Business
Completion of Mutamba Scoping Study
Completion of Mutamba Scoping Study.
About this update from Savannah Resources Plc
[{"type":"text","content":"\n \nRNS Number : 4769G Savannah Resources PLC 30 May 2017 \n\n \nSavannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining\n30 May 2017\n \nSavannah Resources Plc\nCompletion of Mutamba Mineral Sands Project Scoping Study\n \nSavannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), is pleased to announce completion of the Mutamba Scoping Study*, which concludes that there is potential for a financially robust, long life mineral sands project that is anticipated to provide excellent life of mine financial returns with relatively modest capital requirements (Figure 1). The Mutamba Mineral Sands Project ('Mutamba' or 'the Project') is being developed by Savannah and Rio Tinto as part of a consortium agreement between the two parties (the 'Consortium'). Savannah has the right to earn up to a 51% interest in the Project, subject to key milestones being met, and by delivering the scoping study Savannah now holds a 20% interest. To view the press release with the illustrative maps and diagrams please use the following link: \nhttp://www.rns-pdf.londonstockexchange.com/rns/4769G_1-2017-5-29.pdf \n \nKEY SCOPING STUDY HIGHLIGHTS:\n· Initial mine life ('LOM') of 30 years based on a resource of 451Mt at 6.0% total heavy minerals ('THM') (based on a conceptual mine plan utilising 33% indicated resource and 67% inferred resource);\n· Targeting first production in 2020 with average annual production of 456,000t of ilmenite and 118,000t of non-magnetic concentrate;\n· US$4.23 billion LOM revenue forecast based on Management Case Two (base case revenue of US$3.53 billion forecast);\n· Pre-production capital expenditure of US$152 million plus US$74 million of contingency, EPCM (Engineering, Procurement, Construction Management) and spares, with identified opportunities that may reduce capital expenditure (based on conceptual estimate +/-35%);\n· Modelled production of 15Mtpa will be mined at LOM strip ratio (waste/ore) of essentially zero (2:451);\n· Considerable upside potential remains through refining costings and further resource drilling; and\n· Delivery of Scoping Study increases Savannah's interest in the Mutamba Consortium to 20%.\n \n*The Scopi...