AMN - MOZAMBIQUE: Mutamba mineral sands resource up 26%

A maiden resource estimate has been announced by Savannah Resources for the Ravene deposit in Mozambique. Ravene forms part of the Mutamba mineral sands project, being developed by Savannah and Rio Tintoas part of a consortium agreement between the two parties.

An Inferred JORC (2012) Mineral Resource estimate of 900 Mt at 4.1% Total Heavy Minerals (THM) has been defined for Ravene. The resource includes a high-grade portion of 92 Mt at 6.2% THM, which will be a primary focus within the scoping study currently being conducted.

The global resource estimate for the Mutamba project, which combines the Jangamo, Dongane and Ravene deposits, now stands at 4400 Mt at 3.9% THM comprising both indicated and inferred category material

The new estimate represents a 26% increase in the global mineral resource and importantly an 8% increase in THM grade compared to the overall resource.

There is significant potential to expand the Ravene resource beyond its current boundaries, which will be the focus of future exploration activities.

The mineral resource estimation is now included in the TZMI scoping study, which is nearing completion and once received will be reviewed by the consortium partners. Savannah says the estimate compares favourably with other major African HMS deposits.

Savannah’s CEO David Archer said, “The increased mineral resource for the Mutamba project highlights its potential to be a significant producer of titanium feedstocks. In addition, this year we are seeing increasing prices for titanium feedstocks such as ilmenite and rutile, which means that it is an ideal time to be taking this project forward.

“The addition of a further 92 Mt of high grade resource defined at Ravene, when combined with the other major deposits at the Mutamba project, means we are off to a great start in delivering on the consortium’s objective of defining an aggregate tonnage of high grade resources able to support an initial mining operation for at least 20 years.”

The Mutamba project is subject to the consortium and is operated by Savannah. It includes Mutamba Project North, consisting of Jangamo, Dongane and Ravene deposits, and the Chilubane deposit which is 180km to the southwest.

Under the terms of the consortium agreement with Rio Tinto, upon delivery of the following Savannah will earn the corresponding interest in the Mutamba project: Scoping study - 20%; PFS - 35%; feasibility study – 51%. Additionally, the agreement includes an offtake agreement on commercial terms for the sale of 100% of production to Rio Tinto or an affiliate.

www.savannahresources.com

News courtesy of International Mining