TIDMSAV
RNS Number : 2354Q
Savannah Resources PLC
28 November 2016
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 Northland Capital Partners Tel: +44 20 3861
(Nominated Adviser) Ltd 6625
Jon Belliss / Elliot Hance Beaufort Securities Tel: +44 20 7382
(Corporate Broker) Ltd 8300
Charlotte Page / St Brides Partners Ltd Tel: +44 20 7236
Lottie Brocklehurst 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 159km(2) 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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