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LONDON (Alliance News) - Savannah Resources PLC sees room for further expansion of the mineral resource at Mina do Barroso, following a 15% upgrade, it said Friday.
The new resource at the Portuguese lithium mine is 27 million tonnes at a grade of 1.1% lithium oxide, containing 285,900 tonnes of lithium oxide.
Savannah has established a maiden indicated and inferred resource for the Aldeia deposit at Mina do Barroso, standing at 3.5 million tonnes at 1.3% lithium oxide.
Current indications, the firm said, suggest "significant" increases are achievable after further exploration work.
Chief Executive David Archer said: "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 EUR250 billion annually.
"Mina do Barroso has the potential to supply around 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 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," Archer continued.
"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."
Shares were 0.6% higher on Friday at a price of 4.98 pence each.
