Name of the Project
Mina do Barroso 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 Barroso 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
A testwork programme has demonstrated that feldspar and quartz from spodumene concentrate at the Mina do Barroso project are suitable for use in a range of glass and ceramic applications.

The testwork has validated the feldspar for ceramic bodies and glazes, as well as float and container glass; and the quartz for lead crystal and container glass.

The testwork has confirmed that there is potential for the sale of a combined feldspar and quartz bulk tail from Mina do Barroso requiring no further processing.

Production of this bulk material will potentially eliminate about $15-million from the estimated processing plant capital expenditure that will be required to produce separate quartz and feldspar co-products.  

Savannah has entered into discussions with potential offtake and joint venture partners to advance the co-product opportunity, noting that Mina do Barroso is geographically well positioned to supply markets in Portugal, Spain and other European countries.

The sale of products derived from the lithium concentrator tails will generate additional revenue and reduce the costs and the footprint associated with waste storage on site.

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.