TIDMSAV
RNS Number : 7368L
Savannah Resources PLC
10 September 2019
10 September 2019
Savannah Resources Plc
Mutamba Project Mining Concessions Conditionally Awarded in
Mozambique
HIGHLIGHTS:
-- Minister of Mineral Resources and Energy in Mozambique has
conditionally awarded Mining Concessions, to Mutamba Mineral Sands
SA and Matilda Minerals Lda for the Mutamba Project, covering a
total area of 280.74 km(2) (28,074 Ha)
-- Mutamba Project comprises one of the most significant
undeveloped heavy mineral sands deposits in the world
-- Mutamba contains an Indicated and Inferred Mineral Resource
of 4.4Bt, grading 3.9% total heavy minerals
-- The Mining Concessions, 9735C and 9229C, are contiguous and
cover ground in the districts of Inharrime and Jangamo in southern
Mozambique
-- The Project benefits from high quality established transport infrastructure, these being:
o the country's main North/South EN1 highway runs through the
Project area
o the port of Inhambane is in close proximity to the Project
area
o a daily air service runs to the nearby city of Inhambane
-- Reliable grid power already installed and available in close proximity to the Concessions
-- Mining License application 9228C, in the name of Mutamba
Mineral Sands SA, has been upgraded on the Mozambique Ministry of
Mineral Resources and Energy's mining cadastre to "Award Pending"
which indicates that the grant process has reached the final
stage
Savannah Resources plc (AIM: SAV, FWB: SAV and SWB: SAV)
('Savannah' or the 'Company'), is pleased to announce that the
Minister of Mineral Resources and Energy in Mozambique has
conditionally awarded two Mining Concessions, 9735C and 9229C, for
the world-class Mutamba Heavy Mineral Sands Project ('Mutamba' or
the 'Project') in Mozambique over which the Company operates a
joint venture with Rio Tinto. Mining Concession 9735C has a term of
25 years to 9 April 2044 and 9229C has a term of 25 years to 6 May
2044 with the possibility of an additional 25-year extension.
To view the press release with the illustrative maps and
diagrams, please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/7368L_1-2019-9-9.pdf
David Archer, Savannah's Chief Executive Officer said; "The
conditional award of these Mining Concessions to Mutamba Minerals
Sands SA and Matilda Minerals Lda represents a major milestone for
both the Project and for Savannah, and places our Joint Venture
with Rio Tinto on a very solid foundation. The Government of
Mozambique evaluated the Mining Concession applications rigorously,
and we are pleased that the Mining Concessions have been
conditionally awarded for a term of 25 years each upon satisfaction
of customary requirements for granting of mining licenses.
"The Project area covered by the Mining Concessions contains an
Indicated and Inferred Mineral Resource of 4.4Bt at 3.9% total
heavy minerals and constitutes one of the largest remaining mineral
sands deposits in the world that is yet to be developed.
"With the approval for award of Concession 9228C now in the
final stage and given that the demand for global titanium
feedstocks remains very strong, these Mining Concessions hold the
potential as a significant global project within the sector.
"Finally, once these Mining Concessions are formalised, they
will enable the Joint Venture to progress the PFS towards
completion. Upon delivery of the PFS, our interest in this
world-class heavy mineral project will rise from 20% to 35%."
Further Information:
Three of the Mining Concession applications (9228C, 9229C,
9230C) were submitted in January 2018. The process of examining the
applications commenced at the reopening of the Ministry of Mineral
Resources and Energy ('MIREME') in April 2018; due to the
significance of the Concession Project, the review was extensive
and detailed and included inputs from Central, Provincial and
District levels of Government. The fourth, 9735C, was submitted in
September 2018.
The Mining Concessions have been conditionally awarded to
Mutamba Mineral Sands S.A., a wholly owned subsidiary of Rio Tinto
and to Matilda Minerals Lda, a wholly owned subsidiary of Savannah
Resources Plc, together they form part of the Mutamba Project Joint
Venture. The Mining Concessions cover a total area of
280.74km(2).
The Mining Concessions are very 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.
Mining License application 9228C in the name of Mutamba Mineral
Sands S.A was recently upgraded to "Award Pending" on the
Mozambique online mining cadastre. This indicates that the grant
process has reached the final stage. Mining License application
9230C in the name of Mutamba Minerals Sands S.A., at Chilubane,
Gaza Province is still under consideration.
Savannah is the operator of the Mutamba Project Joint Venture
with an existing 20% interest in a Consortium Agreement with Rio
Tinto, which covers the Project area. Savannah is able to increase
its equity to 35% upon delivery of the Pre-Feasibility study, which
is currently underway, and ultimately to 51% upon delivery of a
Feasibility study.
Table 1. Summary of Mining Concessions Awarded
Mining Concession Mining Concession Area (Ha) Square Kilometre Date Expires
ID Name (km(2))
9735C Jangamo 11,948 119.48 09/04/2044
------------------ ---------- ----------------- -------------
9229C Dongane / Ravene 16,126 161.26 06/05/2044
------------------ ---------- ----------------- -------------
Figure 1. Mutamba Mineral Sands Project Map - Mining
Concession
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 Tel: +44 20 7117 2489
plc
David Hignell / Charlie SP Angel Corporate Tel: +44 20 3470 0470
Bouverat (Nominated Adviser) Finance LLP
Christopher Raggett (Joint finnCap Ltd Tel: +44 20 7220 0500
Broker)
Grant Barker (Joint Broker) Whitman Howard Tel: +44 20 7659 1225
Melissa Hancock / Cosima St Brides Partners Tel: +44 20 7236 1177
Akerman (Financial PR) Ltd
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".
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
DRLZMGGLMLMGLZZ
(END) Dow Jones Newswires
September 10, 2019 02:01 ET (06:01 GMT)
Savannah Resources (AQSE:SAV.GB)
Historical Stock Chart
From Jun 2024 to Jul 2024
Savannah Resources (AQSE:SAV.GB)
Historical Stock Chart
From Jul 2023 to Jul 2024