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LONDON (Alliance News) - Savannah Resources PLC on Thursday said the next round of drilling activity on its Block 4 and Block 5 copper and gold properties in Oman has started.
A two-stage diamond drilling programme has started at the Maqail South and Mahab 4 prospects at Block 5 and on the Dog's Bone and Bayda prospects in Block 4.
The programme has been launched to increase the resource potential and upgrade current resource classification for the project, Savannah said.
The drilling also will assist the completion of initial geotechnical and metallurgical test work at both blocks, which will feed into feasibility studies and ultimately ore reserves as Savannah continues to target production in late 2017.
"With multiple high-grade targets identified the drilling is directed at accelerating our efforts to be in production in late-2017, utilising a hub and spoke mine development model to support low capex operations, whereby one central plant will process material from multiple mines," said Savannah Chief Executive David Archer.
Savannah shares were down 1.5% to 3.25 pence Thursday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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