Savannah Resources Plc (LON:SAV) has started exploration at the Ravene deposit in Mozambique, a part of its mineral sands joint venture with mining giant Rio Tinto PLC (LON:RIO).

An auger drill programme is almost finished, with a further 88 holes of shallow drilling expected to complete early in 2017.

Savannah/Rio will use the data to infill an existing 1,000m x 500m grid and form an inferred resource estimate that will be included in a scoping study.

David Archer, Savannah’s chief executive, said: “Our resource definition drilling will more precisely define the high-grade zones of THM [total heavy minerals] at the Ravene deposit, which we believe could increase the current global Indicated and Inferred Mineral Resource inventory of 3.5 billion tonnes at 3.8% THM at the Mutamba Project North.”

Mutamba, the new name for Savajhhan/Rio project, comprises the Jangamo, Dongane and Ravene deposits [Mutamba North] and the Chilubane deposit 180km to the south west.

The existing 3.5bn tonnes at 3.8% THM resource only covers the Dongane and Jangamo deposits.

Savannah, which is the operator, holds 10% of the project currently but this stake can rise to 51% once certain milestones are passed.

Source: ProActive Investors UK