AIM-listed Savannah Resources reports that the Minister of Mineral Resources and Energy in Mozambique has issued Mining Licence 9735C to its subsidiary, Matilda Minerals Lda.
This new concession forms a key part of the world-class Mutamba Heavy Mineral Sands Project in Mozambique, over which the company operates a joint venture with mining major Rio Tinto.
David Archer, Savannah’s CEO 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.”
He said when combined, these three concessions contain an indicated and inferred mineral resource of 4.4Bt at 3.9% total heavy minerals; which 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 at Mutamba towards completion, and which, upon delivery, will trigger the increase in our interest in the project from 20% to 35%.
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.
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.