Savannah Resources (AIM:SAV) has started the final pre-construction drilling programme at its Barroso Lithium Project in Portugal, Europe's largest spodumene lithium deposit and a Strategic Project under the European Critical Raw Materials Act.
The Aim-listed developer also signed a memorandum of understanding with Fábrica da Igreja da Freguesia de Boticas, the body responsible for the local parish church, its seventh partnership agreement with community entities this year.
Two rigs are currently on site, a diamond drilling rig for geotechnical work and a percussion rig installing water piezometers, with the programme expected to take about four weeks. A third rig is due shortly to lift output, followed by a fourth reverse circulation rig later this month.
"Now underway, following the lifting of forest fire-related restrictions, it marks another step towards the final engineering designs needed for financing and construction", said Emanuel Proença, chief executive of Savannah Resources.
Data from the campaign will feed into geotechnical studies underpinning detailed engineering designs for water reservoirs, the tailings storage facility, waste dumps, roads and bulk earthworks.
The update follows July's Definitive Feasibility Study for Phase 1 and an initial 20 million tonne JORC reserve statement, plus August's land access agreements covering a further 150 hectares with local baldio communities.
Technical and environmental due diligence for project financing is well advanced, with final reports expected for shortlisted lenders in due course.
Jose Almeida joined as FEED engineer in August, with a Project Director and Contracts/Procurement Manager still being recruited among ten roles targeted by the end of 2026.
News Intelligence what this means for the company
Savannah has mobilized four drilling rigs for the final pre-construction geotechnical campaign at Barroso, feeding data into detailed engineering designs needed for project financing and construction. This follows the July DFS and August land access agreements, and marks execution on the path toward 2027 construction and 2028 first production that was outlined when the DFS landed.
The drilling programme is a near-term operational milestone, but the material catalysts remain financing closure and construction start. Savannah has a DFS-based 14-year production profile underpinning $913 million NPV, and technical due diligence for lenders is described as well advanced; the next inflection will be debt commitment and final engineering sign-off, not drilling data.
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