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(Alliance News) - Savannah Resources PLC said Wednesday it has added to its Mina do Barroso lithium project in northern Portugal by exercising an option to acquire a nearby mining lease.
The mining lease, acquired from Aldeia & Irmao SA, adds 2.9 square kilometres to the project. A maiden JORC mineral resource estimate for the area's three blocks estimates 3.5 million tonnes at 1.3% lithium oxide.
Savannah said the mineral estimate confirms a "significant, well mineralised" pegmatite body is present. The company added that the deposit remains open to further resource extension.
"Following the recent acquisition of the minority 25% shareholding in Mina do Barroso, our decision to now acquire the adjacent Aldeia blocks further demonstrates Savannah's intention to secure and develop a strategically significant, long life, spodumene lithium operation in northern Portugal," said Chief Executive David Archer.
"We believe the addition of the Aldeia blocks to our portfolio of lithium assets will both benefit and complement the Mina do Barroso lithium project by providing an increased lithium oxide resource inventory, as well offering more flexibility in locating the project's surface infrastructure."
Archer said the company will pay for the acquisition - whose price it didn't disclose - via instalments over a six-year period.
"We are very pleased with our decision to exercise our option to acquire Aldeia and firmly believe it will be pivotal in Savannah's journey towards expanding our mine life and firmly embedding ourselves at the heart of the lithium raw material market with a high grade and reliable product," the CEO added.
Shares in Savannah Resources were 2.9% higher Wednesday in London at 5.04 pence each.