Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
26 May 2016
Savannah Resources Plc
Targeted Gravity Surveys Completed over a Series of High Priority Copper Prospects
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), the AIM quoted resource development company, announces that it has completed three targeted gravity surveys on its Block 4 and 5 properties in the Sultanate of Oman, which are prospective for copper and gold. Savannah is earning a 65% shareholding in the Omani company, Al Thuraya LLC, the owner of the Block 4 Project and is a 65% shareholder in Al Fairuz Mining, the holder of the Block 5 licence.
HIGHLIGHTS:
· A gravity survey has been completed over VTEM 13 (Zuha prospect, Block 4), Ghayth (Block 4 ) and Sarami West (Block 5) prospects
· These three high priority exploration areas cover a total of 12 Electromagnetic (EM) conductors identified by Versatile Time Domain Electromagnetic ('VTEM') (airborne EM) and ground EM surveys
· All three areas were drill tested during 2015 and contained encouraging alteration systems suggesting proximity to volcanogenic massive sulphide ('VMS') mineralisation
· Gravity surveying is a proven tool in VMS exploration, responsible for many discoveries and; results of these gravity surveys, expected in June, will further refine drill targets
· The two stage 2,080m drill programme1, targeting a resource upgrade, is continuing as planned at the Maqail South and Mahab 4 prospects in Block 5 and the Dog's Bone (part of the Aarja Mine) and Bayda Prospects in Block 4
David Archer, Savannah's Chief Executive Officer said "We are continuing to accelerate activity in Oman; with our two stage drill programme now well underway at the Aarja Mine in Block 4 and the completion of a gravity survey over three VMS targets on Blocks 4 and 5. We continue to target commercial production in late 2017.
"The gravity surveys provide another layer of information to assist in the discovery of VMS orebodies in this highly prospective region. The three areas surveyed exhibit excellent geological and geophysical characteristics that make them prospective targets for further refinement using gravity surveys. We look forward to keeping shareholders updated with the results not only from this survey, but also our current drilling activity."
To view the press release with the illustrative maps and diagrams please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/3139Z_-2016-5-25.pdf
Figure 1. Location Map showing Position of Gravity Surveys - see PDF
Figure 2. The Gravity Survey being conducted - see PDF
GRAVITY PROGRAMME
The gravity survey was designed to cover three high priority exploration areas; VTEM 13 (Zuha), Ghayth and Sarami West, which cover a total of 12 Electromagnetic (EM) conductors highlighted in the VTEM (airborne EM) and ground EM surveys. All three of these areas were drill tested during 2015 and showed encouraging alteration systems suggesting close proximity to VMS mineralisation, but to date no massive sulphide mineralisation has been defined. The Company believes that through the application of a gravity survey areas of denser material associated with the EM conductors can be defined that might point to the position of potential VMS mineralisation, which will then be targeted by follow up drilling.
VTEM 13 (Zuha)
The airborne VTEM survey, completed in February 2015, identified a strong conductor at the Zuha prospect called VTEM 13 (Figure 3). Follow up drilling to test the anomaly identified pyrite and epidote alteration on the margins of basaltic pillow lavas around the interpreted target position in hole 15B4DD002, indicating hydrothermal alteration has occurred in the area. The favourable geological setting and the alteration in the area warrant further investigation to explain the presence of the strong VTEM anomaly.
As a result of the strong unexplained EM conductor, VTEM 13 was covered with a 244 station gravity survey with a detailed 20m by 10m grid (111 stations) directly over the anomaly and a broader 80m by 20m grid (133 stations) over the wider project area (Figure 4).
Figure 3. Aerial photograph showing the modelled EM conductor plates for VTEM 13 and the area of gravity survey - see PDF
Figure 4. Schematic picture showing the gravity survey for VTEM 13 area - see PDF
Ghayth
Historical exploration and exploration completed during the 2015 work programme including geology, geophysics and drilling identified a series of prospective anomalies that to date have not been explained (Figure 5). As a result of the strong unexplained EM conductor at Ghayth, the area was covered with a 524 station gravity survey with a detailed 20m by 10m grid (150 stations) directly over the anomaly and a broader 80m by 20m grid (374 stations) over the wider project area (Figure 6).
Figure 5. Aerial photograph showing the modelled EM conductor plates for Ghayth and the area of gravity survey - see PDF
Figure 6. Schematic picture showing the gravity survey for the Ghayth area - see PDF
Sarami West
Exploration during the 2015 work programme highlighted a series of high priority EM conductors that were drilled and Savannah identified a strong zone of epidote alteration potentially indicative of VMS mineralisation (Figure 7). As a result of the strong unexplained EM conductor and strong alteration system, Sarami West was covered with a 695 station gravity survey with a detailed 20m by 10m grid (304 stations) directly over the anomaly and a broader 80m by 20m grid (391 stations) over the wider project area (Figure 8).
Figure 7. Aerial photograph showing the modelled EM conductor plates for Sarami West and the area of the gravity survey - see PDF
Figure 8. Schematic picture showing the gravity survey for Sarami West area - see PDF
Competent Person
The information in this announcement that relates to exploration activities 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.
Note
1 Reported as 2,930m due to a misprint in the RNS announcement dated 12 May 2016. The planned drilling metres in Table 1 in that RNS announcement total 2,080m.
**ENDS**
For further information please visit www.savannahresources.com or contact:
David Archer |
Savannah Resources plc |
Tel: +44 20 7117 2489 |
David Hignell / Gerry Beaney (Nominated Adviser) |
Northland Capital Partners Ltd |
Tel: +44 20 3861 6625 |
Jon Belliss / Elliot Hance (Corporate Broker) |
Beaufort Securities Ltd |
Tel: +44 20 7382 8300 |
Charlotte Heap / Lottie Brocklehurst |
St Brides Partners Ltd |
Tel: +44 20 7236 1177 |
Notes
Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, 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. Formation of the joint venture remains subject to approval by the Ministry of Mineral Resources and Energy of the Republic of Mozambique. Jangamo has a 65Mt Inferred Mineral Resource at a grade of 4.2% total heavy minerals ("THM") at a 2.5% cut-off grade. The Mutamba, Dongane and Chilubane deposits have a combined exploration target of 7-12Bn tonnes at a grade of 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 at a grade of 2.2% copper and high grade intercepts of up to 56.35m at a grade of 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, and in December 2015 outlined exploration targets of between 10,700,000 and 29,250,000 tonnes grading between 1.4% and 2.4% copper.
