A third mining concession over an 11 807 ha area around the Mutamba mineral sands project, in Mozambique, has been awarded to Mutamba Mineral Sands, a subsidiary of London-listed Savannah Resources.
The concession is valid until September 2044 and brings the total awarded mining concessions that make up the Mutamba project to three, covering a total area of 39 881 ha.
A fourth mining concession application was submitted in September 2018 and is pending approval.
Mutamba contains an indicated and inferred mineral resource of 4.4-billion tonnes, grading 3.9% total heavy minerals.
“The conditional award of the third mining concession to Mutamba Minerals Sands completes the tenement set of the Mutamba project in Jangamo/Inharrime and represents a significant achievement for Savannah in its joint venture (JV) 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,” noted Savannah CEO David Archer.
Once the concessions for the Mutamba area are formalised, they will enable the JV to progress the project’s prefeasibility study (PFS) towards completion. Upon delivery of the PFS, Savannah’s interest in the mineral sands project will rise from 20% to 35%.
Savannah can further increase its shareholding in the project to 51% upon delivery of a feasibility study.
“I look forward to updating our shareholders on this opportunity and also on our flagship asset, the Mina do Barroso lithium project, in Portugal, which we are continuing to develop.”