SAVANNAH RESOURCES (LON:SAV)
SECTOR – MINING
RATING – CORP*
MARKET CAP – £29m
CURRENT PRICE – 5.5p#
COMPANY DESCRIPTION
Savannah Resources is an exploration and development company with copper-gold projects located in Oman, a mineral sands project in Mozambique and lithium projects in Finland and Portugal.
Licensing update in Oman
NORTHLAND VIEW
Savannah Resources has received in principle approval for its tailings storage facility ('TSF') concept, subject to further studies and test work being presented to MECA for review and consideration. The TSF concept involves the utilisation of the abandoned Lasail West pit for tailings storage.
The Lasail West pit is adjacent to the main, historic Lasail Mine which, as a large underground operation produced c. 13Mt of ore at 2% copper, and which retains potential for the identification of further copper mineralisation.
All regulatory applications for copper mine development at both Mahab 4 and Maqail South have now been submitted and the Licensing approval process continues to progress but is taking longer than initially anticipated, which has resulted in some time loss to the proposed production schedule; and mining is expected to commence in H1 2018.
The approval for the TSF is a positive development for Savannah however the delay in the licensing approval process would be viewed as a setback but mining is expected to commence in H1 2018.