Savannah Resources upbeat on metallurgical test work programme at Mina do Barroso lithium project

Savannah Resources PLC (LON:SAV) said the ongoing metallurgical test work programme at its Mina do Barroso lithium project in Portugal has highlighted the potential for lower capital and operating costs. Initial results from pilot scale Dense Media Separation (DMS) indicate that 20% to 25% of the plant feed can be rejected utilising a single stage of DMS pre-concentration, indicating that a large portion of the waste material can be rejected before the spodumene flotation stage of the process. "These initial results from the latest phase of the Mina do Barroso metallurgical test work programme are very encouraging," said Savannah's chief executive David Archer. "Removal of up to one quarter of the ore feed going into the flotation circuit could have significant positive implications for the capital and operating costs of this section of the concentrator and the project overall." The AIM-quoted company is seeking to become Europe's most significant producer of spodumene lithium from the Mina do Barroso project. Spodumene is the most abundant lithium-bearing mineral found in economic deposits. Savannah expects to provide further updates on the metallurgical test work for Mina do Barroso during the year as it seeks to optimise the processing route and engage with potential equipment suppliers for the plant. "In the months ahead, the option of introducing a pre-concentration step will be thoroughly evaluated along with all other aspects of the process, including the use of environmentally friendly reagents and water collected from on-site sources," said Archer. "To help us in our efforts to identify a metallurgical process which prioritises both the environment and delivery of a high spec product to our commercial partners, such as Galp, we have appointed Minsol Engineering Pty Ltd to advise us on the programme," he added. "Minsol's principals have been involved in the design of both lithium concentrators and lithium chemical plants in Australia, so will provide Savannah with a wealth of experience and knowledge for this crucial part of the project." Savannah noted that raw material prices for lithium have risen in recent months as demand from the battery and electric vehicle markets grow. "Against this backdrop, 2021 is going to be a very busy year for Savannah as we look to secure Mina do Barroso's position in the rapidly evolving European lithium battery value chain," said Archer.