The next six months will be very rich for newsflow': Savannah...

The next six months will be very rich for newsflow': Savannah Resources' David Archer on the future (SAV)

by ValueTheMarkets - July 27, 2018

Savannah is also developing the Mutamba Heavy Minerals Sands Project in Mozambique, which comprises three deposit areas containing 4.4Bt at 3.9pc total heavy minerals with potential to expand. The business is developing the project alongside mining giant Rio Tinto and can potentially earn-in up to 51pc provided it hits performance targets. The pair ultimately plan to use the site’s resource to supply heavy minerals like ilmenite, rutile and zircon as Titanium feedstock, which is currently in short supply globally.

A scoping study released last year gave the project a 30-year life and a mid-case LoM revenue forecast of $4.2bn and a Pre-Feasability Study (PFS) is currently well underway and slated for completion in early 2019. The two firms are also waiting for Mozambique’s government to grant a mining lease for the three deposits, with first production targeted for 2020.

Archer told us that he expects to begin generating proper value from these two sites once it has finalised licencing: ‘The Oman and Mozambique projects are in the licencing process at the moment, but once we are granted leases we can kick-start activities in those areas. The Mozambique Heavy Mineral Sands Project is one of the most globally significant resources of mineral sands. It is certainly one of Africa’s largest mineral sands projects, and it really will be a long-term source of titanium and titanium minerals.’

For the rest of the article click on the link below:

http://www.valuethemarkets.com/inde...w-savannah-resources-david-archer-future-sav/