Acquisition of Omani Copper Projects Completed
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
16 July 2014
Savannah Resources Plc
Acquisition of Strategic Omani Copper Projects Completed
Savannah Resources plc (AIM: SAV) announces that it has completed the acquisition of interests in the highly prospective Block 5 and Block 6 copper projects (the 'Projects') in the Sultanate of Oman from TSX-V listed Gentor Resources Inc. (TSX-V: GNT) ('GRI'). The acquisition of these Projects forms part of Savannah's growth strategy of building a globally diverse, multi-commodity exploration and development company.
Overview:
· Completed acquisition of 100% of GRI's subsidiary, Gentor Resources Limited ('GRL') , which has a 65% interest in Block 5 and the right to earn up to a 70% interest in Block 6
· Projects cover 870km² of the highly prospective copper-rich Seminail Ophiolite belt in the Sultanate of Oman - proven to host clusters of moderate to high grade copper deposits with gold credits and metallurgically simple ores
· First round re-processing of geophysical data completed and eight Priority 1 and 12 Priority 2 exploration targets identified at both Block 5 and 6
· Projects have an Indicated and Inferred Mineral Resource of 1.7Mt at 2.2% Cu (including a high-grade zone of ~0.5Mt at 4.5% Cu)
· Opportunity to significantly increase resource potential:
High grade intersections reported to date include 56.35m at 6.21% copper from 63.15m in B5MH4071 from Block 5, Mahab 4 prospect
o Priority exploration targets targeted for future exploration include Maqail South (6.68m at 7.42% copper), Hara Kilab (5.54m at 3.96% copper) and Mahab 2 (5m at 2.81% copper)
· Exploration programme being designed to commence drilling late 2014 - focussed on evaluating potential open-pittable targets
· Proven team in place to ensure rapid implementation of the exploration programme - based out of the port city of Sohar near Blocks 5 and 6
Savannah's CEO, David Archer said, "The acquisition of two highly prospective copper projects with multiple high priority targets is a key strategic development for Savannah. The Projects provide Savannah with a strong profile in a key industrial metal, at a time when copper supply is increasingly challenged by mine disruptions, reduced capital investment and high costs in major producer countries. Conversely, Oman is a very favourable setting for the discovery of medium to high grade copper deposits. It is a low cost operating region, with well-developed road, power and port infrastructure, low fuel costs and a favourable fiscal regime.
"Importantly, the re-processing of existing geophysical data has already highlighted eight high priority targets on Block 5 for follow up by our highly capable, exploration team which is based out of the port city of Sohar. Drilling of targets is slated to start in late 2014."
Full details on the acquisition and the Projects can be found in Savannah's announcement of 10 April 2014: http://savannahresources.com/investors/StrategicCopperAcquisitioninOman.pdf
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.
**ENDS**
For further information please visit www.savannahresources.com or contact:
|
David Archer |
Savannah Resources plc |
Tel: +44 20 7389 5019 |
|
James Biddle (Nominated Adviser) Charlie Cryer (Corporate Broker) |
RFC Ambrian |
Tel: +44 20 3440 6800 |
|
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 owns 80% of the Jangamo heavy minerals sands project in a world class mineral sands province in Mozambique. The Jangamo Project 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 has interests in 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.
This information is provided by RNS
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