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Barroso Lithium Project: New Scoping Study
Barroso Lithium Project: New Scoping Study.
About this update from Savannah Resources Plc
[{"type":"text","content":"\n\n12 June 2023\nSavannah Resources Plc\n(AIM: SAV, FWB: SAV and SWB: SAV) ('Savannah', or the 'Company')\n \nBarroso Lithium Project: New Scoping Study\n \nNew Scoping Study for the Barroso Lithium Project demonstrates Outstanding Economics: Post-tax NPV of US$953 million, IRR of 77% and 1.3 year Payback\n \nSavannah Resources Plc, the European lithium development company, is pleased to announce, following the positive Environmental Impact Statement ('DIA') from the Portuguese regulator on the Project's revised and optimised design, the results of a new Scoping Study (the 'Study' or the 'Scoping Study') undertaken on the Company's 100% owned Barroso Lithium Project (the 'Project'), located in northern Portugal.\n \nScoping Study Highlights\n \n· The new Scoping Study reconfirms the Project has the potential to be a major European producer of spodumene concentrate, the industry's standard lithium raw material. Located in close proximity to the emerging European battery supply chain, including a number of planned lithium chemical plants, the Project has the potential to be a domestic source of conventional, low cost, low carbon, lithium raw material for the region.\n· Demonstrates excellent Project economics, with the potential to deliver substantial shareholder value:\no Base Case post -tax NPV8 of US$953 million, IRR of 77% and payback period of 1.3 years\no Life of Mine ('LOM') revenue of US$4.2 billion\no LOM EBITDA of US$2.8 billion\no LOM post-tax free cash flow of US$1.7 billion\no Based on average 5.5% grade spodumene concentrate LOM price of US$1,464/t vs. current 6% grade spot prices of US$3,500/t\n \n· Project considered by independent consultants to be of low technical risk with open pit mining and conventional processing combining Dense Media Separation ('DMS') and a flotation circuit utilising environmentally friendly reagents to produce a 5.5% Li2O grade spodumene concentrate:\no Resource of 28Mt at 1.05% Li₂O with a lithia content of 293,400 tonnes\no Resource Utilised in Mine Plan, 20.5Mt at 1.05% Li₂O and average annual run-of-mine production of 1.5Mtpa, over 14 years\no LOM production of 2.6Mt of 5.5% Li2O grade spodumene concentrate at an average annual production rate of ~1...