VMS Style Mineralisation Intersected, Oman

Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining

5 May 2015

Savannah Resources Plc

VMS Style Mineralisation Intersected in Diamond Drilling Programme, Oman

Savannah Resources plc (AIM: SAV) ('Savannah' or the 'Company') announces drill results from its Block 4 and 5 copper projects in the prospective Semail Ophiolite belt in Oman, which intersected volcanogenic massive sulphide ('VMS') style mineralisation.  To view the press release with the illustrative maps and diagrams please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/0524M_-2015-5-1.pdf

HIGHLIGHTS:

·      A five hole (778.60m) diamond drill programme to test a series of high calibre ground Electromagnetic (EM) anomalies completed at the Sarami West (Block 5) and Ghayth (Block 4) prospects

·      Drilling at the Block 4  Ghayth prospect confirmed the presence of VMS mineralisation intersecting both massive and disseminated copper sulphides with best results including:

1.15m at 3.6% copper from 35.5m in 15B4DD001

·      These results build upon historical results which include:

o  15.27m at 6.2% copper from 47.8m in G31-2 (true width approximately 5m)

o  4.29m at 7.2% copper from 37.53m in G31-6

·      Further drilling planned at Ghayth to define full extent of mineralisation and potential resource

·      Drilling at the Sarami West anomaly on Block 5 failed to locate the targeted EM anomalies, but intersected a strong alteration system similar to those seen around the margins of VMS deposits

·      Planning for a downhole EM survey, which will confirm and provide an accurate location of the original EM anomalies, is now underway to optimise targeting of further drilling

·      Exploration work continues to assess the promising, near surface gold potential of Block 4

Savannah's CEO, David Archer said, "We are pleased to confirm VMS mineralisation at Ghayth (Block 4), which continues to provide strong indications that an economic copper deposit could be present.  Whilst we have not yet intersected copper mineralisation at Sarami West, the results clearly highlight that we are hunting in the right area as we are seeing strong evidence of an alteration system that could host VMS mineralisation. It is common in base metal exploration for a downhole EM survey to be required after the initial drilling to provide a more accurate location of the EM anomaly and we look forward to commencing this, with planning currently underway in order to maximise future targeting. 

"Importantly, Blocks 4 and 5 remain well-endowed to provide additions to our copper resource inventory of 1.694Mt at 2.2% copper. We are targeting the most prolific copper production region of Oman and are confident that we will build a mineral resource inventory that will support a copper mine development."

Ghayth Prospect Drilling Block 4

An EM conductor at the Ghayth prospect in Block 4 was selected for drill testing, with one hole (15B4DD001) drilled to a depth of 83.05m to test the conductor (Figure 1-2, Table 1-2). The hole intersected a sequence of altered basalt and a zone of fine grained massive sulphide mineralisation was encountered from 35.5-36.8m interbedded with cherty sediment to form a bedded texture. Assaying of selected mineralised sections of the Ghayth core produced some encouraging results including:

·     1.15m at 3.6% copper from 35.5m in 15B4DD001

Further work is now required including compiling all the historical data to put these results into context and further exploration activities will be conducted.

Figure 1. Ghayth Drill Hole Location Plan and Local Geology (Please view the associated PDF)

Table 1. Summary of Ghayth Drill Hole Location

Figure 2. Ghayth Drill Cross Section showing massive sulphide intersection (Please view the associated PDF)

Table 2. Summary of Ghayth significant intercepts

Sarami Prospect Drilling (Block 5)

Two priority EM conductors defined from the MLEM survey were selected for drill testing at the Sarami West prospect. Three diamond cored drill holes were completed targeting the stronger conductor and a further drill hole was completed targeting the second conductor. The drilling programme was stopped following completion of four holes as the drilling failed to intersect the EM conductors. Due to the drilling at Sarami West not intersecting the targeted EM anomalies, the original 10 hole programme detailed in the RNS on 2 February 2015 was cut short to conduct further geophysical test work to better locate the EM anomalies at depth

The holes 15B5DD001 (170m), 15B5DD002 (184.9m) and 15B5DD004 (177.1m) all intersected similar lithology, including moderate amount of epidote-chlorite-pyrite in altered basalt (Figure 3-4, Table 1). The types of alteration intersected in the drilling are typical of the alteration around the margins of VMS deposits. Given the encouraging alteration and the fact that the EM target was not intersected a downhole EM survey is now required to provide an accurate location to the EM conductor before further drilling. Several short intervals of the pyrite mineralisation were assayed but no significant assay results we returned.

Drillhole 15B5DD003 (163.55m) which was drilled targeting the eastern EM anomaly which intersected a zone of altered basalt between 14.5m to 51.4m with moderate to intense pyrite disseminations associated with minor epidote alteration. No obvious source for the EM anomaly was identified in the drilling and further analysis of the target is required. 

Figure 3. Sarami West Drill Hole Location Plan showing EM plates which were tested via drilling (Please view the associated PDF)

Table 3. Summary of Sarami West Drill Hole Locations

Figure 4. Sarami West Drill section showing large zones of brecciation and alteration (Please view the associated 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:

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. 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 project is located 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% 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, 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.