(Alliance News) - Shares in Savannah Resources PLC jumped on Tuesday as Mozambique granted a licence for the Mutamba heavy mineral sands project.
The stock was 6.6% higher on Tuesday morning in London at 2.82 pence each.
Savannah operates Mutamba in a joint venture with Anglo-Australian mining giant Rio Tinto PLC. Its flagship asset is the Mina do Barroso lithium project in Portugal.
Mozambique has now granted a licence for Mutamba which lasts until September 2044, with an option to extend for another 25 years.
Mutamba has an indicated and inferred mineral resource of 4.4 billion tonnes of ore at 3.9% total heavy minerals. It hopes to start producing this year, initially at a rate of 456,000 tonnes of ilmenite and 118,000 tonnes of non-magnetic concentrate. Ilmenite is an ore of titanium.
"The issue of licence 9228C by the government of Mozambique completes the licensing process for the three core Mutamba concessions. The process has been rigorous and demanding but we have now achieved one of the most important milestones in the orderly progression towards mine development," said Savannah Chief Executive David Archer.
"In the short term, our focus will be to continue to progress the Mutamba pre-feasibility study towards completion, which, upon delivery, will trigger the increase in our interest in the project from 20% to 35%. With an indicated and inferred mineral resource of 4.4 billion tonnes at 3.9% total heavy minerals, the global significance of the opportunity is clear and compelling."
By George Collard; georgecollard@alliancenews.com
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Savannah Resources (SAV)