Savannah Resources has begun final geotechnical and groundwater drilling at the Barroso lithium project in Portugal, advancing work toward detailed engineering and construction financing. Two drilling rigs are currently operating at the site, with additional rigs expected to join the programme. The drilling is generating data required for the design of tailings facilities, reservoirs, waste storage areas, roads and other mine infrastructure.
Engineering and Financing Preparations
Technical, environmental and social due diligence associated with the project’s financing is well advanced, according to Savannah. A contractor has also been selected to carry out front-end engineering design (FEED) for the processing plant. The latest programme moves Barroso further from permitting and resource definition toward project execution, with engineering and site investigations now focused on establishing the configuration required for development.
Barroso has a JORC-compliant reserve of around 20 million tonnes and has been designated a Strategic Project under the EU Critical Raw Materials Act. The designation forms part of the EU’s efforts to increase domestic production of lithium for battery supply chains.
Portugal Allocates Up to €110 Million in Potential Support
Portugal has allocated potential state support of up to €110 million for the Barroso project.
The public support is separate from Savannah’s ongoing project-financing process. The Portuguese commitment constitutes confirmed public support subject to applicable project conditions, while financing due diligence does not represent committed debt funding. Barroso is planned as a hard-rock lithium mine that could supply spodumene concentrate to the European battery supply chain.
The project’s role in European lithium supply has gained importance as battery manufacturers seek to reduce exposure to imported lithium feedstock and supply chains associated with processing capacity dominated by China. The remaining development issues include project execution, financing, local stakeholder relations, and the schedule for completing engineering and construction. The ongoing geotechnical and groundwater drilling, together with the FEED programme, is advancing the project toward a construction configuration.
