Further Encouraging Gold Results Returned, Block 4

RNS Number : 0548M

Savannah Resources PLC

05 May 2015

 

Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining

5 May 2015

Savannah Resources Plc

Further Encouraging Gold Results Returned, Block 4, Semail Ophiolite Belt, Oman

Savannah Resources plc (AIM: SAV) ('Savannah' or the 'Company') announces that it has identified further areas of high grade gold mineralisation with associated copper and zinc at its Gaddamah Prospect ('the Prospect') (Figure 1), at Block 4 in Oman. The results form part of a recently completed rock chipping, trenching and geological mapping programme at the Prospect, which is 7km south of the Ghayth prospect also in Block 4 where a diamond drilling programme has just been completed intersecting volcanic massive sulphide ('VMS') style copper mineralisation. To view the press release with the illustrative maps and diagrams please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/0548M_-2015-5-1.pdf

HIGHLIGHTS:

•     High levels of gold mineralisation associated with zinc and copper identified - elevated concentration of results around the Gaddamah West Prospect (Figure 2-3)

•     Individual 1m trench samples produced results up to 60.7g/t gold, 9.1% zinc and 1% copper*

•     Significant trench sampling results include:

o  5m at 18.49g/t gold, 1.7% zinc and 0.53% copper in GDT08

o  4.9m at 18.82g/t gold, 0.96% zinc and 0.76% copper in GDT02

o  7.7m at 11.35g/t gold, 1.45% zinc and 0.40% copper in GDT01

•     Prospectivity of Gaddamah West prospect underscored by historical drill intercept of 15.9m @1.91 g/t gold and 1.2% copper from BEC23 which is located at the southern end of the gold zone

•     Additional trench sampling will now be completed to define the extent of the mineralisation as a precursor to drilling to establish the strike and depth extents of the mineralisation

*(not from same sample)

Savannah's CEO, David Archer said, "We are delighted to report further high grade gold results from our trench sampling at the Gaddamah West prospect in Block 4.  We are seeing what appears to be the gold-rich part of a VMS system with similarities to the major Rakah gold deposit, located south of Block 4, which was successfully mined in the 1990's.  Gaddamah is also part of a major VMS cluster that includes the Lasail, Lasail West, Aarja and Baydh copper mines.

"Our initial review and analysis of the historical database has highlighted many further gold occurrences in Block 4, with reconnaissance rock chip sampling now completed over an additional five prospects.  We will now continue to sample new prospects as we identify them and continue testing the exciting gold prospectivity we are seeing on the ground."

Figure 1. Gaddamah Prospect Location - Block 4 Oman (Please view the associated PDF)

Rock Chip Channel Sampling Programme

Initial rock chip sampling at the Gaddamah group of prospects returned encouraging anomalous results with a maximum copper result of 5.7% and a maximum gold result of 3.7g/t gold (not from same rock sample). Of particular interest at Gaddamah was the concentration of gold rich values within the western area of the prospect and this area was the focus of the follow up programme.

Mapping at the Gaddamah West prospect highlighted gossanous material that can be traced in outcrop and scree for a distance of over 100m and trends in a northwest - southeast direction. The gossan ranges in thickness from 6m to 0.5m, but exposure was poor so trenches were excavated at regular intervals to gain exposure for sampling. The trenches were sampled, at one metre intervals or to a geological boundary, by taking a continuous collection of chips along the whole sample interval.

Sampling returned anomalous gold results over a strike length in excess of 100m with the peak gold result exceeding 60.7g/t gold, with Table 1 providing a summary of key trench results.

Trench	Interval (m)	Gold  g/t	Zinc %	Copper %	Comment
GDT08	5	18.49	1.70	0.53	Including 1m @ 60.7g/t Au
GDT02	4.9	18.82	0.96	0.76	Including 1m @ 48.4g/t Au
GDT01	7.7	11.35	1.45	0.40	Including 3.7m @ 17.55g/t Au
GDT06	7	3.98	1.21	0.13	Including 1m @ 9.393g/t Au

Table 1. Summary of Significant Trench Intercepts

A number of historical drill holes were located in the vicinity of the gold mineralisation but the only one which appears to have successfully intersected the mineralised horizon was BEC23 which returned a result of 15.9m @1.91 g/t gold and 1.2% copper.  Additional trench sampling will now be completed to define the extent of the mineralisation as a precursor to a follow up drill programme.

Figure 2. Results of the gold sampling at Gaddamah West gossan, showing highly anomalous gold results (Please view the associated PDF)

Figure 3. Enlargement map of key trench results from the Gaddamah West gossan, showing high grade gold assays  (Please view the associated PDF)

Competent Person

The information in this document 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.

       **ENDS**

For further information please visit www.savannahresources.com or contact:

David Archer	Savannah Resources plc	Tel: [phone]
Samantha Harrison (Nominated Adviser) Charlie Cryer (Corporate Broker)	RFC Ambrian Limited	Tel: [phone]
Felicity Edwards/ Charlotte Heap	St Brides Partners Ltd	Tel: [phone]

Notes

Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, exploration and development company.

It has an 80% shareholding in Matilda Minerals Limitada which operates the Jangamo exploration project. On 31 December 2014 Savannah announced maiden, 65Mt Inferred Mineral Resource @4.2% total heavy minerals ("THM") at a 2.5% cut-off grade for Jangamo The project is located in a world class mineral sands province in Mozambique which borders Rio Tinto's Mutamba deposit, one of two major deposits Rio Tinto has defined in Mozambique, which collectively have an exploration target of 7-12Bn tonnes at 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 @ 2.2% copper and high grade intercepts of up to 56.35m at 6.21% Cu, provide Savannah with an excellent opportunity to potentially evolve into a mid-tier copper 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.

Appendix 1 - Sampling Results and Methodology

Sample Number	Sample length	Location	EASTING	NORTHING	Gold g/t	Copper %	Zinc %	Silver g/t
GR507	0.7	GDT01 W 0-0.7m	440336	2684584	24.4	0.579	1.03	13
GR508	1	GDT01 E 0-1m	440334	2684583	14.6	0.664	0.86	78
GR509	1	GDT01 E 1-2m	440333	2684583	9.746	0.589	1.38	2
GR510	1	GDT01 E 2-3m	440333	2684582	23.5	0.34	0.93	3
GR511	1	GDT01 E 3-4m	440332	2684581	4.364	0.122	0.24	<2
GR512	1	GDT02 E 0-1m	440333	2684588	48.4	0.607	0.5	139
GR513	1	GDT02 E 1-2m	440332	2684588	18	0.754	1.14	9
GR514	1	GDT02 E 2-3m	440331	2684588	8.527	0.801	0.93	24
GR515	0.9	GDT02 E 3-3.9m	440330	2684587	8.545	1.028	1.11	3
GR516	1	GDT02 E 3.9-4.9m	440329	2684587	9.62	0.64	1.13	<2
GR517	0.5	GDT02 W 0-0.5m	440334	2684589	0.42	0.745	3.86	38
GR519	0.7	GDT03 E 0-0.7m	440314	2684660	0.624	0.029	0.12	10
GR537	1	GDT01 W 0.7-1.7m	440336	2684585	16.9	0.495	1.06	57
GR538	1	GDT01 W 1.7-2.7m	440337	2684586	0.042	0.176	1.04	3
GR539	1	GDT01 W 2.7-3.7m	440338	2684586	1.137	0.282	4.93	3
GR540	1	GDT06 E 7-8m	440335	2684577	0.449	0.079	0.08	<2
GR541	1	GDT06 E 6-7m	440336	2684578	1.006	0.176	1.28	<2
GR542	1	GDT06 E 5-6m	440337	2684578	3.882	0.615	0.83	<2
GR543	1	GDT06 E 4-5m	440338	2684579	3.623	0.276	1.21	7
GR544	1	GDT06 E 3-4m	440339	2684579	1.25	0.138	1.28	<2
GR545	1	GDT06 E 2-3m	440340	2684580	9.393	0.348	2.07	10
GR546	1	GDT06 E 1-2m	440340	2684580	4.852	0.082	1.25	<2
GR547	1	GDT06 E 0-1m	440341	2684581	3.875	0.105	0.54	<2
GR548	0.8	GDT06 W 0-0.8m	440343	2684582	0.068	0.105	3.61	<2
GR552	1	GDT07 E 2-3m	440341	2684574	0.165	0.719	2.01	3
GR553	1	GDT07 E 1-2m	440342	2684574	0.892	0.337	0.55	3
GR554	1	GDT07 E 0-1m	440343	2684574	0.597	0.082	0.41	2
GR557	1	GDT07 W 2-3m	440346	2684576	0.894	0.056	0.5	<2
GR558	1	GDT08 W 0-1m	440331	2684597	0.074	0.179	9.11	<2
GR559	1	GDT08 E 0-1m	440329	2684596	60.7	0.987	1.49	23
GR560	1	GDT08 E 1-2m	440327	2684595	2.456	0.88	0.68	<2
GR561	1	GDT08 E 2-3m	440326	2684595	21	0.53	4.7	49
GR562	1	GDT08 E 3-4m	440325	2684594	6.705	0.221	1.13	<2
GR563	1	GDT08 E 4-5m	440324	2684594	1.598	0.046	0.5	<2

Rock chips were assayed via the following method

•     The tested samples were dried at 85°C, crushed and pulverized to 75 μh

•     The method for gold analysis was using was fire assay (using 30g samples) with an atomic absorption spectrometry (AAS) finish, which detected gold in the range of 5ppb - 10ppm. A re-assay with gravimetric finish was used with the initial assay detected >10ppm gold (and silver) using a further 30g sample

•     The method for copper analysis was a 24 element inductively coupled plasma optical emission spectrometry (ICP-OES) analysis of an Aqua Regia digest
 

 

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