Environment studies start at Savannah, Rio Tinto mineral sands project

AIM-listed explorer Savannah Resources announced it has a fully operational and expanded team in its joint mineral sands project with mining giant Rio Tinto and has started scoping and environmental studies.

The Mutamba mineral sands project in Mozambique is being developed with Rio Tinto as part of consortium agreements.

Following the first mineral resource estimate of 3.5bn tonnes at 3.8% total heavy minerals for the Jangamo and Dongane deposits, the company has turned its attention to pre-development activities at the Mutamba project, which has included a scoping study and environmental studies being conducted by industry consultants TZ Minerals and Impact/ERM respectively, as well as further exploration work to evaluate the high-grade zones of total heavy minerals at the Ravene deposit.

Chief executive David Archer said the company believes the Raven deposit will strengthen the mineral resource and the commercial value of the project.

He added: "We believe that we have a substantial mineral sands project in Mozambique and are working on a fast-paced development strategy as we look to establish a low capex, long life, dry mining operation.”

TZ Minerals is conducting a scoping study to evaluate an initial phase, low capex, long life, dry mining operation around a potential 200m tonne graded resource, which is expected to take around four months.

The scoping study will focus on large mineralised areas of more than 5% total heavy minerals, found from mineral Resource Estimate.

Consultants ERM and Impacto are carrying out environmental studies for the Mutamba project in the north and the Chilubane deposit, which is required for the lodging of a mining concession for any potential development, and are expected to take three to four months to complete.

Data compilation and a detailed review of the Chilubane deposit is will take between six and eight weeks to finish.

Shares in Savannah Resources were up 2.13% to 6p at 1201 GMT.