Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
31 December 2014
Savannah Resources Plc
Maiden 65 Million Tonne Inferred Mineral Resource - Jangamo Heavy Mineral Sands, Mozambique
Savannah Resources plc (AIM: SAV) announces that it has defined an initial, 65MT maiden Inferred Mineral Resource Estimate ("MRE") at its Jangamo Heavy Minerals Sand Project ("Jangamo") (Figure 1, Table 1). Jangamo is located in a world class heavy minerals sands province adjacent to Rio Tinto's major Mutamba mineral sands deposit in southern Mozambique. To view the press release with the illustrative maps and diagrams please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/0517B_-2014-12-31.pdf
HIGHLIGHTS:
· A maiden JORC compliant Inferred Mineral Resource has been defined over a number of zones within the eastern part of the Jangamo exploration licence:
Cut-off Grade (THM) |
Category |
Tonnage |
Grade THM ("Total Heavy Minerals") |
2.5% |
Inferred |
65Mt |
4.2% |
Table 1: High Level Jangamo Mineral Resource Summary
· Initial resource drilling has successfully identified higher grade areas of THM mineralisation at or near surface
· A major Heavy Mineral Sands ("HMS") strandline system defined in the western part of the Jangamo tenement has excellent additional resource potential with intersections of up to 45m at 3.51% THM from 12m in JMRC133
· 2015 field programme in Mozambique is expected to start in March following the wet season with work to focus on expansion of the current resource base
Savannah's CEO, David Archer said, "We are delighted to announce a maiden Inferred Mineral Resource Estimate of 65Mt at 4.2% THM from a modest initial round of resource drilling over part of the eastern arm of the Jangamo tenement. The MRE provides us with a very solid resource base to build on with further resource drilling. The deposit we have identified is part of the very large Mutamba heavy mineral sands system with excellent potential to further expand the Mineral Resource in Savannah's tenement area. The Mineral Resource identified remains open along strike.
''We have also identified a major HMS system in the western part of the tenement with excellent intersections of up to 45m at 3.51%THM from 12m in JMRC133. The western system, which extends over at least 10km in strike, requires further exploration to be undertaken prior to resource drilling.
"Jangamo is part of a very large system and we are focused on defining a higher grade project that has superior economic characteristics for the development of a profitable mining operation with modest capital costs. Importantly, much of the Mineral Resource is from surface. This complements the favourable local infrastructure setting that benefits from nearby roads, power and port.
''We will now look to assess a number of promising commercial and strategic options for Jangamo following on from the definition of the maiden MRE. This is being done in parallel with the field programme in Mozambique which is expected to recommence in March following the wet season with work to focus on expansion of the current resource base."
Figure 1. Tenement location map over a digital terrain model showing Savannah's Jangamo licence, the newly defined Inferred Mineral Resource and its location adjacent to Rio Tinto's Mutamba Licences.
Mineral Resource Estimate
Initial resource drilling was targeted at two areas within the eastern arm of the tenement to define the maiden MRE. The exploration target of the adjacent Mutamba deposit published in 2008 was 7-12Bn tonnes at 3-4.5% THM1. Savannah's strategy has been to target potential extensions of the Mutamba mineralisation into the Jangamo tenement, with a primary focus of defining mineralisation at the upper end of the grade range for the Mutamba deposit of over 4% THM.
The strategy has proved successful with a maiden Inferred MRE of 65Mt (52Mt net attributable to Savannah) at 4.2% THM at a cut-off grade of 2.5% THM being defined within the project area (Table 2, Figure 2). Details of the resource are contained in Appendix 1. The resource remains open along strike and there are a number of areas identified during the 2014 exploration programme which require follow up work and resource drilling.
Resource Table (2.5% Cutoff) |
Zones |
Category |
Sand (Mt) |
% THM |
% Ilmenite in HM |
% Ilmenite in sand |
% Rutile in sand |
% Zircon in sand |
HM (Mt) |
Ilmenite (Mt) |
Rutile (Mt) |
Zircon (Mt) |
Jangamo |
Inferred |
65 |
4.2 |
60 |
2.5 |
0.083 |
0.15 |
2.7 |
1.6 |
0.054 |
0.10 |
Note: The table above has been prepared on a gross basis showing 100% interest. Savannah has an 80% indirect interest in the Jangamo Project.
Table 2. Detailed Summary of Jangamo Mineral Resource Estimation
Figure 2. Summary location map of the Jangamo initial Inferred Mineral Resource
Ongoing Resource Definition and Exploration Programme
Further work is now required to continue to build the current resource base and continue the ongoing exploration programme. The ongoing work programme will include:
· Metallurgical testwork to characterise the potential product from any project development
· Drilling around the newly defined Inferred Mineral Resource to further expand the resource base
· Further grid based resource drilling around anomalous exploration drill holes (Figure 3)
· Ongoing exploration work and resource drilling with a focus on the newly defined western dune system
Figure 3. Summary Map of Exploration Drilling completed to date draped over a digital terrane model highlighting other Potential Resource Targets
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.
The information in this document that relates to resource estimations is based upon information compiled by Mr Colin Rothnie who is an independent consultant and 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 Rothnie 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 |
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.
Notes
1http://www.riotinto.com/documents/ReportsPublications/Titanium_mineral_sands_exploration_target_in_Mozambique.pdf
Technical Glossary
Inferred Mineral Resource Estimate - as defined in the December 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code).
