Name of the Project
Barroso lithium project.

Location
Near Boticas, northern Portugal.

Project Owner/s
Savannah Resources.

Project Description
The Barroso project comprises five main deposits: Grandao, Reservatorio, Pinheiro, NOA and Aldeia.

A scoping study completed in June 2023 has reconfirmed that the project has the potential to be a major European producer of spodumene concentrate. It is based on a mine- and concentrator-only development for the production of spodumene concentrate.

Over the estimated 14-year mine life, the project will have a throughput of about 1.5-million tonnes a year, based on a resource of 20.5-million tonnes at 1.05% lithium oxide. Potential production is estimated at 191 000 t/y of 5.5% spodumene.

The project's flowsheet, which has been designed and tested to feasibility study requirements, combines dense-media separation (DMS) and a flotation circuit for the recovery of spodumene into a concentrate.

The processing of ore to produce concentrates will comprise crushing and reclaim, primary comminution and classification, DMS, a flotation preparation circuit, a mica flotation circuit, a spodumene flotation circuit, concentrate and tailings dewatering and storage, as well as water circuits and services.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $953-million and an internal rate of return of 77%, with a payback of 1.3 years.

Capital Expenditure
Initial capital expenditure is estimated at $236-million.

Planned Start/End Date
Commissioning and first production are expected to start in mid-2027.

Latest Developments
Savannah Resources has delayed the expected start date for production to 2027, blaming changes in government.

The company hoped to start production in 2026.

Portugal's centre-right government ascended to power in March after former Socialist Prime Minister Antonio Costa stepped down over an investigation into alleged illegalities in his government's handling of lithium and hydrogen projects.

"The change of government has led to a delay of more than half a year in the development of the project," Savannah said on October 2, adding that access to land was particularly affected.

Savannah now expects to deliver its definitive feasibility study in the second half of 2025, with the environmental licensing confirmation completed in a similar timeframe.

Legal proceedings have started to allow for temporary access to land – which the company does not currently own – to proceed with the required fieldwork on Savannah’s 840 ha concession area.

The company had acquired more than 100 plots to date, though it was not clear how many hectares that represented Savannah CEO Emanuel Proenca said during an investor presentation in May this year.

The company has previously said it would ask the Portuguese government, if necessary, to authorise compulsory land acquisitions for its planned lithium mines. Government has the power to authorise a compulsory purchase in the public interest.

The project, which has faced strong opposition from local residents and environmentalists, is widely seen as a test for the EU's ambition to reduce dependence on countries, such as China, for key raw materials.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Savannah Resources, David Archer, tel +44 20 7117 2489.