Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
14 December 2015
Savannah Resources Plc
Significant Copper Resource Potential Identified Within Blocks 4 and 5
Semail Ophiolite Belt, Oman
Savannah Resources plc (AIM: SAV) ('Savannah' or the 'Company') announces that it has completed the historical drilling data compilation and Exploration Target estimates for the Block 4 and 5 permits in Oman, which demonstrate potential to define a significant copper resource (Figure 1). Savannah owns a 65% shareholding in Al Fairuz Mining LLC, the owner of the Block 5 licence, and is earning, via agreed expenditure milestones, a 65% shareholding in Al Thuraya LLC, who own Block 4. To view the press release with the illustrative maps and diagrams please use the following link:
HIGHLIGHTS:
· A database containing approximately 100,000m of historical drilling data has now been compiled over a series of potential targets (Table 1)
· Based on the drilling and other exploration factors a series of internally generated Exploration Targets (Table 2) have been calculated for each of Savannah's high priority areas and aggregate as below*
Tonnage |
Grade % Cu |
Grade Au ppm |
Contained Cu Tonnes |
Contained Au Ounces |
Min |
Max |
Min |
Max |
Min |
Max |
Min |
Max |
Min |
Max |
10,700,000 |
29,250,000 |
1.4 |
2.4 |
0.2 |
0.4 |
150,000 |
700,000 |
60,000 |
360,000 |
· Given the intensity of drilling into most of these deposits Savannah has a good degree of confidence that with appropriate drilling programmes, Mineral Resources within the stated Exploration Target ranges can be potentially defined with work under way to begin delivering the first of these during Q1 2016
*It is important to note that the above table is a summary of Exploration Targets and the potential quantity and grade is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. Cu=Copper, Au=Gold
Savannah's CEO, David Archer said, "We have successfully brought together and analysed a very large body of primary data and defined feasible Exploration Targets, work which underscores the potential of Blocks 4 and 5 as a possible hub for copper mine development. The availability of the historic drilling was not only highly cost-effective for the Company, with such drilling estimated to cost c.US$20million at today's prices, but importantly significantly shortens the time required to advance the project. Following the compilation and assessment of this, we continue to work towards our 2017 mine development objective and look forward to updating our shareholders on our progress as we move towards building a mining company."
Figure 1. Project Location Map -
http://www.rns-pdf.londonstockexchange.com/rns/8877I_-2015-12-13.pdf
Data Compilation
Savannah has now completed an eight month-long process of locating and digitally capturing from hard copy reports 783 drill holes (102,692m) over a number of the key high priority prospects on Blocks 4 and 5 (Table 1) in Oman. This data is now being integrated into the Company's database for further assessment.
Table 1. Summary of Drilling over Key Prospects
Deposit |
Number of Drill Holes |
Metres Drilled |
Mahab 4 |
57 |
6,813 |
Maqail |
32 |
2,694 |
Lasail |
155 |
18,745 |
Aarja |
144 |
26,671 |
Bayda |
159 |
16,229 |
Others |
294 |
31,540 |
Total |
783 |
102,692 |
Exploration Targets
The Exploration Targets detailed in Table 2 have been estimated by reviewing past JORC compliant Mineral Resource Estimates, the preliminary 3D mineralisation envelopes generated from modelling of the new drilling, the extensive drilling database and supporting assay data, topographic data, surface geochemistry and supporting geophysics. Summary maps showing the data used in the Exploration Targets are provided in Figures 2-6.
Table 2. Exploration Target Summary Table Block 4 and 5
Deposit |
Tonnage |
Grade % Cu |
Grade Au ppm |
Contained Cu Tonnes |
Contained Au Ounces |
Min |
Max |
Min |
Max |
Min |
Max |
Min |
Max |
Min |
Max |
Mahab 4 (UG) High Grade Core |
500,000 |
1,000,000 |
4.0 |
6.0 |
0.2 |
0.5 |
20,000 |
60,000 |
3,000 |
16,000 |
Mahab 4 (UG) Total |
2,000,000 |
4,000,000 |
1.0 |
2.0 |
0.1 |
0.2 |
20,000 |
80,000 |
6,000 |
26,000 |
Maqail South (UG) |
200,000 |
250,000 |
4.0 |
5.0 |
0.1 |
0.2 |
8,000 |
12,500 |
1,000 |
2,000 |
Lasail (OP) |
1,000,000 |
2,000,000 |
1.0 |
2.0 |
0.1 |
0.2 |
10,000 |
40,000 |
3,000 |
13,000 |
Lasail (UG) |
1,000,000 |
5,000,000 |
2.0 |
3.0 |
0.1 |
0.2 |
20,000 |
150,000 |
3,000 |
32,000 |
Aarja (OP) |
500,000 |
2,000,000 |
1.5 |
3.0 |
0.2 |
0.5 |
7,500 |
60,000 |
3,000 |
32,000 |
Aarja (UG) |
1,000,000 |
2,000,000 |
2.0 |
3.0 |
0.2 |
0.5 |
20,000 |
60,000 |
6,000 |
32,000 |
Bayda (OP) |
3,000,000 |
10,000,000 |
0.7 |
1.5 |
0.2 |
0.5 |
21,000 |
150,000 |
19,000 |
161,000 |
Bayda (UG) |
500,000 |
1,000,000 |
2.0 |
3.0 |
0.2 |
0.5 |
10,000 |
30,000 |
3,000 |
16,000 |
Others (Zuha, Ghayth etc) |
1,000,000 |
2,000,000 |
1.5 |
3.0 |
0.2 |
0.5 |
15,000 |
60,000 |
6,000 |
32,000 |
Total |
10,700,000 |
29,250,000 |
1.4 |
2.4 |
0.2 |
0.4 |
150,000 |
700,000 |
60,000 |
360,000 |
It is important to note that the above table and figures 2-6 are a summary of Exploration Targets and the potential quantity and grade is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. Savannah has an indirect 65% interest in Mahab 4 and Maqail deposits and is earning an indirect 65% interest in the other deposits.
Figure 2. Aarja Exploration Target showing information used to calculate the target -
http://www.rns-pdf.londonstockexchange.com/rns/8877I_-2015-12-13.pdf
Figure 3. Bayda Exploration Target showing information used to calculate the target -
http://www.rns-pdf.londonstockexchange.com/rns/8877I_-2015-12-13.pdf
Figure 4. Lasail Exploration Target showing information used to calculate the target -
http://www.rns-pdf.londonstockexchange.com/rns/8877I_-2015-12-13.pdf
Figure 5. Mahab 4. Exploration Target showing information used to calculate the target - http://www.rns-pdf.londonstockexchange.com/rns/8877I_-2015-12-13.pdf
Figure 6. Maqail South Exploration Target showing information used to calculate the target - http://www.rns-pdf.londonstockexchange.com/rns/8877I_-2015-12-13.pdf
Competent Person
The information in this announcement relating to Exploration Targets and Exploration Results has been 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 |
David Hignell / Gerry Beaney (Nominated Adviser) |
Northland Capital Partners Ltd |
Tel: +44 20 7382 1100 |
Jon Belliss / Elliot Hance (Corporate Broker) |
Beaufort Securities Ltd |
Tel: +44 20 7382 8300 |
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.
Savannah 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. 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.
