Savannah Resources lifts lithium reserves at Barroso project by 40%

Savannah Resources (LON: SAV) has lifted the reserve estimate for its Barroso lithium project in northern Portugal by 40% after completing additional prospecting work, further cementing its status as Europe’s largest spodumene deposit.

The London-listed company now pegs reserves at more than 39 million tonnes, up from a previous estimate of 28 million tonnes. Shares in Savannah rose 2.4% on the news, giving the company a market capitalization of £104 million ($141.5 million).

“This is both as a major contributor of raw lithium material to Europe’s battery value chain, but also as a significant, long-term value creator for the local region,” Savannah said in a statement.

Savannah plans to develop four open-pit mines at Barroso, with a combined capacity to produce enough lithium each year to supply batteries for about 500,000 electric vehicles. Production is expected to begin in 2027, subject to permitting and financing.

Once operational, the project is forecast to process 1.5 million tonnes annually over an estimated 14-year mine life. This projection is based on a resource of 20.5 million tonnes grading 1.05% lithium oxide.

Local and environmental pushback

Despite its strategic significance, the project has been met with strong opposition from local communities and environmental groups. The Barroso region, recognized as a World Heritage agricultural site since 2018, has raised concerns over potential impacts on land use, water and biodiversity.

Savannah said it is working to finalize its definitive feasibility study and complete the environmental licensing process by the end of this year. The company has also rejected media reports that cited a United Nations committee accusing Portuguese authorities of breaching international law during the project’s approval process.