(Alliance News) - Savannah Resources PLC on Wednesday unveiled a maiden resource for products other than lithium at the Mina do Barroso project in Portugal.
The co-product resource is 14.4 million tonnes of ore, containing of 4.8 million tonnes of quartz and 6.1 million tonnes of feldspar. Mina do Barroso already holds a lithium resource estimate of 27 million tonnes at 1.1% lithium oxide.
The co-products can be used in industries such as glass-making and ceramics, Savannah said, generating "significant" extra income for the company.
Chief Executive David Archer commented: "Today's mineral resource estimate for co-products is another important milestone achievement for Savannah and further enhances the commercial appeal and robustness of the Mina do Barroso lithium project, which is leading the way as Europe's most immediate producer of high quality, lithium feedstocks and has the ability to anchor the fast growing battery and Electric Vehicle industries of the continent with a supply of this strategic battery metal.
"The co-products will be produced in a region where quarrying of feldspar and quartz is a traditional industry supplying vibrant ceramic and glass industries locally, nationally and more widely in the EU," Archer continued.
"They will not only help our bottom line but will help to reduce the volumes of materials that will need to be emplaced as waste on site thereby reducing our environmental footprint and costs. Discussions are underway with potential offtake and joint venture partners to advance the co-product opportunity."
Savannah shares were 1.3% higher on Wednesday afternoon in London at 1.98 pence each.
By George Collard; georgecollard@alliancenews.com
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Savannah Resources (SAV)