Savannah starts predevelopment work at Mozambique mineral sands project

JOHANNESBURG (miningweekly.com) – Predevelopment activities have kicked off at Aim-listed Savannah Resources’ joint venture Mutamba mineral sands project, in Mozambique.

A four-month scoping study to evaluate an initial phase, low-capital expenditure, long-life, 200-million-tonne dry mining operation has been commissioned, along with the relevant environmental studies.

Mineral sands industry expert TZ Minerals International (TZMI) has been tasked with the scoping study, while Mozambican environmental consultants ERM and Impacto are undertaking the environmental studies, which are expected to take around three to four months to complete.

“Following the release of the first mineral resource estimate of 3.5-billion tonnes at 3.8% total heavy minerals for the Jangamo and Dongane deposits, which was a major milestone for Savannah and the company's consortium partner, Rio Tinto, we have now turned our attention to predevelopment activities,” Savannah's CEO David Archer said in an update to shareholders on Tuesday.

The scoping study will give consideration to the project’s specific characteristics, including location, infrastructure and geology, while incorporating previous work done, to determine scoping level operating and capital cost estimates, develop a cash flow model to define the key project metrics and enable the completion of an economic evaluation.

The product mix and the project’s potential to supply ilmenite will also be reviewed.

“Recommendations for further project development will also be included and an outline provided, suggesting work to be undertaken in subsequent phases of the project development,” Archer said.

Meanwhile, the environmental study work has been split into two blocks to “fast-track the predevelopment work”, with ERM responsible for Mutamba project north, namely the Dongane, Jangamo and Ravene deposits, and Impacto to review the Chilubane deposit.