Name of the Project
Barroso lithium project.

Location
Near Boticas, northern Portugal.

Project Owner/s
Lithium mineral resource project developer 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 restarted drilling as it advances towards the finalisation of the definitive feasibility study (DFS).

This second phase of the DFS drill programme will include 117 drillholes for about 13 000 m, divided into about 9 000 m of reverse circulation drilling and about 4 000 m of diamond drilling. This will cover resource, metallurgical and geotechnical drilling at the Grandão, Reservatório and Pinheiro deposits.

Three drilling contractors, all of which have worked on previous drilling campaigns at the project, have been engaged to provide two reverse circulation and two diamond drill rigs to ensure rapid completion of the work programme.

Preparations for the drilling campaign started before Christmas and, as of January 7, vegetation had been cleared for 64 drill pads, with 27 pads built.

The resource drilling was planned by Savannah’s technical team, with supervision from the independent resource signatory.

A total of 102 drillholes for 11 311 m are planned to upgrade the inferred resources into the indicated and measured categories, which is required for their inclusion into the DFS and conversion into Joint Ore Reserves Committee-complaint reserves.

The metallurgical drilling objective was adjusted following the conclusion of the last drilling programme, where a new high-grade zone of lithium mineralisation was identified at Pinheiro.

The additional works aim to test the metallurgical performance of this zone and the second lens of the Pinheiro deposit, which, to date, has only received limited work.

Three drillholes, adding up to 250 m, are planned to allow for enough sample for the additional detailed metallurgical testing to be completed for the DFS, Savannah Resources has said.

Further, geotechnical drilling will be focused on the planned pit wall locations to complete final designs, it adds. The drilling now comprises 12 drillholes, adding up to 
1 400 m, which should generate enough samples for the geotechnical testing required for the final design of the pits.

The company has reported that the assay results will be released when received, which are expected towards the end of the first quarter of 2025 onwards. Similarly, it will complete resource updates for the Grandão, Reservatório and Pinheiro deposits once results from the drilling are available. 

Meanwhile, Savannah Resources is seeking Portuguese government approval for the compulsory acquisition of land around the Barroso project, despite local opposition.

The company said on January 15 that it would submit the request for a so-called Declaration of Public Utility to government. If approved, it would enable the company to compulsorily buy land around the project.

"In the meantime, all efforts to obtain friendly agreements will continue," it said, adding that values to be paid for the land plots have been calculated by independent surveyors certified by the Portuguese courts.

Portuguese law allows for compulsory acquisitions for infrastructure and energy projects, offering a solution in situations such as plots with inheritance issues or undefined ownership.

Savannah has acquired more than 100 plots so far under a voluntary programme, on average at about twice the values calculated for the compulsory acquisitions, of €1/m2.

Key Contracts, Suppliers and Consultants
None stated.

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