Savannah Resources has completed a five-month geotechnical and hydrogeological investigation programme at its Barroso lithium project in northern Portugal, providing technical data required for detailed engineering as the developer prepares for its next environmental approval milestone and a targeted final investment decision in 2027.
The investigations covered 276 locations across the Eastern Block, where mining and processing operations are expected to be concentrated during the first eight years of the project. The work provides geological, groundwater and foundation-design information for the proposed processing plant, water infrastructure, access roads and mine-waste facilities.
The milestone comes ahead of Savannah’s planned submission of its RECAPE environmental compliance documentation in early November 2026. The company expects the regulatory process to advance the project towards the remaining environmental authorisation required before construction.
Barroso has been designated a Strategic Project under the EU Critical Raw Materials Act and is eligible for Portuguese government support of up to €110 million.
Geotechnical and hydrogeological programme completed
The investigation campaign comprised 189 geotechnical test pits, 32 boreholes for groundwater-monitoring piezometers and 30 geotechnical boreholes. Samples collected during the work were sent to certified laboratories for analysis.
The results will support foundation engineering, earthworks planning, construction-material assessments and the design of groundwater-monitoring and water-management systems.
The information is relevant to the project’s open-pit mining operations, mineral-processing facilities, water-storage reservoirs, tailings infrastructure and associated civil works. Geotechnical data will inform assessments of ground-bearing capacity, slope stability, excavation conditions and the suitability of materials for embankments and other structures.
Hydrogeological findings will contribute to understanding groundwater behaviour and potential interactions between mining activities and surrounding water systems, supporting the development of monitoring arrangements and environmental controls.
Approximately 30 external specialists and more than 40 Savannah employees participated in the investigations. Portuguese contractors supplied earthworks, vegetation clearance, drilling, occupational safety and security services, generating more than €500,000 in direct local expenditure.
Although the field programme has been completed, laboratory testing, engineering calculations and technical reviews must still be incorporated into the project’s final construction documentation.
RECAPE submission advances environmental permitting
Savannah’s next regulatory priority is submitting the RECAPE documentation to the Portuguese Environment Agency (APA), which is responsible for assessing compliance with the conditions attached to the project’s earlier environmental decision.
Barroso received a favourable but conditional Environmental Impact Statement in May 2023. The forthcoming submission is intended to demonstrate that the detailed project design meets those conditions, including requirements covering water management, infrastructure and measures to mitigate effects on surrounding communities and ecosystems.
The company expects to file the documentation during the first week of November. The applicable regulatory procedure provides for a 50-working-day review period, with Savannah anticipating a decision in the first quarter of 2027, depending on the progress and timing of the assessment.
Environmental and community-related issues remain important considerations for the development. The project is located near communities in the Boticas municipality, where concerns over land use, water resources and the environmental consequences of industrial mining have prompted opposition and local protests.
Regulatory approval will therefore need to be accompanied by continued community engagement and progress in securing the land rights required for development.
Sedgman progresses processing plant engineering
Engineering work is also advancing through a front-end engineering and design (FEED) contract awarded to Sedgman, an Australian engineering contractor within the CIMIC Group.
Sedgman previously contributed to the development of Barroso’s metallurgical flowsheet and definitive feasibility study. Its current scope covers crushing, milling, dense media separation, flotation, dewatering, water systems and related processing infrastructure.
The FEED programme is intended to refine the feasibility-study design and produce engineering documentation for subsequent procurement and construction tendering.
The proposed facility will process lithium-bearing pegmatite ore into spodumene concentrate for further chemical conversion into battery materials.
According to the July 2026 definitive feasibility study, the operation is designed to process approximately 1.5 million tonnes of ore annually, producing average annual output of 183,000 tonnes of spodumene concentrate grading at least 5.5% lithium oxide.
The development plan is based on a 20-million-tonne Probable Ore Reserve grading 0.99% lithium oxide, supporting an estimated 14-year mine life. Initial capital expenditure was estimated at approximately €375 million, including contingencies, using the late-October exchange-rate equivalent of the original US-dollar estimate.
€110 million government grant supports project funding
The Portuguese government’s €110 million grant, approved earlier in 2026, represents a significant contribution to Barroso’s proposed financing structure.
Of the total, approximately €82.5 million is allocated to initial development capital expenditure, while the remaining €27.5 million is conditional on operational performance milestones.
The grant reduces the external funding requirement but does not cover the entire investment. Savannah is continuing discussions with shortlisted lenders and potential commercial partners as it works towards securing the financing package required for a final investment decision.
The company has also explored a possible German government-backed loan guarantee connected to lithium offtake arrangements.
Its commercial relationship with AMG Critical Materials provides an existing route for concentrate sales, while negotiations are continuing over an additional offtake agreement. Financing discussions are linked to progress in permitting and engineering, as prospective lenders require sufficiently developed capital-cost estimates, regulatory clarity, construction schedules, technical risk assessments and commercial arrangements.
Completion of the ground investigations provides additional information for infrastructure design and cost estimates, although neither the fieldwork milestone nor the government grant represents financial close.
Barroso’s role in Europe’s domestic lithium supply
The project forms part of Europe’s efforts to reduce dependence on imported lithium raw materials and strengthen domestic extraction and processing capacity under the Critical Raw Materials Act.
Portugal has significant hard-rock lithium resources and could become an important supplier to the European battery-material industry.
If developed according to plan, Barroso would deliver substantial volumes of spodumene concentrate for conversion into lithium chemicals. However, concentrate production is only the initial stage of the battery-material supply chain, with further chemical-processing capacity, commercial agreements and logistics infrastructure needed to support an integrated European supply system.
The project’s economic performance will depend on realised lithium prices, metallurgical recovery, construction expenditure and operating results. The feasibility study provides the current economic projections, which remain dependent on market conditions and successful project execution.
Final investment decision targeted for early 2027
Savannah is targeting a final investment decision in early 2027, with construction planned to begin later that year. Commissioning and first spodumene concentrate production are scheduled for late 2028.
The timetable depends on environmental authorisation, completion of engineering work, financing commitments, commercial agreements and construction preparations.
The completed investigations provide additional technical information for advancing the project, while the forthcoming RECAPE assessment represents the next major regulatory milestone ahead of financing completion and formal construction approval.
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