Drilling Underway at High Priority Targets, Oman

RNS Number : 4566E

Savannah Resources PLC

04 November 2015

 

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

4 November 2015

Savannah Resources Plc

Drilling Underway at High Priority Targets  

Block 4, Semail Ophiolite Belt, Oman

Savannah Resources plc (AIM: SAV) ('Savannah' or the 'Company') advises that drilling has commenced of selected new VTEM targets and historical copper results around the Aarja Prospect in the Block 4 permit area (Figure 1-5).  Savannah is earning a 65% shareholding in the Omani company, Al Thuraya LLC, the owner of the Block 4 Project ('the Project') by undertaking exploration activities on behalf of Al Thuraya. To view the press release with the illustrative maps and diagrams please use the following link:

HIGHLIGHTS:

·    10 hole RC/diamond programme targeting the Aarja, Zuha and Gaddamah prospects has commenced

·    High Priority VTEM targets #4 (Aarja) and #13 (Zuha) will be drilled to test for VMS mineralisation

·    Drill testing the depth extents of the gossan at the southern end of the Aarja pit which returned a trenching result of 14.5m at 8.03g/t gold and 0.9% copper (AJT001)

·    Drill testing at the Gaddamah Gossan following up encouraging trenching results like 7.7m at 11.35g/t gold, 1.45% zinc and 0.40% copper in GDT01

·    Confirmation drilling targeted at the historical drill results in the Aarja Main and Dog Bone zones as a precursor to a JORC resource estimate

o  Aarja Main     -     18.58m at 4.7% copper from 143m (hole 10-23)

o  Dog's Bone     -     33.8m at 3.35% copper from 153.1m (hole AEX-39)

·    To date a total of 6 holes (603m) of the planned 7 hole programme at the Aarja Prospect have been completed

·    Drilling has been slower than expected due to some equipment breakdowns and is scheduled to continue for a further 2 weeks

Savannah's CEO, David Archer said, "This new drill programme marks the start of a very exciting new phase for Savannah and our joint venture partners Al Thuraya as we begin drill testing some of the highly prospective exploration targets and begin work to confirm the historical drill results. Given the strength of the new VTEM targets and their favourable location within the geology we think our chances of a new discovery are very good. Drilling to verify the historical data will also commence and if successful we plan to complete a maiden JORC compliant mineral resource estimate before the end of the 2015 calendar year."

Figure 1.  Project Location Map - see PDF link
http://www.rns-pdf.londonstockexchange.com/rns/4566E_-2015-11-3.pdf

Planned Drilling Programme

Aarja: Seven (7) holes (Table 1 and Figure 2-4) have been designed to test 3 separate targets at the Aarja Prospect area.  One hole will test VTEM Target #4, the priority 1 VTEM anomaly identified 400m to the west of the Aarja pit and the top of this conductor is modelled at 30m below the surface. Three (3) holes are proposed to confirm the location and grades reported for the Dogs Bone mineralisation as a precursor to a mineral resource estimation. Significant historical results include:

o  Aarja Main     -     18.58m at 4.7% copper from 143m (hole 10-23)

o  Dog's Bone     -     33.8m at 3.35% copper from 153.1m (hole AEX-39)

A further three holes targeted at the high grade gold returned from trenching across the gossan at the southern end of the pit which returned a result of 14.5m at 8.03g/t gold and 0.9% copper (AJT001).

VTEM 13: Target #13 (Figure 5) was identified from the VTEM survey flow over Block 4 in April 2015 and is located about 2km north of the Zuha Gossan. The anomaly is visible on three adjacent lines which suggests that mineralisation may have continuity over 300m.

Gaddamah: Two (2) 30m holes testing down dip extensions of surface sampling completed on the Gaddamah West Gossan where elevated gold results (Figure 2) were returned to determine if the results have any down dip continuity. Significant trench sampling results include:

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

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

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

The prospectivity of Gaddamah West prospect is 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.

Table 1: Aarja Drill Hole Summary

Project	Hole ID	Northing	Easting	mRL	Azimuth	Dip	EOH Depth
VTEM #4	15B4RC001	2693035	440600	230	270	-60	100
Dogs Bone	15B4RC002	2692558	440379	230	0	-90	150
Dogs Bone	15B4RC003	2692581	440431	230	0	-90	150
Dogs Bone	15B4RC004	2692571	440499	230	0	-90	220
Dogs Bone Gossan	15B4RC005	2692619	440326	230	300	-60	50
Dogs Bone Gossan	15B4RC006	2692606	440323	230	300	-60	50
Dogs Bone Gossan	15B4RC007	2692624	440313	235	0	-90	30
VTEM #13	15B4RC008	2678185	451625	212	270	-60	175
Gaddamah	15B4RC009	2684594	440339	290	0	-90	30
Gaddamah	15B4RC010	2684583	440347	290	0	-90	30

Figure 2. Gaddamah Prospect - Planned drilling showing trenching results - see PDF link 

http://www.rns-pdf.londonstockexchange.com/rns/4566E_-2015-11-3.pdf

Figure 3. Aarja Prospect - Proposed drilling and historical intercepts - see PDF link

http://www.rns-pdf.londonstockexchange.com/rns/4566E_-2015-11-3.pdf

Figure 4. VTEM Anomaly 4 planned drilling - see PDF link

http://www.rns-pdf.londonstockexchange.com/rns/4566E_-2015-11-3.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:

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]
Felicity Winkles/ Charlotte Heap	St Brides Partners Ltd	Tel: [phone]

**ENDS**

Notes

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

Savannah has agreed to acquire 100% of Matilda Minerals Limitada which currently operates the Jangamo exploration project, and has agreed with Rio Tinto to form a joint venture in Mozambique to develop the combined Mutamba/Jangamo 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 Mutamba, Dongane and Chilubane deposits have a combined 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, 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 aims to outline further mineral resources to provide the critical mass for a central operating plant to develop the deposits.

 

END

 

 

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