CONCESSION FOR SAVANNAH

The London-based Savannah Resources Group has been granted a third mining concession for the Mutamba heavy sands project in the southern Mozambican province of Inhambane, according to a statement released on Monday. The mining concession was conditionally granted by the Ministry of Mineral Resources and Energy for the project, which brings together Savannah Resources and the Anglo-Australian Rio Tinto group in a partnership. This new concession covers an area of 11,807 hectares and is adjacent to the two other concessions granted in September, which are located in the Inhambane districts of Inharrime and Jangamo.

Savannah claims that the Mutamba project is “one of the most significant undeveloped heavy mineral sands deposits in the world”, containing “an indicated and inferred mineral resource of 4.4 billion tonnes at 3.9 per cent total heavy minerals”. Savannah is the operator of the Project, with an existing 20 per cent interest in a Consortium Agreement with Rio Tinto, which covers the Project area. Savannah could ultimately increase its share to 51 per cent, upon delivery of a feasibility study.Heavy mineral sands typically contain the ores ilmenite (iron titanium oxide), rutile (titanium dioxide) and zircon (zirconium silicate).The release cited David Archer, the Chief Executive Office of Savannah, as saying “The conditional award of the third Mining Concession to Mutamba Minerals Sands SA completes the tenement set of the Mutamba Project in Jangamo/Inharrime and represents a significant achievement for Savannah in its Joint Venture with Rio Tinto. To finalise the process, the normal administrative payments and processes need to be completed. These are currently under way for all three licences”.

“Once these three Concessions are formalised”, said Archer, “they will enable the Joint Venture with Rio Tinto to progress the Pre-Feasibility Study (‘PFS’) towards completion. Upon delivery of the PFS, our interest in this world-class heavy mineral sands project will rise from 20 to 35 per cent, an exciting prospect for Savannah as we continue to develop and diversify our portfolio of assets”. The Mutamba project has good transport links. The country’s main north-south highway (EN1) rubs through the concession, and the project is within easy reach of Inhambane port and airport.