Good progress made with fieldwork

Savannah nears completion of key fieldwork at Barroso Lithium Project in Portugal.

What the company is saying

Savannah Resources Plc is communicating that its Barroso Lithium Project in Portugal is advancing through the final stages of pre-construction fieldwork. The company emphasises that all access and groundwork for over 200 geotechnical test pits, 32 geotechnical drill holes, and 17 hydrogeological boreholes are complete. It highlights specific progress: 189 geotechnical pits excavated and logged, 83m of geotechnical drilling completed out of 300m planned, and 696m of hydrogeological drilling done out of 800m. The narrative frames these achievements as 'good progress' and stresses that the data will inform detailed engineering for project infrastructure. John Pereira, Exploration Manager, is quoted to reinforce confidence in the team’s execution and the importance of the field programme for confirming ground and groundwater conditions. The company also reiterates the project's strategic status under the European Critical Raw Materials Act and its future production potential of 183,000 tonnes per annum of spodumene concentrate, enough for about half a million vehicle battery packs per year. The tone is positive, focused on operational milestones and future contributions to European lithium supply.

What the data suggests

The disclosed figures show Savannah has completed groundwork for over 200 geotechnical test pits, 32 geotechnical drill holes, and 17 hydrogeological boreholes at Barroso. Of these, 189 geotechnical pits have been excavated and logged, with 23 remaining. Geotechnical drilling stands at 83m out of 300m planned, while hydrogeological drilling totals 696m out of 800m. Fourteen hydrogeological holes are finished, and two rigs are currently operating, with a third rig due on site next week. Laboratory testing is advanced, with results from 128 pits received, and drill core sampling is ongoing. The company expects to finish the field programme in the coming weeks, with lab results due in early Q4. Once complete, all field inputs for RECAPE, FID, and construction preparation will be ready. The project is positioned as a major future supplier, targeting 183,000 tonnes per annum of spodumene concentrate and aiming to help meet the EU’s 10% endogenous lithium production goal by 2030. The operational disclosures are detailed and specific, but all production and supply-chain impact figures remain forward-looking and contingent on future milestones.

Analysis

The announcement provides detailed and specific operational progress on the Barroso Lithium Project, including the number of pits excavated, metres drilled, and laboratory tests completed. These realised milestones are well-supported by numerical data. However, the tone is somewhat inflated by forward-looking statements about the project's future production capacity (183,000 tpa spodumene concentrate, half a million battery packs per year) and its contribution to European lithium supply, which are not imminent and depend on future construction and commissioning. The benefits described are not immediate, as the current work is pre-construction and the project is still progressing through fieldwork and permitting. There is no disclosure of capital expenditure, funding status, or profitability metrics, and the capital intensity is implied by references to construction preparation and FID. The gap between narrative and evidence is moderate: operational progress is real, but the most ambitious claims are long-dated and not yet de-risked.

Risk flags

• ●Execution risk remains high as the project is still pre-construction; completion of fieldwork does not guarantee smooth transition to permitting, financing, and build-out. Delays or complications in these next phases could materially impact timelines and costs.
• ●The projected annual output of 183,000 tonnes of spodumene concentrate and contribution to the EU’s 10% lithium production target are aspirational and depend on successful project delivery, which is not yet de-risked.
• ●No financial or funding details are disclosed in this update, leaving uncertainty around Savannah’s ability to finance construction and move to production, especially given the capital intensity implied by the scale of the project.

Bottom line

Savannah Resources is making tangible progress on the Barroso Lithium Project’s final pre-construction fieldwork, with most drilling and lab testing nearly complete and all groundwork finished. The project’s scale is significant, targeting 183,000 tonnes per annum of spodumene concentrate and aiming to supply enough lithium for half a million vehicle battery packs annually, supporting the EU’s 10% domestic lithium goal. While operational milestones are being met, all production and supply-chain benefits remain projections, with major permitting, financing, and construction hurdles still ahead. No new funding or offtake agreements are disclosed, so the path to actual revenue and cash flow is still unproven. Investors should watch for RECAPE, FID, and construction updates, as well as any concrete funding or partnership news. The most important takeaway is that Savannah is close to wrapping up a critical pre-construction phase, but the project’s value will only be realised if subsequent, more challenging milestones are achieved.

Announcement summary

(AIM: SAV) Savannah Resources Plc announced good progress on its final construction-related field programme at the Barroso Lithium Project in Portugal, which is classified as a 'Strategic Project' under the European Critical Raw Materials Act and is Europe's largest spodumene lithium deposit. All access and groundwork have been completed for over 200 geotechnical test pits, 32 geotechnical drill holes, and 17 hydrogeological boreholes. To date, 189 geotechnical pits have been excavated and logged, with 23 pits pending excavation and logging. Three geotechnical drill holes have been completed at the site of an environmental control reservoir, and one is currently in progress at a water storage reservoir, with approximately 83m drilled out of a planned 300m. Fourteen hydrogeological holes have been completed for a total of 696m out of a planned 800m, with separate 40m and 10m holes planned at each site. The drilling sites include environmental control reservoirs, water storage reservoirs, the Tailings Storage Facility, processing plant site, and waste rock dumps. Two rigs are currently operating on site: a diamond drilling rig for geotechnical investigation and a down hole hammer percussion drill rig for hydrogeological holes. A third rig will be mobilised shortly after the hydrogeological rig is demobilised. 128 pits have been selected for laboratory testing, with all results now received. Drill core sampling is ongoing, with first deliveries to a geotechnical dedicated lab in Madrid scheduled for later this week. Light weight deflectometer in situ testing on 11 pits will be completed this week, with a further 9 pits awaiting specific ground condition testing. The third rig is expected to arrive on site next week, after which geotechnical drilling will commence in the Tailings Storage Facility area. John Pereira, Savannah’s Exploration Manager, stated that the field programme will help confirm ground and groundwater conditions across the Project and that data will feed into detailed engineering work for infrastructure including roads, water storage facilities, and waste storage areas. The programme is expected to be completed in the coming weeks, ahead of the authorisation period granted by the Portuguese State, with remaining lab results expected in early Q4. Once this programme is finalised, all geotechnical and hydrogeological field drilling activity ahead of construction will be complete, and all field inputs for RECAPE, FID, and construction preparation will be finished. The next major field work, not related to construction, will be further geological prospection. The Barroso Lithium Project is expected to produce enough lithium contained in approximately 183,000 tonnes per annum of spodumene concentrate for about half a million vehicle battery packs per year. This will contribute significantly to the European Commission's Critical Raw Material Act goal of a minimum 10% of European endogenous lithium production from 2030. Savannah Resources Plc is listed on the AIM Market of the London Stock Exchange under the ticker 'SAV'.

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