Last checked at 9 Dec 2015 07:00
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
9 December 2015
Savannah Resources Plc
High Grade Copper, Zinc and Gold Intersected
Block 4 and 5, Semail Ophiolite Belt, Oman
Savannah Resources plc (AIM: SAV) ('Savannah' or the 'Company') advises that it has received initial positive assay results intersecting high-grade copper, zinc and gold from the current 1,800m drill programme over Blocks 4 and 5 in Oman. Savannah is earning a 65% shareholding in the Omani company, Al Thuraya LLC, the owner of the Block 4 Project and is a 65% shareholder in Al Fairuz Mining, the holder of the Block 5 licence. To view the press release with the illustrative maps and diagrams please use the following link:
HIGHLIGHTS:
· Results include (Table 1):
- Dog's Bone: 9m at 4.86% copper, 1.54% zinc, 1.3g/t gold and 37.3g/t silver from 103m in 15B4RC003 Incl. 6m at 7.01% copper, 2.20% zinc, 1.9g/t gold and 53.8g/t silver from 103m
- Mahab 4: 6.6m at 6.92% copper, 5.6% zinc, 0.3g/t gold and 23.8g/t silver from 67m in 15B5DD005
· Results expanded the high-grade (>5% copper) portion of the Mahab 4 deposit with drilling targeting further expansions continuing
· Work at the Dog's Bone Zone has confirmed the high-grade nature of the mineralisation and work is now underway to test extensions and compile a compliant mineral resource estimate
· Dog's Bone Zone and much of the Aarja Deposit has existing underground access which would allow rapid development and exploitation
· Work has been slowed by mechanical problems with the drill rigs - targeting the end of December to finish the drilling
· Results help build on the strategy of targeting the start of high-grade, low cost copper concentrate production from late 2017
Savannah's CEO, David Archer said, "These exciting initial assay results confirm the high-grade nature of Aarja's copper mineralisation and, importantly, show that it is associated with significant gold with grades of up to 1.9g/t. Gold was not previously assayed for and these results suggest that it could be a very valuable by-product credit.
"The Aarja Mine is a key piece of our overall copper consolidation strategy of targeting the start of high-grade, low cost copper concentrate production from late 2017 from multiple deposits on Blocks 4 & 5 to coincide with projected global copper deficits and strengthening copper prices.
"Our next steps will include defining Exploration Targets for the Aarja, Bayda and Lasail Mines within the Block 4 and 5 areas and then moving these into JORC compliant Mineral Resources."
Aarja Drilling Programme
Drilling targeting the Dog's Bone Zone of mineralisation (15B4RC002, 3 and 4) intersected high-grade mineralisation and confirmed the presence of the zone. Dog's Bone has existing underground development that could facilitate a fast development of the zone as part of any potential operation.
Significant results are detailed below and in Table 1 and Figure 2.
Dog's Bone:
- 9m at 4.86% copper, 1.54% zinc, 1.3g/t gold and 37.3g/t silver from 103m in 15B4RC003 Incl. 6m at 7.01% copper, 2.20% zinc, 1.9g/t gold and 53.8g/t silver from 103m
- 5m at 2.17% copper, 0.37% zinc, 0.4g/t gold and 7g/t silver from 151m in 15B4RC004
- 21.7m at 0.79% copper, 0.79% zinc, 1.97g/t gold and 12g/t silver from 174 in 15B4RC004
Drilling (15B4RC005, 6 and 7) targeting the Dog's Bone Gossan intersected thin zones of near surface copper and gold mineralisation with results including 3m at 1.3% copper, 4.4g/t gold and 3g/t silver from surface in 15B4RC007. Further work to access the potential of this zone is currently being undertaken.
Mahab 4 Drilling Programme
Results from the first hole at Mahab 4 were very encouraging with a result of 6.6m at 6.92% copper, 5.6% zinc, 0.3g/t gold and 23.8g/t silver from 67m in 15B5DD005 expanding the high-grade (>5% copper) zone up dip and increasing the contained metal of the deposit.
15B5DD005 was completed to 96.5m with Lasail Basalts intersected in the hanging wall to a thin umber horizon at 32m. Geotimes Basalts were then intersected to the end of hole at 96.5m. Three zones of massive sulphide mineralisation were intersected between 51 and 72m. The thickest zone was at 67-73.6m (Figure 3) and consisted of pyrite and chalcopyrite. A section for this hole is shown in Figure 4.
http://www.rns-pdf.londonstockexchange.com/rns/4269I_-2015-12-8.pdf
Table 1. Summary of significant drill results (intercepts calculated using 0.5% copper cut off with high grade intercepts calculated using 1% copper cut off)
Hole ID
| Prospect
| Northing
| Easting
| rL | Azimuth (Deg) | Dip (Deg) | EOH (m) | From (m)
| To (m)
| Down hole | Grade | Grade | Grade | Grade |
Interval (m) | % Cu | % Zn | g/t Au | g/t Ag | ||||||||||
15B5DD005 | Mahab 4 | 2656287.00 | 468762.00 | 219.00 | 255 | -50 | 96.50 | 51.70 | 53.00 | 1.30 | 3.04 | 0.27 | 0.1 | 15.7 |
58.80 | 60.60 | 1.80 | 8.15 | 1.97 | 0.2 | 22.0 | ||||||||
67.00 | 73.60 | 6.60 | 6.92 | 5.60 | 0.3 | 23.8 | ||||||||
15B5DD007 | Mahab 4 | 2656314.00 | 468761.00 | 215.00 | 255 | -55 | 93.35 | Assays Pending | ||||||
15B4RC001 | VTEM Target #4 | 2693035.0 | 440591.0 | 228 | 270 | -70 | 100 | Assays Pending | ||||||
15B4RC002 | Dogs Bone | 2692565.0 | 440382.0 | 231 | 0 | 0 | 150 | No Significant Assays | ||||||
15B4RC003 | Dogs Bone | 2692576.0 | 440416.0 | 230 | 0 | -90 | 145 | 103.00 | 112.00 | 9.00 | 4.86 | 1.54 | 1.3 | 37.3 |
inc | 103.00 | 109.00 | 6.00 | 7.01 | 2.20 | 1.9 | 53.8 | |||||||
15B4RC004 | Dogs Bone | 2692554.0 | 440488.0 | 230 | 0 | -90 | 205 | 151.00 | 156.00 | 5.00 | 2.17 | 0.37 | 0.4 | 7 |
174.73 | 196.00 | 21.27 | 0.79 | 1.97 | 0.6 | 12 | ||||||||
15B4RC005 | Dogs Bone Gossan | 2692608.0 | 440341.0 | 230 | 300 | -60 | 50 | 0.00 | 3.00 | 3.00 | 0.31 | 0.10 | 0.2 | - |
15B4RC006 | Dogs Bone Gossan | 2692620.0 | 440343.0 | 230 | 300 | -60 | 50 | 0.00 | 3.00 | 3.00 | 0.21 | - | 0.3 | - |
15B4RC007 | Dogs Bone Gossan | 2692612.0 | 440304.0 | 235 | 0 | -90 | 30 | 0.00 | 3.00 | 3.00 | 1.30 | 0.10 | 4.4 | 3 |
15B4RC011 | Dogs Bone | 2692575.0 | 440386.0 | 229 | 0 | 0 | 138 | Assays Pending | ||||||
Note: Savannah has an indirect 65% interest in Mahab 4 and is earning an indirect 65% interest in the other prospects.
Samples were assayed via the following method
· The tested samples were dried at 85°C, crushed and pulverized to 75 μm
· The method for gold analysis was using was 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 with the initial assay detected >10ppm gold (and silver) using a further 30g sample
· The method for copper analysis was a 24 element inductively coupled plasma optical emission spectrometry (ICP-OES) analysis of an Aqua Regia digest
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. 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.