CEO David Archer said the Portugese project was in a major quarrying region for ceramic materials that supply both Spain and Portugal's ceramics industries.

Savannah said the co-products would be produced from the further processing of the tail material from the spodumene concentration process.

Test work showed the company could produce feldspar with grades of over 12% to reach a potential price range of US$65-100 per tonne; 99.6% pure quartz at a potential price range of $60-100/t; and bulk tail of over 7% at a potential price range of $40-45/t.

Savannah said all three products had levels of impurities below the maximum limits specified by customers.

"Importantly, the potential pricing of the products which can be produced have been identified as being significantly higher, by First Test Minerals, than those conservative values used in the recent scoping study of $39/t for feldspar and $33/t for quartz," the company said. 

It said there would be environmental benefits from selling the co-products, as it reduced the project's potential footprint size, as well as economic benefits through the diversification of products.

"Having multiple product streams means we are maximising the value adding potential of the project while also reducing the volume of non-saleable material that will need to be emplaced on site in contoured and vegetated landforms," Archer said.

Savannah says is currently negotiating offtake agreements for the project.