Mining concession issued for the Mutamba heavy mineral sands project, Mozambique

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Mining concession issued for the Mutamba heavy mineral sands project, Mozambique

9:56 CAT | 09 Dec 2019

Map of the Mutamba Project Area. [Image: Savannah Resources]

Savannah Resources plc (AIM: SAV, FWB: SAV and SWB: SAV), is pleased to announce that the Minister of Mineral Resources and Energy in Mozambique has issued Mining Licence 9735C (‘Licence 9735C’ or the ‘Concession’) to its subsidiary, Matilda Minerals Lda. This new Concession forms a key part of the world-class Mutamba Heavy Mineral Sands Project in Mozambique (‘Mutamba’ or the ‘Project’), over which the Company operates a joint venture with mining major Rio Tinto.

Highlights:

Licence 9735C issued, covering 11,948 hectares (‘ha’) and valid to April 2044, with the possibility of an additional 25-year extension
Licence 9735C is part of Mutamba, which contains an Indicated and Inferred Mineral Resource of 4.4Bt, grading 3.9% total heavy minerals
Licence 9735C is the first of three contiguous concessions to be issued that will result in the full tenement permitting of Mutamba
The Concession is close to the Port of Inhambane and has a daily air service, a reliable power supply and excellent road connections

David Archer, Savannah’s Chief Executive Officer said: “We are delighted with the issue of the first Concession by the Government of Mozambique, and now look forward to the issue of the remaining two mining licences, 9229CC and 9228C. When combined, these three concessions contain an Indicated and Inferred Mineral Resource of 4.4Bt at 3.9% total heavy minerals; this makes Mutamba one of the most attractive undeveloped mineral sands deposits in the world. Notably, given that global demand for titanium feedstocks is strong, the award of these licences will facilitate the development of a globally relevant project.

“Our focus is now on progressing the Pre-Feasibility Study (‘PFS’) at Mutamba towards completion, which, upon delivery, will trigger the increase in our interest in the Project from 20% to 35%. I look forward to updating our shareholders with further developments in due course.”

Further Information

Savannah is the operator of Mutamba, which is held in joint venture with Rio Tinto. Savannah currently holds a 20% interest in the Project but can increase this to 35% upon delivery of the PFS, which is currently underway, and ultimately to 51% upon delivery of a Feasibility Study (‘FS’).

The Project contains an Indicated and Inferred Mineral Resource of 4.4Bt, grading 3.9% total heavy minerals. It consists of four concessions, including Licence 9735C, which has now been issued with a mining licence valid to April 2044 with the possibility of an additional 25-year extension. See Table 1 for a full status on the Mining Licence/Application Details of all four concessions.

The mining concessions are well served by road and air transport and are situated near the Port of Inhambane. A 30MVA electricity substation was inaugurated in January 2019 and sits at the edge of the Project area. In addition, there is a 32MVA electricity substation less than 100km away in the town of Massinga.

Table 1. Mining Licence / Application Details

Competent Person and Regulatory Information

The information in this announcement that relates to exploration results is based upon information compiled by Mr. Dale Ferguson, Technical Director of Savannah Resources Limited. Mr. Ferguson is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr. Ferguson consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

Source: Savannah Resources / Press Release