Savannah Resources Plc released an initial resource estimate for the Ravene deposit at its Mutamba mineral sands project in Mozambique, comprising inferred resources of 900 million tonnes grading 4.1% total heavy minerals, or THM.
The Ravene resource includes a high-grade zone of 92 million tonnes at 6.2% THM, which will be the primary focus of the company's ongoing scoping study, it said March 27.
The addition of the Ravene deposit represents a 26% increase in Mutamba's total resources, with an 8% increase in the THM grade compared to the overall resource.
Mutamba now hosts indicated and inferred resources totaling 4.40 billion tonnes at 3.9% THM, comprising the Jangamo, Dongane and Ravene deposits.
Savannah agreed to form a joint venture with Rio Tinto in mid-2015 to combine both companies' Mutamba, Dongane, Jangamo and Chilubane heavy mineral sands occurrences in Mozambique.
Under the agreement, Savannah operates the Mutamba property and can earn a 51% interest in the related consortium.