UK-based Savannah Resources has been granted third mining concession (9228C) for the Mutamba heavy mineral sands project in Mozambique.
The mining concession 9228C was awarded by Mozambique’s Minister of Mineral Resources and Energy for the Mutamba project, is claimed to old one of the most significant undeveloped heavy mineral sands deposits in the world.
Savannah Resources estimates the project to contain an Indicated and Inferred Mineral Resource of 4.4 billion tonnes (Bt) at 3.9% total heavy minerals.
Covering an area of 11,807ha, the mining concession is contiguous with 9735C and 9229C concessions, which were secured by Savannah in September 2019.
The third mining concession is valid until 3 September 2044
The concession is valid until 3 September 2044 and has an option for 25 additional years towards mine-life extension.
Savannah CEO David Archer said: “The conditional award of the third Mining Concession to Mutamba Minerals Sands SA completes the tenement set of the Mutamba Project in Jangamo/Inharrime and represents a significant achievement for Savannah in its joint venture with Rio Tinto.
“To finalise the process, the normal administrative payments and processes need to be completed; these are currently underway for all three licences.
“We are completing the administrative conditions in a chronological manner following which all three licences will be fully formalised in due course, which, when completed, will continue to consolidate our position in the Mozambican mining industry.
“Once these three Concessions are formalised, they will enable the joint venture with Rio Tinto to progress the Pre-feasibility study (PFS) towards completion.”
The Mutamba project is in close proximity to the North/South EN1 highway and the port of Inhambane.
It also benefits from a high-quality established transport infrastructure, a daily air service to Inhambane, and grid power.
Savannah will have the option to increase its stake in the heavy mineral sands project from 20% to 35%, upon completion of the PFS.
