Last checked at 12 Jan 2016 07:00
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
12 January 2016
Savannah Resources Plc
Drilling Completed in Oman
Savannah Resources plc (AIM: SAV) ('Savannah' or the 'Company'), advises that it has completed its initial reverse circulation ('RC') and diamond drilling programme over Blocks 4 and 5 in Oman, which are prospective for both copper and gold. Savannah is earning a 65% shareholding in the Omani company, Al Thuraya LLC, the owner of the Block 4 licence and holds a 65% interest in Al Fairuz Mining, the holder of the Block 5 licence.
HIGHLIGHTS:
· Block 4 and 5 RC/diamond drilling programme completed on 30 December 2015
· A total of 16 holes for 1,766.85m were completed (Table 1)
o RC drilling: 10 holes for 933m
o Diamond drilling: 6 holes for 833.85m
· Results received to date for 9 holes include:
o 9m at 4.86% copper, 1.54% zinc, 1.3g/t gold and 37.3g/t silver
o 6.6m at 6.92% copper, 5.6% zinc, 0.3g/t gold and 23.8g/t silver
· Results have expanded the high-grade (>5% copper) portion of the Mahab 4 deposit in Block 5, with drilling targeting further expansions continuing
· Remaining 7 holes expected by the end of January 2016
· Strategy to achieve high-grade, low cost copper concentrate production in late 2017 with additional gold upside
David Archer, Savannah's Chief Executive Officer said today "We are very pleased to have completed our drilling programme. The results reported from the first part of the drilling programme have been very encouraging and point towards the expansion of the existing resource base of 1.5Mt at 2.1% copper within our Block 4 and 5 projects. Importantly, the results also support our strategy of commencing high-grade, low cost copper production within 24 months, with additional gold upside opportunity. We look forward to updating the market on the results of the remaining 7 holes later this month."
DETAILS OF DRILLING PROGRAMME
A total of 16 drill holes were completed targeting a series of exploration and resource expansion/confirmation opportunities (Table 1). A brief summary of the targets tested is provided below.
Resource Expansion/Confirmation Targets
Mahab 4, Block 5: Down dip and strike extensions of the high grade >5% copper zone were targeted.
Dog's Bone, Block 4: Confirmation holes targeting the Dog's Bone Zone of the Aarja deposit to confirm its presence as a precursor to a resource calculation.
Dog's Bone Gossan, Block 4: Resource expansion holes targeted at expanding the Dog's Bone Resource to surface and evaluating it for a potential open pit mining opportunity.
Exploration Targets
Gaddamah. Block 4: Drilling targeted a gold rich zone associated with a late stage shear zone.
VTEM 4 (Aarja) and VTEM 13 (Zuha North), Block 4: Testing of two high priority VTEM targets for the presence of VMS mineralisation.
Table 1. Summary of drill holes completed, results marked with an asterisk were previously announced on 9 December 2015.
Hole ID | Prospect | Northing | Easting | rL | Azimuth | Dip | EOH |
(Deg) | (Deg) | (m) | |||||
15B5DD005* | Mahab 4 | 2656287.00 | 468762.00 | 219.00 | 255 | -50 | 96.50 |
15B4RC002* | Dogs Bone | 2692565.0 | 440382.0 | 231 | 0 | 0 | 150 |
15B4RC003* | Dogs Bone | 2692576.0 | 440416.0 | 230 | 0 | -90 | 145 |
15B4RC004* | Dogs Bone | 2692554.0 | 440488.0 | 230 | 0 | -90 | 205 |
15B4RC005* | Dogs Bone Gossan | 2692608.0 | 440341.0 | 230 | 300 | -60 | 50 |
15B4RC006* | Dogs Bone Gossan | 2692620.0 | 440343.0 | 230 | 300 | -60 | 50 |
15B4RC007* | Dogs Bone Gossan | 2692612.0 | 440304.0 | 235 | 0 | -90 | 30 |
15B4RC011* | Dogs Bone | 2692575.0 | 440386.0 | 229 | 0 | 0 | 138 |
15B4RC009 | Gaddamah | 2684594.0 | 440340.0 | 283 | 0 | -90 | 30.00 |
15B4RC010 | Gaddamah | 2684586.0 | 440348.0 | 282 | 0 | -90 | 30.00 |
15B4RC001 | VTEM Target #4 | 2693035.0 | 440591.0 | 228 | 270 | -70 | 100 |
15B5DD007* | Mahab 4 | 2656314.00 | 468761.00 | 215 | 255 | -55 | 93.35 |
15B5DD008 | Mahab 4 | 2656351.0 | 468794.0 | 215 | 262 | -50 | 125 |
15B5DD008A | Mahab 4 | 2656351.0 | 468794.0 | 215 | 262 | -50 | 216 |
15B5DD006 | Mahab 4 | 2656301.0 | 468786.0 | 215 | 255 | -60 | 149 |
15B4DD002 | Zuha North | 2678185.0 | 451615.0 | 212 | 270 | -65 | 159 |
Competent Person
The information in this announcement that relates to exploration results is based upon information compiled by Mr Dale Ferguson, Technical Director of Savannah Resources Limited. Mr Ferguson is a Member of the Australian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Ferguson consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.
**ENDS**
For further information please visit www.savannahresources.com or contact:
David Archer | Savannah Resources plc | Tel: +44 20 7389 5019 |
David Hignell / Gerry Beaney (Nominated Adviser) | Northland Capital Partners Ltd | Tel: +44 20 7382 1100 |
Jon Belliss / Elliot Hance (Corporate Broker) | Beaufort Securities Ltd | Tel: +44 20 7382 8300 |
Felicity Winkles/ Charlotte Heap | St Brides Partners Ltd | Tel: +44 20 7236 1177 |
Notes
Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, exploration and development company.
Savannah has agreed to acquire 100% of Matilda Minerals Limitada which currently operates the Jangamo exploration project, and has agreed with Rio Tinto to form a joint venture in Mozambique to develop the combined Mutamba/Jangamo Project. Formation of the joint venture remains subject to approval by the Ministry of Mineral Resources and Energy of the Republic of Mozambique. Jangamo has a 65Mt Inferred Mineral Resource @4.2% total heavy minerals ("THM") at a 2.5% cut-off grade. The Mutamba, Dongane and Chilubane deposits have a combined exploration target of 7-12Bn tonnes at 3-4.5% THM (published in 2008).
Savannah has interests in three copper blocks in the highly prospective Semail Ophiolite Belt in Oman. The projects, which have an Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% copper and high grade intercepts of up to 56.35m at 6.21% Cu, with additional gold upside potential, provide Savannah with an excellent opportunity to potentially evolve into a mid-tier copper and gold producer in a relatively short time frame. Together with its Omani partners, Savannah aims to outline further mineral resources to provide the critical mass for a central operating plant to develop the deposits, and in December 2015 outlined exploration targets of between 10,700,000 and 29,250,000 tonnes grading between 1.4% and 2.4% copper.