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And bear in mind that any new Lithium brine resources will take a whole lot longer to come into production.
Loan sorted 😋
Quoted 6.2p for 250k
Tempted but who knows what sellers are lurking still.
Spodumene stores to a large extent near the surface, not more than 120 meters deep. It is planned to crush the rock on site and increase the oxide content from 1 to 6 percent. From the concentrate, the industry could win the salt, carbonate or hydroxide it needs. Batteries for 275,000 to 550,000 electric cars can be produced from the production of each year, says Archer, who estimates the planned investments at 110 million euros. He expects to create around 150 direct jobs and three to four times as many indirect jobs. The state should not benefit only in the form of taxes. He also receives a 3% share in the value of the subsidized material.
From the floor to the battery?
Lithium carbonate prices have doubled in the past two years, but have tended to weaken in recent years due to oversupply. How they will develop is a very good question for Archer. However, it is clear to him that demand should continue to increase.
Not only is Savannah interested in lithium from Portugal, which praises the government as an ideal location for its promotion. More than forty companies - including from Australia, Canada and the USA - are interested in these deposits. This year, the government is planning a tender for licenses, in which it wants to favor applicants with further projects.
Orlando Alves, the mayor of Boticas' neighboring town of Montalegre, near which the Portuguese company Lusorecursos has located many lithium-bearing rocks, hopes for a local lithium boom. It is seeking a contract to mine 250 jobs. The company would be happy to supply a Portuguese battery factory if it existed. According to Manager Ricardo Pinheiro, there are already exploratory contacts with potential foreign partners.
Of course it would be even better if Portugal could produce finished electric cars. When the plan of the American manufacturer Tesla for the construction of a European factory for such cars became known, Portugal recommended itself as a location where Volkswagen has been successfully operating for over twenty years. Somewhere in southern Portugal, the Tesla factory could be built, could be heard in the country to export the cars over the large sea port of Sines, 160 kilometers south of Lisbon. When Elon Musk announced his preference for a location in Germany a few months ago, the disappointment was limited. For Portugal, this dream may have been a bit too big.
How Portugal benefits from the boom in electric cars
The growing demand for emission-free cars is fueling the business with the lithium needed for their batteries. This is also felt by Portugal as Europe's largest supplier of raw materials.
The earth near the town of Boticas, which lies dormant in Portugal's high north, was already in demand because of many treasures. When Napoleon's troops approached in the early 19th century, the fear of plunder by French soldiers was rampant in the villages. In order to bring their wine to safety, some residents buried their bottles and barrels. When they exhumed them later, they were surprised to find that the red wine tasted better than before - and made the experience a tradition. In the village, there is still in small quantities the "vinho dos mortos", the wine of the dead. More than 200 years after Napoleon's invasions, it is all about mineral resources of a different kind: The British company Savannah Resources plans in the district of Boticas, the production of lithium, which stores there in large quantities.
Unexpectedly large reserves
Lithium is also known as "happy metal," says Savannah boss David Archer, because it is included in some antidepressants. So far, it has also been used in the ceramics industry as well as in batteries of laptops and mobile phones. But what drives demand is above all the booming demand for this light metal for the batteries of electric cars. So, the Savannah boss wants to quickly start funding in Portugal. Savannah would become the largest producer of lithium in Europe, says Archer in an interview in Lisbon.
Previously, the interest in Boticas was more the feldspar than the lithium. It was not until May 2017 that Savannah acquired from another company an earlier license to research and mine these deposits. There is still a 10-person team working with holes on site. According to Archer, this is probably the most extensive drilling for mineral resources that Portugal has experienced in decades. In the first half of 2019, a study on the economics of mining is expected. Archer is "very confident" in this regard. After about nine months for technical preparations and after examining the project in terms of environmental aspects, the production of lithium-containing spodumene in the "Mina do Barroso" could start in the first half of 2020.
Among the world's largest producers of lithium are Argentina, Bolivia, Chile and Australia. Portugal would probably not break its dominance, but it is already among the top ten producers and has the largest known reserves in Europe. In 2017, a government-appointed group of experts identified nine deposits in Portugal, all in northern parts of the country. She estimated the occurrence of spodumene at Boticas at around 14 million tonnes. Savannah estimates these now at 20 million tonnes. According to Archer, they could reach 29 to 35 million tons, enough for mining for up to twenty years.
Spodumene stores to a large extent near the su
https://twitter.com/JamesGRickards/status/1053529376971730944
Long term gold can only go higher IMO
Sentiment on this board and the direction of share price does not inspire me to buy in on primary bid even at a 30% discount.
Good luck with this one guys. Looks like you need it.
ATB Gringo
Trisse, sorry for autocorrect!
Trusses, any feelings on how much this could add to our resource? Another 15-20Mts?
Gives us the indication offtake discussions have already started with potential partners: "and look forward to progressing discussions currently being undertaken with potential offtake partners as part of our commercialisation process". Would be good to get something wrapped up by year end.
Resource currently based on results of 110 drill holes whereas they have completed 152 to date :)
Picked up a few more @ 6.229 & 6.21 showing as sells. SP taking a breather, but good to see Director investing himself.
At this price I found a few quid down the back of the sofa and bought a handful. Cheap as chips and all that!
HIGHLIGHTS: · The Feasibility Study will build on the excellent outcomes of the Scoping Study completed in June 2018, which confirmed Mina do Barroso has the potential to be a major European producer of spodumene (lithium) · A mine and concentrator plant model will be further developed based around Mina do Barroso's deposits for the production of a lithium concentrate with additional ceramic co-products · Primero has an extensive track record in the assessment, design, delivery and operation of lithium projects globally and is currently partnered with Tawana, Galaxy, Pilbara Minerals and Piedmont · Primero will also bring knowledge and understanding of specific ceramic related co-products such as feldspar and quartz and their processing · Results of the Feasibility Study, which is fully funded following the Company's recent £12.5 million (gross) fundraise, are expected to be available towards the end of Q1 2019
Savannah Resources plc (AIM: SAV and SWB: SAV) ('Savannah' or the 'Company'), the AIM quoted resource development company, is pleased to announce that it has appointed experienced lithium consulting engineers Primero Group ('Primero') to lead the Feasibility Study for the development of the Mina do Barroso Lithium Project ('Mina do Barroso' or the 'Project') in Portugal.
Interesting there is a sudden increase in volume today. Nice £75k buy. News leak?
A "small fund" added 200k @9.3p this afternoon. If its good enough for the big boys and all that........!
Would have liked to see it a little higher to 11 or 12p but this is very positive. Gives SAV sufficient working capital to advance/fast track Portugal, and some cash for Oman too.
The fact it is oversubscribed shows the belief in the company, and throw in another £1m for Al Marjan whilst you're at it.
Share price will typically drop following announcement (time to jump ship Veteran), but IMO will rebound as investors see the value in the placing.
Comes up with errors then posts 3 times!
Sorry.
David Archer, Chief Executive Officer of Savannah said today, "We are pleased to have completed this heavily oversubscribed fundraising and to be able to welcome a number of significant UK institutional shareholders to our register. The funds raised will allow us to continue to fast-track the development of our Mina do Barroso Lithium Project, which has the potential to be the leading European producer of spodumene lithium.  The net funds raised will enable us to advance our project in Portugal through a Feasibility Study, with a view to making a final development decision early next year."