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LONDON (Alliance News) - Savannah Resources PLC said Tuesday it has secured a purchase option for an area of "excellent" possible lithium next to its existing Mina do Barroso project.
Savannah now has an option to buy the 2.9 square kilometre Aldeia mining lease application in Portugal.
This follows, it said, technical and legal studies by the company where it found a maximum result of a 1.5% lithium oxide grade from rock chip sampling.
The geometry and characteristics of the body targeted, Savannah continued, appear to be similar to the 16.4 million tonne Grandao deposit on Mina do Barroso.
Chief Executive David Archer said: "Our technical due diligence has highlighted the lithium prospectivity of three blocks. The blocks are highly accretive to our Mina do Barroso project, bringing the potential for further lithium resources and extra area for mine infrastructure.
"This new ground further strengthens an already highly attractive mine development project, which we believe has the potential to be Western Europe's largest, near term producer of spodumene lithium."
Shares were 2.3% higher Tuesday at 8.03 pence each.