In the verdant hills of northern Portugal, Savannah Resources' Barroso Lithium Project is rapidly emerging as a linchpin in Europe's transition to sustainable energy. As the continent seeks to reduce its reliance on imported critical minerals, this project stands out as Europe's most advanced and significant hard-rock lithium endeavor.
The Barroso region's geology is characterized by spodumene-bearing pegmatites embedded within metapelitic and mica schists, dating back to the Upper Ordovician to Lower Devonian periods. These geological formations have undergone significant tectonic activities, resulting in the emplacement of lithium-rich pegmatitic bodies. Notably, the Grandao deposit stands out with its flat-lying, tabular pegmatite extending over 600 meters north-south and 700 meters east-west, with thicknesses ranging between 10 to 60 meters.
Similarly, the Reservatorio deposit showcases a continuous, tabular pegmatite striking NE-SW and dipping NW at 25° to 40°, varying in thickness from 20 to 50 meters. These geological settings provide favorable conditions for substantial lithium mineralization, predominantly in the form of spodumene.
As of June 2023, Savannah Resources has delineated a JORC-compliant mineral resource estimate of 28 million tonnes at an average grade of 1.05% Li₂O, containing approximately 293,400 tonnes of lithium oxide. The Grandao deposit alone accounts for about 63% of this resource, with 17.7 million tonnes at 1.04% Li₂O. Notably, the Aldeia deposit boasts higher grades, with 3.5 million tonnes at 1.3% Li₂O
The 2023 Scoping Study underscores the project's robust economics, projecting a post-tax Net Present Value (NPV) of US$953 million and an Internal Rate of Return (IRR) of 77%, with a payback period of just 1.3 years. The study anticipates an annual production of approximately 191,000 tonnes of 5.5% Li₂O spodumene concentrate over a 14-year mine life, sufficient to supply around 500,000 electric vehicle batteries each year. Initial capital expenditure is estimated at US$236 million, including US$40 million allocated for community-related measures.
The Barroso Lithium Project is poised to play a pivotal role in Europe's battery supply chain. Its strategic location, approximately 145 kilometers from the deep-water port of Leixões, facilitates efficient export logistics. Moreover, the project's alignment with the European Union's Critical Raw Materials Act positions it as a key contributor to the bloc's goal of sourcing at least 10% of its lithium demand domestically by 2030.
Savannah Resources' commitment to responsible mining practices, coupled with Portugal's renewable energy infrastructure, ensures that the project will produce low-carbon lithium, further enhancing its appeal to environmentally conscious stakeholders.
As the Barroso project advances towards commercial production, targeted for 2026, it stands as a testament to Europe's determination to secure a sustainable and autonomous energy future.
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