Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining

 22 December 2016

Savannah Resources Plc

Seven Lithium Bearing Pegmatites Identified on Finland Projects

Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), the AIM quoted resource development company, announces that all results have now been received from reconnaissance rockchip sampling over its new lithium projects in Finland, Somero and Erajarvi (Figure 1).  The work programme has returned anomalous lithium mineralisation across both projects, leading to the discovery of seven lithium bearing pegmatites.  To view the press release with the illustrative maps and diagrams please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/5346S_-2016-12-21.pdf

HIGHLIGHTS:

·    A total of 524 rockchip samples have been collected from the Somero (244 samples) and Erajarvi (288 samples) licences and submitted to the laboratory for analysis

·    Results have highlighted seven pegmatites with anomalous lithium - two on Somero and five on Erajarvi

·    Geological mapping and rock chip sampling has highlighted:

o Somero Project, prospective pegmatites with assays of up to 4.47% lithium oxide ('Li₂O') at the Torkkamaki Prospect and mineralisation traced over 150m along strike and remaining open

o Erajarvi Project, prospective pegmatites with assays of up to 1.56% Li₂O at the Viitaniemi Prospect and mineralisation traced for over 350m before it was covered by glacial till

·    Key lithium minerals petalite, spodumene and lepidolite were all identified in hand specimens 

·    Follow up work to further expand and define the seven anomalous pegmatites in readiness for drilling is being planned for Q2 2017 (following winter)

·    Finland is one of the most prospective countries on mainland Europe for potential lithium discoveries.  Both project areas enjoy excellent access to high quality infrastructure and are located close to potential final customers

David Archer, Savannah's Chief Executive Officer said today, "We are extremely pleased that the assaying programme has confirmed at least seven pegmatites anomalous in lithium with the Torkkomaki and Viitaniemi pegmatites looking to have potential for scale.  Finland is a lithium focus for a number of companies thanks to its significant resource potential, excellent mining legislation and infrastructure endowment, and we believe the results we have received to date support our recent decision to move into this prospective region.  I look forward to providing further updates on our exploration programme in the New Year as we continue to prove up the resource potential of these assets."

Figure 1. Location map showing position of new lithium projects in Finland  - See PDF

ROCK CHIP SAMPLING PROGRAMME

Sampling in glaciated terrains such as Finland presents a series of unique challenges which at times make it very difficult to get a representative rock chis samples.  Millions of years of glaciation has meant that most of the outcrop has been rounded making it virtually impossible to sample with a conventional hammer and softer minerals such as lithium have been stripped from the surface of the boulder.  When combined, these two factors mean that moderate levels of anomalism in the rock samples are considered significant and further follow-up sampling is then required using high powered drills (Figure 2).  This method of sampling tends to be largely used in follow-up sampling due to the weight of the equipment and the time taken to obtain a representative sample.

Figure 2. Boulder sampling using a high-powered masonry drill - See PDF

Source: Company Photos

A total of 532 samples were collected and sent for analysis, with 18 of them were anomalous for lithium above 0.1% Li2O. Fourteen of the samples were from Erajarvi and four from Somero, with the highest-grade sample of 4.47% Li2O from a petalite outcrop at Somero (Tables 1-3).

Table 1: Summary samples sent for analysis

Table 2. Summary of Somero anomalous samples above 0.1% Li2O

Table 3. Summary of Erajarvi anomalous samples above 0.1% Li2O

SOMERO LITHIUM PROJECT

Savannah's Somero Reservation (Figure 3) is located less than 2km south of TSX listed Nortec Minerals' Kietyonmaki and Hirvikalio lithium deposits, which were drilled by the GTK (Finnish Government Department). Recent work completed by Savannah focused on obtaining a representative sample from all the known pegmatites within the licence. Two of the pegmatites sampled returned anomalous lithium results with the most significant of these being the Torkkomaki, which contains massive zones of petalite, with results returning a high-grade lithium assay result of 4.47% Li₂O (Figure 3). Mapping has traced the petalite zone for over 150m which remains open along strike in both directions.

Figure 3. Somero Project showing local geology highlighting pegmatites sampled - See PDF

Figure 4. Somero Project showing local geology highlighting lithium bearing pegmatites - See PDF

Figure 5. Pegmatite outcrop at the Torkkomaki Prospect showing massive occurrences of the lithium mineral Petalite (MM20253: 4.47% Li₂O) - See PDF

Source: Company Photos

ERAJARVI LITHIUM PROJECT

The Erajarvi Project (Figure 6) reservation covers a swarm of at least 61 known pegmatites that have been mapped in the area, and work focused on sampling as many of these bodies as possible. Sampling confirmed that five of the bodies returned anomalous lithium with the Viitaniemi pegmatite returning the best results with assays as high as 1.56% Li2O. Mapping has traced the body for at least 350m before it was lost under glacial cover and limited outcrop confirms that the body is at least 10m in thickness and open in all directions. The prospectivity of these pegmatites was confirmed in the recent mapping and sampling program and further detailed sampling to further define the prospectivity of the lithium bearing pegmatites.

Figure 6. Erajarvi Project showing local geology highlighting pegmatites sampled - See PDF

Figure 7. Somero Project showing local geology highlighting lithium bearing pegmatites - See PDF

Key Reference: Geological Survey of Finland Bulletin 134 (1981) Granitic pegmatites of the Erajarvi area in Orivesi, Southern Finland.

Competent Person

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 Australian 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.

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:

Notes

Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, development company.

Mozambique

Savannah operates the Mutamba heavy mineral sands project in Mozambique in collaboration with Rio Tinto, and can earn a 51% interest in the related Consortium, which has an established initial Indicated and Inferred Mineral Resource Estimate of 3.5 billion tonnes at 3.8% THM over the Jangamo and Dongane deposits.  Under the terms of the Consortium Agreement with Rio Tinto, Savannah must deliver the following to earn corresponding interest in the Mutamba Project: scoping study - 20%; pre-feasibility study - 35%; feasibility study - 51%. Additionally, the Consortium Agreement includes an offtake agreement on commercial terms for the sale of 100% of production to Rio Tinto (or an affiliate).

Oman

Savannah has interests in two copper blocks in the highly prospective Semail Ophiolite Belt in Oman.  The projects, which have an Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% copper and high-grade intercepts of up to 56.35m at 6.21% Cu, with gold credits, provide Savannah with an excellent opportunity to potentially evolve into a mid-tier copper and gold producer in a relatively short time frame. Together with its Omani partners, Savannah aims to outline further mineral resources to provide the critical mass for a central operating plant to develop the deposits, and in December 2015 outlined exploration targets of between 10,700,000 and 29,250,000 tonnes grading between 1.4% and 2.4% copper.

Finland

Savannah has Reservation Permits over two new lithium projects, Somero and Erajarvi, covering an area of 159km² in Finland.  Savannah holds a 100% interest in these projects through its Finnish subsidiary Finkallio Oy.  Geological mapping by the Finnish Government within the project areas has highlighted the presence of lithium minerals spodumene, lepidolite and petalite with the Government also identifying Somero and Erajarvi as one of the most prospective areas to discover lithium deposits in Finland. Follow up work to further expand and define seven identified anomalous pegmatites in readiness for drilling is being planned for the second quarter of 2017.