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Savannah Resources granted third concession at the Mutamba mineral sands project in Mozambique

Once the administrative boxes are ticked, Savannah will move Mutamba on to the PFS stage

Savannah Resources PLC -
Exploration work at Mutamba

Savannah Resources PLC (LON:SAV) has been awarded a third mining concession at the Mutamba mineral sands project in Mozambique, where the company is in joint venture with Rio Tinto (LON:RIO).

The concession covers an area of 11,807 hectares and is valid until 3 September 2044.

The Mutamba project comprises one of the most significant undeveloped heavy mineral sands deposits in the world, and is already known to contain an indicated and inferred resource of 4.4bn tonnes grading 3.9% total heavy minerals

The project benefits from high quality established transport infrastructure, including the presence of Mozambique’s main north-south highway, a nearby port, a daily air service to a nearby city, and grid power.

"The conditional award of the third mining concession to Mutamba Minerals Sands SA completes the tenement set of the Mutamba project in Jangamo/Inharrime and represents a significant achievement for Savannah in its joint venture with Rio Tinto,” said David Archer, Savannah's chief executive.

“To finalise the process, the normal administrative payments and processes need to be completed; these are currently underway for all three licences.  Once these three concessions are formalised, they will enable the joint venture with Rio Tinto to progress the pre-feasibility study 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.”

Quick facts: Savannah Resources PLC

Price: 2.1 GBX

AIM:SAV
Market: AIM
Market Cap: £27.25 m
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