Savannah Resources Plc (LON:SAV) has raised its resource estimate for the Mutamba minerals sands project in Mozambique after evaluating drilling results from the Ravene deposit.
The inferred mineral resource estimate at Ravene stands at 900 million tonnes (mt) at 4.1% total heavy minerals (THM).
It brings the total global mineral resource estimate for the Mutamba project to 4.4 billion tonnes at THM, representing a 26% increase.
The Mutamba project also includes the Jangamo and Dangane deposits and is being developed by Savannah and Rio Tinto.
Savannah defined the resource at Ravene using samples from initial drilling of 119 holes completed between 2002 and 2004, and from the recent drilling of 107 holes.
The company has discovered the Ravene resource contains a high-grade portion of 92mt at 6.2% THM, which will be a primary focus within the scoping study that is being carried out.
The scoping study is nearing completion and once received will be reviewed by Savannah and Rio Tinto.
“The increased mineral resource for the Mutamba Project highlights its potential to be a significant producer of titanium feedstocks,” said Savannah’s chief executive, David Archer.
“In addition, this year we are seeing increasing prices for titanium feedstocks such as ilmenite and rutile, which means that it is an ideal time to be taking this project forward.”
Shares in Savannah gained 4.0% to 5.20p in morning trading.