Last checked at 9 Dec 2019 07:00
9 December 2019
Savannah Resources Plc ('Savannah' or the 'Company')
Mining Concession Issued for the Mutamba Heavy Mineral Sands Project, Mozambique
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.
To view the announcement with the illustrative maps and diagrams, please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/1258W_1-2019-12-8.pdf
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
Mining Concession Number | Mining Concession Name | Area in Hectares | Area in Sq. Kilometres - km2 | Expiry Date | Status |
9735C | Jangamo Matilda | 11,948 | 119.48 | 09/04/2044 | Licence Issued |
9228C | Jangamo Rio | 11,807 | 118.07 | 03/09/2044 | Conditionally Awarded |
9229C | Dongane | 16,126 | 161.26 | 06/05/2044 | Conditionally Awarded |
9230C | Chilubane | 13,797 | 137.97 | - | Under Consideration |
Figure 1. Map of the Mutamba Project Area
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.
**ENDS**
For further information please visit www.savannahresources.com or contact:
David Archer | Savannah Resources plc | Tel: +44 20 7117 2489 |
David Hignell / Charlie Bouverat (Nominated Adviser) | SP Angel Corporate Finance LLP | 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 |
Charlotte Page / Cosima Akerman (Financial PR) | St Brides Partners Ltd | 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 Mutamba Heavy Mineral Sands Project in Mozambique, which is being developed in a consortium with the global major Rio Tinto. The Board is committed to serving the interests of its shareholders and to delivering outcomes that will improve the lives of the communities we work with and our staff.
The Company is listed and regulated on AIM and the Company's ordinary shares are also available on the Quotation Board of the Frankfurt Stock Exchange (FWB) under the symbol FWB: SAV, and the Börse Stuttgart (SWB) under the ticker "SAV".