Savannah begins first phase of pre-feasibility at Mutamba

Resource development company Savannah Resources announced on Wednesday that phase one of the pre-feasibility study into the potential development of the Mutamba Mineral Sands Project in Mozambique had now commenced.

The AIM-traded firm said the stage would include a gap analysis, options review, project planning and budget finalisation for stage two of the PFS.

It confirmed mineral sands expert TZMI had been appointed to complete the phase of work, adding that it anticipated the work would be finalised in the coming months.

The completion of the PFS was considered a “key consortium milestone”, Savannah’s board said, and would result in the company earning a 35% interest in the Mutamba Consortium.

“We're pleased that the first stage of the Mutamba PFS has been contracted to TZMI,” said CEO David Archer.

“Having completed the scoping study for us, TZMI is well placed to undertake the work and deliver a quick outcome.”

Archer said the conclusion of the PFS was an “important strategic milestone”, as on delivery of the completed document Savannah would have earnt a 35% interest in the Mutamba Heavy Mineral Sands project, which he said was one of the largest undeveloped mineral sands deposits in the world.

“At the same time, the assembly of the 20 tph pilot plant is well underway.

“This will provide product for metallurgical and product test work by our partner, Rio Tinto.

“The consortium agreement includes an offtake agreement on commercial terms for the sale of 100% of heavy mineral concentrate production to Rio Tinto or an affiliate.”