Salahi 1 Returns Gold Results, Block 4, Oman

 

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

3 June 2015

Savannah Resources Plc

Salahi 1 Returns Gold Results, Block 4, Semail Ophiolite Belt, Oman

 

Savannah Resources plc (AIM: SAV) ('Savannah' or the 'Company') advises that it has confirmed gold mineralisation with associated copper mineralisation at the Salahi 1 Prospect, Block 4 (Savannah earning 65% shareholding in the Omani company, Al Thuraya LLC, the 100% owner of the Block 4 licence) in Oman.  The results follow a recently a completed rock chipping, trenching and geological mapping programme at Block 4 undertaken by Savannah on behalf of Al Thuraya.  To view the full press release with the illustrative maps and diagrams please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/0033P_-2015-6-2.pdf 

 

HIGHLIGHTS:

·    Identification of gold prospect from the recent results from trench sampling - Salahi 1 on Block 4

·    Individual trench/rockchip, channel and grab samples produced results of up to 72.2g/t gold

·    Significant trench sampling results include 12m at 11.87g/t gold in SCH16

·    Anomalous gold results stretch along a 180m strike length, varying in width from 12m to 1m, which remains open to the north and south providing significant further upside potential

·    Additional trench sampling underway to further define the extent of the mineralisation as a precursor to drilling to define the strike and depth extents of the mineralisation

·    Gold mineralisation provides additional upside to Block 4's copper prospectivity

 

Savannah's CEO, David Archer said, "Al Thuraya and Savannah are very encouraged by the gold mineralisation observed at both the Gaddamah West target and now at Salahi 1 within the Block 4 project area. The zone of gold mineralisation defined at Salahi 1 has good strike length, varying in width from 12m to 1m, and importantly remains open along strike to the north and south. Notably, at this early stage we are seeing some good gold grades which make this new prospect attractive. These gold prospects suggest there is potential for other metals within Block 4 in addition to its outstanding copper potential."

 

"In line with our active growth strategy, our exploration team is on the ground at both Salahi 1 and Gaddamah West and remains focussed on further defining and expanding these gold zones.  Work is continuing on the review and analysis of the historical database, which to-date has highlighted many gold occurrences in Block 4. Al Thuraya and Savannah look forward to highlighting the resource potential of these key prospects, in addition to identifying new ones."

 

Rock Chip Channel Sampling Programme

The sampling at Salahi 1 was concentrated on two main areas, the Main Gossan area and the North Gossan, which outcrops about 1km to the north of the Main Gossan. A total of 66 samples were taken from trench, channel and grab samples, a summary of which is outlined in Appendix 1.

 

Salahi 1 Main Gossan

At the Main Gossan a total of 49 samples were taken with 11 samples from one trench, 26 channel samples, and 12 grab samples. Results from the Main Gossan indicate that there is significant gold mineralisation associated with silicified and quartz veins within the gossan. Encouragingly of the 49 samples, 45 contained gold values of greater than 0.1g/t Au, 38 samples contained gold greater than 0.5g/t Au and 20 samples had a value greater than 1g/t Au. The highest value was 6.52g/t Au from a 1.2m wide channel sample.  The gold mineralisation occurs over a strike length of 180m and varies in width from 12m to 1m and remains open to the north and south.

 

Salahi 1 North Gossan

At the Salahi 1 North Gossan, a total of 17 samples were taken comprising of 16 channel samples and 1 grab sample. The area occurs on the side of a hill with deep transported Wadi (River) terrace boulders and gravels covering much of the area, and so the sampling was confined to small areas of outcrop. 13 of the samples were taken as a series of channel samples across a gossanous outcrop from a spur running off the main ridge. All of the samples taken at the North Gossan contained anomalous gold above 0.1g/t, 14 samples had gold greater than 1.0g/t and seven samples were greater than 5g/t Au. The highest value was 72.2g/t Au taken from a 1m wide channel sample from the Main Gossan outcrop.  The continuous channel sampling at SHC16 on the gossan outcrop returned 12m @ 11.87g/t Au including 4m @ 29.27g/t Au. From the sampling to date the known strike extent of the gold mineralisation is 70m, however excessive Wadi terrace cover makes it difficult, at this stage, to fully evaluate the extent of the gold mineralisation. Further work will now be conducted to trace the extent of the gold mineralisation with a backhoe being deployed to try and dig trenches through the Wadi gravel cover to the potentially mineralised zones below.

 

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.

 

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, 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

Summary of Anomalous Results from Rock Chipping Programme (>1g/t Au, >0.5% Cu, >1% Zn)*

Sample Number	Prospect	Sample Type	Channel length	EASTING	NORTHING	Gold g/t	Copper %	Zinc %
GR3746	Salahi 1	Channel	1	454218	2670856	1.032	0.068	0.08
GR3747	Salahi 1	Channel	1	454217	2670856	1.087	0.056	0.04
GR3748	Salahi 1	Channel	1	454216	2670856	1.785	0.059	0.05
GR3749	Salahi 1	Channel	1	454215	2670856	2.165	0.037	0.04
GR3755	Salahi 1	Channel	1.4	454221	2670824	1.912	0.043	0.09
GR3756	Salahi 1	Channel	1.5	454222	2670818	1.714	0.056	0.04
GR3757	Salahi 1	Channel	0.9	454219	2670816	1.133	0.104	0.06
GR3758	Salahi 1	Channel	1	454219	2670808	3.402	0.089	0.1
GR3759	Salahi 1	Channel	1	454220	2670808	5.354	0.083	0.08
GR3760	Salahi 1	Channel	0.8	454221	2670808	1	0.121	0.1
GR3761	Salahi 1	Channel	1	454221	2670804	1.228	0.128	0.13
GR3763	Salahi 1	Channel	1	454226	2670805	4.288	0.062	0.21
GR3769	Salahi 1	Channel	1	454224	2670783	6.521	0.094	0.06
GR3770	Salahi 1	Channel	1.2	454225	2670779	5.905	0.032	0.03
GR3780	Salahi 1	Grab		454226	2670899	2.168	0.034	0.1
GR3781	Salahi 1	Grab		454228	2670898	3.316	0.112	0.11
GR3782	Salahi 1	Grab		454227	2670894	4.895	0.025	0.19
GR3783	Salahi 1	Channel	1	454241	2670952	3.05	0.096	0.07
GR3784	Salahi 1	Channel	1	454240	2670953	2.292	0.178	0.24
GR3787	Salahi 1	Channel	1	454238	2670955	1.05	0.018	0.1
GR3789	Salahi 1	Channel	1	453977	2672038	14.6	0.009	0.01
GR3790	Salahi 1	Channel	1	453976	2672038	15.1	0.011	0.02
GR3793	Salahi 1	Channel	1	453973	2672039	2.131	0.022	0.05
GR3794	Salahi 1	Channel	1	453973	2672040	1.008	0.022	0.1
GR3795	Salahi 1	Channel	1	453972	2672041	6.104	0.052	0.11
GR3796	Salahi 1	Channel	1	453972	2672042	72.2	0.049	0.13
GR3797	Salahi 1	Channel	1	453971	2672042	20.4	0.005	0.02
GR3798	Salahi 1	Channel	1	453970	2672042	6.528	0.019	0.04
GR3799	Salahi 1	Channel	1	453969	2672042	1.106	0.016	0.03
GR3800	Salahi 1	Channel	1	453968	2672042	1.999	0.073	0.11
GR3802	Salahi 1	Channel	1	453974	2671977	5.255	0.076	0.26
GR3803	Salahi 1	Channel	1	453972	2671983	1.291	0.032	0.06
GR3804	Salahi 1	Channel	1	453957	2671975	4.091	0.026	0.05
GR3805	Salahi 1	Grab		453969	2671988	4.459	0.051	0.15

* Results <1g/t Au have been omitted from this table.

Significant gold intercepts from Salahi 1 Main Gossan

Trench	Interval m	Gold  g/t	Zinc %	Copper %	Comment
SHC15	5	1.16	0.16	0.08	Including 1m @ 3.05g/t Au
SHT01	10	0.96	0.23	0.09	Including 4m @ 1.71/t Au
SHC07	2.8	3.41	0.06	0.10
SHC13	1	6.52	0.06	0.10
SHC14	1.2	5.91	0.03	0.03

 

Significant gold intercepts from Salahi 1 North Gossan

Trench	Interval m	Gold  g/t	Zinc %	Copper %	Comment
SHC16	12	11.87	0.06	0.03	Including 4m @ 29.27g/t Au

 

Rock chips were assayed via the following method

·    The tested samples were dried at 85°C, crushed and pulverized to75 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.