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Savannah Resources has agreed to acquire interests in the highly prospective Block 5 and Block 6 copper projects in Oman from Gentor Resources Inc.
Savannah says the acquisition of these projects, which contain part of one of the best preserved copper-rich Ophiolite belts in the world, forms part of its growth strategy of building a multi-commodity exploration and development company. Savannah will acquire 100% of GRI’s subsidiary, Gentor Resources Limited , which has a 65% interest in Block 5 and the right to earn up to a 70% interest in Block 6.
Projects cover 870 sq km of the highly prospective copper-rich Seminail Ophiolite belt in Oman – proven to host clusters of relatively high grade copper deposits with gold credits and metallurgically simple ores. The purchase price is US$0.8m in cash and US$3.0m deferred cash and shares on the achievement of mine development and production milestones.
Chief executive David Archer said “The acquisition of Gentor’s Oman copper projects is a major milestone in cementing Savannah’s position as a multi-commodity exploration and development company and represents the first step in our strategy of establishing the Company as a mid-tier copper producer. The acquisition of the two highly prospective projects with multiple target areas provides Savannah with exposure to one of the best Ophiolite belts in the world.
“With an ‘indicated and inferred’ mineral resource of 1.7Mt @ 2.2% Cu and high grade intercepts of up to 56.35m at 6.21% Cu at Block 5, this certainly sets the scene for a targeted, fast paced exploration programme commencing as early as May 2014.
“Significantly, the Ophiolite belt is characterised by small to medium size, high grade copper deposits that have been shown to be amenable to profitable, open-cut development, to produce high quality copper concentrates for local or overseas smelters. Furthermore, despite the region’s rich history of copper production there has been limited modern exploration in Oman, which Savannah and its Omani partners aim to capitalise on by applying rigorous, modern exploration techniques.
“We believe that with the application of systematic exploration and further commercial transactions the opportunity exists in Oman to build a significant mid-tier copper producer. “This latest acquisition complements our existing portfolio which includes the Jangamo Heavy Minerals Sands Project in Mozambique and forms part of our strategy of developing a diversified, multi-commodity company in the core geographies and in the established commodities. With active exploration programmes planned for both Jangamo and for our newly acquired copper portfolio in Oman in 2014, I believe we have the foundations in place for solid growth.”
