Name of the Project
Mina do Barosso lithium project.

Location
The project is located near Boticas, in northern Portugal.

Client
Savannah Resources.

Project Description
A scoping study has confirmed that Mina do Barosso has the potential to be a major European producer of spodumene lithium, with robust project economics and the potential to deliver substantial shareholder value.

The study is considered a base case for the project and is based on a mine and concentrator-only development for the production of spodumene concentrate.

The project will use a contract miner and fleet.

Conceptual openpit mine planning has been developed, targeting a plant feed rate of 1.3-million tonnes a year, with an estimated average life-of-mine (LoM) mill head grade of 1.02% (diluted) lithium oxide (Li2O), and an average overall strip ratio of 5.2:1 (waste:ore ratio). The project will have an LoM exceeding 11 years.

The flowsheet comprises a combined 1.3-million-tonne-a-year dense-media separation and flotation circuit, with an overall plant availability of 85% for the recovery of spodumene. The study estimates average production of 175 000 t/y of spodumene concentrate at 6% Li2O.

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 $356-million and an internal rate of return of 63.2%, with a payback of 1.7 years.

Value
Initial capital expenditure is estimated at $109-million.

Duration
Construction is expected to start in the second quarter of 2019, with production expected to start in the first quarter of 2020.

Latest Developments
Savannah Resources has reported the discovery of three pegmatites at the Pinheiro deposit at the Mina do Barroso lithium project.

Pinheiro is now the fourth major deposit in the mining lease and has the potential to increase the mineral resource estimate to more than 20-million tonnes, for more than 200 000 t of contained lithium, the company has said.

Work at Pinheiro will be fast-tracked to be included in the feasibility study for the project.

Key Contracts and Suppliers
Hatch (engineering services); PayneGeo (geological model and resource estimations); Minesure (analysis and definition of the scoping level mining inventory and contractor costs) and Primero Group (feasibility study).

On Budget and on Time?
Not stated.

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