TIDMSAV
RNS Number : 3197K
Savannah Resources PLC
13 December 2018
13 December 2018
Savannah Resources Plc
Metallurgical test work Confirms that High Quality Saleable
Quartz and Feldspar Products can be Generated as a Co-product with
Spodumene Lithium
Mina do Barroso Lithium Project
Savannah Resources plc (AIM: SAV, FWB: SAV and SWB: SAV)
('Savannah' or the 'Company'), the AIM quoted resource development
company, which is focused on becoming Europe's most significant
producer of lithium spodumene concentrates from its Portuguese Mina
do Barroso Project ('Mina do Barroso', 'MdB' or 'the Project'), is
pleased to announce that its ongoing metallurgical test work has
successfully produced saleable quartz and feldspar products. To
view the press release with the illustrative maps and diagrams
please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/3197K_1-2018-12-12.pdf
Highlights
-- High quality, saleable quartz and feldspar co-products
produced from ongoing metallurgical test work programme
-- Co-products will be produced from further processing of the tail material from the spodumene concentration process
-- Initial indications are that the following products can be
produced and market studies by First Test Minerals have been
completed to provide some indicative pricings for the products:
- Feldspar (Na(2) O+K(2) O+Li(2) O grades >12%) potential price range of US$65-100/tonne
- Quartz (99.6% pure) potential price range US$60-100/tonne
- Bulk Tail (Na(2) O+K(2) O+Li(2) O grades >7%) potential price range of US$40-45/tonne
- All products have low levels of potential impurities, below
maximum limits specified by customers
-- Importantly, the potential pricing of the products which can
be produced have been identified as being significantly higher, by
First Test Minerals, than those conservative values used in the
recent Scoping Study of US$39/tonne for feldspar and US$33/tonne
for quartz
-- Test work for co-product and specifications independently
evaluated and confirmed by ceramics industry expert, First Test
Minerals Ltd
-- Bulk co-products currently being generated for further
evaluation by potential customers and preliminary offtake
discussions are underway with a number of potential parties
-- Significant environmental benefit from the sale of
co-products, reducing the potential size of the footprint of any
potential operation
-- Sale of co-products to prove economically beneficial for the
Company, through the diversification of asset products
Savannah's CEO, David Archer said: "The area in which we operate
is a major quarrying region for ceramic materials which supply the
vibrant ceramics industries in both Portugal and Spain.
Importantly, having multiple product streams means we are
maximising the value adding potential of the Project while also
reducing the volume of non-saleable material that will need to be
emplaced on site in contoured and vegetated landforms. I look
forward to providing further updates as we progress our Feasibility
Study towards delivery in 2019."
Environmental Advantages
The production of quartz and feldspar products for the ceramics
industry will mean that the Company will reduce the volumes of
non-saleable material that will need to be emplaced on site in
contoured and vegetated landforms. This is a very positive outcome
and is part of Savannah's ongoing commitment to design a project
which minimises any potential environmental impacts.
Details of Metallurgical Test Work Programme
Savannah has completed a series of floatation tests on a bulk
sample of pegmatite material from the Mina do Barroso project which
has successfully generated saleable feldspar and quartz co-products
in batch test work. Further bulk test work is planned to produce
bulk mica, feldspar and quartz samples for evaluation by potential
customers.
The test work was managed by Savannah's owners' team
representatives, with the results evaluated by First Test Minerals
('First Test') which is an independent consultancy with significant
experience in the ceramics and glass industry who deal with the raw
products (such as feldspar and quartz) that are currently used in
these industries. First Test conducted a review of the current
market based on the product specifications to generate the pricing
ranges for the various products generated.
Feldspar
The feldspar concentrate produced from the floatation test work
contains Na(2) O+K(2) O+Li(2) O grades >12% (Table 1 and Figure
1) which First Test have advised has the potential to be used in
tableware, glaze, sanitaryware and glass. Penalty elements in the
feldspar concentrate, such as iron, were below the limits specified
by customers. First Test's analysis shows this feldspar product has
the potential to sell from US$65-100/tonne depending primarily on
final grind size.
Table 1. Feldspar product assay results
Product Grade (%)
-------------------------------------------------------------------------
Li(2) O Fe(2) O(3) Na(2) O K(2) O SiO2 Li(2) O+Na(2) O+K(2) O
-------- ----------- -------- ------- ------ -----------------------
Feldspar Concentrate 0.20 0.09 8.00 3.95 66.88 12.15
-------- ----------- -------- ------- ------ -----------------------
Figure 1. Photo of the feldspar concentrate produced from test
work programme
Quartz
The quartz concentrate produced has an SiO(2) grade of 99.6%
which First Test stated has the potential to be used in ceramics
and glass (Table 2 and Figure 2). Penalty elements in the quartz
concentrate, such as iron, were below the limits specified by
customers for a number of applications. First Test's analysis shows
this quartz product has the potential to sell from US$60-100
/tonne, depending primarily on final grind size, with further
upside on increased grade product.
Table 2. Quartz product assayed results
Product Grade (%)
Li(2) O Fe(2) O(3) Na(2) O K(2) O SiO(2)
-------- ----------- -------- ------- -------
Quartz Concentrate 0.02 0.02 0.05 0.03 99.61
-------- ----------- -------- ------- -------
Figure 2. Photo of the quartz product produced from test work
programme
Combined Tailings Product
Savannah also has the option of selling its tailings (combined
feldspar and quartz concentrate) without further upgrading or
processing (Table 3) at a potential price of US$40-45 / tonne.
Table 3. Combined feldspar / quartz tailings chemical grades are
shown below.
Product Grade (%)
--------------------------------------------------------------------------
Li(2) O Fe(2) O(e) Na(2) O K(2) O SiO(2) Li(2) O+Na(2) O+K(2) O
-------- ----------- -------- ------- ------- -----------------------
Combined Feldspar / Quartz 0.13 0.07 4.77 2.35 80.13 7.24
-------- ----------- -------- ------- ------- -----------------------
Potential Product Pricing
Conservative feldspar and quartz prices of US$39/tonne and
US$33/tonne respectively were used by the Company during the
Scoping Study, prior to Savannah generating saleable co-products
and engaging First Test. This recent test work has highlighted the
significant potential upside of the co-products with initial market
reviews conducted by First Test of the product specifications
indicating:
- Feldspar (Na(2) O+K(2) O+Li(2) O grades >12%) potential price range of US$65-100/tonne
- Quartz (99.6% pure) potential price range US$60-100/tonne
- Bulk Tail (Na(2) O+K(2) O+Li(2) O grades >7%) potential price range of US$40-45/tonne
Further Work
Work is continuing to further evaluate and develop the potential
co-products from the production of the spodumene concentrate. This
work programme includes:
-- Bulk test work to generate samples of each of these co-products for customer evaluation
-- Further evaluation on the potential for a mica co-product is
underway to determine its suitability for its use as a building
material like cements for plasterboard. Initial research by the
Company suggests these products can be valued at over US$500/t
-- A trade-off study to confirm potential sale quantities of the
individual products along with expected capital and operating costs
to generate the individual co-products is currently underway
-- Preliminary discussions with potential offtake partners to
better understand the size of the market and customer needs is also
underway
First Test Minerals Ltd - Co Product Consultants
(www.firsttestminerals.com)
First Test Minerals provide comprehensive testing of
non-metallic minerals and expert advice on market development,
specialising in clay minerals such as kaolin, halloysite, ball
clays and smectites plus non-plastic minerals such as feldspars,
micas, silicas and aggregates. Owner/Director Frank Hart BSc
(combined honours in Geology & Chemistry) has extensive
experience in industrial minerals gained through 40 years of direct
involvement in technical evaluation and quality control. Mr Hart
spent 28 years in kaolin extraction as Technical Manager at
Goonvean Ltd, where he was responsible for all geological and
chemical aspects of mining and refining from five open cast
quarries and for quality control of the different kaolin, sand and
aggregate products. Goonvean also mined China Stone, the sole UK
source of feldspar for many years, with major sales in bone china
and porcelain. Mr Hart also managed a testing facility for other
companies investigating new deposits; this included kaolin and
halloysite samples from Canada, USA, Sweden, Korea, Australia and
Africa.
Competent Person Statement
The information in this announcement that relates to exploration
results is based upon information compiled by Mr Dale Ferguson,
Technical Director of Savannah Resources Limited. Mr Ferguson is a
Member of the Australasian Institute of Mining and Metallurgy
(AusIMM) and has sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration and
to the activity which he is undertaking to qualify as a Competent
Person as defined in the December 2012 edition of the "Australasian
Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves" (JORC Code). Mr Ferguson consents to the inclusion in
the report of the matters based upon the information in the form
and context in which it appears.
The information in this announcement that relates to
metallurgical test work is based upon information compiled by Mr
Peter Adamini, Senior Metallurgist of Independent Metallurgical
Operations. Mr Adamini is a Member of the Australasian Institute of
Mining and Metallurgy (AusIMM) and has sufficient experience which
is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the December 2012
edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves" (JORC Code). Mr
Adamini consents to the inclusion in the report of the matters
based upon the information in the form and context in which it
appears.
Regulatory Information
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**ENDS**
For further information please visit www.savannahresources.com
or contact:
David Archer Savannah Resources plc Tel: +44 20 7117
2489
David Hignell / Dugald J. Northland Capital Partners Tel: +44 20 3861
Carlean (Nominated Adviser) Ltd 6625
Christopher Raggett / Camille finnCap Ltd Tel: +44 20 7220
Gochez (Broker) 0500
Grant Barker (Equity Adviser) Whitman Howard Tel: +44 020 7659
1225
Lottie Wadham / Gaby Jenner St Brides Partners Ltd Tel: +44 20 7236
(Financial PR) 1177
About Savannah
Savannah is a diversified resources group (AIM: SAV) with a
portfolio of energy metals projects - lithium in Portugal and
copper in Oman - together with the world-class Mutamba Heavy
Mineral Sands Project in Mozambique, which is being developed in a
consortium with the global major Rio Tinto. The Board is committed
to serving the interests of its shareholders and to delivering
outcomes that will improve the lives of the communities we work
with and our staff.
The Company is listed and regulated on AIM and the Company's
ordinary shares are also available on the Quotation Board of the
Frankfurt Stock Exchange (FWB) under the symbol FWB: SAV, and the
Börse Stuttgart (SWB) under the ticker "SAV".
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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