(2015-06-22) Savannah Resources has unveiled plans to merge its heavy mineral sands assets in Mozambique with those of mining major Rio Tinto to create a world class project.
The AIM-listed explorer has the chance to earn up to 51% of the new joint-venture company, while Rio has agreed that it or one of its subsidiaries will buy the output from any mine.
The deal brings together the Mutamba, Dongane and Jangamo prospects. The latter, which belongs to Savannah, carries an inferred mineral resource of 65mln tonnes at 4.2% heavy mineral sands rich in ilmenite, rutile and zircon.
The Rio areas, meanwhile, have a declared exploration target of 9-12bn tonnes grading 3-4.5%.
Savannah will be the operator of the JV and will earn its majority stake by carrying out scoping, pre-feasibility and feasibility studies. Rio will provide access to its existing camp, facilities and equipment.
Separately, Savannah has agreed to acquire the 20% of the local company that owns its Jangamo licence for A$100,000.
Chief executive David Archer said: “The amalgamation of the Mutamba, Dongane and Jangamo projects makes enormous sense as it combines three areas which are effectively part of the same, continuous mineralization trend.
“The projects are located close to existing road, grid power, water and port infrastructure.
“The mineral occurrences themselves are well-suited to conventional dry mining to produce feed for a conventional heavy mineral separation circuit that would allow extraction of ilmenite, rutile and zircon products.”
Source: Proactive Investors
Photo: Mineral sands contain zircon, rutile and ilmenite.
Gal Despachos Aduaneiros en Maputo | Clearing Agent in Mozambique | Top Website | http://www.galclearing.com
The Leader in Oil & Gas Industry Mozambique | Hydrocarbon Logistics Centre | The Pemba Logistics Base | Nigerian company Orlean Invest | Portos de Cabo Delgado (PCD) | Top News Website