Mina do Barroso
Savannah has entered into an agreement to acquire a 75% interest in the highly strategic Mina do Barroso prospect in northern Portugal. With an approved Mining Plan, Environmental Impact Assessment and a 30-year mining concession/Mining Licence, the Company is focussed on defining a JORC resource so that a development decision can be made by the end of 2018. Accordingly, this asset offers a strategic opportunity to become the first lithium producer in Europe.
Mina do Barroso is arguably one of the most advanced lithium mining concessions in Europe.
Previous work on the prospect has focused on the production of ceramics and not lithium. As a result, the lithium work is largely unstructured but points to significant potential in a relatively underexplored series of pegmatites that have not had their strike, width or down dip potential defined. Work has included reconnaissance geological mapping, trenching, drilling and preliminary metallurgical test work with best results including:
- Due diligence rock chip sampling identifying desirable spodumene pegmatites >70m wide with Li2O grades > 3.12%
- Continuous rock chipping returning broad zones of lithium mineralisation including 30m at 1.18% Li2O, 30m at 1.35% Li2O and 35m at 1.67% Li2O
- High-grade drill results which commence from at or near surface including 32m at 1.16% Li2O from 20m, 12m at 1.6% Li2O from 1m and 16m at 1.35% Li2O from surface;
Furthermore, initial preliminary metallurgical test work indicates that a clean, high quality spodumene product (over 6% Li2O) can be produced from the mineralised rock.
A defined development programme is underway in order to define a JORC resource to support a potential mine development. With an approved Mining Plan, Environmental Impact Assessment (‘EIA’) and Mining Licence it is possible that with a defined JORC resource a development decision could be made by the end of 2018.
Work underway includes mapping, rock chip sampling and drilling.
To support this development work, Savannah has appointed a Portuguese operating partner, Mineralia Minas, Geotecnia e Construcoes, Lda., which has commissioned over 11 quarries and mines in Portugal.
Mina do Barroso is one of a number of prospects within an enlarged 1,018km2 operated by Savannah. This enlarged land package has proven high-grade lithium mineralisation offering additional upside potential.
Mainland Europe currently consumes around 25% of the world’s lithium and is an early adopter of EVs and battery storage solutions. With battery production by major European manufacturers rapidly expanding, any potential local supplies from mainland Europe are being keenly sought; Savannah believes that the Mina do Barroso, together with its enlarged portfolio of lithium assets, is ideally positioned to address this strategic need.