High Grade Copper Identified at Block 4, Oman

RNS Number : 7175Z
Savannah Resources PLC
22 September 2015
 

 

 

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

 

22 September 2015

 

Savannah Resources Plc

High Grade Copper Mineralisation Identified at the Aarja Prospect

Block 4, Semail Ophiolite Belt, Oman

 

Savannah Resources plc (AIM: SAV) ('Savannah' or the 'Company') announces that it has identified new high grade copper mineralisation on at the Aarja Prospect at its Block 4 permit following a detailed collation of historical data.  The copper mineralisation is located along strike and under the previously mined Aarja pit (Figure 1-4).  Savannah is earning a 65% shareholding in the Omani company, Al Thuraya LLC, the owner of the Block 4 Project ('the Project'). To view the press release with the illustrative maps and diagrams please use the following link:

 

HIGHLIGHTS:

·    New copper mineralisation model produced for the Aarja Main, Dogs Bone and Aarja South Zones  demonstrating high grade copper mineralisation under the Aarja pit and along strike

·    Newly identified, historic high grade results (Appendix 1) include:

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

-     24m at 3% copper from 143.5m (hole 10-82)

-     20m at 2.5% copper from 144m (hole 10-80)

 

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

-     10m at 4.17% copper and 2.43% zinc from 100.5m (hole AEX-31)

-     7.8m at 6.77% copper from 116.1m (hole AEX-11)

-     5.05m at 8.49% copper and 2.86% zinc from 130.9m (hole AEX-42)

 

Aarja South    -     9.8m at 3.86% copper from 224m (hole AEX-36)

 

·    A trench previously completed by Savannah over an outcropping gossan to the immediate south of the main Aarja pit (14.5m at 8.03g/t gold and 0.9% copper) suggest the potential to expand the pit to the south (Appendix 2)

·    A series of holes will be drilled to confirm the historic results prior to the calculation of a JORC compliant mineral resource estimate, targeted during Q4 2015

·    The existing open pit and underground development allows access to the copper mineralisation

 

Savannah's CEO, David Archer said, "Savannah, together with our partners Al Thuraya, are very encouraged by these results from the compilation of the historic data at the Aarja Prospect at Block 4. Whilst work is still continuing in finalising this model, the early signs point towards a significant zone of copper mineralisation being present under the Aarja pit and along strike. Following completion of the data compilation and interpretation, we will look to complete some confirmatory drilling to verify the historical data as much of the previous drilling was undertaken in the 1980's.  Should our drilling verify the historical data, we plan to complete a maiden JORC compliant mineral resource estimate before the end of the 2015 calendar year.

 

"The existing open pit and underground development which access the copper mineralisation may allow for a rapid, low cost mine development, but further work is required to confirm this. These results continue to support Savannah's view that Oman is a first class destination for copper VMS mineralisation, with excellent infrastructure coupled with a low cost setting, making Oman a compelling investment  location."

 

 Figure 1.  Project Location Map
http://www.rns-pdf.londonstockexchange.com/rns/7175Z_1-2015-9-21.pdf
 


Historic Data Compilation

An outline of copper mineralisation has been completed for the Aarja Prospect based on historical drill data collected between 1975 and 1994.  A total of 84 holes are known to have been drilled into the Aarja Prospect. To date assay and lithological data for 64 holes has been located and digitised. All the historic holes were completed using diamond coring with samples collected based on geological intervals and assayed for copper by AAS in laboratories in Canada and Oman.   

 

Three dimensional wireframes of the mineralisation were constructed based on geological logging and a nominal 0.5% Cu cut-off grade. The next steps will be to undertake some confirmatory drilling to verify the copper mineralisation model and subsequently generate a maiden  JORC compliant mineral resource estimate.

 

Figure 2. Aarja Prospect copper mineralisation model and selected copper intercepts
http://www.rns-pdf.londonstockexchange.com/rns/7175Z_1-2015-9-21.pdf
 


Note: Whilst every effort has been made to verify the historical data, not all exploration and mining data has been located to date.  Following integration of new confirmatory drilling, and additional historical data which may become available, the mineralisation models as presented above may change. In the case of the main Aarja lode, until further data can been located and integrated into the model only intercepts below the base of the known underground workings have been presented.

 

Trench Sampling

Trench sampling was recently undertaken by Savannah across a large gossan at the southern end of the Aarja pit to test for copper and gold mineralisation.  The results have demonstrated a broad zone of high grade gold and copper mineralisation, returning 14.5m at 8.03g/t gold and 0.9% copper. Further sampling is now required to assess the extent and tenor of the mineralisation.

 

 Figure 3. Summary map of new Aarja trench sampling and historical drilling
http://www.rns-pdf.londonstockexchange.com/rns/7175Z_1-2015-9-21.pdf
 


Figure 4. Trench sampling at the southern end of the Aarja pit (June 2015)
http://www.rns-pdf.londonstockexchange.com/rns/7175Z_1-2015-9-21.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: +44 20 7389 5019

Samantha Harrison (Nominated Adviser)

Charlie Cryer (Corporate Broker)

RFC Ambrian Limited

Tel: +44 20 3440 6800

Felicity Winkles/ Charlotte Heap

St Brides Partners Ltd

Tel: +44 20 7236 1177

 

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.

 

APPENDIX 1 - Significant Historical Aarja Drilling Results

 

Hole ID

Prospect

RL

Azimuth (Deg)

Dip (Deg)

EOH (m)

From (m)

To
 (m)

Down hole interval (m)

Grade  Cu %

Grade  Zn %

10-24

Aarja

225

0

-90

234

150.00

162.76

12.76*

2.56

 

Oct-80

Aarja

225

0

-90

181

144.00

164.00

20.0*

2.50

 

10-82

Aarja

225

0

-90

196

143.50

167.50

24.0*

3.01

 

10-23

Aarja

225

0

-90

186

142.96

161.54

18.58*

4.70

 

10-36

Aarja

225

0

-90

276

167.34

174.65

7.31*

3.69

 

10-36

Aarja South

225

0

-90

276

224.03

233.78

9.75*

3.86

 

AEX-08

Dogs Bone

232

0

-90

350

126.95

134.40

7.45

3.48

3.04

AEX-11

Dogs Bone

232

0

-90

175

116.05

123.85

7.80

6.77

 

AEX-24

Dogs Bone

232

0

-90

144

92.50

126.20

34.20

1.30

0.55

 

inc

 

 

 

 

92.50

100.25

7.75

2.70

1.47

AEX-31

Dogs Bone

232

267

-80

141

100.50

110.50

10.00

4.17

2.43

AEX-36

Dogs Bone

233

0

-90

175

130.85

135.90

5.05

2.27

0.17

AEX-37

Dogs Bone

233

129

-80

167

103.05

105.40

1.75

2.37

0.44

AEX-37

Dogs Bone

233

129

-80

167

108.40

110.00

1.60

2.32

0.15

AEX-39

Dogs Bone

233

0

-90

196

153.10

186.90

33.80

3.35

2.10

AEX-42

Dogs Bone

234

0

-90

450

268.60

273.65

5.05

8.49

2.80

AEX-42

Aarja South

234

0

-90

450

394.10

422.50

28.40

1.33

1.24

AEX-53

Aarja South

231

0

-90

285

261.70

274.65

12.95

2.01

0.51

* Partial intercept below 82mRL (base of underground workings)

APPENDIX 2 - Aarja Trenching Results

Dataset

SampleID

Sample Type

Channel length

Au (ppm)

Ag (ppm)

Cu %

Pb %

Zn %

Block_4

GR2986

Channel

1

1.90

<2

2.10

0.06

0.13

Block_4

GR2987

Channel

1

1.82

<2

1.69

0.07

0.15

Block_4

GR2988

Channel

1

2.74

7

1.13

0.03

0.23

Block_4

GR2989

Channel

1

3.92

9

0.52

0.02

0.12

Block_4

GR2990

Channel

1

8.11

11

0.43

0.05

0.07

Block_4

GR2991

Channel

1

49.20

12

0.24

0.05

0.04

Block_4

GR2992

Channel

1

4.51

<2

0.47

0.01

0.43

Block_4

GR2993

Channel

1

4.44

2

0.81

0.03

0.06

Block_4

GR2994

Channel

1

3.84

2

0.88

0.06

0.05

Block_4

GR2995

Channel

1

10.20

7

0.79

0.07

0.03

Block_4

GR2996

Channel

1

10.30

11

0.73

0.07

0.04

Block_4

GR2997

Channel

1

7.38

9

0.81

0.07

0.06

Block_4

GR2998

Channel

1

4.79

5

0.68

0.05

0.1

Block_4

GR2999

Channel

1

1.92

2

1.21

0.02

0.16

Block_4

GR3000

Channel

0.5

2.86

<2

1.35

0.01

0.15

Total Trench Result : 14.5m at 8.03g/t gold and 0.9% copper

 

Rock chips were assayed via the following method

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

·    Gold was analysed by 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 if the initial assay detected >10ppm gold (and silver) using a further 30g sample.

·    Copper was analysed by 24 element inductively coupled plasma optical emission spectrometry (ICP-OES) analysis of an Aqua Regia digest.


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