Savannah Resources (LON:SAV) Second Mining Concession Issued for Mutamba

Second Mining Concession Issued for the Mutamba Heavy Mineral Sands Project, Mozambique

Savannah Resources plc (AIM: SAV, FWB: SAV and SWB: SAV), is pleased to announce that the Minister of Mineral Resources and Energy in Mozambique has issued Mining Licence 9229C (‘Licence 9229C’ or the ‘Concession’) to Mutamba Mineral Sands S.A. This new Concession is the second mining license issued over the world-class Mutamba Heavy Mineral Sands Project in Mozambique (‘Mutamba’ or the ‘Project’), which is held in joint venture with mining major Rio Tinto.

To view the announcement with the illustrative maps and diagrams, please use the following link: http://www.rns-pdf.londonstockexchange.com/rns/4211W_1-2019-12-10.pdf

Highlights

· Licence 9229C issued, covering 16,126 hectares (‘ha’) and valid to May 2044, with the possibility of an additional 25-year extension

· Licence 9229C is part of Mutamba, which contains an Indicated and Inferred Mineral Resource of 4.4Bt, grading 3.9% total heavy minerals

· Licence 9229C is the second of three contiguous concessions to be issued that will result in the full tenement permitting of Mutamba

· The Concession is close to the Port of Inhambane and has a daily air service, a reliable power supply and excellent road connections

David Archer, Savannah’s Chief Executive Officer said: “We are delighted with progress thus far at Mutamba, which we’re developing in partnership with Rio Tinto. We believe this is one of the most attractive undeveloped mineral sands deposits in the world. Having received a second Mining Licence, we’re now waiting on a third, which has already been conditionally awarded; together, the three concessions contain an Indicated and Inferred Mineral Resource of 4.4Bt at 3.9% total heavy minerals.”

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Further Information:

Savannah is the operator of Mutamba, which is held in joint venture with Rio Tinto. Savannah currently holds a 20% interest in the Project but can increase this to 35% upon delivery of the PFS, which is currently underway, and ultimately to 51% upon delivery of a Feasibility Study (‘FS’).

The Project contains a JORC compliant Indicated and Inferred Mineral Resource of 4.4Bt, grading 3.9% total heavy minerals. It consists of four concessions, including Licence 9229C, which has now been issued with a mining licence valid to May 2044 with the possibility of an additional 25-year extension. See Table 1 for a full status on the Mining Licence/Application Details of all four concessions.

The tenements are well served by road and air transport and are situated near the Port of Inhambane. A 30MVA electricity substation was inaugurated in January 2019 and sits at the edge of the Project area. In addition, there is a 32MVA electricity substation less than 100km away in the town of Massinga.

Full RNS update LINK HERE


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