Multi-commodity developer Savannah Resources (AIM:SAV) has received the third and final permit for the Mutamba heavy minerals sands project, being developed in partnership with Rio Tinto (ASX, LON, NYSE: RIO).
The licence, valid to Sept. 2044, with the possibility of an additional 25-year extension, completes the London-based company’s full tenement permitting of Mutamba, which will allow it to focus on progressing a pre-feasibility study (PFS).
“The process has been rigorous and demanding, but we have now achieved one of the most important milestones in the orderly progression towards mine development,” Savannah chief executive, David Archer, said in the statement.
Once the PFS is completed, Savannah
Resources will increase its interest in the asset from 20% to 35% and
ultimately to 51% upon delivery of a feasibility study.
Mutamba contains an indicated and
inferred mineral resource of 4.4 billion tonnes, grading 3.9% total heavy
minerals. It’s located within close proximity to the infrastructure – the Port
of Inhambane, reliable power supply and excellent road connections
Savannah expect to begin production
this year, at an initial rate of 456,000 tonnes of ilmenite and 118,000 tonnes
of non-magnetic concentrate.
The company is also gearing up to start commercial lithium production in
northern Portugal in 2021.
Mina do Barroso, arguably one of
the most advanced lithium mining concessions in Europe, is expected to become
the continent’s first significant producer of spodumene, a hard-rock form of
Savannah, which acquired a majority
stake in the project in May 2017, has maintained a fast paced development approach since.
Written by Cecilia Jamasmie.
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