Name of the Project
Mina do Barosso lithium project.

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

Project Owner/s
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, 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% lithium oxide.

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.

Capital Expenditure
Initial capital expenditure is estimated at $109-million.

Planned Start/End Date
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 now has full ownership of the Mina do Barroso project, following the $11.9-million buyout of minority shareholders in the Portugal lithium project.

The remaining 25% interest was acquired from minority shareholders, including resource investment specialist Slipstream Resources Investments, which increased its shareholding from 5.1% to 16.0%.

Savannah has said that 100% ownership provides greater exposure to the lithium project and optionality as the development and commercialisation of the project progresses.

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); Primero Group (primary engineering group and lead manager for the feasibility study); Knight Piésold (lead geotechnical and hydrological engineering); Quadrant (consultant on transport and logistics requirements), Nagrom (assay and metallurgical testwork services), ALS (assay and metallurgical testwork services) ; VISA Consultores (environmental-impact statement assessment); CV&A Consultores and S317 Consulting (stakeholder management strategy, community engagement plan and sourcing of European Union funding); and Noah’s Rule (financial adviser).

On Budget and on Time?
Not stated.

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