Oman Exploration Update

RNS Number : 9835X

Savannah Resources PLC

28 February 2017

 

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: [phone]
David Hignell / Gerry Beaney (Nominated Adviser)	Northland Capital Partners Ltd	Tel: [phone]
Jon Belliss / Elliot Hance (Corporate Broker)	Beaufort Securities Ltd	Tel: [phone]
Charlotte Page / Lottie Brocklehurst (Financial PR)	St Brides Partners Ltd	Tel: [phone]

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.

APPENDIX 1 - JORC 2012 Table 1

Section 1 Sampling Techniques and Data - Drilling at Dogs Bone

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling techniques	·    Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. ·    Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. ·    Aspects of the determination of mineralisation that are Material to the Public Report. ·    In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	·    All data at the Aarja and Dogs Bone Prospects has been gathered from diamond core. HQ and NQ core sizes have been used.  Holes have been angled to optimally intersect lithology structures. ·    Sampling from diamond drilling is by half core sampling of NQ or HQ core ·    Core is geologically logged and samples selected based on geological logging.  Samples are then dispatched to Bureau Veritas in Turkey for analysis using the following process route. ·      Whole sample is dried at 85°C, Crush to 70% -10 mesh (2mm), 100% pulverize to 85%passing -200 mesh (75 μm). ·      Au: 30gr Fire Assay / lead collection fusion / AAS finish / 5ppb - 10ppm ·      Au>10ppm (& Ag if also over-limit): 30gr / fire assay fusion / GRAVIMETRIC finish ·      24 Element (Mo, Cu, Zn, Ag, Ni, Co, Mn, Fe, As, Sr, Cd, Sb, Bi, Ca,P, Cr, Mg, Al, Na K, W, Hg, S) Aqua Regia Digest ICP-OES finish. ·    Bulk density determinations are made for all samples that are assayed, using the Archimedes method.  This measurement is completed in Oman by Savannah employees.
Drilling techniques	·    Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	·    Diamond drilling used HQ2 or NQ2 sized equipment.  Diamond core was not orientated. ·    Down hole surveys are completed using a single shot Tropari device at approximately 30-50m intervals down hole.
Drill sample recovery	·    Method of recording and assessing core and chip sample recoveries and results assessed. ·    Measures taken to maximise sample recovery and ensure representative nature of the samples. ·    Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	·    Diamond core recoveries were recorded in the drill logs.  It is unknown if a relationship exists between sample recovery and grade. ·    Areas of poor recoveries were observed and recorded in the logging. ·    In areas of poor recovery additional drilling muds were applied to improve recovery.
Logging	·    Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. ·    Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. ·    The total length and percentage of the relevant intersections logged.	·    All drill holes were logged for recovery, RQD, geology and structure. ·    Logging of recorded lithology, mineralogy, mineralisation, weathering, colour and other features of the samples. Diamond core was photographed wet. ·    All drill holes were logged in full.
Sub-sampling techniques and sample preparation	·    If core, whether cut or sawn and whether quarter, half or all core taken. ·    If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. ·    For all sample types, the nature, quality and appropriateness of the sample preparation technique. ·    Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. ·    Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. ·    Whether sample sizes are appropriate to the grain size of the material being sampled.	·    HQ and NQ core was cut in half using a core saw.  ·    Certified reference standards, blanks and duplicates are routinely inserted in the sample sequence to assess the quality of sampling and analysis. ·    Sample sizes are considered appropriate for the style of mineralisation expected.
Quality of assay data and laboratory tests	·    The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. ·    For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. ·    Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	·    The analytical techniques used are appropriate for the elements and mineralization styles being explored for. ·    Savannahs QAQC protocol is to industry standards with standard reference material and blanks submitted at a minimum of 5% frequency rate.
Verification of sampling and assaying	·    The verification of significant intersections by either independent or alternative company personnel. ·    The use of twinned holes. ·    Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. ·    Discuss any adjustment to assay data.	·    No independent or alternative verification of the assays has been made ·    No twin holes have been drilled ·    No adjustments have been made to the assay data
Location of data points	·    Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. ·    Specification of the grid system used. ·    Quality and adequacy of topographic control.	·    Holes have been located using a handheld GPS unit using WGS84 Zone 40N co-ordinates. ·    Holes have been downhole surveyed using a Tropari single shot device ·    Topographic data for Dogs Bone is restricted to a survey of the historical open pit and immediate surroundings.
Data spacing and distribution	·    Data spacing for reporting of Exploration Results. ·    Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. ·    Whether sample compositing has been applied.	·    Hole spacing at Dogs Bone is approximately at 20m centers selectively targeting the mineralized zone. ·    Data at Aarja and Dogs Bone is insufficient to establish geological and grade continuity needed for Mineral Resource estimation.  The current drilling is infilling previously drilling.
Orientation of data in relation to geological structure	·    Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. ·    If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	·    Drill holes are angled approximately perpendicular to the orientation of the lithological trends ·    Orientation of the holes does not bias sampling data. ·    Reported intervals are down hole widths and are not necessarily true widths of mineralisation.
Sample security	·    The measures taken to ensure sample security.	·    Chain of custody is managed by Savannah. Samples are stored on site in a locked yard.  Samples are then transported to Turkey by airfreight.  Savannah personnel have no contact with the samples once they have been dispatched.
Audits or reviews	·    The results of any audits or reviews of sampling techniques and data.	·    No audits or reviews of the sampling techniques or data have been completed.

 

Section 2 Reporting of Exploration Results - Drilling at Dogs Bone

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	·    Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. ·    The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.	·    The Aarja/Dogs Bone Prospect is located with the exploration permit referred to as Block 4.  Savannah has a 65% interest in the Block with the remainder being held by a local JV partner. ·    The tenement is in good standing with no known impediment to renewal.
Exploration done by other parties	·    Acknowledgment and appraisal of exploration by other parties.	·    Previous exploration has been completed around Dogs Bone between 1980-1994 by OMCO with historical mining being completed in the area.
Geology	·    Deposit type, geological setting and style of mineralisation.	·    The deposit type being tested is the Cyprus type VMS model.  VMS mineralisation is interpreted to have formed on a mid ocean ridge and then emplaced as an ophiolite on the Arabian Craton.  Several examples of this model exist in the region.
Drill hole Information	·    A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. ·    If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	·    The location of the drilling at Aarja and Dogs Bone are summarised in Table 1 in the body of this release. ·    Previously completed holes by OMCO at Dogs Bone are not all reported in this release. ·    Not all holes completed in this program by Savannah have been reported in this release.
Data aggregation methods	·    In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. ·    Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. ·    The assumptions used for any reporting of metal equivalent values should be clearly stated.	·    Significant copper intersections are based on assays greater than 0.5% Cu and may include up to a maximum of 3.0m of internal dilution, with a minimum composite grade of 0% Cu. The minimum width for an intersection is 0.2m. ·    Significant zinc intersections are based on assays greater than 1% Zn and may include up to a maximum of 3.0m of internal dilution, with a minimum composite grade of 0% Zn. The minimum width for an intersection is 0.2m. ·    All grades used for calculating significant intersections are uncut. ·    Minimum and maximum diamond core sample intervals used for intersection calculation are 0.2m and 1.2m respectively subject to location of geological boundaries. ·    No metal equivalents are used in the intersection calculation. ·    Where core loss occurs; the average length weighted grade of the two adjacent samples are attributed to the interval for the purpose of calculating the intersection. The maximum interval of missing core which can be incorporated with the reported intersection is 1m.
Relationship between mineralisation widths and intercept lengths	·    These relationships are particularly important in the reporting of Exploration Results. ·    If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. ·    If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').	·    Exploration results are reported as length weighted averages. ·    No high grade cuts have been applied to the reporting of the exploration results. ·    No metal equivalent values have been used. ·    Down hole intervals have been reported.  True widths are not known.
Diagrams	·    Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	·    Relevant diagrams and maps have been included in the main body of the release.
Balanced reporting	·    Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	·    All results have been reported.
Other substantive exploration data	·    Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	·    The interpretation of the results at Dogs Bone are consistent with the observations and information obtained from historical data collected and geophysical surveys completed in the area.
Further work	·    The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). ·    Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	·    Further drilling is planned for Dogs Bone to improve the confidence in the dimensions of the identified mineralisation.

 

APPENDIX 2 - JORC 2012 Table 1

Section 1 Sampling Techniques and Data Relates to FLTEM and DHTEM Geophysical Surveys

Criteria	JORC Code explanation	Commentary
Sampling techniques	·    Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. ·    Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. ·    Aspects of the determination of mineralisation that are Material to the Public Report. ·    In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	·    Fixed Loop (FLTEM) and down hole (DHTEM) electromagnetic geophysical surveying was undertaken at the Bayda, Lasail and Mahab 4 VHM copper projects in Oman.  The technical specifications for the both surveys are given in tables below. ·    ·    The geophysical surveys were undertaken to test for electromagnetic conductors potentially indicative of extensions to known mineralisation.  The surveys were designed to ensure they were an effective and represented test of the theory. ·    No new drilling was carried out as part of this exploration program.
Drilling techniques	·    Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	·    Not applicable for this announcement
Drill sample recovery	·    Method of recording and assessing core and chip sample recoveries and results assessed. ·    Measures taken to maximise sample recovery and ensure representative nature of the samples. ·    Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	·    Not applicable for this announcement
Logging	·    Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. ·    Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. ·    The total length and percentage of the relevant intersections logged.	·    Not applicable for this announcement l.
Sub-sampling techniques and sample preparation	·    If core, whether cut or sawn and whether quarter, half or all core taken. ·    If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. ·    For all sample types, the nature, quality and appropriateness of the sample preparation technique. ·    Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. ·    Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. ·    Whether sample sizes are appropriate to the grain size of the material being sampled.	·    Not applicable for this announcement.
Quality of assay data and laboratory tests	·    The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. ·    For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. ·    Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	·    The technical specifications of the geophysical tools used are given section 1 of this table.
Verification of sampling and assaying	·    The verification of significant intersections by either independent or alternative company personnel. ·    The use of twinned holes. ·    Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. ·    Discuss any adjustment to assay data.	·    The results of the survey have been verified by consultant geophysicists who have extensive experience in the interpretation of EM survey results. ·    Primary geophysical data was collected in the field and transmitted electronically to consultant geophysicists on a daily basis.  Quality control measures such as calibrations, duplicate reading and noise levels were regularly taken to identify any bias in readings.  No bias was identified.
Location of data points	·    Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. ·    Specification of the grid system used. ·    Quality and adequacy of topographic control.	·    Data has been located using a handheld GPS unit using WGS84 Zone 40N co-ordinates. ·    Detailed topographic data is available for Mahab 4. ·    The quality of the topographic data at Mahab 4 is excellent with elevations recorded to an accuracy of 0.1m.  ·    The topographic control at Bayda and Lasail is from a handheld GPS unit and is considered sufficient for the work undertaken.
Data spacing and distribution	·    Data spacing for reporting of Exploration Results. ·    Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. ·    Whether sample compositing has been applied.	·    The data quality and spacing is not sufficient or appropriate for Mineral Resource estimation.
Orientation of data in relation to geological structure	·    Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. ·    If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	·    The orientation of the geophysical surveys was designed to be unbiased with respect to known geology and structures.
Sample security	·    The measures taken to ensure sample security.	·    Not applicable as no drilling was undertaken.
Audits or reviews	·    The results of any audits or reviews of sampling techniques and data.	·    No audits or reviews of the data collection techniques or data processing have been completed.

 

 

Section 2 Reporting of Exploration Results - Relating to FLTEM and DHTEM Geophysical Surveys

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	·    Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. ·    The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.	·    The Mahab 4 prospect is located with the exploration permit referred to as Block 5. Savannah has a 65% interest in the Block with the remainder being held by a local JV partner. ·    The Lasail and Bayda prospects are located with the exploration permit referred to as Block 4 where Savannah can earn up to a 65% interest in the Block with the remainder being held by a local JV partner ·    Both tenement are in good standing with no known impediment to renewal.
Exploration done by other parties	·    Acknowledgment and appraisal of exploration by other parties.	·    Previous exploration has been completed at Mahab 4 by Gentor Resources between 2010- 2012 and Savannah 2014-2017.  An Indicated and Inferred Mineral Resource of 1.5Mt @ 2.1% Cu was reported for Mahab by Gentor in 2012. ·    Extensive mining and exploration has been completed at Bayda and Lasail since 1974 by the Oman Government.  No mining is currently taking place at Bayda or Lasail and no mineral resources have been estimated for the projects.
Geology	·    Deposit type, geological setting and style of mineralisation.	·    The deposit type being tested is the Cyprus type VMS model.  VMS mineralisation is interpreted to have formed on a mid ocean ridge and then emplaced as an ophiolite on the Arabian Craton.  Several examples of this model exist in the region.
Drill hole Information	·    A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. ·    If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	·    The location and extent of the geophysical surveys are presented in the figures in this announcement. ·    No information has been excluded.
Data aggregation methods	·    In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. ·    Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. ·    The assumptions used for any reporting of metal equivalent values should be clearly stated.	·    Not applicable as no drilling or geochemical sampling was undertaken
Relationship between mineralisation widths and intercept lengths	·    These relationships are particularly important in the reporting of Exploration Results. ·    If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. ·    If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').	·    Widths of mineralisation have not been interpreted.
Diagrams	·    Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	·    Relevant diagrams and maps have been included in the main body of the release.
Balanced reporting	·    Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	·    All results have been reported.
Other substantive exploration data	·    Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	·    The interpretation of the results at Mahab 4, Bayda and Lasail are consistent with the observations and information obtained from historical data collected.
Further work	·    The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). ·    Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	·    The significance of the results will be assessed to determine if further drilling and or geophysical investigations are warranted.

 

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