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(Sharecast News) - Savannah Resources climbed on Monday after confirming the continuity of lithium mineralisation at its Mina do Barroso lithium project in Portugal.
The continuity was confirmed by drilling at the Pinheiro, Reservatorio and Grandao deposits at Mina do Barroso, with the diamond drill rig continuing to work on the collection of metallurgical samples at the Grandao Deposit.
Key intersections reported by Savannah included 46 metres at 1.0% lithium oxide from 157 metres at Grandao, 36 metres at 1.2% lithium oxide from 62 metres at Reservatorio and 15 metres at 1.0% lithium oxide from 81 metres at Pinheiro.
David Archer, Savannah's chief executive, said: "While much of the recent drilling has been focused on increasing the Mineral Resource categories for the definitive feasibility study that is currently underway, the drilling programme at Mina do Barroso continues to deliver expansions to the mineralised zone at Grandao, extensions in depth at Reservatorio and further encouraging results from the Pinheiro deposit."
The AIM traded company said the results underpin its strategy of aiming to become Europe's most significant producer of lithium spodumene concentrates in response to the growing demand from the expanding European Electric vehicle market.
"We have a significant amount of work being conducted across the project, a strong balance sheet and look forward to regularly communicating progress as we look to fulfil our rapid development strategy," said Archer.
Analysts at SP Angel said: "We continue to be impressed with the positive lithium mineralisation from the ongoing drilling programme and efforts towards expanding the resource at the Mina do Barroso project. We look forward to understanding the scale of the prospect in the definitive feasibility study as the company progress the project towards Europe's most significant lithium spodumene producer."
Savannah Resources' shares were up 3.06% at 5.05p at 1625 GMT.
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