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Savannah starts pilot plant construction at Mutamba mineral sands project

Savannah Resources Plc started construction of a 20-tonne-per-hour pilot plant for its bulk metallurgical test work program at the Mutamba mineral sands project in Mozambique.

The pilot plant will produce bulk samples of concentrate for metallurgical and product test work, according to an Aug. 14 release.

Construction and commissioning of the plant are expected to be completed by the end of 2017.

"The completion of the plant will be a key milestone for the Mutamba consortium as we move the project towards a development decision," Savannah CEO David Archer said.

A scoping study released in late May on the Mutamba project estimated a pretax net present value, discounted at 10%, of US$154 million and an internal rate of return of 19%.

The Mutamba project is a joint venture owned 51% by Savannah and 49% by Rio Tinto.