Savannah Resources (LON:SAV) remains optimistic of first production next year from either of its assets in Oman and Mozambique.
The junior is exploring for copper in Oman and has just extended the deadline for merging of mineral sands property in Mozambique with Rio Tinto’s similar deposit next until 10 October.
In Mozambique, the plan is for a staged development programme with titanium feedstock to be delivered through offtake sales contracts secured by Rio.
In Oman, Savannah submitted applications for two mining licences this month.
The first is for open-cut development at the Maqail South deposit and the second for underground development at the Mahab 4 deposit.
“It is our intention to utilise a hub and spoke mine development model to support low capex operations, whereby one central plant will process material from multiple mines,” said David Archer chief executive.
The next step will be a feasibility study of an amalgamated mine development of the deposits within Blocks 4 and 5.
In addition, Savannah has an early stage lithium exploration operation in Finland where sampling is underway.
“With Oman and Mozambique both offering near term production potential this is an extremely exciting time of development and I look forward to the next 6-12 months with great anticipation,” said Archer.
Losses for the half year to June were £760,000 (£1mln).