StockMarketWire.com - Savannah Resources announces an initial resource estimation over two of the four deposits currently defined at the Mutamba project in Mozambique.

Mutamba, which was previously operated solely by Rio Tinto, forms part of the larger Mutamba/Jangamo Project currently being developed under a Consortium Agreement between Savannah and Rio Tinto, as announced on 11 October 2016.

Savannah holds a 10% interest in the joint project with the right to earn up to 51%, subject to key milestones being met.

HIGHLIGHTS:

- Initial Indicated and Inferred Mineral Resource Estimate of 3.5 billion tonnes at 3.8% Total Heavy Minerals (THM)

- Mineral Resource Estimate contains 81 million tonnes ("Mt") of ilmenite, 2.2Mt rutile and 3.8Mt zircon

- 52% of Mineral Resource in the Indicated Category, 48% in the Inferred Category

- Initial resource calculation covers the Jangamo and Dongane deposits at Mutamba - note the Jangamo deposit includes both Rio Tinto's Jangamo deposit and Savannahs Jangamo deposit where an established resource of 65Mt at 4.2% THM was previously defined

- Resource compares favourably against Mozambique mineral sands producer Kenmare Resources 31 December 2015 global resource of 6.5Bt at 2.9% THM and mining reserve of 1.6Bt at 3.3%THM

- Resource estimation in respect of the Ravene and Chilubane deposits still to be completed

- Mineral Resource Estimate of the Jangamo and Dongane deposits has defined large areas of >5%THM, which will form the focus of the upcoming scoping study

- A scoping study which is expected to take 3-4 months will commence shortly.






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