Scout Drilling Programme Completed at Jangamo
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
**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
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