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
Production is expected to start in mid-2026.

Latest Developments
Savannah Resources has received strong commercial interest in the Barroso lithium project, stating that it has appointed UK bank Barclays and Australian financial services firm Barrenjoey Advisory to jointly act as advisers to identify partners for the project.

Savannah initiated a strategic partnering process in July, inviting interested parties to submit proposals outlining how they could assist the company in financing the development of the mine as part of a long-term commercial relationship.

“This process has resulted in attractive draft proposals from players situated at a number of different points along the lithium battery value chain, and from groups looking to gain exposure to this critical new industry. The level of interest in our project reaffirms its quality and strategic value for the European lithium battery value chain over the long term,” CEO Emanuel Proença has said.

The next task will be to analyse and evaluate all the proposals received, and identify those parties that are not only willing to support Savannah in securing the finance required to build the project but can also offer additional benefits to Savannah and all its stakeholders through a future partnership.

This could include complementary skills that can be applied to the project or by providing additional business opportunities to Savannah, Proença said on November 6.

Key Contracts, Suppliers and Consultants
None stated.

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