Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
28 November 2016
Savannah Resources Plc
Commences Electromagnetic Surveys over High Priority Copper & Gold Targets, Oman
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), the AIM quoted resource development company, announces that it has commenced high powered ground electromagnetic ("EM") surveys at three priority targets in its highly prospective Block 4 and 5 properties in the Sultanate of Oman, which are prospective for copper and gold (Figure 1). To view the press release with the illustrative maps and diagrams please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/2354Q_-2016-11-27.pdf
HIGHLIGHTS:
· Ground EM surveys have commenced at Lasail, Bayda and Mahab 4 with the work expected to take around 3 weeks to complete;
· The surveys are designed to cover three, high priority exploration areas adjacent to known mineralisation to test for depth extensions or repeats to these known areas;
· Electromagnetics is a proven tool in volcanogenic massive sulphide ("VMS") exploration having been responsible for many exploration discoveries globally; and
· Results of surveys expected in Q1 2017.
David Archer, Savannah's Chief Executive Officer said today "The EM surveys are designed to give more precision for drill targeting of the anomalies identified from last year's VTEM survey, particularly around Lasail which is a very large system and, historically, Oman's largest producer of copper.
"The ground EM system is like using a large high powered metal detector to look under the ground to look for concentrations of metal. VMS deposits tend to occur as clusters so we believe that there is a strong possibility there might be an extension or a repeat of the existing deposits in the highly prospective Lasail, Bayda and Mahab 4 project areas. We look forward to reporting on the results in Q1 2017."
Figure 1. Location Map showing Position of Proposed Electro-Magnetic Surveys - see PDF
PLANNED GROUND EM PROGRAMME
The electromagnetic surveys have been designed to cover three high priority copper and gold exploration areas including Lasail, Bayda and Mahab 4, all of which have known massive sulphide mineralisation in the adjacent areas based on the Company's previous drilling programmes. It is hoped that through the application of the EM surveys, extensions to the known mineralisation can be defined to warrant follow up drilling.
Bayda
Bayda was mined by OMCO between 1982 and 1993 producing 1 million tonnes @ 3% copper ore from a small underground operation. Collation of the historical data from previous exploration and mining has identified the potential for additional mineralisation adjacent to and below the historical mine workings. This is supported by detailed evaluation of the Versatile Time Domain Electromagnetic ("VTEM") data collected in 2015.
It is proposed to complete a moderate sized ground EM survey using an 800x400m loop with eight lines of 1km length and 50m stations for approximately 336 stations. The location of the re-modelled anomaly and the ground EM survey area is shown in Figure 2.
Figure 2. Bayda VTEM anomaly and planned Fixed Loop Transient Electromagnetic ("FLTEM") survey location - see PDF
Lasail
The VTEM survey completed in 2015 identified a very strong EM conductor over the historic Lasail mine. Forward modelling of the data indicated that depth extensions to the mineralisation down to 600m below surface were possible (Figure 3). To test the possible depth extensions a large ground EM survey using an 800x800m loop with 6-8 lines at approximately 1km length and 50m stations for approximately 126-168 stations is proposed (Figure 4).
Figure 3. 3D View of Lasail VTEM plate and forward modelling of depth extensions - see PDF
Figure 4. Lasail VTEM anomaly and planned FLTEM survey location - see PDF
Mahab 4
Recent drilling of the Mahab 4 deposit has met its objective by confirming the excellent grade and continuity of the mineralisation. Mineralisation remains open down plunge to the north of the drilling. A downhole electromagnetic ("DHTEM") survey will be completed using an existing drill hole to test this area for potential extensions to the known mineralisation (Figure 5).
Figure 5. Location of DHTEM survey at Mahab 4 - see PDF
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 heavy mineral sands projects in Mozambique with Rio Tinto, and can earn a 51% interest in the combined Consortium Project, which has an established initial Indicated and Inferred Mineral Resource Estimate of 3.5 billion tonnes at 3.8% THM over the Jangamo and Dongane deposits. Under the terms of the agreement with Rio Tinto Savannah must deliver the following to earn corresponding interest in the Consortium Project: scoping study - 20%; pre-feasibility study - 35%; feasibility study - 51%. Additionally, the Consortium Agreement includes an offtake agreement on commercial terms for the sale of 100% of production to Rio Tinto (or an affiliate).
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 @ 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 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), 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.
