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 has indicated and inferred mineral resources of 14-million tonnes at 1.1% lithium oxide (Li₂O) containing 149 200 t of Li₂O using a 0.5% Li₂O cutoff.

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 over the life-of-mine (LoM) mill head grade of 1.02% Li₂O (diluted) 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
Lithium consulting engineers Primero Group have been appointed as the lead engineering group for the Mina do Barosso feasibility study.

The study will build on the outcomes of the June 2018 scoping study.

Primero will bring knowledge and understanding of specific ceramic-related co-products such as feldspar and quartz.

Savannah is working towards being the first major producer of lithium in Western Europe by 2022.

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.