Savannah Resources plc (LON:SAV) this morning announced that three applications have been submitted to the Ministry of Mineral Resources and Energy in Mozambique 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:
— Three applications cover a total area of 417.32km(2) 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 417.32km(2). The Mutamba Project applications comprise of the Jangamo application (118.08km(2)), the Dongane / Ravene application (161.26km(2)) and the Chilubane application (137.98km(2)).
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.