Savannah Resources still awaiting government approval

While waiting for the outcome of an analysis by the Mozambique government, diversified resources group Savannah Resources said it was making "progress" in carrying out "critical work" at its Mutamba project.

Three mining lease applications submitted to the Ministry on 18 January, covering a total area of 417.32 square kilometres for the Jangamo, Dongane, Ravene and Chilubane deposits, are currently being actively considered by the Mozambican mines department for Mutamba, which Savannah hold an existing 20% interest in via a consortium agreement with Rio Tinto.

Savannah, the project's operator, can increase its equity interest to 35% upon delivery of a pre-feasibility study, which is currently underway, and again to 51% upon delivery of a definitive feasibility study.

Since early December, Savannah's pilot plant has run on a steady basis to ensure it was operating properly and has now been placed on care and maintenance, as planned, while a bulk sample is obtained for processing.

A pre-feasibility study, being undertaken by mineral sands expert TZMI, into the potential development of the project was "well advanced" and included a gap analysis, options review, project planning and budget finalisation for stage two of the study, targeted for completion in early 2019.

Savannah's chief executive, David Archer, said, "Whilst we await the outcome of Government analysis, we continue to make progress in advancing some critical work streams at Mutamba. A sequenced scheduling of PFS activities has been agreed and key initial studies are either underway or about to start. These include hydrology studies, port options and the collection of 10 tonnes of sample material to aid in final product determination."

"These are all essential elements that will inform the PFS and the results of which will guide us in the infrastructure, power, mine planning and process plant requirements," he added.

As of 1000 BST, shares had ticked up 0.92% to 5.40p.