Last checked at 16 Jan 2018 07:00
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
16 January 2018
Savannah Resources Plc
Mining Lease Applications Submitted for Heavy Mineral Sands Projects, Mozambique
Savannah Resources plc (AIM: SAV) ('Savannah' or the 'Company'), is pleased to announce that three applications (the 'Applications') have been submitted to the Ministry of Mineral Resources and Energy in Mozambique (the 'Ministry') for mining leases for the Mutamba Heavy Mineral Sands Projects (Figure 1 and Figure 2) which it is evaluating in a consortium with Rio Tinto. To view the press release with the illustrative maps and diagrams please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/9355B_-2018-1-15.pdf
HIGHLIGHTS:
· Three applications cover a total area of 417.32km² and cover the Jangamo, Dongane, Ravene and Chilubane deposits have been submitted
· Mining Leases are generally awarded for a term of 25 years and can be renewed at the end of their terms
· The Ministry has six months from the date of submission to respond to the Applications
David Archer, Savannah's Chief Executive Officer said "The submission of the Mining Lease applications is a key milestone and a great start to 2018. This is the final formal step in the process of securing long term Mining Leases over globally significant deposits of heavy mineral sands. This follows the commissioning of the pilot processing plant in Q4 2017 which will be used to produce concentrate as a part of the Pre-Feasibility Study which is currently underway.
"We believe our timing means we are well placed to take advantage of the increasing global demand for titanium feedstocks."
Figure 1. Mutamba Project Location Map - See PDF
Figure 2. The Jangamo, Dongane, Ravene Deposits - See PDF
Mining Lease Application Submissions
The Applications (Figure 1 and Figure 2) have been submitted in the name of Mutamba Mineral Sands S.A., a wholly owned subsidiary of Rio Tinto Limited. The Applications cover a total area of 417.32km². The Mutamba Project applications comprise of the Jangamo application (118.08km²), the Dongane / Ravene application (161.26km²) and the Chilubane application (137.98km²).
The Ministry has six months, from the date of submission, to respond to the Applications. Mining Leases are generally awarded for a term of 25 years and can be renewed at the end of their terms.
Savannah is the operator of the Mutamba Project with an existing 20% interest in a Consortium Agreement with Rio Tinto, which covers the projects. Savannah can increase its equity to 35% upon delivery of a pre-feasibility study which is currently underway and to 51% upon delivery of a feasibility study.
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 Australian 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 / Gerry Beaney (Nominated Adviser) | Northland Capital Partners Ltd | Tel: +44 20 3861 6625 |
Christopher Raggett / Emily Morris (Joint Broker) | finnCap Ltd | Tel: +44 20 7220 0500 |
Jon Belliss (Joint Broker) | Beaufort Securities Ltd | Tel: +44 20 7382 8300 |
Charlotte Page / Lottie Wadham | St Brides Partners Ltd | Tel: +44 20 7236 1177 |
About Savannah
We are 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. We are committed to serving the interests of our shareholders and to delivering outcomes that will improve the lives of our staff and the communities we work with.
This announcement is based upon information compiled by Mr Colin Rothnie, an independent consultant. Mr Rothnie is a Member of the Australian 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 Rothnie consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.