Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
2 December 2014
Savannah Resources Plc
Ground Electromagnetic Survey Underway on Block 5 Copper project, Oman
Savannah Resources plc (AIM: SAV) announces that it has commenced a ground electromagnetic survey ('EM'), which is the precursor to drilling over a series of high priority copper targets on the Company's Block 5 copper project, located in the mineral rich Oman Ophiolite belt. To view the press release with the illustrative maps and diagrams please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/5393Y_1-2014-12-1.pdf
HIGHLIGHTS:
· A four week, ground EM survey has commenced over six priority Versatile Time Domain Electromagnetic Surveying ('VTEM') targets identified by the reprocessing of data and geological review
· Results from the EM survey together with other key data layers will be used to target drill holes to test the anomalies for VMS copper mineralisation
· Geological mapping has confirmed that the anomalies are located in prospective stratigraphic positions within the ophiolite sequence
· Near surface Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% Cu at Block 5 (including a high-grade zone of ~0.5Mt @ 4.5% Cu)
· Drilling expected to commence in Q1 2015
Savannah's CEO, David Archer said, "The ground EM data is the last layer of information we need for final targeting of the drill holes on Block 5. As part of Savannah's integrated approach we have reprocessed the VTEM and airborne magnetics, acquired detailed spot imagery, conducted a review of the geochemistry and mapped, in detail, the ophiolite sequence within Block 5 to help us best target potential Volcanogenic massive sulphide ('VMS') copper mineralisation.
''Past explorers have already identified two VMS deposits within Block 5 and, given that VMS deposits tend to occur in clusters, we think our new, integrated exploration approach has a high chance of discovering additional VMS deposits.
"Oman is a well-developed country with excellent infrastructure (proximal to a major deep sea port, excellent bitumen road networks and extensive power line network), low fuel and labour costs and a favourable fiscal and tax regime. Savannah is of the opinion that mining profitability in Oman will be significantly enhanced by this very favourable development setting."
Exploration Programme
Savannah is now ramping-up its Oman exploration programme with a view to commencing drilling on Block 5 in Q1 2015. In tandem with this, a VTEM survey will be conducted at Block 4, which the Company recently acquired in November 2014 thus enhancing its in-country footprint. The initial work programme will include:
· Completing a detailed targeting assessment of the geophysical data looking at subtle targets, targets under cover, and targets potentially concealed by cover along known prospective trends
· Improving understanding through better characterisation of known deposits, inside and outside the blocks, especially through lithogeochemical signatures of mineralisation and alteration and a better definition of structural and lithostratigraphic control
· Further geological mapping, geochemical sampling and airborne VTEM survey
· Drill targets being defined by a combination of VTEM conductors, ground EM follow-up, systematic surface geochemistry, geological mapping and lithogeochemical targeting
Competent Person
Dale Ferguson: The technical information related to Exploration strategy contained in this Announcement has been reviewed and approved by Mr D. Ferguson. Mr Ferguson has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity to which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Ferguson is a Director of Savannah Resources plc and a Member of the Australasian Institute of Mining and Metallurgy. Mr Ferguson consents to the inclusion in this announcement of such 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 |
James Biddle (Nominated Adviser) Charlie Cryer (Corporate Broker) |
RFC Ambrian Limited |
Tel: +44 20 3440 6800 |
Felicity Winkles / Charlotte Heap |
St Brides Media & Finance Ltd |
Tel: +44 20 7236 1177 |
Notes
Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, exploration and development company. It has an 80% shareholding in Matilda Minerals Limitada which operates the Jangamo exploration project in a world class mineral sands province in Mozambique which borders Rio Tinto's Mutamba deposit, one of two major deposits Rio Tinto has defined in Mozambique, which collectively have an exploration target of 7-12Bn tonnes at 3-4.5% THM1 (published in 2008).
Savannah has interests in three copper projects 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, provide Savannah with an excellent opportunity to potentially evolve into a mid-tier copper 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.
In addition, Savannah owns a 19.7% strategic shareholding in Alecto Minerals Plc which provides Savannah with exposure to both the highly prospective Kossanto Gold Project in the prolific Kenieba inlier in Mali and also to the Wayu Boda and Aysid Meketel gold / base metal projects in Ethiopia for which Alecto has a joint venture with Centamin Plc. Under this joint venture, Centamin Plc is committing up to US$14m in exploration funding to earn up to 70% of each project.
