Savannah Resources has begun a final pre-construction drilling programme at its Barroso lithium project in Portugal, while progressing engineering, permitting and lender due diligence ahead of financing and construction.
The drilling programme covers geotechnical investigations and groundwater monitoring required for the design of reservoirs, tailings facilities, waste dumps, roads and bulk earthworks. Two drilling rigs are currently operating, with additional equipment expected to increase the pace of the programme.
Engineering and Financing Work Progresses
Savannah has selected a contractor to carry out front-end engineering design (FEED) for the project’s processing plant. Technical and environmental due diligence for project financing is also well advanced, with the resulting reports expected to be submitted to shortlisted lenders.
The current programme moves the project beyond resource definition and economic assessment towards preparation of an executable construction package.
Barroso Lithium Production Plans
The Barroso project has an initial reserve of approximately 20 million tonnes and is designed to produce about 183,000 tonnes of spodumene concentrate annually. According to Savannah, the planned production volume could provide lithium for approximately 500,000 electric-vehicle battery packs each year. Barroso has been designated a Strategic Project under the EU Critical Raw Materials Act and has received approval for a Portuguese state grant of up to €110 million. The grant forms part of the project’s financing framework, alongside the need for commercial debt, equity and potentially offtake-backed financing.
Land Access and Remaining Project Requirements
Land access, outstanding licences and community relations remain among the issues affecting project development. Savannah has secured additional agreements with local land-management organisations and entered into several partnerships with community bodies.
The project continues to operate in a politically sensitive environment, while lenders are expected to require defined capital costs, completed engineering, enforceable land access, environmental compliance and construction contingencies before financing commitments are finalised. The next stage of Barroso’s development is therefore focused on completing engineering, permitting, technical and environmental due diligence and establishing the financing arrangements required for construction.
