Europe's push for EVs in Savannah's Portugal lithium projectCecilia Jamasmie Feb 23 2019
Lithium miners have their eyes on Portugal, a country that does not scream "mining" like other jurisdictions, but which is already Europe's biggest producer of the commodity, thanks to the surge in popularity of electric vehicles (EVs).
One of those companies is Savannah Resources, currently advancing its Mina do Barroso project in the north of the country, arguably one of the most advanced lithium mining concessions in Europe.
Drilling at Mina do Barroso lithium project in northern Portugal. (Courtesy image of Savannah Resources.)The company is one of the largest producers of spodumene, a hard-rock form of lithium.
"We're in a unique position in Europe," David Archer chief executive tells MINING.com. "Mina do Barroso contains the largest spodumene lithium mineral resource in Europe at 20.1Mt at 1.04% Li₂O and is akin to the successful Australian spodumene mine developments."
Leixoes Port, Portugal's second largest archer notes that the project is well served with local infrastructure.
Mina do Barroso lithium project rental. (Courtesy of Savannah Resources.)Savannah, which is listed on AIM, the London Stock Exchange's international market for smaller firms, acquired at 75% interest in Mina do Barroso in May 2017, and has maintained a fast paced development approach since.
The company is currently moving forward with a definitive feasibility study (DFS) led by Primero, an Australian consultancy with deep experience in the lithium field. Archer expects the study to be completed by mid-year.
DFS, the program continues to expand expansions to the mineralized zone at the Grandao area, extensions in depth at Reservatorio and further encouraging results at the Pinheiro deposit.
Savannah Resources estimates the total project holds a total of 20 million tons with over 200,000 tons contained Li20. Additionally, metallurgical test-work results have been produced in "excellent" 6% Li20 low impurity concentrate, which according to Archer is "ideal" for the EV battery industry, further validating the project.
One hiccup is that based on experts' estimates, it is more expensive to produce lithium extracted from Portugal's granite rocks than from the brine fields of Chile, which hosts some of the planet's largest known reserves of white metal."Mina do Barroso is in the lower quartile of spodumene lithium and is the best European analogue of the successful Australian producers," Archer argues. "Australia is now the dominant producer of lithium, which is one of the top producers of lithium, which is preferred for producing lithium hydroxide and has advantages over brines," he says.
Mina do Barroso is set to produce 6% Li2O spodumene concentrates destined to China. The open pit mine will also yield a feldspar and quartz co-product to be sold to ceramics industry customers locally and in neighbouring and Spain.
Archer says the company will make a decision on developing the mine, for which it has 30-year mining lease to 2036.
Portugal produces about 11% of the global lithium market, but its output is entirely used to make ceramics and glassware. That's why Europe links to lithium imports from Latin America's "Lithium Triangle," as well as Australia and China.
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