting guidelines are followed.
Bulk density	· Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples. · The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit. · Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.	· Bulk density determinations were carried out on 280 pegmatite core samples. Bulk density values applied to the estimates were 2.5t/m³ for transitional lithologies, 2.65t/m³ for unoxidised pegmatite and 2.67t/m³ for unoxidised schist.
Classification	· The basis for the classification of the Mineral Resources into varying confidence categories. · Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data). · Whether the result appropriately reflects the Competent Person's view of the deposit.	· The Mineral Resources was classified in accordance with the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC, 2012). · The portion of the deposit showing consistent geometry defined by 20m to 40m spaced holes on 60m to 80m spaced cross sections by 40m to 80m by 80m drilling has been reported as Indicated Mineral Resource. · The remainder of the Mineral Resource was classified as Inferred due the sparse drilling and the uncertain geometry of the pegmatite. Inferred Mineral Resource was extrapolated up to 100m past drill hole intersections. · The results reflect the view of the Competent Person.
Audits or reviews	· The results of any audits or reviews of Mineral Resource estimates.	· The Mineral Resource estimate has been checked by an internal audit procedure.
Discussion of relative accuracy/ confidence	· Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate. · The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. · These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.	· The estimate utilised good estimation practices, high quality drilling, sampling and assay data. The extent and dimensions of the mineralisation are sufficiently defined by outcrop and the drilling. The deposit is considered to have been estimated with a high level of accuracy. · The Mineral Resource statement relates to global estimates of tonnes and grade. · There is no historic production data to compare with the Mineral Resource.

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RNS metadata

Title: Portugal Update - Mineral Resource Increase
Time: 08:00:03
Date: 31 May 2019
Category: Corporate updates
ID: 6770A