Savannah Resources PLC (LON:SAV) said phase one of the pre-feasibility study (PFS) of the Mutamba Mineral Sands Project in Mozambique is now underway.
The company has appointed mineral sands expert TZMI to carry out the work, which will include a gap analysis, options review, project planning and budget finalisation for stage-two.
The early work is expected to be finalised in the “coming months”.
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Assembly of pilot plant well underway
Completion of the ‘pre-feas’ will represent a major milestone for Savannah as it will earn a 35% stake in the Mutamba Consortium, partnering mining major Rio Tinto (LON:RIO).
Savannah's chief executive, David Archer, said: "We're pleased that the first stage of the Mutamba PFS has been contracted to TZMI.
“Having completed the Scoping Study for us, TZMI is well placed to undertake the work and deliver a quick outcome.”
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In the same announcement, Archer said the assembly of a pilot plant is well underway, which will provide product for metallurgical and product test work by Rio.
The Mutamba project in Mozambique is host to an inferred resource of 4.4bn tonnes at 3.9% heavy mineral sands over the Jangamo, Dongane and Ravene deposits.