High Grade Copper, Zinc and Gold Intersected, Oman

RNS Number : 4269I

Savannah Resources PLC

09 December 2015

 

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

9 December 2015

Savannah Resources Plc

High Grade Copper, Zinc and Gold Intersected  

Block 4 and 5, Semail Ophiolite Belt, Oman

Savannah Resources plc (AIM: SAV) ('Savannah' or the 'Company') advises that it has received initial positive assay results intersecting high-grade copper, zinc and gold from the current 1,800m drill programme over Blocks 4 and 5 in Oman.  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. To view the press release with the illustrative maps and diagrams please use the following link:

HIGHLIGHTS:

·    Results include (Table 1):

-      Dog's Bone: 9m at 4.86% copper, 1.54% zinc, 1.3g/t gold and 37.3g/t silver from 103m in 15B4RC003 Incl. 6m at 7.01% copper, 2.20% zinc, 1.9g/t gold and 53.8g/t silver from 103m

-      Mahab 4:     6.6m at 6.92% copper, 5.6% zinc, 0.3g/t gold and 23.8g/t silver from 67m in 15B5DD005

·    Results expanded the high-grade (>5% copper) portion of the Mahab 4 deposit with drilling targeting further expansions continuing

·    Work at the Dog's Bone Zone has confirmed the high-grade nature of the mineralisation and work is now underway to test extensions and compile a compliant mineral resource estimate

·    Dog's Bone Zone and much of the Aarja Deposit has existing underground access which would allow rapid development and exploitation

·    Work has been slowed by mechanical problems with the drill rigs - targeting the end of December to finish the drilling

·    Results help build on the strategy of targeting the start of high-grade, low cost copper concentrate production from late 2017

Savannah's CEO, David Archer said, "These exciting initial assay results confirm the high-grade nature of Aarja's copper mineralisation and, importantly, show that it is associated with significant gold with grades of up to 1.9g/t. Gold was not previously assayed for and these results suggest that it could be a very valuable by-product credit.

"The Aarja Mine is a key piece of our overall copper consolidation strategy of targeting the start of high-grade, low cost copper concentrate production from late 2017 from multiple deposits on Blocks 4 & 5 to coincide with projected global copper deficits and strengthening copper prices.

"Our next steps will include defining Exploration Targets for the Aarja, Bayda and Lasail Mines within the Block 4 and 5 areas and then moving these into JORC compliant Mineral Resources."

Aarja Drilling Programme

Drilling targeting the Dog's Bone Zone of mineralisation (15B4RC002, 3 and 4) intersected high-grade mineralisation and confirmed the presence of the zone. Dog's Bone has existing underground development that could facilitate a fast development of the zone as part of any potential operation.

Significant results are detailed below and in Table 1 and Figure 2.

Dog's Bone:

-     9m at 4.86% copper, 1.54% zinc, 1.3g/t gold and 37.3g/t silver from 103m in 15B4RC003 Incl. 6m at 7.01% copper, 2.20% zinc, 1.9g/t gold and 53.8g/t silver from 103m

-     5m at 2.17% copper, 0.37% zinc, 0.4g/t gold and 7g/t silver from 151m in 15B4RC004

-     21.7m at 0.79% copper, 0.79% zinc, 1.97g/t gold and 12g/t silver from 174 in 15B4RC004

Drilling (15B4RC005, 6 and 7) targeting the Dog's Bone Gossan intersected thin zones of near surface copper and gold mineralisation with results including 3m at 1.3% copper, 4.4g/t gold and 3g/t silver from surface in 15B4RC007. Further work to access the potential of this zone is currently being undertaken.

Mahab 4 Drilling Programme

Results from the first hole at Mahab 4 were very encouraging with a result of 6.6m at 6.92% copper, 5.6% zinc, 0.3g/t gold and 23.8g/t silver from 67m in 15B5DD005 expanding the high-grade (>5% copper) zone up dip and increasing the contained metal of the deposit.

15B5DD005 was completed to 96.5m with Lasail Basalts intersected in the hanging wall to a thin umber horizon at 32m.  Geotimes Basalts were then intersected to the end of hole at 96.5m.  Three zones of massive sulphide mineralisation were intersected between 51 and 72m.  The thickest zone was at 67-73.6m (Figure 3) and consisted of pyrite and chalcopyrite.   A section for this hole is shown in Figure 4.

 http://www.rns-pdf.londonstockexchange.com/rns/4269I_-2015-12-8.pdf

Table 1. Summary of significant drill results (intercepts calculated using 0.5% copper cut off with high grade intercepts calculated using 1% copper cut off)

Hole ID	Prospect	Northing	Easting	rL	Azimuth (Deg)	Dip (Deg)	EOH (m)	From (m)	To (m)	Down hole	Grade	Grade	Grade	Grade
										Interval (m)	% Cu	% Zn	g/t Au	g/t Ag
15B5DD005	Mahab 4	2656287.00	468762.00	219.00	255	-50	96.50	51.70	53.00	1.30	3.04	0.27	0.1	15.7
								58.80	60.60	1.80	8.15	1.97	0.2	22.0
								67.00	73.60	6.60	6.92	5.60	0.3	23.8
15B5DD007	Mahab 4	2656314.00	468761.00	215.00	255	-55	93.35	Assays Pending
15B4RC001	VTEM Target #4	2693035.0	440591.0	228	270	-70	100	Assays Pending
15B4RC002	Dogs Bone	2692565.0	440382.0	231	0	0	150	No Significant Assays
15B4RC003	Dogs Bone	2692576.0	440416.0	230	0	-90	145	103.00	112.00	9.00	4.86	1.54	1.3	37.3
	inc							103.00	109.00	6.00	7.01	2.20	1.9	53.8
15B4RC004	Dogs Bone	2692554.0	440488.0	230	0	-90	205	151.00	156.00	5.00	2.17	0.37	0.4	7
								174.73	196.00	21.27	0.79	1.97	0.6	12
15B4RC005	Dogs Bone Gossan	2692608.0	440341.0	230	300	-60	50	0.00	3.00	3.00	0.31	0.10	0.2	-
15B4RC006	Dogs Bone Gossan	2692620.0	440343.0	230	300	-60	50	0.00	3.00	3.00	0.21	-	0.3	-
15B4RC007	Dogs Bone Gossan	2692612.0	440304.0	235	0	-90	30	0.00	3.00	3.00	1.30	0.10	4.4	3
15B4RC011	Dogs Bone	2692575.0	440386.0	229	0	0	138	Assays Pending

Note: Savannah has an indirect 65% interest in Mahab 4 and is earning an indirect 65% interest in the other prospects.

Samples were assayed via the following method

·    The tested samples were dried at 85°C, crushed and pulverized to 75 μm

·    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

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.

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

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.  Formation of the joint venture remains subject to approval by the Ministry of Mineral Resources and Energy of the Republic of Mozambique. 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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