LONDON (ShareCast) - (Sharecast News) - Savannah Resources said in an update on Thursday that the final batch of assay results from phase two drilling at its Barroso Lithium Project in Portugal confirmed further high-grade intersections and reinforced expectations for an upgrade and expansion of the project's mineral resource estimate, due in September.
The AIM-traded firm said the results, covering 23 holes across the Pinheiro, Reservatório and Grandão deposits, marked the completion of the resource-focused stage of the definitive feasibility study drilling programme.

Savannah said the data would underpin both a revised JORC (2012) resource estimate and the project's first JORC reserve estimate, which would form the basis for the definitive mine plan and support project financing.

"We are particularly encouraged by this latest batch of results which continue to confirm the grade and consistency of the lithium mineralisation in all the deposits," said technical director Dale Ferguson.

"We now turn our attention to updating the JORC Resource estimates for these important orebodies.

"While the updated JORC resources will enable us to push forward with the DFS with confidence, the additional exploration targets, including the new regional exploration target we are planning, should reinforce the market's understanding that this Project has great long-term potential too."

The company said drilling returned strong intersections at all three deposits, with Pinheiro showing grades up to 1.82% lithium oxide over 67 metres, Reservatório highlighting mineralisation continuity at depth, and Grandão confirming both robust grades and potential parallel ore zones.

It said the resource update would also include maiden exploration targets for Pinheiro, NOA and a regional target for the wider C-100 mining ease area.

At 1525 BST, shares in Savannah Resources were up 9.37% at 3.85p.

Reporting by Josh White for Sharecast.com.

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