AME African Min&Ex

TIDMSAV

RNS Number : 2048Y

Savannah Resources PLC

07 September 2015

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

7 September 2015

Savannah Resources Plc

High Priority Potential VMS Drill Targets Identified - Block 4 Oman Project

Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company') advises that it has received positive modelling results from the Versatile Time Domain Electromagnetic ('VTEM') survey conducted at its 408km(2) Block 4 Copper Project, located in the strongly mineralised Semail Ophiolite in northern Oman, which highlights the potential for Volcanic Massive Sulphide ('VMS') clusters. As a result of these findings, the Company has finalised new drill targets. Savannah is earning a 65% shareholding in the Omani company, Al Thuraya LLC, the owner of the Block 4 licence project ('the Project'). To view the release with the illustrative map please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/2048Y_-2015-9-6.pdf

Highlights:

-- Identified multiple high priority drill targets proximal to previously producing copper mines which collectively produced over 190,000t copper

-- Seven areas (Figure 1) with high concentrations of Priority 1 and 2 VTEM anomalies or potential VMS clusters were modelled

-- A total of 29 VTEM targets were modelled, including seven Priority 1, 19 Priority 2 and three Priority 3 anomalies

-- Modelling has identified a series of strong, near surface conductors up to 350m in strike length and extending at least 200m down dip, with strong potential to be the result of VMS mineralisation

-- VTEM anomalies are in the vicinity of known VMS deposits and mineralisation indicating excellent potential for the newly identified VTEM anomalies to be part of a VMS cluster

-- Field operations underway to fast track towards drilling, which is expected to commence towards the end of September 2015

Savannah's CEO, David Archer said, "We and our Joint Venture partners are particularly pleased with these highly encouraging new results from our recent VTEM survey over Block 4. Detailed modelling has highlighted a series of high priority VTEM anomalies in favourable geological settings in the vicinity of the old copper mines of Lasail, Aarja and Bayda and the Zuha prospect area. We are particularly encouraged by the fact that VMS deposits very rarely occur by themselves and these new results point towards the real possibility that a new VMS cluster may be present at Zuha.

"These early results continue to underscore the Joint Venture's strategy that through the application of systematic exploration an excellent opportunity exists in Oman to build a significant mid-tier copper producer around the development of a set of satellite deposits utilising a central processing facility."

VTEM (Versatile Time Domain Electromagnetics) Survey

The VTEM survey system operates on the same principal as a metal detector and has the ability to detect massive to semi-massive sulphide mineralisation from near surface to depths of up to 300m. Following receipt of the preliminary VTEM results (as announced on 29 June 2015), the identified VTEM target areas were modelled. Modelling targets were chosen based on their proximity to existing VMS mineralisation, geology, geochemistry, structure and geophysical signatures. The VTEM modelling process generates a 3D model of the conductive body identified from the VTEM survey to enable its prospectivity to be accessed.

Modelling of seven high priority VTEM target areas was completed to generate potential drill targets for follow up work. Priority targets have now been field checked to confirm that the anomalies were not as a result of cultural features and will now be followed up with further geological mapping, geochemistry, ground geophysical surveys to prioritise the targets for drill testing. Drilling is expected to commence towards the end of September 2015.

Initial assessment of the priority targets has identified a series of significant conductive anomalies around the existing VMS deposits at Lasail, Aarja, Bayda and new cluster of high priority anomalies around the Zuha project area. Modelling has identified a series of targets with the tops of the anomalies between 20-100m from surface, up to 350m strike length and some extending at too least 200m down dip from the top of the anomaly. Detailed modelling of the Lasail anomaly suggests that the conductive anomaly could reach as far as 500m down dip and initial analysis suggest the conductive anomaly has a strong relationship to the VMS copper mineralisation identified and partly mined in the early 1990's.

Initial field reconnaissance suggests that many of the high priority anomalies are associated with the very favourable Geotimes/Lasail contact zone highlighted by a fine grained sedimentary unit (umber). It is this same contact zone which hosts many of the historical deposits in the area such as Lasail, Aarja and Bayda. A good example of this setting is at VTEM Anomaly 13 (Zuha prospect, Figure 6) where the anomaly sits on the highly prospective contact on top of a heavily altered and bleached zone which shows strong signs of potentially being a feeder zone below a VMS system.

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       Tel: +44 20 7389 
                                       plc                      5019 
    Samantha Harrison (Nominated      RFC Ambrian Limited      Tel: +44 20 3440 
     Adviser)                                                   6800 
     Charlie Cryer (Corporate 
     Broker) 
    Felicity Winkles/ Charlotte       St Brides Partners       Tel: +44 20 7236 
     Heap                              Ltd                      1177 
 

**ENDS**

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.

This information is provided by RNS

The company news service from the London Stock Exchange

END

DRLLFFIIAAIRIIE

(END) Dow Jones Newswires

September 07, 2015 02:00 ET (06:00 GMT)

African Min&Ex (LSE:AME)
Historical Stock Chart
Von Dez 2024 bis Jan 2025

African Min&Ex (LSE:AME)
Historical Stock Chart
Von Jan 2024 bis Jan 2025