Savannah Resources PLC on Tuesday reported results from drilling at the Pinheiro deposit in its Barroso lithium project in northern Portugal.

The lithium development company said the results showed the ‘highest-grade lithium intercepts to date from the project,’ citing lithium oxide between 1.45% and 2.28% from five reverse circulation holes.

Savannah Resources shares rose 7.4% to 2.32 pence each on Tuesday afternoon in London.

‘Pinheiro is the first deposit scheduled to be mined when the project begins production, and these new high-grade results point towards the potential for a significant improvement in the project’s early cashflow,’ Savannah Resources said.

Chief Executive Officer Emmanuel Proenca said: ‘These latest drilling results from Pinheiro are a great reminder of the project’s remaining geological potential. They may also prove to be economically significant for the project as a whole. Pinheiro is the first deposit we plan to develop in our sequential mine plan, so any upside we can capture on tonnage, but particularly grade, in our new resource estimate for the orebody could have a beneficial effect on early cash flow during the first year of the operation. We’re all now looking forward to the remaining results due from Pinheiro.’

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