TIDMSAV
RNS Number : 2098C
Savannah Resources PLC
21 February 2022
21 February 2022
Savannah Resources Plc
(AIM: SAV, FWB: SAV and SWB: SAV) ('Savannah' or the
'Company')
Finalisation of Environmentally Enhanced Process Flowsheet to
Produce High Quality Spodumene Concentrate
Savannah Resources plc, the European lithium development
company, is pleased to announce that it has successfully achieved a
major project milestone with the finalisation of the process
flowsheet ('flowsheet') to produce spodumene concentrate at the
company's 100% owned Barroso Lithium Project ('the Barroso Project'
or 'the project'). Minsol Engineering ('MinSol'), a leading
metallurgical consultant, is satisfied that the flowsheet, which
has been tested and refined over the past eight months, is now
finalised and ready to be adopted for detailed engineering studies
as part of the Project's Definitive Feasibility Study ('DFS') and
implementation.
Highlights:
-- The process flowsheet is a critical component to the
operation and the finalisation of a robust, environmentally
enhanced and efficient process flowsheet will support the
production of a high quality, spodumene concentrate grading >=
5.5% Li(2) O, in line with current industry product
specifications
-- The flowsheet will utilise industry standard equipment and
processes including Dense Media Separation, pre-concentration,
followed by magnetic separation and flotation
-- The environmentally friendly reagent regime, which complies
with all known European and Portuguese requirements, allows both
mica and spodumene flotation to operate at near neutral pH.
-- The ore variability programme across all deposits is nearing
completion. Results from the samples tested to date have achieved
Li(2) O recoveries in the range of 70-79.5% at laboratory scale
with low levels of impurities. Average recovery achieved for all
composites is 75.3%
-- Up to 30kg of concentrate sample will be produced for
downstream testing by Savannah's potential offtake customers
-- Process performance has been optimised at a 42% coarser grind
size (150 micron (' um') ) than previously tested which should
result in significant capital and operating cost savings
-- An opportunity exists to double the grind size (212 micron)
versus the previously reported level (106 micron) for approximately
40% of the tested resource with the potential for average
recoveries of c.80%
-- Co-product testing has confirmed the potential to generate
saleable ceramic products from the processes waste streams
-- Based on the positive results achieved to date, locked cycle
test work and planning for the pilot plant test work programme are
underway
David Archer, Savannah's Chief Executive Officer said: "We have
successfully developed a robust and environmentally enhanced
flowsheet that has benefited from the deep body of knowledge
developed over the last few years around the conventional
processing of spodumene ores. We are particularly proud to have
developed a new reagent regime that eliminates the acids that are
typically used to control the pH in the flotation circuit.
"While our process flowsheet for the Barroso Project already
complies with all relevant Portuguese and European regulations, the
additional effort and innovation we have shown further reflects
Savannah's highly responsible approach to the natural environment
and the Project's stakeholders.
"The metallurgical work which has now been successfully
completed puts the Barroso Project on a sound footing to rapidly
progress the Definitive Feasibility Study once the principal
development parameters are received from any approval of the
Project's Environmental Impact Assessment by the regulator. We look
forward to bringing further news on the locked cycle and pilot
plant test work programmes during 2022."
FURTHER INFORMATION
Background
Savannah and MinSol have been working collaboratively since
December 2020 to finalise an efficient process flowsheet which
produces a high quality spodumene concentrate grading >= 5.5%
Li(2) O, and meets the following environmental and social
criteria:
-- Use of REACH (European Chemical Regulation) registered chemicals
-- Use of chemicals classified with low environmental toxicity
-- No use of strong acids or bases and operating at near neutral pH
-- Dry stacked tails to minimise potential environmental impacts
As of February 2022, MinSol is satisfied that the current
process flowsheet is finalised and ready to be adopted for detailed
engineering studies and implementation.
Development of the flowsheet has considered all historical test
programmes undertaken, as well as recent sighter, optimisation, and
variability test programmes overseen by Minsol. The resulting
flowsheet meets all known relevant environmental, licensing and
social requirements, whilst supporting the Project's economics by
providing a robust method for producing high quality and consistent
concentrate for downstream processing into battery grade lithium
chemicals.
All deposits have provided a consistent performance to date, and
it is expected that remaining work should have no material impact
to the overall flowsheet now selected.
Despite being capable of producing concentrates grading >6.0%
Li(2) O, Savannah has selected 5.5% as the minimum target product
grade, due to the significant increase in overall Li(2) O recovery,
production and project revenue at this grade. The quality of the
5.5% concentrate is excellent, with key impurities such as Fe(2)
O(3) remaining below 0.6% (industry specification for Fe(2) O(3) is
typical less than 1.0 - 1.2%).
1.0 Summary of Key Results
The following section provides a high-level summary of the
2021/22 test programmes, being:
-- T2922 - Flowsheet Development Test Programme
-- T3032 - Ore Variability Test Programme
1.1 T2922 - Flowsheet Development Test Programme
The flowsheet development test programme (T2922) was completed
at Nagrom Laboratories ('Nagrom') in Perth in Q4 2021, utilising a
representative sample of Grandao fresh ore with a head grade of
1.31% Li(2) O.
The programme trialled a range of operating conditions which
differed to those previously tested, including:
-- Density Media Separation pre-concentration
-- Mica flotation utilising REACH registered chemicals
-- Mica and spodumene flotation at a common, near neutral pH
The work completed to optimise the flowsheet and overhaul the
reagent regime has been highly successful in creating a process
which delivers concentrate grades and recovery rates which are
consistent within the global spodumene industry while also meeting
the social, environmental, and economic project drivers. The
Flowsheet development test work was completed at 106 micron and
returned Li(2) O recoveries in the range of 72-75% for all deposits
with low levels of impurities which are consistent with operating
projects in the industry. Further refinement of the flowsheet with
a focus on flotation grainsize was completed and is detailed
section 1.2 T3032 - Ore Variability Test Programme below.
A summary of the flotation performance from this programme is
detailed in Figure 1 below, which provides the typical relationship
between concentrate grade and recovery from the selected process
flowsheet and reagent regime.
Figure 1 - T2922 Average Grade / Recovery Curve.
To view the press release with the illustrative maps and
diagrams please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/2098C_1-2022-2-20.pdf
Process Design
The process flowsheet developed for the Barroso Lithium Project
is conventional and will employ industry standard technologies and
is therefore considered low risk. It is noted however that the
reagent regime and operating pH for the mica flotation is unique to
the Project. This was identified as a possible technical risk, but
the extensive testing undertaken has shown that the mica float
performance is similar to the "optimal" pH 2.5 float conditions,
and only has a minor impact on Li(2) O recovery.
The finalised flowsheet is summarised by the Block Flow Diagram
(BFD) in Figure 2 below.
Figure 2 - Simplified Process Flowsheet Block Flow Diagram
To view the press release with the illustrative maps and
diagrams please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/2098C_1-2022-2-20.pdf
Opportunities
Further opportunities remain to improve the average global
recovery for the process including:
-- Investigating the opportunity to concentrate and agglomerate
Li(2) O from the slimes to produce a saleable product, with the
slimes fraction totalling around 7.0% of the lithium losses for the
proposed process. If feasible, this would be an "add on" to the
Project and has no impact to the main process flowsheet
1.2 T3032 - Ore Variability Test Programme
The ore variability test programme (T3032) utilised 10
composites, representing each major resource zone and lithology to
be processed in the first 10 years of project operation. These
samples ranged in grade from 0.76% Li(2) O to 1.76% Li(2) O.
The programme is nearing completion, with just two of the ten
samples still to be finalised and a 20-30kg concentrate sample to
be produced for downstream testing by Savannah's strategic
partners.
While the full results will be summarised in a subsequent
release, a summary of the available grade recovery results for the
variability samples tested is provided below.
Process Grind Parameter Global Recovery Comments
Size (P80) (5.5% Li(2)
O)
106 um Min 67.4%
---------- ---------------- --------------------------------------------------
Ave 71.6%
---------- ---------------- --------------------------------------------------
Max 74.6%
---------- ---------------- --------------------------------------------------
150 um Min 70.0% Increase recovery has been attributed
to:
* Reduced Li(2) O losses to slimes
* Reduced Li(2) O losses to magnetic tails.
---------- ---------------- --------------------------------------------------
Ave 75.3%
---------- ---------------- --------------------------------------------------
Max 79.2%
---------- ---------------- --------------------------------------------------
Results filtered for 4 of the
212 um Min 75.4% 10 composites tested.
---------- ---------------- --------------------------------------------------
Ave 79.5%
---------- ---------------- --------------------------------------------------
Max 85.0%
---------- ---------------- --------------------------------------------------
2.0 Future Work Plan
Further work is planned in Q1 and Q2 of 2022 to refine the
process operating conditions and investigate further opportunities
to improve process recovery. The next stage of the test work
programme will include:
-- Finalisation of Ore Variability Test Work Programme
-- Ceramic Co-Product Test Work Programme
-- Water Circuits and Treatment
-- Locked Cycle Testing
-- Pilot Plant Testing
The finalisation of the process flowsheet is a key project
milestone which enables the detailed design for the process to
commence as part of the DFS for the project.
Competent Person Statement
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 Australasian 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.
The information in this release that relates to metallurgy and
metallurgical test work has been reviewed by Mr Robert Simmons,
MAusIMM, B. Eng. (Chemical Engineering). Mr Simmons is not an
employee of the company, but is employed as a contract consultant.
Mr Simmons is a Member of the Australasian Institute of Mining and
Metallurgy, he has sufficient experience with the style of
processing response and type of deposit under consideration, and to
the activities undertaken, to qualify as a competent person as
defined in the 2012 edition of the "Australian Code for the
Reporting of Exploration Results, Mineral Resources and Ore
Reserves" (The JORC Code). Mr Simmons consents to the inclusion in
this report of the contained technical information in the form and
context as it appears.
Regulatory Information
This Announcement contains inside information for the purposes
of the UK version of the market abuse regulation (EU No. 596/2014)
as it forms part of United Kingdom domestic law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR").
**ENDS**
Follow @SavannahRes on Twitter
Follow Savannah Resources on LinkedIn
For further information please visit www.savannahresources.com
or contact:
Savannah Resources PLC Tel: +44 20 7117 2489
David Archer, CEO
SP Angel Corporate Finance LLP (Nominated Tel: +44 20 3470 0470
Advisor)
David Hignell / Charlie Bouverat
finnCap Ltd (Joint Broker) Tel: +44 20 7220 0500
Christopher Raggett/ Tim Redfern
WH Ireland Limited (Joint Broker) Tel: +44 20 7220 1666
Jessica Cave/ Ben Good (Corporate Finance)
Adam Pollock/ Jasper Berry (Corporate
Broking)
Camarco (Financial PR) Tel: +44 20 3757 4980
Gordon Poole/ Emily Hall
About Savannah
Savannah is the owner of the Barroso Lithium Project, located
close to key infrastructure in Northern Portugal which contains the
most significant spodumene lithium resource in Western Europe. With
a positive Scoping Study which outlined a conventional mine and
concentrator operation producing 175,000t of spodumene concentrate
per annum, Savannah is progressing the development and
environmental licencing of the Barroso Lithium Project. A
Definitive Feasibility Study is underway, and Portugal's
environmental regulator is currently evaluating Savannah's
Environmental Impact Assessment study.
The Company is listed and regulated on the London Stock
Exchange's Alternative Investment Market (AIM: SAV). The Company's
ordinary shares are also available on the Quotation Board of the
Frankfurt Stock Exchange (FWB: SAV), and the Börse Stuttgart (SWB:
SAV).
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