TIDMSAV
RNS Number : 7916I
Savannah Resources PLC
13 August 2019
13 August 2019
Savannah Resources Plc
Successful Glass & Ceramics Test Work Programme Completed on
Co-Product Feldspar and Quartz at Mina do Barroso Lithium
Project
Highlights:
-- Test work programme demonstrates that feldspar and quartz
from Mina do Barroso's spodumene concentrate tails are suitable for
use in a range of glass and ceramic applications
-- Test work has confirmed that the bulk tail from the spodumene
concentrator is also a saleable product requiring no further
processing
-- Successful test work validated Mina do Barroso feldspar for
both ceramic bodies and glazes, and float and container glass, in
addition to validating Mina do Barroso quartz for lead crystal and
container glass
-- Marketing studies concluded that prices for Mina do Barroso
co-products could be significantly higher than reported in the 2018
Scoping Study, with feldspar at US$65-100/t vs. US$39/t, quartz at
US$60-100/t vs. US$33/t and a bulk tail at US$40-45/t
-- Glass and ceramics are two of the biggest global markets for feldspar and quartz
o Mina do Barroso is geographically well positioned to supply
markets in Portugal, Spain and other European countries
-- Discussions underway with potential offtake and JV partners
to advance the co-product opportunity
-- Sale of products derived from the lithium concentrator tails
would generate additional revenue and reduce the costs and the
footprint associated with waste storage on site
-- The test work programme was designed and managed by
experienced industry professionals, First Test Minerals
Savannah Resources plc (AIM: SAV, FWB: SAV and SWB: SAV)
('Savannah' or the 'Company'), the AIM quoted resource development
company, which is focused on becoming Europe's most significant
producer of lithium spodumene concentrates from its wholly owned
Mina do Barroso Project in Portugal ('Mina do Barroso' or 'the
Project'), is pleased to announce that its ongoing metallurgical
test work programme has successfully produced saleable co-products
from the ongoing ceramics test work programme.
Mina do Barroso is currently targeting an average annual
production rate of 175,000 tonnes of battery grade spodumene
lithium concentrate in addition to targeting the production of
feldspar and quartz co-products for the regional glass and ceramics
industries. Co-product sales will add valuable additional revenues
to the Project as well as reducing the environmental footprint and
costs associated with waste handling and storage, adding
substantially to Mina do Barroso's commercial appeal.
To view the announcement with the illustrative diagrams and
tables please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/7916I_1-2019-8-12.pdf
Savannah's CEO, David Archer said: "Glass and ceramics are huge
global industries, with Europe representing 25% of global
production of ceramics. Feldspar and quartz products have been
produced in this region of Portugal for decades and are well
regarded by glass and ceramic manufacturers in the domestic market
and in Spain. The completed test work has validated Mina do
Barroso's feldspar and quartz for these applications. Producing
saleable products from the waste stream of the spodumene
concentrator will help to reduce the operating costs and the
footprint associated with handling and storing waste material on
the Project site.
"Very significantly, the test work has also confirmed that there
is potential for the sale of a combined feldspar and quartz bulk
tail (Mina do Barroso Fine Grade Feldspar) from Mina do Barroso
requiring no further processing. Production of this bulk material
would also potentially eliminate approximately US$15m from the
estimated processing plant capex that would be required to produce
separate quartz and feldspar co-products. At the same time the
estimated unit sale price of the bulk product is likely to exceed
the prices for separate feldspar and quartz products assumed in the
June 2018 Scoping Study. Test marketing to potential customers is
now underway."
MARKETS - CERAMICS
The global ceramics market is worth around US$100 billion and is
expected to grow at a compound annual growth rate of approximately
6% during the period 2019-2029 (source: Fact.MR). The EU ceramics
industry represents an annual production value of EUR30 billion,
accounting for one third of global production value and supports
over 200,000 direct jobs throughout the EU (source: Cerame-Unie).
The major producing countries in the EU are Italy, Germany, Spain,
France, UK, Portugal and Austria, with Spain and Portugal producing
an estimated 570 million square metres of ceramic tiles per annum
(source: First Test Minerals).
MARKETS - GLASS
The glass industry is the largest consumer of feldspar globally
(source: Mordor Intelligence). Europe is the biggest market for
feldspar (source: Global Industry Analysts), due to its high
production and consumption of glass. Feldspars are used in the
production of both flat and container glass. Container glass is the
largest sector in Europe, accounting for 21.8Mt, or over 60% of the
35.4Mt of total glass production with approximately 160
manufacturing plants distributed all over Europe (Source: Glass
Alliance Europe). Flat glass is the second largest sector (10.6Mt,
or 29% of total European production) with the biggest markets in
building (windows and facades) and automotive industries
(windscreens, front and rear side windows, lights and sunroofs).
Flat glass is also used in solar-energy applications (photovoltaic
and solar thermal panels) as well as in domestic furniture, mirrors
and greenhouses. Flat glass is manufactured in Europe by seven
companies operating some 60 float glass plants, each having a
typical capacity of 650 tonnes of melted glass per day (source:
Glass for Europe).
WORK PROGRAMME SUMMARY
Sample Selection and Refining
Samples of quartz and feldspar co-product from Savannah's Mina
do Barroso Lithium Project in northern Portugal have been
successfully evaluated in a range of industrial glass and ceramics
applications. In each case, comparisons were made with current
commercial grades in regular use throughout Western Europe.
A carefully selected blend of core drill samples, fully
representative of the spodumene pegmatite, were ground to optimum
particle size and processed by conventional flotation techniques by
Nagrom in Kelmscott, Western Australia to produce three commercial
co-products:
-- Quartz / Feldspar Tailings (bulk tail to be produced from the spodumene concentrator)
-- Refined Feldspar (separated product from the bulk tail)
-- Refined Quartz (separated product from the bulk tail)
Sample Analysis
Each sample was analysed for mineralogy, chemistry, particle
sizing and other properties so that comparisons against other
leading grades on the market could be made and detailed technical
data sheets drawn up.
The three grades were given the following commercial names:
-- Mina do Barroso Fine Grade Feldspar = Quartz / Feldspar
Tailings (bulk tail to be produced from the spodumene
concentrator)
-- Mina do Barroso High Grade Feldspar = Refined Feldspar (separated product from the bulk tail)
-- Mina do Barroso High Grade Quartz = Refined Quartz (separated product from the bulk tail)
A series of industrial application trials were then conducted on
these products which are summarised in the tables below.
CERAMICS:
Trial Mina do Test Test work Benchmark sample Results and comments
Barroso product conducted by used & supplier
Product created
tested
Vitrification Fine Ceramic Furlong Mills Cornish Stone
Grade bead LTD, UK (formerly supplied * Existing grades in commercial use for ceramic body
Feldspar by Goonyean Ltd, UK) and glaze formulations can be matched
-------------- --------- ------------ -------------- ---------------------
* All firings showed a high level of whiteness, better
than the benchmark grades used for comparison
-------------- --------- ------------ -------------- ---------------------
High Forshammer and FFF,
Grade feldspar (Sibelco, * No dark specks, striations or inhomogeneity were
Feldspar Sweden) found
-------------- --------- ------------ -------------- --------------------- --------------------------------------------------------------------
Glaze High Transparent Potterycrafts Glaze made from FFF
Grade glazes Ltd, UK (Sibelco, Sweden) * No problems were encountered during the preparation
Feldspar applied to and firing of the trial glaze (no bubbles, foaming or
porcelain viscosity problems).
tiles fired
to 1250degC
--------- ------------ -------------- --------------------- --------------------------------------------------------------------
Bone China Fine Bone China Global Standard bone china
Grade bodies Ceramics body (containing * Both Savannah Feldspars worked well within a
Feldspar Materials feldspar from traditional bone china body recipe.
(GCM), UK Imerys)
-------------- --------- ------------ -------------- ---------------------
* Minor changes to processing and body recipes could be
made to suit the existing formulation and achieve the
exact specification.
-------------- --------- ------------ -------------- ---------------------
High
Grade * GCM would consider further commercial scale trials
Feldspar subject to availability and price.
-------------- --------- ------------ -------------- --------------------- --------------------------------------------------------------------
Hotelware High Ceramic Furlong Mills Standard body
Grade bowls Ltd, UK containing
Feldspar Forshammer feldspar
(Sibelco, Sweden)
-------------- --------- ------------ -------------- --------------------- --------------------------------------------------------------------
High Standard body
Grade containing Lochaline * No problems were encountered throughout the
Quartz quartz (Gruppo production process and the trial bowls matched the
Minerali, Italy & standard in all aspects: appearance, shape,
Pilkington, UK) contraction and colour were all identical
-------------- --------- ------------ -------------- --------------------- --------------------------------------------------------------------
Figure 1. Mina do Barroso Fine Grade Feldspar Tiles produced
from Tile Glaze Testing and Hotelware test and bowls produced from
Mina do Barroso High Grade Feldspar
GLASS:
Trial Mina do Barroso Test product Benchmark Results and
Product tested created control used comments
& test work
conducted
by
Container High Grade Standard grade Regular commercial The glass
glass Feldspar container grade samples melt samples
glass for (Glass Technology matched or
regular commercial Services, exceeded the
use UK) benchmark
in quality,
showing no
problems with
seed, bubbles,
cord or inhomogeneity
---------------- -------------------- ------------------- -----------------------
High Grade
Quartz
---------------- -------------------- ------------------- -----------------------
Float Glass High Grade Standard grade The glass
Feldspar float glass melt samples
for regular matched or
commercial exceeded the
use benchmark
in quality,
showing no
problems with
seed, bubbles,
cord or inhomogeneity
---------------- -------------------- ------------------- -----------------------
Lead Crystal High Grade Standard grade The glass
Glass Quartz lead crystal melt samples
glass for matched or
regular commercial exceeded the
use benchmark
in quality,
showing no
problems with
seed, bubbles,
cord or inhomogeneity
---------------- -------------------- ------------------- -----------------------
Figure 2. Flint Container Glass - Benchmark Comparative side lit
images of (1) Flint container with Feldspar and (2) Flint container
with Savannah Feldspar showing comparative levels of melting and
refining
About First Test Minerals
The ceramics test work programme described previously was
designed and managed by First Test Minerals using certified
laboratories in the United Kingdom and whose principles
collectively have over 70 years of experience in the ceramics
industry.
Owner/Director Frank Hart B.Sc. (combined honours in Geology
& Chemistry) has extensive experience in industrial minerals
gained through 40 years of direct involvement in technical
evaluation and quality control. Frank has worked in the paper,
glass and ceramics mining industry including 28 years in kaolin
where he was the Technical Manager at Goonvean Ltd, responsible for
all geological and chemical aspects of mining and refining from 5
open cast kaolin quarries and the last operating china stone quarry
in the UK, for many years, the sole indigenous source of feldspar
in the UK. He also managed a testing facility for other companies
investigating new deposits. This included kaolin and halloysite
samples from Canada, USA, Sweden, Korea, Australia and Africa.
Talc, GCC and silica sands were also tested.
First Test Minerals works closely with marketing consultant
Simon Warren F.I.M.M.M, who has 30 years of technical and
commercial experience in industrial minerals, including kaolin,
ball clays, feldspars and calcined kaolin. Simon has extensive
technical knowledge of all aspects of ceramic manufacture and raw
materials, former Chair of the Whitewares Division of IOM3 and
current Fellow member together with Global knowledge of commercial
aspects for ceramic raw materials: sales, pricing, logistics.
Simon has experience with a wide range of industrial
applications including prepared ceramic body preparation, tableware
(plastic, pressure casting, dust-pressing) and sanitaryware
(traditional and pressure casting) and has previously been employed
with English China Clays PLC, Imerys, Potterycrafts and Goonvean
Ltd in senior managerial marketing roles. Simon has played an
important role in assisting with the test work and providing market
guidance and pricing of products.
Technical Consultant
In addition to First Test Minerals, Savannah utilised Dr. Ian
Wilson, owner/Director of Ian Wilson Consultancy Ltd (BSc honours
degree in Geology & Chemistry, MSc in Geochemistry and PhD)
whom has had an extensive 45 years' experience in industrial
minerals. From 1974-2001, Ian worked for English China Clays and
Imerys on geological and project management activities world-wide,
including more than 5 years as Project Manager and Managing
Director of operations in Brazil, Spain, Sweden and China. He
established his own consultancy company in 2001 and his experience
spans the range from exploration and resource estimation to project
development and production, and includes global and regional
marketing for a wide variety of industrial minerals, including
kaolin, halloysite, calcium carbonate (PCC and GCC), talc,
bentonite, special clays, ball clays, feldspar, barytes, magnesite
and others. Dr. Wilson has concentrated on minerals used in the
ceramic, paper and oilfield industries.
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 announcement that relates to ceramics is
based upon information compiled by Dr Ian Wilson, Owner/Director of
Ian Wilson Consultancy Ltd. Dr Wilson is a Member of Institute of
Materials, Minerals and Mining (MIMMM) 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). Dr Wilson consents to the inclusion in the report of the
matters based upon the information in the form and context in which
it appears.
Regulatory Information
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**ENDS**
For further information please visit www.savannahresources.com
or contact:
David Archer Savannah Resources Tel: +44 20 7117 2489
plc
David Hignell / Charlie SP Angel Corporate Tel: +44 20 3470 0470
Bouverat (Nominated Adviser) Finance LLP
Christopher Raggett (Joint finnCap Ltd Tel: +44 20 7220 0500
Broker)
Grant Barker (Joint Broker) Whitman Howard Tel: +44 20 7659 1225
Melissa Hancock / Cosima St Brides Partners Tel: +44 20 7236 1177
Akerman (Financial PR) Ltd
About Savannah
Savannah is a diversified resources group (AIM: SAV) with a
portfolio of energy metals projects - lithium in Portugal and
copper in Oman - together with the world-class Mutamba Heavy
Mineral Sands Project in Mozambique, which is being developed in a
consortium with the global major Rio Tinto. The Board is committed
to serving the interests of its shareholders and to delivering
outcomes that will improve the lives of the communities we work
with and our staff.
The Company is listed and regulated on AIM and the Company's
ordinary shares are also available on the Quotation Board of the
Frankfurt Stock Exchange (FWB) under the symbol FWB: SAV, and the
Börse Stuttgart (SWB) under the ticker "SAV".
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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