London-listed Savannah Resources Plc has reported a series of major advancements at its Barroso Lithium Project in Portugal. Designated as a "Strategic Project" under the EU's Critical Raw Materials Act, the project hosts Europe's largest spodumene lithium deposit and is considered a key element in building a localized lithium battery supply chain for the continent.
Recent drilling results have revealed that both the Pinheiro and Reservatório ore bodies exceed expectations in terms of lithium grade and resource volume. The company has completed over 80% of its drilling program, with preliminary assay data indicating high-grade spodumene mineralization at depth, which could significantly enhance the project's overall resource base. Industry analysts suggest this discovery may increase total resources by 15-20%, while the high-grade zones could reduce initial ore processing costs and improve cash flow.
David Archer, CEO of Savannah Resources, stated, "We are making strong progress on the Definitive Feasibility Study (DFS), which we expect to complete in Q4 this year. Meanwhile, environmental permitting is advancing well and is now in the final assessment phase." The project's environmentally sustainable mining approach has gained local community support, and the company has recently secured land access agreements with multiple landowners.
To accelerate development, Savannah has expanded its technical team with several seasoned lithium mining experts. Strategic partnership discussions with major European battery manufacturers have also entered substantive phases. The Portuguese government has strongly endorsed the project, listing it as a priority under its national strategic mineral resource development plan.
Against the backdrop of Europe's accelerating energy transition and EV industry growth, the Barroso Project's strategic importance continues to rise. Once fully operational, it could supply approximately 15% of Europe's lithium demand, significantly reducing reliance on imports from China and Australia. Leading battery manufacturers, including LG Energy Solution, have already expressed strong interest in future product offtake.
Savannah plans to release further updates on resource estimates and DFS results in the coming months. The company's share price has shown sustained gains, reflecting market optimism about Europe's domestic lithium supply potential. As the EU pushes forward with its critical raw materials strategy, the Barroso Project is poised to become a cornerstone of the region's new energy value chain.
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