Resource Drilling Underway in Oman
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
12 May 2016
Savannah Resources Plc
Resource Drilling Underway in Oman Targeting High-Grade and Disseminated Copper Mineralisation
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), the AIM quoted resource development company, announces that it has commenced the next round of drilling over its highly prospective Block 4 and 5 properties in the Sultanate of Oman, which are prospective for copper and gold. 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:
http://www.rns-pdf.londonstockexchange.com/rns/9878X_-2016-5-11.pdf
HIGHLIGHTS:
· Two stage 2,930m diamond drill programme underway at the Maqail South and Mahab 4 prospects in Block 5 and the Dog's Bone and Bayda Prospects in Block 4
· Targeting to increase resource potential and upgrade current resource classification to establish Measured Resources at Maqail South and Mahab 4, which have a current Indicated and Inferred Mineral Resource of 1.7Mt at a grade of 2.2% copper
· Aiming to further define the resource potential at Dog's Bone (which is part of the Aarja target) and Bayda, which were part of previously producing copper mines - reviews of historic data have identified that a significant volume of disseminated sulphide mineralisation remains at Bayda whilst high-grade mineralisation including 9m at a grade of 4.86% copper has been identified at Dog's Bone
· Drilling will also assist the completion of initial geotechnical and metallurgical test work at both Block 4 and 5, which will feed into feasibility studies and ultimately Ore Reserves as the Company continues to target production in late-2017
David Archer, Savannah's Chief Executive Officer said today "This drill campaign represents another significant step forward in advancing our copper/gold portfolio in Oman. With a current Indicated and Inferred Mineral Resource of 1.7Mt at a grade of 2.2% copper already established, this drill programme will help build upon the aggregate Mineral Resources of both high-grade and disseminated sulphide copper mineralisation whilst also improving the resource confidence by upgrading the current resource classification from 'Indicated and Inferred' to 'Measured'. With multiple high-grade targets identified the drilling is directed at accelerating our efforts to be in production in late-2017, utilising a hub and spoke mine development model to support low capex operations, whereby one central plant will process material from multiple mines."
Figure 1. Location Map showing Position of Proposed Drilling - see PDF
PLANNED DRILLING PROGRAMME
Mahab 4
Mahab 4 has a current Indicated and Inferred Mineral Resource of 1.53Mt at a grade of 2.1% copper ('Cu'). Nine diamond core holes have been proposed for approximately 900m targeting infill drilling in areas of limited data within the high grade sulphide zone. This drilling will be completed in two parts. Part A will be 450m and will target the areas for the collection of metallurgical samples and resource definition. Part B will include an additional 450m targeting further upgrades and expansions of the resource, based on the results of the Part A drilling.
All of these holes are currently planned to target the massive sulphide portion of the resource (Figure 2).
Figure 2. Mahab 4 - Vertical Longitudinal Projection (Looking West) - see PDF
Maqail South
Maqail South has an Inferred Mineral Resource of 0.16Mt at a grade of 3.8% Cu, which was been defined by five holes completed by Gentor Resources.
To allow this mineralisation to be used in a Reserve estimate, its classification has to be improved to a minimum of Indicated Classification through closer spaced drill holes. Seven diamond holes for 550m are proposed (Figure 3) to infill the resource to a hole spacing of 25m centres which will allow for an Indicated Resource Classification and to continue exploration to the west where the resource remains open.
Figure 3. Maqail South - Longitudinal Project (Plan View) - see PDF
Dog's Bone
Dog's Bone is a lens of high-grade massive sulphide that is situated above the mineralisation that was mined at the historic Aarja Mine between 1988 and 1994 by OMCO producing about 2.6Mt at a grade of 1.4% Cu. This lens of mineralisation was tested by Savannah with four Reverse Circulation (RC) holes in 2015. Two of these holes intersected high grade mineralisation: 15B4RC003 9m at a grade of 4.86% Cu and 15B4DD004 5m at a grade of 2.17% Cu (Figure 4). There are some uncertainties identified with the historical drilling that require further drilling to be completed to confirm the location and continuity of the mineralisation.
One 300m hole is proposed to test the Dog's Bone lens which will also be extended to test the deeper Aarja Mineralisation (Figure 4). This hole will help confirm the location and continuity of known mineralisation and give confidence for the use of the historical data in a resource estimate.
Figure 4: Schematic Cross Section View of Dogs Bone showing planned hole - see PDF
Bayda
Bayda is a historic mining area that was mined by OMCO between 1980 and 1994 producing 1Mt at a grade of 3% Cu from a small underground operation.
The historic mining at Bayda focused on the high-grade massive sulphide mineralisation ignoring the lower-grade disseminated sulphide mineralisation. Reviews of the historic data have identified that a significant volume of disseminated sulphide mineralisation remains at Bayda. Savannah's confidence in the precision and accuracy of the OMCO data defining this mineralisation is uncertain and additional data collection is required to validate the location and grades reported by OMCO.
It is proposed to test this area of mineralisation with selected diamond drilling to test the presence of the mineralisation and the continuity of mineralised zones of greater than 1% Cu which are at the southern end of the mineralised area.
A typical cross-section of the mineralisation at Bayda is shown in Figure 5.
Figure 5: Cross Section View of Bayda showing planned holes - see PDF
Table 1. Summary of Proposed Drill Holes
|
DataSet |
Hole_ID |
Hole Type |
Max Depth |
NAT Grid_ID |
NAT East |
NAT North |
NAT RL |
Dip |
Azi |
Prospect |
|
Block_4 |
16B4RC001 |
DD |
150 |
WGS84_40N |
441040 |
2694175 |
226 |
-74 |
270 |
Bayda |
|
Block_4 |
16B4RC002 |
DD |
150 |
WGS84_40N |
441039 |
2694200 |
228 |
-72 |
270 |
Bayda |
|
Block_4 |
16B4RC015 |
DD |
300 |
WGS84_40N |
440413 |
2692570 |
230 |
-70 |
333 |
Dogs Bone |
|
Block_5 |
16B5DD001 |
DD |
85 |
WGS84_40N |
453578 |
2661240 |
403 |
-54 |
314 |
Maqail South |
|
Block_5 |
16B5DD002 |
DD |
70 |
WGS84_40N |
453578 |
2661240 |
403 |
-55 |
325 |
Maqail South |
|
Block_5 |
16B5DD003 |
DD |
75 |
WGS84_40N |
453578 |
2661240 |
403 |
-80 |
135 |
Maqail South |
|
Block_5 |
16B5DD004 |
DD |
65 |
WGS84_40N |
453520 |
2661278 |
390 |
-75 |
180 |
Maqail South |
|
Block_5 |
16B5DD005 |
DD |
80 |
WGS84_40N |
453553 |
2661210 |
407 |
-72 |
23 |
Maqail South |
|
Block_5 |
16B5DD006 |
DD |
90 |
WGS84_40N |
453553 |
2661210 |
407 |
-71 |
259 |
Maqail South |
|
Block_5 |
16B5DD007 |
DD |
90 |
WGS84_40N |
453530 |
2661230 |
412 |
-70 |
261 |
Maqail South |
|
Block_5 |
16B5DD008 |
DD |
75 |
WGS84_40N |
468780 |
2656073 |
229 |
-52 |
256 |
Mahab 4 |
|
Block_5 |
16B5DD009 |
DD |
125 |
WGS84_40N |
468782 |
2656074 |
229 |
-60 |
256 |
Mahab 4 |
|
Block_5 |
16B5DD010 |
DD |
75 |
WGS84_40N |
468775 |
2656121 |
228 |
-53 |
256 |
Mahab 4 |
|
Block_5 |
16B5DD011 |
DD |
85 |
WGS84_40N |
468768 |
2656160 |
225 |
-55 |
256 |
Mahab 4 |
|
Block_5 |
16B5DD012 |
DD |
110 |
WGS84_40N |
468764 |
2656198 |
232 |
-59 |
256 |
Mahab 4 |
|
Block_5 |
16B5DD013 |
DD |
110 |
WGS84_40N |
468758 |
2656222 |
232 |
-68 |
256 |
Mahab 4 |
|
Block_5 |
16B5DD014 |
DD |
75 |
WGS84_40N |
468762 |
2656263 |
223 |
-52 |
256 |
Mahab 4 |
|
Block_5 |
16B5DD015 |
DD |
125 |
WGS84_40N |
468771 |
2656265 |
221 |
-62 |
256 |
Mahab 4 |
|
Block_5 |
16B5DD017 |
DD |
145 |
WGS84_40N |
468763 |
2656306 |
220 |
-62 |
256 |
Mahab 4 |
Note: Holes shaded in grey will be completed as part of Phase 1
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: +44 20 7117 2489 |
|
David Hignell / Gerry Beaney (Nominated Adviser) |
Northland Capital Partners Ltd |
Tel: +44 20 3861 6625 |
|
Jon Belliss / Elliot Hance (Corporate Broker) |
Beaufort Securities Ltd |
Tel: +44 20 7382 8300 |
|
Charlotte Heap / Lottie Brocklehurst |
St Brides Partners Ltd |
Tel: +44 20 7236 1177 |
Notes
Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, 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. Jangamo has a 65Mt Inferred Mineral Resource at a grade of 4.2% total heavy minerals ("THM") at a 2.5% cut-off grade. The Mutamba, Dongane and Chilubane deposits have a combined exploration target of 7-12Bn tonnes at a grade of 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 at a grade of 2.2% copper and high grade intercepts of up to 56.35m at a grade of 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, and in December 2015 outlined exploration targets of between 10,700,000 and 29,250,000 tonnes grading between 1.4% and 2.4% copper.
This information is provided by RNS
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