SAVANNAH

RESOURCES PLC

AIM: SAV

Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining RNS - 22 December 2016

Savannah Resources Plc

PROJECT PORTFOLIO

MINERAL SANDS MOZAMBIQUE

(CONSORTIUM AGREEMENT WITH RIO TINTO)

COPPER/GOLD

OMAN

LITHIUM

FINLAND

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.

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:

    • 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

    • ErajarviProject, prospective pegmatites with assays of up to 1.56% Li2Oat 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 Somero Erajarvi 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

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

Savannah Batch No.

No. of Samples

No. from Somero

No. from Erajarvi

Sample Method

Lab Batch No

SAV-2016-FIN-01

67

67

0

Peroxide

501629

SAV-2016-FIN-02

184

7

177

Four Acid

501640

SAV-2016-FIN-03

107

0

107

Four Acid

501649

SAV-2016-FIN-04

174

170

4

Four Acid

501669

Total

532

244

288

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

SampleID

District

Easting_TM35FIN

Northing_TM35FIN

Rock_type

Li2O%

MM20253

Somero

314874

6732953

White pegmatite

4.47

MM20254

Somero

314874

6732953

White pegmatite

1.42

MM20255

Somero

314874

6732953

White pegmatite

0.23%

MM20474

Somero

312926

6731461

Pale pink pegmatite

0.2%

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

SampleID

District

Easting_TM35FIN

Northing_TM35FIN

Rock_type

Li2O%

MM20154

Eräjärvi

376551

6830116

White pegmatite

0.37%

MM20155

Eräjärvi

376551

6830116

White pegmatite

1.56%

MM20156

Eräjärvi

376551

6830116

White pegmatite

0.59%

MM20157

Eräjärvi

376551

6830116

White pegmatite

1.07%

MM20159

Eräjärvi

376288

6830073

White pegmatite

0.15%

MM20165

Eräjärvi

376288

6830073

White pegmatite

0.22%

MM20167

Eräjärvi

376288

6830073

White pegmatite

0.16%

MM20219

Eräjärvi

368206

6827483

White pegmatite

0.14%

MM20237

Eräjärvi

368786

6830685

White pegmatite

0.21%

MM20238

Eräjärvi

368786

6830685

White pegmatite

0.13%

MM20247

Eräjärvi

368757

6830585

White pegmatite

0.11%

MM20256

Eräjärvi

376294

6830075

White pegmatite

0.21%

MM20262

Eräjärvi

368961

6830952

White pegmatite

0.14%

MM20271

Eräjärvi

368930

6830737

White pegmatite

0.13%

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

Savannah Resources plc published this content on 22 December 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 22 December 2016 12:43:14 UTC.

Original documenthttp://savannahresources.com/news/docs/Finland Lithium update 22.12.16.pdf

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