Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
28 February 2017
Savannah Resources Plc
Oman Exploration Update
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), the AIM quoted resource development company, announces that the results of high powered electromagnetic surveys ('EM') completed at its highly prospective Block 4 and 5 properties (Figure 1) in the Sultanate of Oman have now been received and evaluated. In addition, results from the recent Dog's Bone drilling programme have been received and evaluated. Savannah is earning a 65% shareholding in the Omani company, Al Thuraya LLC, the owner of the Block 4 licence and 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/9835X_-2017-2-27.pdf
HIGHLIGHTS:
· Fixed loop transient electromagnetic ('FLTEM') and downhole transient electromagnetic ('DHTEM') surveys have been completed at the Lasail, Bayda, Dog's Bone and Zuha targets at Block 4 and Sarami East and Mahab 4 prospects in Block 5
· FLTEM and DHTEM are techniques designed to detect massive sulphides but a disseminated sulphide system can still be present and not be detected by the survey.
· The surveys confirm the potential that depth extensions to massive sulphide mineralisation could exist at both Lasail and Mahab 4
· The survey highlights the potential for a depth extension to Lasail with a mid-time anomaly of approximately 250m x 300m identified
· Further exploration drilling and down hole Electro-Magnetic survey is now required to further explore, confirm and evaluate the anomalies
· Work did not highlight any significant potential massive sulphide anomalies at Bayda, Zuha and Sarami East
· Bayda has confirmed disseminated copper sulphides as indicated by previous drilling and this remains a valid large tonnage lower grade target.
· The collapse of the key hole at Dog's Bone has meant that the survey could not be completed
· Results that have been received and interpreted from the Dog's Bone drilling have identified a high-grade zinc zone with an intersection of 6.1m at 6.8% zinc, 1.4g/t gold and 84g/t silver from 72.9m in 16B4DD005
· Further detailed evaluation of the Dog's Bone deposit is now underway with the assistance of an expert volcanogenic massive sulphide ('VMS') and structural geologist
David Archer, Savannah's Chief Executive Officer said today "We continue to be encouraged by the exploration results on our Block 4 and 5 projects and the opportunities that potential extensions of both the Lasail and Mahab 4 provide. Work is continuing on these and other projects to identify further opportunities to expand the existing resource base of 1.7Mt at 2.2% copper as we push towards production in Oman."
Figure 1. Location Map showing Position of Proposed Electro-Magnetic Surveys - see PDF link
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 were possible. To test the possible depth extensions a large FLTEM survey using an 800m x 800m loop with 6-8 lines at ~1km length and 50m stations for ~126m-168m stations was completed.
The FLTEM survey has defined an anomaly central to the survey area which is associated with the historic mine workings with an anomalous corridor trending to the East-South East identified (Figure 2). This corridor is thought to be the possible depth extensions to the known mineralisation.
Figure 2. Lasail VTEM Anomaly and FLTEM Survey Location - see PDF link
The potential for this down dip extension of Lasail is supported by the elevated mid channel FLTEM data amplitudes toward the East / East-South East (Figure 3) which highlights an anomaly 250m x 300m in dimension. The FLTEM data also suggest a break/offset from the upper known to any potential deeper level mineralisation. The next step is to drill a deeper exploratory hole (with a fair offset East / East-South East) based both on the FLTEM results and best geological information for the downdip position/extension of Lasail and then run DHTEM surveying to confirm/vector toward a deeper potential mineralised shoot.
Mahab 4
Recent drilling at the Mahab 4 project has confirmed the excellent grade and continuity of the mineralisation and drilling has yet to close the limits of the mineralisation. A DHTEM survey has been completed using an existing drill hole (15B5DD008A) to test this area for potential extensions to the known mineralisation (Figure 4).
A well‐defined, parallel to hole type offhole anomaly was observed in the resultant DHTEM logging between ~95‐145m DH in the early and mid‐channel data. Modelling confirmed the conductive source as being sub‐parallel and above the hole (Figure 5). The associated conductive source has dimensions of ~35m height x ~150m strike extent with a shallow plunge north, indicating moderate potential for plunge extensions.
Figure 3. Mid Time ground FLEM Image Showing the Potential Downdip Extension of the Lasail Orebody - see PDF link
Figure 4. Location of DHTEM Survey at Mahab 4 - see PDF link
Figure 5. 3D Model of DHTEM Survey at Mahab 4 Showing Identified Extensions - see PDF link
Bayda
The Bayda mine was mined by OMCO between 1982 and 1993 producing 1Mt @ 3%Cu of ore from a small underground operation. The FLTEM survey completed at Bayda did not define any strong EM conductors below or adjacent to the mine. Further evaluation of exploration data will be completed to assess the potential the mine area.
Dog's Bone
Dog's Bone is a lens of high-grade massive sulphide that is situated above the mineralisation that was mined at the historic Aarja Mine between 1988 and 1994 by OMCO producing about 2.6Mt at a grade of 1.4% Cu.
A three hole drilling programme totalling 359m (Figure 6-7, Table 1) has been completed to improve the confidence in the grade and continuity of the mineralisation. Significant results returned include:
· 6.1m at 6.8% zinc, 1.4g/t gold and 84g/t silver from 72.9m in 16B4DD005
Drilling intersected a zinc rich zone as opposed to the expected copper rich zone which has been expected to date at Dog's Bone. A detailed study of the Dog's Bone lode utilising the services of a VMS and structural expert which is expected to be followed by further drilling to further define the lode.
Figure 6. Plan Showing the Location of Recent Dog's Bone drilling - see PDF link
Table 1. Summary of Dog's Bone Drilling and Significant Results
Hole ID |
Northing |
Easting |
rL |
Azimuth (Deg) |
Dip (Deg) |
EOH (m) |
From (m) |
To (m) |
Down hole interval (m) |
Grade % Cu |
Grade % Zn |
Grade g/t Au |
Grade g/t Ag |
16B4DD004 |
2692567 |
440412 |
236.0 |
0 |
-90 |
125 |
|
|
|
NO SIGNIFICANT ASSAYS |
16B4DD005 |
2692576 |
440420 |
236.0 |
0 |
-90 |
94 |
72.90 |
79.00 |
6.10 |
0.18 |
6.80 |
1.4 |
84 |
16B4DD005 |
2692556 |
440457 |
236.0 |
0 |
-90 |
140 |
|
|
|
NO SIGNIFICANT ASSAYS |
Figure 7. Photo of High Grade Zinc in Drill Core from 16B4DD005 - see PDF link
Competent Person and Regulatory Disclosures
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 (Financial PR) |
St Brides Partners Ltd |
Tel: +44 20 7236 1177 |
Notes
Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, mineral development company.
Mozambique
Savannah operates the Mutamba heavy mineral sands project in Mozambique in collaboration with Rio Tinto, and can earn a 51% interest in the related Consortium, 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 Consortium Agreement with Rio Tinto, upon delivery by Savannah of the following Savannah will earn the corresponding interest in the Mutamba 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 gold credits, 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 has highlighted the presence of seven pegmatites across the licence areas - two on Somero and five on Erajarvi - with key lithium minerals petalite, spodumene and lepidolite all identified in hand specimens. Follow up work to further expand and define the pegmatites in readiness for drilling is being planned for the second quarter of 2017 (after winter).
Notes - The information in this document that relates to the resource estimation is based upon information compiled by Mr Colin Rothnie, an independent consultant. Mr Rothnie 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 Rothnie consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.