02:00 Mon 18 Nov 2019
Savannah Resources - Third Mutamba Mining Licence Conditionally Awarded
Third Mutamba Mining Licence Conditionally Awarded
Highlights
· The Minister of Mineral Resources and Energy in Mozambique has conditionally awarded a third Mining Concession to the
o Concession 9228C has been awarded to Mutamba Mineral Sands S.A, subject to the usual administrative conditions
o The Concession covers an area of 11,807 hectares ('ha') and is valid until
·
o Mutamba contains an Indicated and Inferred Mineral Resource of 4.4 billion tonnes ('Bt'), grading 3.9% total heavy minerals
· Concession 9228C is contiguous with Concessions 9735C and 9229C which cover ground in the districts of Inharrime and Jangamo in southern Mozambique
· The Project benefits from high quality established transport infrastructure, including:
o Mozambique's main North/South EN1 highway runs through the Project area
o The port of Inhambane is near the Project area
o A daily air service runs to the nearby city of Inhambane
o Reliable grid power is already installed and available in close proximity to the Concessions
To view the announcement with the illustrative maps and diagrams, please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/6297T_1-2019-11-15.pdf
David Archer, Savannah's Chief Executive Officer said: "The conditional award of the third Mining Concession to
"The Project area covered by the Mining Concessions contains an Indicated and Inferred Mineral Resource of 4.4Bt at 3.9% total heavy minerals and constitutes one of the largest remaining mineral sands deposits in the world that is yet to be developed. Therefore, with the conditional approval of Concession 9228C, the potential to create and operate a significant global project within the sector can be realised, thus adding value to the Company and our shareholders.
"Once these three Concessions are formalised, they will enable the Joint Venture with Rio Tinto to progress the Pre-Feasibility Study ('PFS') towards completion. Upon delivery of the PFS, our interest in this world-class heavy mineral sands project will rise from 20% to 35%, an exciting prospect for Savannah as we continue to develop and diversify our portfolio of assets. I look forward to updating our shareholders on this opportunity and also on our flagship asset, the Mina do
Further Information
Savannah is the operator of the Project, with an existing 20% interest in a Consortium Agreement with Rio Tinto, which covers the Project area. Savannah can increase its equity to 35% upon delivery of the PFS, which is currently underway, and ultimately to 51% upon delivery of a Feasibility Study. Notably, the Consortium Agreement includes an offtake agreement on commercial terms for the sale of 100% of production to Rio Tinto (or an affiliate).
Three of the Project's four Mining Concession applications, 9228C, 9229C and 9230C, were submitted in
Mining Concession 9228C has been conditionally awarded to
Mining Licence application 9230C in the name of
Table 1. Summary of Mining Concessions Awarded
Name |
Area (Ha) |
Square Kilometres |
Expiry Date |
9228C-Jangamo |
11,807 |
118.07 |
|
9735C-Jangamo |
11,948 |
119.48 |
|
9229C-Dongane/Ravene |
16,126 |
161.26 |
|
TOTAL |
39,881 |
398.81 |
|
Figure 1. Mutamba Mineral Sands Project Map - Mining Concessions
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
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
**ENDS**
For further information please visit www.savannahresources.com or contact:
David Archer |
|
Tel: +44 20 7117 2489 |
David Hignell / Charlie Bouverat (Nominated Adviser) |
|
Tel: +44 20 3470 0470 |
Christopher Raggett (Joint Broker) |
finnCap Ltd |
Tel: +44 20 7220 0500 |
Grant Barker (Joint Broker) |
Whitman Howard |
Tel: +44 20 7659 1225 |
Isabel de Salis / Cosima Akerman (Financial PR) |
|
Tel: +44 20 7236 1177 |
About Savannah
Savannah is a diversified resources group (AIM: SAV) with a portfolio of energy metals projects - lithium in Portugal and copper in Oman - together with the world-class
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