TIDMSAV
RNS Number : 7061O
Savannah Resources PLC
23 August 2017
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector:
Mining
23 August 2017
Savannah Resources Plc
Phase One of Mutamba Pre-Feasibility Study Underway,
Mozambique
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'),
the AIM quoted resource development company, is pleased to announce
that phase one of the pre-feasibility study ('PFS') into the
potential development of the Mutamba Mineral Sands Project,
Mozambique (Figure 1) has now commenced. To view the press release
with the illustrative maps and diagrams please use the following
link:
HIGHLIGHTS:
-- Stage one of the Mutamba PFS is now underway, which will
include a gap analysis, options review, project planning and budget
finalisation for stage two of the PFS
-- Mineral sands expert TZMI has been appointed to complete this phase of the work
-- It is anticipated that this work will be finalised in coming months
-- The completion of the PFS is a key Consortium milestone and
will result in Savannah earning a 35% interest in the Mutamba
Consortium
Savannah's CEO, David Archer said: "We're pleased that the first
stage of the Mutamba PFS has been contracted to TZMI. Having
completed the Scoping Study for us, TZMI is well placed to
undertake the work and deliver a quick outcome. The conclusion of
the PFS is an important strategic milestone, as on delivery of the
completed document Savannah will have earnt a 35% interest in the
Mutamba Heavy Mineral Sands project, which is one of the largest
undeveloped mineral sands deposits in the world.
"At the same time, the assembly of the 20tph pilot plant is well
underway. This will provide product for metallurgical and product
test work by our partner, Rio Tinto. The Consortium Agreement
includes an offtake agreement on commercial terms for the sale of
100% of heavy mineral concentrate production to Rio Tinto (or an
affiliate)."
Figure 1. Mutamba Project Location Map - see PDF link
http://www.rns-pdf.londonstockexchange.com/rns/7061O_-2017-8-22.pdf
Stage One Pre-Feasibility Study (Definition and Scoping
Stage)
Stage One of the PFS will involve the delivery of the following
key deliverables:
Gap Analysis: Detailed review and gap analysis to firm up on the
scope for the PFS in alignment with the Consortium's development
objectives.
Options Review: Undertake a high-level review of various project
development alternatives (e.g. project scale, product alternatives,
location of processing plants, transport routes, mining method,
infrastructure, etc.) and agree on which options will be evaluated
in the PFS.
Project Planning: Development of the PFS work programme and
identification of the project team for the completion of the PFS.
Proposals will be sought for key programmes of work and used to
refine the schedule and a cost estimate.
It is anticipated that this work will be finished in coming
months.
About TZMI
TZMI has a long history of assisting and providing services to
international mining companies, investment banks and financiers,
private equity firms and a large number of listed companies who
have investigated opportunities in the titanium and zirconium
industries. Its services have been in the form of independent
expert reports, technical and economic evaluations, technical
process engineering, scoping and pre-feasibility studies, benchmark
audits and cost reviews, strategic analysis, supply/demand analyses
and forecasts for TiO(2) feedstock and zircon markets and
operations around the world. TZMI's expertise and knowledge has
been developed over many years from the direct involvement of its
principals and consultants in chief executive, senior operational,
technical, analytical and marketing roles, together with
significant consulting experience to various international
corporations for major project studies.
Regulatory Information
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.
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
plc 7117 2489
David Hignell / Gerry Northland Capital Tel: +44 20
Beaney (Nominated Partners Ltd 3861 6625
Adviser)
Christopher Raggett finnCap Ltd Tel: +44 20
/ Emily Morris 7220 0500
(Corporate Broker)
Charlotte Page / St Brides Partners Tel: +44 20
Lottie Brocklehurst Ltd 7236 1177
(Financial PR)
About Savannah
Notes
Savannah Resources Plc (AIM: SAV) is a growth oriented,
multi-commodity, mineral development company.
Mozambique
Savannah operates the Mutamba heavy mineral sands project in
Mozambique in collaboration with Rio Tinto, and can earn a 51%
interest in the related Consortium, which has an established
initial Indicated and Inferred Mineral Resource Estimate of 4.4
billion tonnes at 3.9% THM over the Jangamo, Dongane and Ravene
deposits. Under the terms of the Consortium Agreement with Rio
Tinto, upon delivery by Savannah of the following will earn the
corresponding interest in the Mutamba Project (which currently is
20% following delivery of scoping study in May 2017):
pre-feasibility study - 35%; feasibility study - 51%. Additionally,
the Consortium Agreement includes an offtake agreement on
commercial terms for the sale of 100% of heavy mineral concentrate
production to Rio Tinto (or an affiliate).
Oman
Savannah has interests in two copper blocks in the highly
prospective Semail Ophiolite Belt in Oman. The projects, which have
an Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% copper
and high-grade intercepts of up to 56.35m at 6.21% Cu, with gold
credits, provide Savannah with an excellent opportunity to
potentially evolve into a mid-tier copper and gold producer in a
relatively short time frame. Together with its Omani partners,
Savannah aims to outline further mineral resources to provide the
critical mass for a central operating plant to develop the deposits
and in December 2015 outlined exploration targets of between
10,700,000 and 29,250,000 tonnes grading between 1.4% and 2.4%
copper.
Portugal
Savannah holds a 75% interest one mining licence and nine
prospective applications for the exploration and development of
lithium, covering an area in excess of 1,018km(2) in northern
Portugal. This includes the highly strategic Mina do Barroso
prospect, which with an approved Mining Plan ('MP'), Environmental
Impact Assessment ('EIA') and a 30-year mining concession/Mining
Licence ('ML'), means that with a defined JORC resource a
development decision could be made as early as Q4 2018.
Finland
Savannah has Reservation Permits over two lithium projects,
covering an area of 159km(2). Geological mapping has highlighted
the presence of seven pegmatites with key lithium minerals
petalite, spodumene and lepidolite all identified.
This announcement 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 information is provided by RNS
The company news service from the London Stock Exchange
END
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