21st Sep 2018 11:41
LONDON (Alliance News) - Savannah Resources PLC on Friday said it applied for additional mining licences for its Mozambique subsidiary as its loss narrowed in the first half of 2018.
The resource development company said pretax loss narrowed to GBP1.2 million in the six months to the end of June from GBP1.5 million reported for the same period a year ago, which reflects mine development activities.
During the period, Savannah Resources said it was focused on work programmes at the Mina do Barroso lithium project in northern Portugal, where it completed the scoping study, leading to an increase in its resource base.
To-date, the company said it continues drilling campaigns across all three of its primary target areas, including Grandao, Reservatorio and NOA. In particularly, the company said it is encouraged with drilling results at Grandao, where it discovered a new extend area, which has a potential o further increase the mineral resource estimate.
"The upcoming six months will be active for Savannah as we finalise key economic studies at our Mina do Barroso lithium project so that we are able to make a development decision in the second quarter of 2019," said Chairman Matthew King.
In a separate statement, Savannah Resources said it submitted an additional mining lease application to the Ministry of Mineral Resources and Energy in Mozambique to obtain an additional mining lease for its subsidiary, Matilda Minerals Lda.
Application covers the 11,948 hectares area of EL 3617L licence in the districts of Inharrime and Jangamo. The Ministry has six months, from the date of submission, to respond to applications, Savannah Resources said.
The company expects the licence to be awarded for the period of 25 years, with the renewal option at the end of its term.
"Due to the complexity of the analysis of the process and the number of government entities involved in the appraisal of the applications, the government always reserves the right to request additional clarifications that may result in short delays," warned Chief Executive David Archer.
Savannah Resources shares were up 3.3% on Friday at 7.90 pence each.
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