Last checked at 22 Sep 2015 07:00
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
22 September 2015
Savannah Resources Plc
High Grade Copper Mineralisation Identified at the Aarja Prospect
Block 4, Semail Ophiolite Belt, Oman
Savannah Resources plc (AIM: SAV) ('Savannah' or the 'Company') announces that it has identified new high grade copper mineralisation on at the Aarja Prospect at its Block 4 permit following a detailed collation of historical data. The copper mineralisation is located along strike and under the previously mined Aarja pit (Figure 1-4). Savannah is earning a 65% shareholding in the Omani company, Al Thuraya LLC, the owner of the Block 4 Project ('the Project'). To view the press release with the illustrative maps and diagrams please use the following link:
HIGHLIGHTS:
· New copper mineralisation model produced for the Aarja Main, Dogs Bone and Aarja South Zones demonstrating high grade copper mineralisation under the Aarja pit and along strike
· Newly identified, historic high grade results (Appendix 1) include:
o Aarja Main - 18.58m at 4.7% copper from 143m (hole 10-23)
- 24m at 3% copper from 143.5m (hole 10-82)
- 20m at 2.5% copper from 144m (hole 10-80)
o Dog's Bone - 33.8m at 3.35% copper from 153.1m (hole AEX-39)
- 10m at 4.17% copper and 2.43% zinc from 100.5m (hole AEX-31)
- 7.8m at 6.77% copper from 116.1m (hole AEX-11)
- 5.05m at 8.49% copper and 2.86% zinc from 130.9m (hole AEX-42)
o Aarja South - 9.8m at 3.86% copper from 224m (hole AEX-36)
· A trench previously completed by Savannah over an outcropping gossan to the immediate south of the main Aarja pit (14.5m at 8.03g/t gold and 0.9% copper) suggest the potential to expand the pit to the south (Appendix 2)
· A series of holes will be drilled to confirm the historic results prior to the calculation of a JORC compliant mineral resource estimate, targeted during Q4 2015
· The existing open pit and underground development allows access to the copper mineralisation
Savannah's CEO, David Archer said, "Savannah, together with our partners Al Thuraya, are very encouraged by these results from the compilation of the historic data at the Aarja Prospect at Block 4. Whilst work is still continuing in finalising this model, the early signs point towards a significant zone of copper mineralisation being present under the Aarja pit and along strike. Following completion of the data compilation and interpretation, we will look to complete some confirmatory drilling to verify the historical data as much of the previous drilling was undertaken in the 1980's. Should our drilling verify the historical data, we plan to complete a maiden JORC compliant mineral resource estimate before the end of the 2015 calendar year.
"The existing open pit and underground development which access the copper mineralisation may allow for a rapid, low cost mine development, but further work is required to confirm this. These results continue to support Savannah's view that Oman is a first class destination for copper VMS mineralisation, with excellent infrastructure coupled with a low cost setting, making Oman a compelling investment location."
Figure 1. Project Location Maphttp://www.rns-pdf.londonstockexchange.com/rns/7175Z_1-2015-9-21.pdf
Historic Data Compilation
An outline of copper mineralisation has been completed for the Aarja Prospect based on historical drill data collected between 1975 and 1994. A total of 84 holes are known to have been drilled into the Aarja Prospect. To date assay and lithological data for 64 holes has been located and digitised. All the historic holes were completed using diamond coring with samples collected based on geological intervals and assayed for copper by AAS in laboratories in Canada and Oman.
Three dimensional wireframes of the mineralisation were constructed based on geological logging and a nominal 0.5% Cu cut-off grade. The next steps will be to undertake some confirmatory drilling to verify the copper mineralisation model and subsequently generate a maiden JORC compliant mineral resource estimate.
Figure 2. Aarja Prospect copper mineralisation model and selected copper interceptshttp://www.rns-pdf.londonstockexchange.com/rns/7175Z_1-2015-9-21.pdf
Note: Whilst every effort has been made to verify the historical data, not all exploration and mining data has been located to date. Following integration of new confirmatory drilling, and additional historical data which may become available, the mineralisation models as presented above may change. In the case of the main Aarja lode, until further data can been located and integrated into the model only intercepts below the base of the known underground workings have been presented.
Trench Sampling
Trench sampling was recently undertaken by Savannah across a large gossan at the southern end of the Aarja pit to test for copper and gold mineralisation. The results have demonstrated a broad zone of high grade gold and copper mineralisation, returning 14.5m at 8.03g/t gold and 0.9% copper. Further sampling is now required to assess the extent and tenor of the mineralisation.
Figure 3. Summary map of new Aarja trench sampling and historical drillinghttp://www.rns-pdf.londonstockexchange.com/rns/7175Z_1-2015-9-21.pdf
Figure 4. Trench sampling at the southern end of the Aarja pit (June 2015)http://www.rns-pdf.londonstockexchange.com/rns/7175Z_1-2015-9-21.pdf
Competent Person
The information in this document 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 |
Samantha Harrison (Nominated Adviser) Charlie Cryer (Corporate Broker) | RFC Ambrian Limited | Tel: +44 20 3440 6800 |
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. On 31 December 2014 Savannah announced maiden, 65Mt Inferred Mineral Resource @4.2% total heavy minerals ("THM") at a 2.5% cut-off grade for Jangamo. 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.
APPENDIX 1 - Significant Historical Aarja Drilling Results
Hole ID | Prospect | RL | Azimuth (Deg) | Dip (Deg) | EOH (m) | From (m) | To (m) | Down hole interval (m) | Grade Cu % | Grade Zn % |
10-24 | Aarja | 225 | 0 | -90 | 234 | 150.00 | 162.76 | 12.76* | 2.56 |
|
Oct-80 | Aarja | 225 | 0 | -90 | 181 | 144.00 | 164.00 | 20.0* | 2.50 |
|
10-82 | Aarja | 225 | 0 | -90 | 196 | 143.50 | 167.50 | 24.0* | 3.01 |
|
10-23 | Aarja | 225 | 0 | -90 | 186 | 142.96 | 161.54 | 18.58* | 4.70 |
|
10-36 | Aarja | 225 | 0 | -90 | 276 | 167.34 | 174.65 | 7.31* | 3.69 |
|
10-36 | Aarja South | 225 | 0 | -90 | 276 | 224.03 | 233.78 | 9.75* | 3.86 |
|
AEX-08 | Dogs Bone | 232 | 0 | -90 | 350 | 126.95 | 134.40 | 7.45 | 3.48 | 3.04 |
AEX-11 | Dogs Bone | 232 | 0 | -90 | 175 | 116.05 | 123.85 | 7.80 | 6.77 |
|
AEX-24 | Dogs Bone | 232 | 0 | -90 | 144 | 92.50 | 126.20 | 34.20 | 1.30 | 0.55 |
| inc |
|
|
|
| 92.50 | 100.25 | 7.75 | 2.70 | 1.47 |
AEX-31 | Dogs Bone | 232 | 267 | -80 | 141 | 100.50 | 110.50 | 10.00 | 4.17 | 2.43 |
AEX-36 | Dogs Bone | 233 | 0 | -90 | 175 | 130.85 | 135.90 | 5.05 | 2.27 | 0.17 |
AEX-37 | Dogs Bone | 233 | 129 | -80 | 167 | 103.05 | 105.40 | 1.75 | 2.37 | 0.44 |
AEX-37 | Dogs Bone | 233 | 129 | -80 | 167 | 108.40 | 110.00 | 1.60 | 2.32 | 0.15 |
AEX-39 | Dogs Bone | 233 | 0 | -90 | 196 | 153.10 | 186.90 | 33.80 | 3.35 | 2.10 |
AEX-42 | Dogs Bone | 234 | 0 | -90 | 450 | 268.60 | 273.65 | 5.05 | 8.49 | 2.80 |
AEX-42 | Aarja South | 234 | 0 | -90 | 450 | 394.10 | 422.50 | 28.40 | 1.33 | 1.24 |
AEX-53 | Aarja South | 231 | 0 | -90 | 285 | 261.70 | 274.65 | 12.95 | 2.01 | 0.51 |
* Partial intercept below 82mRL (base of underground workings)
APPENDIX 2 - Aarja Trenching Results
Dataset | SampleID | Sample Type | Channel length | Au (ppm) | Ag (ppm) | Cu % | Pb % | Zn % |
Block_4 | GR2986 | Channel | 1 | 1.90 | 2.10 | 0.06 | 0.13 | |
Block_4 | GR2987 | Channel | 1 | 1.82 | 1.69 | 0.07 | 0.15 | |
Block_4 | GR2988 | Channel | 1 | 2.74 | 7 | 1.13 | 0.03 | 0.23 |
Block_4 | GR2989 | Channel | 1 | 3.92 | 9 | 0.52 | 0.02 | 0.12 |
Block_4 | GR2990 | Channel | 1 | 8.11 | 11 | 0.43 | 0.05 | 0.07 |
Block_4 | GR2991 | Channel | 1 | 49.20 | 12 | 0.24 | 0.05 | 0.04 |
Block_4 | GR2992 | Channel | 1 | 4.51 | 0.47 | 0.01 | 0.43 | |
Block_4 | GR2993 | Channel | 1 | 4.44 | 2 | 0.81 | 0.03 | 0.06 |
Block_4 | GR2994 | Channel | 1 | 3.84 | 2 | 0.88 | 0.06 | 0.05 |
Block_4 | GR2995 | Channel | 1 | 10.20 | 7 | 0.79 | 0.07 | 0.03 |
Block_4 | GR2996 | Channel | 1 | 10.30 | 11 | 0.73 | 0.07 | 0.04 |
Block_4 | GR2997 | Channel | 1 | 7.38 | 9 | 0.81 | 0.07 | 0.06 |
Block_4 | GR2998 | Channel | 1 | 4.79 | 5 | 0.68 | 0.05 | 0.1 |
Block_4 | GR2999 | Channel | 1 | 1.92 | 2 | 1.21 | 0.02 | 0.16 |
Block_4 | GR3000 | Channel | 0.5 | 2.86 | 1.35 | 0.01 | 0.15 |
Total Trench Result : 14.5m at 8.03g/t gold and 0.9% copper
Rock chips were assayed via the following method
· The tested samples were dried at 85°C, crushed and pulverized to 75 μm.
· Gold was analysed by fire assay (using 30g samples) with an atomic absorption spectrometry (AAS) finish, which detected gold in the range of 5ppb - 10ppm. A re-assay with gravimetric finish was used if the initial assay detected >10ppm gold (and silver) using a further 30g sample.
· Copper was analysed by 24 element inductively coupled plasma optical emission spectrometry (ICP-OES) analysis of an Aqua Regia digest.