JOHANNESBURG (miningweekly.com) – Aim-listed Savannah Resources has declared an initial resource estimation of 3.5-billion tonnes at 3.8% total heavy minerals for two of the four deposits at its Mutamba project, in Mozambique.

Of this resource estimate, 81-million tonnes comprised ilmenite, 2.2-million tonnes contains rutile and 3.8-million tonnes contains zircon.

Mutamba, which was previously operated solely by Rio Tinto, now forms part of the larger Mutamba/Jangamo project currently being developed under a consortium agreement between Rio Tinto and Savannah, which holds 10% of the project.

Savannah now owns the right to earn up to a 51% share in the project.

Meanwhile, the company noted that 52% of the mineral resource fell in the indicated category, while 48% was in the inferred category. Savannah would now undertake a three- to four-month scoping study.

CEO David Archer noted that the completion of the initial mineral resource estimation of the deposits was a major milestone. “The results underscore the fact that the Mutamba project is one of the largest ilmenite-dominant mineral sands accumulations on the east coast of Africa.

“While we are delighted with the outcome, what it really means is that we now have an exceptional foundation for our scoping study,” he added.

The study will focus on the areas of mineral occurrence that are most prospective in terms of size and grade, with little to no overburden factors, which should facilitate simple, low-cost mining.

Savannah believes there is an opportunity to potentially define an initial-phase, low-capital-expenditure, long-life, dry mining project of around 200-million tonnes of well-graded resource, associated with a series of reworked coastal dunes.

“The project is well located with easy access to a power line, the EN1 highway, the Inhambane bay and the Inhambane Airport, providing significant advantages for any potential development. We believe that the Inhambane and Gaza provinces, where the deposits are located, are an excellent investment destination within the country,” Archer stated.