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
The latest exploration results indicate a larger deposit than the previously estimated 28-million metric tons of high-grade lithium. The Barroso deposit of spodumene – an important source of lithium – is already the biggest in Europe.

Savannah, which wants to build four openpit mines in the region to extract enough lithium every year for about half a million to one-million electric vehicle batteries, said in December that it would accelerate the project to secure the first commercial output in 2027.

In a statement on January 23, the company said the results indicated that significant follow-up targets existed on the project's licensed areas, as well as the potential to extend the five known ore deposits.

The EU is working to reduce dependence on countries, such as China, for strategic raw materials, but Savannah's project has run into opposition from local residents and environmentalists, legal challenges and refusals to sell land.

Key Contracts, Suppliers and Consultants
None stated.

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