Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
29 June 2015
Savannah Resources Plc
Potential VMS Clusters Identified - Block 4 Oman Copper-Gold Project
Highlights:
· Total of 10 Priority 1 and 33 Priority 2 VTEM anomalies identified
· Three major potential volcanic massive sulphide clusters defined
· VTEM anomalies identified over both old mines and new prospects
· Potential for new VMS discoveries and identification of new mineralisation around the old mines
· Reverse Circulation ('RC') drilling of selected "brownfield" and "greenfield" priority 1 targets planned for Q3 2015
· Excellent infrastructure setting with roads, power, copper smelter and refinery and export port
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company') announces that positive preliminary results from the completed Versatile Time Domain Electromagnetic ('VTEM') survey indicate that there are potential clusters of Volcanic Massive Sulphides ('VMS') within the Block 4 copper-gold project ('the Project'), located in the strongly mineralised Semail Ophiolite in northern Oman (Figure 1). Savannah is earning a 65% shareholding in the Omani company, Al Thuraya LLC, the owner of the Block 4 licence. To view the release with the illustrative map please use the following link:
Savannah's CEO, David Archer said, "The VTEM survey over Block 4 has allowed us to dramatically shorten the process of identifying high priority massive sulphide copper targets, both brownfield and greenfield. We have moved much closer to our objective of discovering copper orebodies which, either in aggregate or individually, can be mined in this very favourable infrastructure setting.
"Al Thuraya and Savannah are particularly encouraged to see a string of strong, priority 1 VTEM anomaly responses found around the Lasail VMS deposit. More priority targets are clustered around the old copper mines at Aarja and Bayda and further south in the greenfields Zuha area (Figure 1). The success of these results demonstrates both the efficacy of the VTEM as an airborne metal detector, and its ability to quickly generate high quality exploration targets. We are developing an RC drill programme over select targets to further define the mineralisation potential, and aim to start drilling in Q3 2015.
"These early results underscore Savannah's strategy that through the application of systematic exploration an excellent opportunity exists in Oman to build a significant mid-tier copper producer, utilising a central processing facility to support the development of a set of satellite deposits."
Figure 1. Block 4 Priority 1-3 VTEM anomalies over aeromagnetic data - see PDF attachment.
http://www.rns-pdf.londonstockexchange.com/rns/4394R_-2015-6-28.pdf
VTEM Survey
A VTEM survey was completed over Block 4 using 100m spaced survey lines running from east to west, for a total of 3,727 survey line kilometres covering an area of 336 square kilometres. The VTEM survey system is very much like an airborne metal detector where the VTEM loop sends down a "ping", and if it goes over a conductive zone of copper mineralisation, we can detect an echo using sensitive computerised detectors. The VTEM survey system has the ability to detect massive to semi-massive copper mineralisation from surface to a depth of up to 200m.
The final VTEM survey data were recently delivered to the Company, and the data were meticulously examined for anomalous electromagnetic (EM) conductor responses which could represent VMS targets. The selected anomalies have similar electromagnetic anomaly responses to the known VMS deposits of the Semail Ophiolite Belt, such as Maqail South, Mahab 4 and Ghayth. The VTEM anomalies were then prioritised from 1 to 3 based on geophysical and geological criteria. The final, prioritised VTEM targets are plotted in Figure 1, where there are currently 10 priority 1 targets (red dots), 33 priority 2 targets (yellow dots), and 146 priority 3 targets (green dots). Targets which have now been attributed to cultural sources are displayed as blue dots. Field checking of the targets is underway, to verify and confirm the anomalies as real.
A string of strong, priority 1 VTEM anomaly responses were found to coincide with and around the location of the Lasail, Aarja and Bayda VMS deposits as well as the Zuha prospect confirming the prospectivity of the region to host further VMS style copper mineralisation.
Following field checking the high priority targets will be followed up with ground EM geophysical surveying and/or drilling.
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.
For further information please see below, 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 |
**ENDS**
Notes
Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, exploration and development company.
It 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. This transaction is conditional on Ministerial approval from the Mozambique government. 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.
