Savannah Resources PLC (AIM:SAV, ETR:SAV, OTC:SAVNF) shares rose over 6% in morning trade after the European lithium development company announced positive results from a new scoping study conducted on its Barroso Lithium Project in northern Portugal.
The study confirms the project's potential to become a major European producer of spodumene concentrate, a key raw material in the lithium industry. The study highlights excellent project economics, with a post-tax NPV8 of US$953mln, an IRR of 77%, and a payback period of 1.3 years.
The project's proximity to the emerging European battery supply chain positions it as a domestic source of low-cost, low-carbon lithium for the region.
In a statement, Dale Ferguson, CEO of Savannah Resources, expressed delight over the study's findings and its significance for the project's development. He emphasized the project's value, its environmental sustainability and its potential to establish Portugal as a key player in Europe's lithium-ion battery value chain.
Savannah is now focused on completing the environmental licensing process and the Definitive Feasibility Study, while engaging stakeholders and pursuing commercial arrangements.
Around 9.25am, Savannah Resources shares were up 6.5% at 4.90p.