JOHANNESBURG (miningweekly.com) – Aim-quoted Savannah Resources is hard at work to fast-track its Mina do Barroso lithium project, in Portugal, to production, as it seeks to tap into the fast-expanding battery market.

Assay results from the first part of a reverse circulation drilling programme at two high-priority targets, Reservatoria and Grandao, have returned a series of “robust” near-surface intercepts with grades ranging between 0.92% lithium oxide (Li₂O) and 1.27% Li₂O.

Both deposits are open along strike and down dip, leaving further upside potential.

Drilling at NOA, Reservatoria and Grandao will resume soon, with the aim of defining a Joint Ore Reserve Committee-compliant resource by the end of 2017.

The explorer expects the results of the second phase of its metallurgical testwork programme by the end of this year, which it will use for a scoping study. A development decision is targeted before the end of 2018.

Savannah believes it could bring the Mina do Barroso project into production through a series of openpit mines.

CEO David Archer describes the Mina do Barroso project as one of the “most promising” in Europe, citing its strategic position in Europe and good existing infrastructure. Spodumene is also the dominant lithium material and metallurgical testwork has shown good recoveries producing 6% Li₂O.

The project is also backed by a 19-year mining lease.

"Taking these positive attributes into consideration, we believe Mina do Barroso could be brought into production relatively quickly to produce a Li₂O concentrate for the manufacture of battery-grade lithium. This is within a highly favourable context as there is a clear intent on the part of governments, communities and car manufacturers to foster accelerated adoption of electric vehicles. This will bring into focus lithium mines that can be brought into production swiftly to meet growing demand.

"We believe that hard rock, lithium spodumene deposits like those at Mina do Barroso will be playing the leading role in the upstream part of the lithium value chain going into the 2020s," says Archer.

Besides Reservatoria, Grandoa and NOA, Savannah is also mapping five other advanced exploration opportunities for follow-up drilling.