Scout Drilling Programme Completed at Jangamo

RNS Number : 2071L
Savannah Resources PLC
02 July 2014
 



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

2 July 2014

Savannah Resources Plc

Scout Drilling Programme Completed - Jangamo Project

 

Savannah Resources plc (AIM: SAV) announces that it has completed a scout drilling programme at its highly prospective, 180km² Jangamo heavy mineral sands ('HMS') project ('Jangamo' or 'the Project'), located in a world-class mineral sands province in southern Mozambique. To view the release with the illustrative map please use the following link: 

 

 

Highlights:

 

·    The 2014 scout drilling programme is now complete, targeting eastern and western dune systems with 96 drill holes for a total of 3,990m drilled

·    Visual estimations of HMS in the drill spoils suggest that the drilling to date has defined six major anomalous zones within the project area

·    Drill samples sent for analysis with results due in coming weeks

·    Further analysis based on the recently acquired airborne magnetic data suggests in excess of 20 significant, multi-kilometre long strandlines could be present within the highly prospective eastern and western dune systems

·    Final airmagnetic results are due for delivery during July 2014

·    Grid drillout due to commence in August to help define a potential JORC compliant Mineral Resource by year end

·    World class province- Jangamo is adjacent to Rio Tinto's major Mutamba1 mineral sands deposit which, along with another licence area in Mozambique, has an exploration target of 7-12 billion tonnes at 3-4.5% THM

 

Savannah's CEO, David Archer said, "With our second scout drilling programme at Jangamo now complete we are pleased to report that these fast-paced and well executed exploration programmes mean we remain on target to define a potential maiden, JORC compliant Mineral Resource by the end of 2014. The lead up to this will be a close spaced grid drilling programme scheduled to start in August.

 

"Importantly, based on visual estimations of the drill spoils, the second round of drilling has been successful in outlining areas of high concentrations of heavy minerals with six major anomalous zones delineated within the Project area.

 

"In addition, further analysis of the airborne magnetic data has highlighted in excess of 20 significant magnetic features, many of which remain untested, which could indicate the presence of potential strandlines.  These represent excellent opportunities for us to discover high grade heavy mineral sands within the Project area.

 

"It is important to note that the visual estimates need to be confirmed by assaying which is currently underway with results from all samples submitted to the lab due to be returned in coming weeks."

 

Scout Drilling Programme

 

The 2014 scout drilling programme has now been completed and included 96 holes for a total of 3990m, which primarily targeted the eastern and western dune systems (Appendix 1). Drilling was carried out using a truck mounted Reverse Circulation ('RC') drill rig, fitted with a rotary bit to take an Air Core ('AC') sample. Drilling density was approximately 500m to 1km between each drill hole in the southeast, and 1km to 1.5km in the northwest. The primary focus of the drilling was to locate high grade mineralisation close to the surface.

 

Sampling was done at 3m intervals; the length of one drill rod and a representative sample of the complete run was taken. The rig was fitted with a cyclone/cone splitter, where two bags of sample were taken, one to send to the lab if warranted, the other as a reference sample and the rest was rejected. During the drilling a visual cut off of 3% THM estimated in the pan was used to determine which holes to send to the lab for analysis

 

The drilling carried out has been successful in outlining areas of high concentrations of heavy minerals. Based on visual estimations, six major anomalous zones have been delineated by drilling to date within the Project area.

 

The first batch of samples has now arrived at the lab with the remaining samples expected in the short term. Results from all the assaying are expected in coming weeks.

 

Airborne Magnetic Survey

 

Work is continuing to finalise the processing and interpretation of the airborne magnetic data completed during June 2014 which covered the entire Jangamo Project area. Initial interpretations based on the magnetic data suggest the potential for in excess of 20 strandlines of various lengths within the tenement. Final results will be released when they come to hand.

 

Next Steps

 

The next steps for the Project are:

 

·    Finalisation of airborne magnetics processing and interpretation

·    Completion drill sample assaying

·    Detailed grid drilling and assaying

·    Potential delineation of a JORC compliant Mineral Resource

 

Savannah is currently on track to deliver all these outcomes during the 2014 exploration programme.

 

Further Information

 

Jangamo Project - Exploration Licence 3617L

 

The Jangamo Project is located in Southern Mozambique within a world class mineral sands province and is highly prospective for mineral sands including zircon, ilmenite and rutile.  The Project covers an area of 180km² along an extensive dune system near the village of Jangamo, about 350km to the North East of the capital, Maputo.

 

Jangamo lies immediately to the west of Rio Tinto's ('Rio') Mutamba deposit, one of two major deposits Rio has defined in Mozambique1, which collectively have an exploration target of 7-12Bn tonnes at 3-4.5% THM (published in 2008).  Importantly, exploration work conducted at the Project to date indicates that the geology and geomorphology of Jangamo is similar to that of Rio's adjacent Mutamba deposit.

 

The Project area features excellent infrastructure with both grid power and the main EN1 highway cutting through the middle of Jangamo.  The nearby town of Inhambane is serviced daily by LAMAir flights out of Maputo and there is excellent logistics in place to support operations, including a small port.  The licence is valid until 10 December 2017.

 

Mozambique Mineral Sands

Based on extensive heavy mineral sand deposits located along most of the 2,700km long coastline, Mozambique has the potential to grow as one of the world's foremost producers of titanium and zirconium minerals.  The country is currently the world's fourth largest producer of titanium feedstocks and the fifth largest producer of zircon.  Furthermore, in Mozambique, FTSE 250 listed Kenmare Resources Plc has developed the producing Moma Mine, which has a Proved and Probable Ore Reserve of 869Mt @ 3.7% THM and a Measured Indicated and Inferred Mineral Resource of 7.4Bt @ 2.9% THM.  Other large deposits, which further underpin Mozambique's prospectivity, includes the Chibuto heavy sands deposit, which averages 4% THM and has a reserve of 72 million tonnes of ilmenite, 2.6 million tonnes of zircon and 400,000 tonnes of rutile, and Rio Tinto's Mutamba and Mutamago deposits, which combined have an exploration target of 7-12Bn tonnes at 3-4.5% THM.

 

Competent Person

Dale Ferguson: The technical information related to Exploration Results contained in this Announcement has been reviewed and approved by Mr D. Ferguson.  Mr Ferguson has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity to which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.  Mr Ferguson is a Director of Savannah Resources plc and a Member of the Australasian Institute of Mining and Metallurgy.  Mr Ferguson consents to the inclusion in this announcement of such information in the form and context in which it appears.

 

Notes

1http://www.riotinto.com/documents/ReportsPublications/Titanium_mineral_sands_exploration_target_in

_Mozambique.pdf

 

**ENDS**

 

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

David Archer

Savannah Resources plc

Tel: +44 20 7389 5019

James Maxwell/Jen Boorer

N+1 Singer

Tel: +44 20 7496 3000

Felicity Edwards/Charlotte Heap

St Brides Media & Finance Ltd

Tel: +44 20 7236 1177

 

Notes

About Savannah

Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity focussed exploration and development company. It has an 80% shareholding in Matilda Minerals Limitada which operates the Jangamo exploration project 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% THM1 (published in 2008).

 

Savannah also has the right to acquire two copper projects 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.

 

In addition, Savannah owns an effective 20.9% strategic shareholding in Alecto Minerals Plc which provides Savannah with exposure to both the highly prospective Kossanto Gold Project in the prolific Kenieba inlier in Mali and also to the Wayu Boda and Aysid Meketel gold / base metal projects in Ethiopia for which Alecto has a joint venture with Centamin Plc.  Under this joint venture, Centamin Plc is committing up to US$14m in exploration funding to earn up to 70% of each project.

 

 

APPENDIX 1. Drilling Collar Table

 

HOLE ID

HOLE DEPTH

EASTING

NORTHING

DATE

JMRC028

30

727615

7311981

22-May-14

JMRC029

51

729014

7310843

22-May-14

JMRC030

60

729584

7309905

22-May-14

JMRC031

57

730281

7309144

22-May-14

JMRC032

30

727496

7311151

23-May-14

JMRC033

66

728998

7309527

23-May-14

JMRC034

30

727981

7310477

23-May-14

JMRC035

45

727162

7310165

23-May-14

JMRC036

42

727054

7309362

24-May-14

JMRC037

66

729091

7308395

24-May-14

JMRC038

63

728443

7308771

25-May-14

JMRC039

66

728837

7307811

25-May-14

JMRC040

30

727312

7308696

25-May-14

JMRC041

42

726327

7308454

26-May-14

JMRC042

33

726479

7307633

26-May-14

JMRC043

6

728047

7306836

26-May-14

JMRC044

30

725858

7309345

27-May-14

JMRC045

27

724935

7310488

27-May-14

JMRC046

39

726359

7310323

27-May-14

JMRC047

75

729779

7310889

27-May-14

JMRC048

30

728184

7312702

28-May-14

JMRC049

54

728872

7311869

28-May-14

JMRC050

45

735086

7316008

28-May-14

JMRC051

72

734541

7315505

29-May-14

JMRC052

33

734629

7314953

29-May-14

JMRC053

33

734033

7315763

29-May-14

JMRC054

30

733959

7315189

29-May-14

JMRC055

42

733731

7314195

30-May-14

JMRC056

36

734144

7314073

30-May-14

JMRC057

48

732738

7314382

30-May-14

JMRC058

39

732484

7313782

30-May-14

JMRC059

36

733099

7313838

30-May-14

JMRC060

30

732257

7314764

31-May-14

JMRC061

30

731229

7314533

31-May-14

JMRC062

42

731755

7314067

31-May-14

JMRC063

30

730578

7314071

2-Jun-14

JMRC064

42

731266

7313927

2-Jun-14

JMRC065

30

729224

7314564

2-Jun-14

JMRC066

36

730360

7313256

2-Jun-14

JMRC067

48

729770

7312916

2-Jun-14

JMRC068

33

729643

7313541

3-Jun-14

JMRC069

30

729219

7313914

3-Jun-14

JMRC070

30

728356

7313708

3-Jun-14

JMRC071

33

729262

7313040

3-Jun-14

JMRC072

33

722804

7316268

3-Jun-14

JMRC073

54

724506

7317035

3-Jun-14

JMRC074

48

722018

7315167

7-Jun-14

JMRC075

45

724032

7315885

7-Jun-14

JMRC076

30

725424

7317478

7-Jun-14

JMRC077

30

724265

7318501

7-Jun-14

JMRC078

30

723869

7317648

7-Jun-14

JMRC079

36

722721

7317753

7-Jun-14

JMRC080

39

722381

7318386

8-Jun-14

JMRC081

60

723342

7319270

8-Jun-14

JMRC082

48

724210

7319807

8-Jun-14

JMRC083

45

721989

7320110

8-Jun-14

JMRC084

30

722518

7320565

9-Jun-14

JMRC085

63

723184

7320370

9-Jun-14

JMRC086

36

723287

7321084

9-Jun-14

JMRC087

39

724068

7321608

9-Jun-14

JMRC088

45

724536

7320349

9-Jun-14

JMRC089

51

725243

7320047

10-Jun-14

JMRC090

54

726494

7320816

10-Jun-14

JMRC091

30

726899

7320165

10-Jun-14

JMRC092

30

728011

7322376

10-Jun-14

JMRC093

30

726189

7322255

10-Jun-14

JMRC094

48

725452

7323460

11-Jun-14

JMRC095

36

725701

7324794

11-Jun-14

JMRC096

42

722144

7322901

11-Jun-14

JMRC097

27

723649

7322592

11-Jun-14

JMRC098

39

722549

7323562

12-Jun-14

JMRC099

30

722395

7324305

12-Jun-14

JMRC100

30

723079

7325190

12-Jun-14

JMRC101

30

723507

7324351

12-Jun-14

JMRC102

48

724813

7325400

12-Jun-14

JMRC103

36

724963

7326747

12-Jun-14

JMRC104

33

723699

7325836

13-Jun-14

JMRC105

36

723121

7326619

13-Jun-14

JMRC106

30

726518

7325322

13-Jun-14

JMRC107

39

727397

7325892

13-Jun-14

JMRC108

33

728500

7323660

14-Jun-14

JMRC109

30

728325

7324365

15-Jun-14

JMRC110

36

728600

7325216

15-Jun-14

JMRC111

33

724699

7307477

15-Jun-14

JMRC112

75

728045

7306830

15-Jun-14

JMRC113

81

728469

7307520

16-Jun-14

JMRC114

60

728925

7307556

17-Jun-14

JMRC115

36

727290

7306872

18-Jun-14

JMRC116

30

727548

7307816

18-Jun-14

JMRC117

24

727834

7307564

18-Jun-14

JMRC118

30

728078

7308131

19-Jun-14

JMRC119

54

728512

7310148

19-Jun-14

JMRC120

42

735163

7315304

19-Jun-14

JMRC121

51

733492

7315547

20-Jun-14

JMRC122

30

732689

7316057

20-Jun-14

JMRC123

60

730124

7314410

20-Jun-14

JMRC124

30

730272

7313714

20-Jun-14

JMRC125

45

730175

7314151

21-Jun-14

AMG Zone 36

 

Click on, or paste the following link into your web browser, to view the associated PDF document:

http://www.rns-pdf.londonstockexchange.com/rns/2071L_-2014-7-2.pdf

 

 


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