Savannah Resources plc announced that its ongoing metallurgical test work programme continues to successfully produce saleable grades of lithium spodumene products. The Project is targeting an average annual production of 175,000 tonnes of spodumene concentrate at a grade of 6% Li2O. Process development is also aiming at the production of feldspar and quartz by-products for the regional ceramics industries in the region, which, coupled with ongoing resource exploration, will reduce the environmental footprint of the project and add substantially to the project viability. Savannah has successfully produced high grade spodumene concentrate by a standard, whole of ore flotation process from a composite of core samples taken from the Grandao deposit. Grandao currently represents the first five years of mining. For this test work, which was managed by Savannah's own team representatives and conducted in Perth at ALS Laboratories, the sample was subjected to an industry standard beneficiation process, to generate a high grade spodumene concentrate, which consisted of: Conventional crush and grind; Desliming and low intensity magnetic separation; Flotation to remove mica bearing minerals ahead of spodumene flotation; and Conventional spodumene rougher and cleaner flotation using industry standard reagents to generate a high-grade lithium concentrate. This test work programme was conducted on a fresh pegmatite composite with a Li2O head grade of 1.3% which was higher than the head grade of 1.1% previously assumed in the scoping study. Variability work is now underway to reassess the deposit grade and to assess the expected variation of metallurgical response to different grades and ore types. The spodumene concentrate produced had an unoptimized grade of 6.15% Li2O at a lithium recovery of 82.4%. One test produced a concentrate Li2O grade of 6.50% at a reduced Li2O recovery. This test was conducted using an open flotation circuit with intermediate tailings streams not included in the final Li2O recovery. Recycling of these streams is expected to improve the overall Li2O recovery in planned closed circuit test work with the Li2O concentrate grade still expected to remain at >6%. A similar result has been obtained in a second round of testing, using the above process on the same sample at ALS Laboratories, demonstrating the selected process is robust and the results are reproducible. Savannah's market research and initial potential customer correspondence has indicated that a concentrate with the specification achieved is suitable for conversion to either a lithium carbonate or lithium hydroxide for use in lithium ion batteries. Penalty elements such as iron were below the limits specified by customers.