Overview
Savannah Resources Plc (SAV:AIM)
Announces an initial resource estimation on the Jangamo and Dongane deposits which form part of the Mutamba project in Mozambique. Savannah currently holds a 10% interest in the Mutamba project with partner Rio Tinto and has the right to earn 51% upon completion of key milestones.
CEO, David Archer said: “Savannah believes that there is an excellent opportunity to potentially define an initial phase, low capex, long life, dry mining project of around a 200Mt well graded resource, associated with a series of reworked coastal dunes”.
Initial indicated and inferred mineral resource estimate of 3.5 billion tonnes at 3.8% total heavy mineral sands, compares favourably with Kenmare Resources, a mineral sands producer in Mozambique whom announced a global resource 31 December 2015 of 6.5Bt @ 2.9% THM and a mining reserve of 1.6Bt at 3.3% THM.
The Jangamo / Dongane mineral resource is comprised of 81 million tonnes (Mt) of ilmenite, 2.2 Mt rutile and 3.8Mt zircon. 52% is in the indicated category and 48% in inferred.
A scoping study which is expected to take 3-4 months will commence shortly. The CEO said, “the study will focus on the most prospective areas in terms of size, grade and little overburden, which should facilitate simple, low cost mining”. Work is now underway to define a JORC resource estimation for the Ravene & Chilubane deposits.
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