Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
24 October 2016
Savannah Resources Plc
Environmental Impact Assessment Underway at Mahab 4 and Maqail South
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), the AIM quoted resource development company, announces that it has commenced the preparation of the Environmental Impact Assessment ("EIA") for the Mahab 4 and Maqail South deposits in Oman, which have a current Indicated and Inferred Mineral Resource of 1.7Mt at 2.2% copper. The EIA is required to be submitted to the Ministry of Environment and Climate Affairs ("MECA") in the Sultanate of Oman as part of the licencing requirements for new mine developments in Oman (Figure 1). Both the Mahab 4 and Maqail South deposits are located in Block 5 and Savannah is a 65% shareholder in Al Fairuz Mining, the holder of the Block 5 licence. To view the press release with the illustrative maps and diagrams please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/2246N_-2016-10-21.pdf
HIGHLIGHTS:
· Commencement of the EIA is a key milestone towards the Company's target of commencing copper mining in late 2017
· Leading Omani Environmental Consultant, Geo Resources Consultancy, has been contracted to commence the EIAs
· The EIAs are for an open-cut development at the Maqail South deposit and for an underground development at the Mahab 4 deposit
· Discussions with Government ministries have commenced
· The EIA is expected to take around six months to prepare and go through the approvals process
David Archer, Savannah's Chief Executive Officer said "Savannah is targeting to be in production by late 2017 and the lodging of the Mining EIA is an important milestone regarding the development of the combined deposits as an integrated operation. The tempo of our work is increasing and studies that will form the basis of our plans, such as metallurgical testwork and various baseline studies, are now underway.
"The higher grade nature of the two deposits makes them attractive for priority mine development to be followed by the development of other deposits such as those on Block 4. Following an intensive round of drilling over recent months, an updated Mineral Resource for both Maqail South and Mahab 4 will be released in Q4 2016, which will form an important part of our mining studies regarding a mine development targeted for late 2017."
Figure 1 - see PDF link
Geo Resources Consultancy ("GRC")
Savannah has contracted GRC to complete and co-ordinate the required EIA, which is required for the licensing of the project. GRC is an Omani consulting group registered as Grade One with the Ministry of Commerce and Industry. GRC provides a comprehensive range of multidisciplinary consultancy services and tailors individual support packages for project planning, design, management, integration and supervision, including environmental assessment and management. GRC has prepared environmental permitting documentation for a number of mining /open pit mining projects within Oman and successfully had them approved.
The primary scope of work to be completed by GRC includes:
· Preparing Scoping and Strategy for Assessment Document and submitting it to MECA
· Undertaking baseline monitoring of the Mahab 4 and Maqail South deposits, reflecting possible emissions and land impacts arising from the mine development and operation
· Preparing and submitting an EIA document to MECA consistent with good Omani and international practice
· Preparing a mining permit application form in the prescribed manner
· Preparation of request letters and supporting information to apply for and maintain the mining permits
· Assisting in discussions with the various government departments and stakeholders to ensure a timely approval of the EIA
Providing there are no delays in the process, it is anticipated that the approval process for the EIA is should take approximately six months
Figure 2 - see PDF link
Figure 3 - See PDF link
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.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
**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 Page / 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.
Mozambique
Savannah operates combined projects with Rio Tinto, and can earn a 51% interest in heavy mineral sands projects in Mozambique, which have a combined exploration target of 7-12Bn tonnes at 3-4.5% THM (published in 2008). Under the terms of the agreement with Rio Tinto Savannah must deliver the following to earn corresponding interest in the combined projects: Scoping Study - 20%; pre-feasibility study - 35%; feasibility study - 51%. Additionally there is an offtake agreement for Rio Tinto to take 100% of production.
Oman
Savannah has interests in two 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.
Finland
Savannah has Reservation Permits over two new lithium projects, Somero and Erajarvi, covering an area of 159km² in Finland. Savannah holds a 100% interest in these projects through its Finnish subsidiary Finkallio Oy. Geological mapping by the Finnish Government within the project areas has highlighted the presence of lithium minerals spodumene, lepidolite and petalite with the Government also identifying Somero and Erajarvi as one of the most prospective areas to discover lithium deposits in Finland. Savannah plans to initiate an exploration programme including data compilation, geological mapping and surface sampling with the aim of generating drill ready targets during 2016.
