Savannah Resources Share News (SAV)

(Sharecast News) - Savannah Resources announced on Wednesday that it was adding to its wholly-owned Mina do Barroso Lithium Project portfolio in northern Portugal, with the exercise of the Aldeia option to acquire the Aldeia Mining Lease application areas.The AIM-traded firm confirmed it had exercised the acquisition option over the 2.94 square kilometre Aldeia Mining Lease application areas, following "excellent" drilling results to date and the declaration of a maiden JORC resource.It said the Aldeia mining lease application consisted of three blocks - A, B and C - located adjacent to Mina do Barroso.A maiden JORC mineral resource estimate of 3.5Mt at 1.3% lithium oxide was published for one deposit on Block A in May, which confirmed that a "significant, well mineralised" pegmatite body was present.Savannah said the resource also confirmed that the deposit remained open to further resource extension, and that there was the potential for further mineralised pegmatites within the vicinity of the main Aldeia pegmatite.Further evaluation work was planned on the remaining blocks, all of which Savannah said were prospective for pegmatite-hosted lithium mineralisation.The acquisition was to be made using a long-term, staged payment structure, starting once the mining lease application had been granted and the transfer of the mining rights to a Savannah nominee was approved."Our decision to exercise the option granted by Aldeia over the three blocks which make up the mining lease application follows the excellent exploration results recorded to date and the maiden JORC mineral resource estimate made on one pegmatite deposit situated in Block A," said Savannah chief executive officer David Archer."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."Archer said the company believed that the addition of the Aldeia blocks to its portfolio of lithium assets would both benefit and complement the Mina do Barroso Lithium Project by providing an increased lithium oxide resource inventory, as well as offering more flexibility in locating the project's surface infrastructure."Our Portuguese operations will provide the lithium raw material required for the significant market demand predicted to develop in Europe over the next decade."Following our increase of the mineral resources, resulting in the potential for an increase to the life of mine of the project, Savannah's spodumene lithium production will be key to groups interested in securing lithium chemicals in Europe, which is a high priority for the EU and highlights Savannah's potential role in the development of Western Europe's nascent lithium supply chain."Global lithium production deficits will likely drive lithium prices higher in the next few years and will provide an excellent industry setting for Savannah."