LONDON (ShareCast) - (ShareCast News) - Resource development company Savannah Resources announced on Monday that its phase 2 metallurgical test work has returned "encouraging results" at the Mina do Barroso Lithium Project in Portugal.
The AIM-traded firm said further follow up work was now underway.

It said the analysis confirmed high-grade spodumene mineralisation, with a lithium content of around 1.7% Li2O and low impurities of less than 0.5% Fe2O3.

The mineralogy analysis confirmed spodumene was the dominant lithium mineral with low contaminants, with test work continuing to confirm "well proven, conventional" metallurgical processes would produce a spodumene concentrate.

Preliminary test work suggested that, by using a process route combining both gravity separation and flotation, a total recovery of at least 80% at a concentrate grade of over 6% Li2O was likely to be achieved.

Heavy liquid separation (HLS) testing and small-scale pilot testing confirmed industry benchmark, low-iron, 6% Li2O concentrate could be produced by low cost gravity processing, the board explained.

It added that test work completed to date suggested at least 40% of the contained lithium could be recovered via gravity processing.

Preliminary tests showed that over 70% of lithium not recovered by gravity could be recovered by flotation at a grade of over 6% Li2O, it explained.

Further improvements were expected as part of phase 3 of the test work programme currently underway, with diamond drilling at Grandao and Reservatorio to collect additional samples for the phase 3 test programme, with results expected in the third quarter.

The board also confirmed that Noel O'Brien, a metallurgist and lithium processing expert with more than 35 years of experience, had been appointed as a technical consultant to direct Savannah's metallurgical test work programme.

"We are delighted to see the results to date show that Mina do Barroso continues to demonstrate impressive metallurgical results, with spodumene being the dominant lithium mineral that can be recovered using conventional processing techniques to produce an industry benchmark product with low contaminants at good recoveries," commented Savannah's CEO David Archer.

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