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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Savannah Resources Plc | AQSE:SAV.GB | Aquis Stock Exchange | Ordinary Share | GB00B647W791 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 3.45 | 3.30 | 3.60 | 3.45 | 3.45 | 3.45 | 0.00 | 06:58:20 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMSAV
RNS Number : 0349W
Savannah Resources PLC
06 February 2017
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining
6 February 2017
Savannah Resources Plc
Metallurgical Test Work Update, Oman Copper Projects
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), announces that it has received the preliminary metallurgical results for the Mahab 4 deposit (Figure 1 - See PDF) in Block 5, Oman, which has a Current Indicated and Inferred JORC Mineral Resource of 1.51Mt at 2.1% copper at Mahab 4. Savannah 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/0349W_1-2017-2-3.pdf
HIGHLIGHTS:
-- Chalcopyrite identified as the sole copper bearing mineral, which is likely to lead to a simple, quick and relatively low cost flotation process to concentrate the copper ('Cu')
-- Test data indicates that any potential development should enjoy favourable processing costs as the resource at Mahab 4 appears to be relatively soft and requires relatively low primary milling power requirements
-- Test work also indicates relatively low equipment liner and grinding media wear due to low abrasion rates
-- Initial rougher flotation test work indicated potential recoveries of around 95% at moderate grind sizes
-- Rougher cleaner flotation at 38microns indicated that a saleable copper concentrate of over 23% can be achieved with recoveries over 90% with additional gold and silver credits
-- There is potential to also produce a zinc product but further work is required to confirm that this is possible without affecting the copper grades and recoveries
-- Additional test work is now underway to refine the process and to try and further improve the recoveries and overall copper concentrate grades
Savannah's CEO, David Archer said: "The results from the preliminary metallurgical test work are very encouraging in highlighting the commercial appeal of the Mahab 4 deposit, with work confirming that a saleable copper concentrate can be produced with recoveries exceeding 90%. We are also encouraged by the potential for both gold and silver credits and the possibility of an additional zinc product. Importantly, test work points towards Mahab being a soft ore, which should mean that copper produced from Mahab 4 ought to enjoy favourable overall processing costs. The results from this work points towards a relatively simple float process and a clean and desirable copper concentrate, which is likely to be keenly sought after by off-takers and smelters. Further test work is continuing and we look forward to updating shareholders on these developments."
Figure 1. Project Location Map - See PDF
OVERVIEW
Perth based consulting group Independent Metallurgical Operations Pty Ltd ('IMO') have been contracted to complete staged Preliminary Feasibility Study test work and flowsheet development for Savannah Resources on the Mahab 4 project. The programme has been broken into two stages:
Stage 1 Master Composite Flowsheet Development
Master Composite flowsheet development testing has been sequenced as follows:
-- Master Composite Selection - 125kg of mineralised material was sourced from drill holes 16B5DD010 and 16B5DD017;
-- Composite Characterisation - including assaying, mineralogy and comminution test work (comminution is the reduction of solid materials to minute particles or fragments, by crushing, grinding, cutting, or other processes);
-- Flowsheet Development - staged open circuit flotation flowsheet optimisation testing; and -- Locked Cycle Testing - closed circuit flowsheet confirmation including recycle streams.
Stage 2 Variability Composite Testing
Variability Composite testing based on the Stage 1 flowsheet and the scope is sequenced as follows:
-- Variability Composite Selection - comprising the selection of Variability Composites across the resource;
-- Variability Composite Characterisation - including assaying, mineralogy and comminution; and
-- Open Circuit Variability Composite Testing - allowing verification of the performance of the flowsheet developed as part of Stage 1.
MAHAB 4 MASTER COMPOSITE - PRELIMINARY RESULTS
Mineralogy
Optical mineralogy and point counting was conducted on a representative subsample ground to a P(80) size of 300<MU>m; sulphide mineral modal distribution is summarised in Table 1 and as follows:
-- Sulphide mineralisation is predominantly Pyrite and Chalcopyrite; no secondary copper mineralisation was identified; Chalcopyrite was identified as the sole copper bearing mineral;
-- The liberation size of Chalcopyrite was estimated as 50<MU>m, also indicating a requirement for regrinding of rougher flotation concentrate;
-- Chalcopyrite was identified veining through Pyrite grains of 50<MU>m size; -- Sphalerite was identified as minor discrete grains and as composites with Chalcopyrite and Chalcopyrite/Pyrite composites, also indicating a requirement for zinc depression during flotation upgrade targeting a copper concentrate zinc grade below 3%; and -- The association of Sphalerite indicates potential for separate flotation recovery of zinc.
Table 1 Mahab 4 Master Composite - Sulphide Mineral Modal Distribution
Hot Features
Premium
Sulphide Mineral Mode Symbol Distribution
(%)
-------------------------------- ----------- -------------
Pyrite Py 80.7
-------------------------------- ----------- -------------
Chalcopyrite Ccp 8.4
-------------------------------- ----------- -------------
Sphalerite Sp 0.5
-------------------------------- ----------- -------------
Subtotal - Discrete Grains 89.6
--------------------------------------------- -------------
Chalcopyrite/Pyrite Ccp/Py 5.9
-------------------------------- ----------- -------------
Chalcopyrite/Sphalerite Ccp/Sp 1.2
-------------------------------- ----------- -------------
Chalcopyrite/Pyrite/Sphalerite Ccp/Py/Sp 0.6
-------------------------------- ----------- -------------
Sphalerite/Pyrite Sp/Py 0.3
-------------------------------- ----------- -------------
Subtotal Composite Grains 8.1
--------------------------------------------- -------------
Chalcopyrite Veins Pyrite 2.3
--------------------------------------------- -------------
Total Sulphides 100.0
--------------------------------------------- -------------
Comminution Test Work
Sag Mill Comminution ('SMC'), Bond Ball Mill Work and Abrasion Index testing was conducted; results are summarised in Table 2; key comments are provided as follows:
-- SMC data indicates Mahab 4 to be relatively soft as evidenced by a low Drop Weight Index and associated: Crushing (Mic), HPGR (Mih) and Coarse Milling (Mia) index values;
-- Bond Ball Mill Work Index testing based on a closing screen size of 106<MU>m also indicates relatively low milling power draw based on a work index of 11.6kWh/t; while comminution power is expected to increase based on regrinding of flotation rougher concentrate, the below results indicate relatively low primary milling power requirements; and
-- Bond Abrasion Index testing reported an average index of 0.0798; this also indicates relatively low equipment liner and grinding media wear.
Table 2 Mahab 4 Master Composite - Comminution Results Summary
Drop SMC Summary Bond Summary
Weight
Index
(kWh/m(3)
)
----------- ---------------------------------------- --------------------
Morrell Index SMC Indices Ball Abrasion
(kWh/t) Mill Index
Work
Index
----------- ------------------ -------------------- --------- ---------
Mic Mih Mia A b A*b Bwi Ai
(kWh/t)
----------- ----- ----- ---- ----- ----- ------ --------- ---------
3.23 2.7 5.1 8.1 75.8 1.49 112.9 11.6 0.0798
----------- ----- ----- ---- ----- ----- ------ --------- ---------
Rougher Flotation Results
Rougher flotation simulates the first flotation stage, which would be conducted in any process plant established to extract the copper; the results for copper are show in Figure 2 (see PDF) and summarised below.
Copper
-- Copper recovery tends to reduce with increasing grind size - the difference is marginal between 38um (96.9% Cu recovery) and 53um (97.2% Cu recovery);
-- In overall terms the Cu grade recovery response and ability to recycle cleaner tailings streams during Rougher Cleaner flotation indicate we could adopt a coarser primary grind (P(80) ) size of 63um, also resulting in reduced overall power consumption.
Figure 2 Mahab 4 Master Composite - Rougher Flotation Copper Grade Recovery - See PDF
Silver
-- Silver recovery appears to be insensitive to grind size between 38um and 75um with recoveries ranging from 76.7% to 77.7%.
Zinc
-- Zinc recoveries are significant and do not appear to be overly sensitive to grind size below a 106um grind size; and
-- Sphalerite recovery into the rougher concentrate acts to dilute overall copper grade; depression with either ZnSO(4) and/or SMBS will assist in increasing copper concentrate grade at high recovery.
Batch Rougher Cleaner Flotation Testing
Batch rougher cleaner flotation testing has been conducted leading to recent completion of locked cycle flowsheet testing; key results are presented in Table 3; grade recovery curves are presented for copper in Figure 3 ( See PDF) and zinc in Figure 4 (See PDF) based on a primary grind (P(80) ) size of 63<MU>m and rougher concentrate regrind (P(80) ) sizes of: 38<MU>m, 30<MU>m and 19<MU>m; key comments are offered as follows:
-- Copper recoveries of 90% achieved based on Mahab 4 Master Composite assaying 4.38% Cu;
-- Copper grade improves with reduced rougher concentrate regrind (P(80) ) size from 23.5% Cu at a 38<MU>m grind to 28.4% Cu based on a 19<MU>m regrind;
-- Concentrate Zinc grade tends below a typical 3% smelter penalty limit based on a regrind size between 30<MU>m and 19<MU>m.
Table 3 Mahab 4 Master Composite - Rougher Cleaner Flotation Variable Regrind (P(80) ) Size
Test Regrind Mass (%) Cu Zn Au Ag
P(80)
Size
(<MU>m)
------ ---------- --------- -------------------- -------------------- -------------------- ---------------------
Grade (%) Rec (%) Grade (%) Rec (%) Grade Rec (%) Grade Rec (%)
(g/t) (g/t)
------ ---------- --------- ---------- -------- ---------- -------- ---------- -------- ----------- --------
FT13 38 16.1 23.50 90.2 4.76 48.2 0.439 29.6 38 47.4
------ ---------- --------- ---------- -------- ---------- -------- ---------- -------- ----------- --------
FT14 30 14.9 25.74 90.2 3.48 32.4 0.432 27.8 42 44.5
------ ---------- --------- ---------- -------- ---------- -------- ---------- -------- ----------- --------
FT15 19 13.8 28.35 89.3 2.28 21.1 0.487 29.4 40 46.1
------ ---------- --------- ---------- -------- ---------- -------- ---------- -------- ----------- --------
Figure 3 Mahab 4 Master Composite - Copper Grade Recovery; Variable Rougher Regrind Size - See PDF
Figure 4 Mahab 4 Master Composite - Zinc Grade Recovery; Variable Rougher Regrind Size - See PDF
Competent Person and Regulatory Disclosures
The information in this document 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.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
**S**
For further information please visit www.savannahresources.com or contact:
David Archer Savannah Resources Tel: +44 20
plc 7117 2489
David Hignell / Gerry Northland Capital Tel: +44 20
Beaney (Nominated Partners Ltd 3861 6625
Adviser)
Jon Belliss / Elliot Beaufort Securities Tel: +44 20
Hance Ltd 7382 8300
(Corporate Broker)
Charlotte Page / St Brides Partners Tel: +44 20
Lottie Brocklehurst Ltd 7236 1177
Notes
Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, mineral development company.
Mozambique
Savannah operates the Mutamba heavy mineral sands project in Mozambique in collaboration with Rio Tinto, and can earn a 51% interest in the related Consortium, which has an established initial Indicated and Inferred Mineral Resource Estimate of 3.5 billion tonnes at 3.8% THM over the Jangamo and Dongane deposits. Under the terms of the Consortium Agreement with Rio Tinto, upon delivery by Savannah of the following Savannah will earn the corresponding interest in the Mutamba Project: scoping study - 20%; pre-feasibility study - 35%; feasibility study - 51%. Additionally, the Consortium Agreement includes an offtake agreement on commercial terms for the sale of 100% of production to Rio Tinto (or an affiliate).
Oman
Savannah has interests in two 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 gold credits, 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.
Finland
Savannah has Reservation Permits over two new lithium projects, Somero and Erajarvi, covering an area of 159km(2) in Finland. Savannah holds a 100% interest in these projects through its Finnish subsidiary Finkallio Oy. Geological mapping has highlighted the presence of seven pegmatites across the licence areas - two on Somero and five on Erajarvi - with key lithium minerals petalite, spodumene and lepidolite all identified in hand specimens. Follow up work to further expand and define the pegmatites in readiness for drilling is being planned for the second quarter of 2017 (after winter).
Notes - The information in this document that relates to the resource estimation is based upon information compiled by Mr Colin Rothnie, an independent consultant. Mr Rothnie 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 Rothnie consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.
APPIX 1 - Mahab 4 and Maqail South JORC 2012 Table 1
Section 1 Sampling Techniques and Data
Criteria JORC Code explanation Commentary
------------- ------------------------------------------------------------ -----------------------------------------------------------------
Sampling
techniques * Nature and quality of sampling (eg cut channels, * All data at the Maqail South and Mahab 4 Prospects
random chips, or specific specialised industry has been gathered from diamond core. HQ and NQ core
standard measurement tools appropriate to the sizes have been used. Majority of holes have been
minerals under investigation, such as down hole gamma angled to optimally intersect lithology structures.
sondes, or handheld XRF instruments, etc). These
examples should not be taken as limiting the broad
meaning of sampling. * Sampling from diamond drilling is by half core
sampling of NQ or HQ core
* Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any * Core is geologically logged and samples selected
measurement tools or systems used. based on geological logging. Samples are then
dispatched to Bureau Veritas in Turkey for analysis
using the following process route.
* Aspects of the determination of mineralisation that
are Material to the Public Report.
* Whole sample is dried at 85degC, Crush to 70% -10
mesh (2mm), 100% pulverize to 85%passing -200 mesh
* In cases where 'industry standard' work has been done (75 m).
this would be relatively simple (eg 'reverse
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30g * Au: 30gr Fire Assay / lead collection fusion / AAS
charge for fire assay'). In other cases, more finish / 5ppb - 10ppm
explanation may be required, such as where there is
coarse gold that has inherent sampling problems.
Unusual commodities or mineralisation types (eg * Au>10ppm (& Ag if also over-limit): 30gr / fire assay
submarine nodules) may warrant disclosure of detailed fusion / GRAVIMETRIC finish
information.
* 24 Element (Mo, Cu, Zn, Ag, Ni, Co, Mn, Fe, As, Sr,
Cd, Sb, Bi, Ca,P, Cr, Mg, Al, Na K, W, Hg, S) Aqua
Regia Digest ICP-OES finish.
* Bulk density determinations are made for all samples
that are assayed, using the Archimedes method. This
measurement is completed in Oman by Savannah
employees.
------------- ------------------------------------------------------------ -----------------------------------------------------------------
Drilling
techniques * Drill type (eg core, reverse circulation, open-hole * Diamond drilling used HQ2 or NQ2 sized equipment.
hammer, rotary air blast, auger, Bangka, sonic, etc) Diamond core was not orientated.
and details (eg core diameter, triple or standard
tube, depth of diamond tails, face-sampling bit or
other type, whether core is oriented and if so, by * Down hole surveys are completed using a single shot
what method, etc). Tropari device at approximately 30-50m intervals down
hole.
------------- ------------------------------------------------------------ -----------------------------------------------------------------
Drill
sample * Method of recording and assessing core and chip * Diamond core recoveries were recorded in the drill
recovery sample recoveries and results assessed. logs. It is unknown if a relationship exists between
sample recovery and grade.
* Measures taken to maximise sample recovery and ensure
representative nature of the samples. * Areas of poor recoveries were observed in some areas
and recorded in the logging.
* Whether a relationship exists between sample recovery
and grade and whether sample bias may have occurred * In areas of poor recovery additional drilling muds
due to preferential loss/gain of fine/coarse were applied to improve recovery.
material.
------------- ------------------------------------------------------------ -----------------------------------------------------------------
Logging
* Whether core and chip samples have been geologically * All drill holes were logged for recovery, RQD,
and geotechnically logged to a level of detail to geology and structure.
support appropriate Mineral Resource estimation,
mining studies and metallurgical studies.
* Logging of recorded lithology, mineralogy,
mineralisation, weathering, colour and other features
* Whether logging is qualitative or quantitative in of the samples. Diamond core was photographed wet.
nature. Core (or costean, channel, etc) photography.
* All drill holes were logged in full.
* The total length and percentage of the relevant
intersections logged.
------------- ------------------------------------------------------------ -----------------------------------------------------------------
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * HQ and NQ core was cut in half using a core saw.
and sample half or all core taken.
preparation
* Certified reference standards, blanks and duplicates
* If non-core, whether riffled, tube sampled, rotary are routinely inserted in the sample sequence to
split, etc and whether sampled wet or dry. assess the quality of sampling and analysis.
* For all sample types, the nature, quality and * Sample sizes are considered appropriate for the style
appropriateness of the sample preparation technique. of mineralisation expected.
* Quality control procedures adopted for all
sub-sampling stages to maximise representivity of
samples.
* Measures taken to ensure that the sampling is
representative of the in situ material collected,
including for instance results for field
duplicate/second-half sampling.
* Whether sample sizes are appropriate to the grain
size of the material being sampled.
------------- ------------------------------------------------------------ -----------------------------------------------------------------
Quality
of assay * The nature, quality and appropriateness of the * The analytical techniques used are appropriate for
data and assaying and laboratory procedures used and whether the elements and mineralization styles being explored
laboratory the technique is considered partial or total. for.
tests
* For geophysical tools, spectrometers, handheld XRF * Savannahs QAQC protocol is to industry standards with
instruments, etc, the parameters used in determining standard reference material and blanks submitted at a
the analysis including instrument make and model, minimum of 5% frequency rate.
reading times, calibrations factors applied and their
derivation, etc.
* Nature of quality control procedures adopted (eg
standards, blanks, duplicates, external laboratory
checks) and whether acceptable levels of accuracy (ie
lack of bias) and precision have been established.
------------- ------------------------------------------------------------ -----------------------------------------------------------------
Verification
of sampling * The verification of significant intersections by * No independent or alternative verification of the
and assaying either independent or alternative company personnel. assays has been made
* The use of twinned holes. * No twin holes have been drilled
* Documentation of primary data, data entry procedures, * No adjustments have been made to the assay data
data verification, data storage (physical and
electronic) protocols.
* Discuss any adjustment to assay data.
------------- ------------------------------------------------------------ -----------------------------------------------------------------
Location
of data * Accuracy and quality of surveys used to locate drill * Holes have been located DGPS unit by a licensed
points holes (collar and down-hole surveys), trenches, mine surveyor using WGS84 Zone 40N co-ordinates.
workings and other locations used in Mineral Resource
estimation.
* Holes have been downhole surveyed using a Tropari
single shot device
* Specification of the grid system used.
* Detailed topographic data is available for immediate
* Quality and adequacy of topographic control. area surrounding Maqail South and Mahab 4 projects.
* The quality of the topographic data is excellent with
elevations recorded to an accuracy of 0.1m.
------------- ------------------------------------------------------------ -----------------------------------------------------------------
Data spacing
and * Data spacing for reporting of Exploration Results. * Hole spacing is approximately 25m by 25m at Maqail
distribution South.
* Whether the data spacing and distribution is
sufficient to establish the degree of geological and * Hole spacing at Mahab 4 is approximately at 25m
grade continuity appropriate for the Mineral Resource centers or less and have been designed to selectively
and Ore Reserve estimation procedure(s) and target the mineralized zone.
classifications applied.
* Data at Maqail South and Mahab 4 is sufficient to
* Whether sample compositing has been applied. establish geological and grade continuity needed for
Mineral Resource estimation. The current drilling is
infilling previously reported Mineral Resources.
------------- ------------------------------------------------------------ -----------------------------------------------------------------
Orientation
of data * Whether the orientation of sampling achieves unbiased * Majority of drill holes are angled approximately
in relation sampling of possible structures and the extent to perpendicular to the orientation of the lithological
to which this is known, considering the deposit type. trends. Some holes have been angled down the dip of
geological the structure to collected material for metallurgical
structure testing.
* If the relationship between the drilling orientation
and the orientation of key mineralised structures is
considered to have introduced a sampling bias, this * Orientation of the holes does not bias sampling data.
should be assessed and reported if material.
* Reported intervals are down hole widths and are not
necessarily true widths of mineralisation.
------------- ------------------------------------------------------------ -----------------------------------------------------------------
Sample
security * The measures taken to ensure sample security. * Chain of custody is managed by Savannah. Samples are
stored on site in a locked yard. Samples are then
transported to Turkey by airfreight. Savannah
personnel have no contact with the samples once they
have been dispatched.
------------- ------------------------------------------------------------ -----------------------------------------------------------------
Audits
or reviews * The results of any audits or reviews of sampling * No audits or reviews of the sampling techniques or
techniques and data. data have been completed.
------------- ------------------------------------------------------------ -----------------------------------------------------------------
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Mineral
tenement * Type, reference name/number, location and ownership * The Maqail South and Mahab 4 prospects are located
and land including agreements or material issues with third with the exploration permit referred to as Block 5
tenure parties such as joint ventures, partnerships, Savannah has a 65% interest in the Block with the
status overriding royalties, native title interests, remainder being held by a local JV partner.
historical sites, wilderness or national park and
environmental settings.
* The tenement is in good standing with no known
impediment to renewal.
* The security of the tenure held at the time of
reporting along with any known impediments to
obtaining a license to operate in the area.
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Exploration
done by * Acknowledgment and appraisal of exploration by other * Previous exploration has been completed at Maqail
other parties. South and Mahab 4 by Gentor Resources between 2010 -
parties 2012.
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Geology
* Deposit type, geological setting and style of * The deposit type being tested is the Cyprus type VMS
mineralisation. model. VMS mineralisation is interpreted to have
formed on a mid ocean ridge and then emplaced as an
ophiolite on the Arabian Craton. Several examples of
this model exist in the region.
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Drill
hole * A summary of all information material to the * The location of the drilling at Mahab 4 and Maqail
Information understanding of the exploration results including a South are summarised in Table 1 in the body of this
tabulation of the following information for all release.
Material drill holes:
* Previously completed holes by Gentor at Maqail South
o easting and northing of the drill are not all reported in this release.
hole collar
o elevation or RL (Reduced Level
- elevation above sea level in metres) * Not all holes completed in this program by Savannah
of the drill hole collar have been reported in this release.
o dip and azimuth of the hole
o down hole length and interception
depth
o hole length.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Data
aggregation * In reporting Exploration Results, weighting averaging * Significant intersections are based on assays greater
methods techniques, maximum and/or minimum grade truncations than 0.5% Cu and may include up to a maximum of 3.0m
(eg cutting of high grades) and cut-off grades are of internal dilution, with a minimum composite grade
usually Material and should be stated. of 0% Cu. The minimum width for an intersection is
0.2m.
* Where aggregate intercepts incorporate short lengths
of high grade results and longer lengths of low grade * Cu grades used for calculating significant
results, the procedure used for such aggregation intersections are uncut.
should be stated and some typical examples of such
aggregations should be shown in detail.
* Minimum and maximum diamond core sample intervals
used for intersection calculation are 0.2m and 1.2m
* The assumptions used for any reporting of metal respectively subject to location of geological
equivalent values should be clearly stated. boundaries.
* No metal equivalents are used in the intersection
calculation.
* Where core loss occurs; the average length weighted
grade of the two adjacent samples are attributed to
the interval for the purpose of calculating the
intersection. The maximum interval of missing core
which can be incorporated with the reported
intersection is 1m.
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Relationship
between * These relationships are particularly important in the * Exploration results are reported as length weighted
mineralisation reporting of Exploration Results. averages.
widths
and intercept
lengths * If the geometry of the mineralisation with respect to * No high grade cuts have been applied to the reporting
the drill hole angle is known, its nature should be of the exploration results.
reported.
* No metal equivalent values have been used.
* If it is not known and only the down hole lengths are
reported, there should be a clear statement to this
effect (eg 'down hole length, true width not known'). * Down hole intervals have been reported. True widths
are not known.
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Diagrams
* Appropriate maps and sections (with scales) and * Relevant diagrams and maps have been included in the
tabulations of intercepts should be included for any main body of the release.
significant discovery being reported These should
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views.
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Balanced * All results have been reported.
reporting * Where comprehensive reporting of all Exploration
Results is not practicable, representative reporting
of both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Other
substantive * Other exploration data, if meaningful and material, * The interpretation of the results at Maqail South and
exploration should be reported including (but not limited to): Mahab 4 are consistent with the observations and
data geological observations; geophysical survey results; information obtained from historical data collected.
geochemical survey results; bulk samples - size and
method of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Further
work * The nature and scale of planned further work (eg * No further drilling is planned for Mahab 4 or Maqail
tests for lateral extensions or depth extensions or South. Recent results will be incorporated into an
large-scale step-out drilling). updated mineral resource estimate.
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
--------------- --------------------------------------------------------------- ------------------------------------------------------------
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)
Criteria JORC Code explanation Commentary
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Database
integrity * Measures taken to ensure that data has not been * Data collected at Mahab 4 and Maqail South is stored
corrupted by, for example, transcription or keying in an Microsoft Access database that is maintained by
errors, between its initial collection and its use Savannah Resources. Data is loaded via fixed format
for Mineral Resource estimation purposes. templates that are populated by site geologists.
* Data validation procedures used. * Data is validated by visual inspection and data base
queries to check integrity of hole depths against
spatial information.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Site visits
* Comment on any site visits undertaken by the * Numerous site visits have been completed by Mr Dale
Competent Person and the outcome of those visits. Ferguson in 2014-2016. At the visits the geological
setting was reviewed with basic mapping completed.
* If no site visits have been undertaken indicate why
this is the case. * Location of drill collars have been validated by
visual inspection and the use of a GPS.
* Visual inspection and re-logging of core have been
completed for the majority of holes.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Geological
interpretation * Confidence in (or conversely, the uncertainty of) the * Good confidence exists for the geological
geological interpretation of the mineral deposit. interpretation of deposit. Detailed logging and
mapping has been completed for the area, which
supports the interpretation.
* Nature of the data used and of any assumptions made.
* The geological model is based on geological logging
* The effect, if any, of alternative interpretations on from diamond core drilling and from surface
Mineral Resource estimation. geological mapping. The geological model is well
established for the formation of VMS mineralisation
in the region.
* The use of geology in guiding and controlling Mineral
Resource estimation.
* Mineralisation occurs on the contact between the
Geotimes and Lasail basalts and the position of this
* The factors affecting continuity both of grade and contact has been used to guide the location of the
geology. mineralisation.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Dimensions
* The extent and variability of the Mineral Resource * Mahab 4 is a steeply dipping lens of massive sulphide
expressed as length (along strike or otherwise), plan that is 300m long and 10-30m wide with a dip extent
width, and depth below surface to the upper and lower of 100m. Mineralisation is located from surface to a
limits of the Mineral Resource. depth of 200m
* Maqail South is a shallow dipping lens of massive
sulphide that is 100m long and 100m wide and a
thickness of 1-20m. Mineralisation is located 40m
below surface to a depth of 80m
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Estimation
and modelling * The nature and appropriateness of the estimation * A resource estimate is not relevant to this
techniques technique(s) applied and key assumptions, including announcement
treatment of extreme grade values, domaining,
interpolation parameters and maximum distance of
extrapolation from data points. If a computer
assisted estimation method was chosen include a
description of computer software and parameters used.
* The availability of check estimates, previous
estimates and/or mine production records and whether
the Mineral Resource estimate takes appropriate
account of such data.
* The assumptions made regarding recovery of
by-products.
* Estimation of deleterious elements or other non-grade
variables of economic significance (eg sulphur for
acid mine drainage characterisation).
* In the case of block model interpolation, the block
size in relation to the average sample spacing and
the search employed.
* Any assumptions behind modelling of selective mining
units.
* Any assumptions about correlation between variables.
* Description of how the geological interpretation was
used to control the resource estimates.
* Discussion of basis for using or not using grade
cutting or capping.
* The process of validation, the checking process used,
the comparison of model data to drill hole data, and
use of reconciliation data if available.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Moisture
* Whether the tonnages are estimated on a dry basis or * Moisture is not relevant to this announcement
with natural moisture, and the method of
determination of the moisture content.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Cut-off * See details in Section 4
parameters * The basis of the adopted cut-off grade(s) or quality
parameters applied.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Mining * See details in Section 4
factors * Assumptions made regarding possible mining methods,
or assumptions minimum mining dimensions and internal (or, if
applicable, external) mining dilution. It is always
necessary as part of the process of determining
reasonable prospects for eventual economic extraction
to consider potential mining methods, but the
assumptions made regarding mining methods and
parameters when estimating Mineral Resources may not
always be rigorous. Where this is the case, this
should be reported with an explanation of the basis
of the mining assumptions made.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Metallurgical * See details in Section 4
factors * The basis for assumptions or predictions regarding
or assumptions metallurgical amenability. It is always necessary as
part of the process of determining reasonable
prospects for eventual economic extraction to
consider potential metallurgical methods, but the
assumptions regarding metallurgical treatment
processes and parameters made when reporting Mineral
Resources may not always be rigorous. Where this is
the case, this should be reported with an explanation
of the basis of the metallurgical assumptions made.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Environmen-tal * See details in Section 4
factors * Assumptions made regarding possible waste and process
or assumptions residue disposal options. It is always necessary as
part of the process of determining reasonable
prospects for eventual economic extraction to
consider the potential environmental impacts of the
mining and processing operation. While at this stage
the determination of potential environmental impacts,
particularly for a greenfields project, may not
always be well advanced, the status of early
consideration of these potential environmental
impacts should be reported. Where these aspects have
not been considered this should be reported with an
explanation of the environmental assumptions made.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Bulk density
* Whether assumed or determined. If assumed, the basis * Bulk density has been estimated from density
for the assumptions. If determined, the method used, measurements carried out on drill core.
whether wet or dry, the frequency of the measurements
,
the nature, size and representativeness of the * The Archimedes Principle has been used to measure the
samples. bulk density of material. All measurements have been
taken on fresh competent rock material only
* The bulk density for bulk material must have been
measured by methods that adequately account for void
spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within
the deposit.
* Discuss assumptions for bulk density estimates used
in the evaluation process of the different materials.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Classification
* The basis for the classification of the Mineral * Resource Classification is not relevant to this
Resources into varying confidence categories. announcement
* Whether appropriate account has been taken of all
relevant factors (ie relative confidence in
tonnage/grade estimations, reliability of input data,
confidence in continuity of geology and metal values,
quality, quantity and distribution of the data).
* Whether the result appropriately reflects the
Competent Person's view of the deposit.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Audits * N/A
or reviews * The results of any audits or reviews of Mineral
Resource estimates.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Discussion * N/A
of relative * Where appropriate a statement of the relative
accuracy/ accuracy and confidence level in the Mineral Resource
confidence estimate using an approach or procedure deemed
appropriate by the Competent Person. For example, the
application of statistical or geostatistical
procedures to quantify the relative accuracy of the
resource within stated confidence limits, or, if such
an approach is not deemed appropriate, a qualitative
discussion of the factors that could affect the
relative accuracy and confidence of the estimate.
* The statement should specify whether it relates to
global or local estimates, and, if local, state the
relevant tonnages, which should be relevant to
technical and economic evaluation. Documentation
should include assumptions made and the procedures
used.
* These statements of relative accuracy and confidence
of the estimate should be compared with production
data, where available.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Section 4 Estimation and Reporting of Ore Reserves
(Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.)
Criteria JORC Code explanation Commentary
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Mineral
Resource * Description of the Mineral Resource estimate used as * A mineral resource estimate is not relevant to this
estimate a basis for the conversion to an Ore Reserve. announcement
for conversion
to Ore
Reserves * Clear statement as to whether the Mineral Resources
are reported additional to, or inclusive of, the Ore
Reserves.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Site visits
* Comment on any site visits undertaken by the * A site visit is not relevant to this announcement
Competent Person and the outcome of those visits.
* If no site visits have been undertaken indicate why
this is the case.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Study
status * The type and level of study undertaken to enable * The metallurgical testing completed in this
Mineral Resources to be converted to Ore announcement is part of an ongoing Pre-Feasibility
Study that will be used to support an Ore Reserve
estimate at a future date.
* Reserves.
* The Code requires that a study to at least
Pre-Feasibility Study level has been undertaken to
convert Mineral Resources to Ore Reserves. Such
studies will have been carried out and will have
determined a mine plan that is technically achievable
and economically viable, and that material Modifying
Factors have been considered.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Cut-off
parameters * The basis of the cut-off grade(s) or quality * The material selected for testing is considered to
parameters applied. represent the typical grade and physical properties
of material expected to be mined based on previous
scoping studies.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Mining
factors * The method and assumptions used as reported in the * Mining factors are not relevant to this announcement.
or assumptions Pre-Feasibility or Feasibility Study to convert the
Mineral Resource to an Ore Reserve (i.e. either by
application of appropriate factors by optimisation or
by preliminary or detailed design).
* The choice, nature and appropriateness of the
selected mining method(s) and other mining parameters
including associated design issues such as pre-strip,
access, etc.
* The assumptions made regarding geotechnical
parameters (eg pit slopes, stope sizes, etc), grade
control and pre-production drilling.
* The major assumptions made and Mineral Resource model
used for pit and stope optimisation (if appropriate).
* The mining dilution factors used.
* The mining recovery factors used.
* Any minimum mining widths used.
* The manner in which Inferred Mineral Resources are
utilised in mining studies and the sensitivity of the
outcome to their inclusion.
* The infrastructure requirements of the selected
mining methods.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Metallurgical
factors * The metallurgical process proposed and the * Amenability to metallurgical treatment and upgrade is
or assumptions appropriateness of that process to the style of the focus of a detailed metallurgical testwork
mineralisation. program including comminution and flotation flowsheet
development testing, which has been applied to
representative Master and Variability Composites.
* Whether the metallurgical process is well-tested Testing procedures follow standard industry processes
technology or novel in nature. and technologies which are used for the recovery of
metals in VMS mineralisation.
* The nature, amount and representativeness of
metallurgical test work undertaken, the nature of the * Future comminution circuit design is supported by
metallurgical domaining applied and the corresponding recognised test methodologies providing test data as
metallurgical recovery factors applied. criteria for crushing and milling circuit design.
* Any assumptions or allowances made for deleterious * Copper grade recovery response has been established
elements. based on batch flotation optimisation testing applied
across a range of primary and regrind sizes, reagent
types, dosages and head sample sources and grades.
* The existence of any bulk sample or pilot scale test
work and the degree to which such samples are
considered representative of the orebody as a whole. * Amenability to treatment and upgrade has been
assessed following batch test optimisation based on
locked cycle flotation testing, including
* For minerals that are defined by a specification, has recirculation of recycle streams and applied to
the ore reserve estimation been based on the representative Master and Variability Composites.
appropriate mineralogy to meet the specifications?
* Metallurgical testwork reporting will include
conclusions supported by physical test data and
recommendations regarding any remaining testwork to
support preparation of engineering design criteria.
* The amount and distribution of the testing has been
selected on the size and characteristics of the
geological domains identified in scoping study
evaluations.
* Assessment of the quantities of typical deleterious
elements have been made as part of the testing
programs. No elevated levels of deleterious elements
have been identified.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Environmen-tal
* The status of studies of potential environmental * Metallurgical evaluation and study includes the
impacts of the mining and processing operation. performance of separate concentrate and tailings
Details of waste rock characterisation and the thickening and filtration properties based on
consideration of potential sites, status of design representative products derived at locked cycle
options considered and, where applicable, the status level.
of approvals for process residue storage and waste
dumps should be reported.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Infrastructure
* The existence of appropriate infrastructure: * Preliminary studies have been conducted to the
availability of land for plant development, power, existence of appropriate infrastructure required for
water, transportation (particularly for bulk a process plant development. Required power, water,
commodities), labour, accommodation; or the ease with labour, transport and suitable land is available in
which the infrastructure can be provided, or the project area for the likely development.
accessed.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Costs
* The derivation of, or assumptions made, regarding * No cost assumptions have been made as part of the
projected capital costs in the study. metallurgical test program.
* The methodology used to estimate operating costs.
* Allowances made for the content of deleterious
elements.
* The derivation of assumptions made of metal or
commodity price(s), for the principal minerals and
co- products.
* The source of exchange rates used in the study.
* Derivation of transportation charges.
* The basis for forecasting or source of treatment and
refining charges, penalties for failure to meet
specification, etc.
* The allowances made for royalties payable, both
Government and private.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Revenue
factors * The derivation of, or assumptions made regarding * Revenue factors are not relevant to this announcement
revenue factors including head grade, metal or
commodity price(s) exchange rates, transportation and
treatment charges, penalties, net smelter returns,
etc.
* The derivation of assumptions made of metal or
commodity price(s), for the principal metals,
minerals and co-products.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Market
assessment * The demand, supply and stock situation for the * Preliminary evaluations have been made at a scoping
particular commodity, consumption trends and factors study level to assess the future demand and supply
likely to affect supply and demand into the future. trends for copper concentrate.
* A customer and competitor analysis along with the * Preliminarily discussions have been held with
identification of likely market windows for the potential customers for the sale of copper
product. concentrate.
* Price and volume forecasts and the basis for these
forecasts.
* For industrial minerals, the customer specification,
testing and acceptance requirements prior to a supply
contract.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Economic
* The inputs to the economic analysis to produce the * Detailed economic analysis is not relevant to this
net present value (NPV) in the study, the source and announcement
confidence of these economic inputs including
estimated inflation, discount rate, etc.
* NPV ranges and sensitivity to variations in the
significant assumptions and inputs.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Social
* The status of agreements with key stakeholders and * Savannah and its joint venture partners are in
matters leading to social licence to operate. regular discussions with key stakeholders including
government agencies and local communities on the
development of this projects.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Other
* To the extent relevant, the impact of the following * No other matters are relevant to this announcement
on the project and/or on the estimation and
classification of the Ore Reserves:
* Any identified material naturally occurring risks.
* The status of material legal agreements and marketing
arrangements.
* The status of governmental agreements and approvals
critical to the viability of the project, such as
mineral tenement status, and government and statutory
approvals. There must be reasonable grounds to expect
that all necessary Government approvals will be
received within the timeframes anticipated in the
Pre-Feasibility or Feasibility study. Highlight and
discuss the materiality of any unresolved matter that
is dependent on a third party on which extraction of
the reserve is contingent.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Classification
* The basis for the classification of the Ore Reserves * Ore reserve classification is not relevant to this
into varying confidence categories. announcement
* Whether the result appropriately reflects the
Competent Person's view of the deposit.
* The proportion of Probable Ore Reserves that have
been derived from Measured Mineral Resources (if
any).
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Audits * N/A
or reviews * The results of any audits or reviews of Ore Reserve
estimates.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
Discussion * N/A
of relative * Where appropriate a statement of the relative
accuracy/ accuracy and confidence level in the Ore Reserve
confidence estimate using an approach or procedure deemed
appropriate by the Competent Person. For example, the
application of statistical or geostatistical
procedures to quantify the relative accuracy of the
reserve within stated confidence limits, or, if such
an approach is not deemed appropriate, a qualitative
discussion of the factors which could affect the
relative accuracy and confidence of the estimate.
* The statement should specify whether it relates to
global or local estimates, and, if local, state the
relevant tonnages, which should be relevant to
technical and economic evaluation. Documentation
should include assumptions made and the procedures
used.
* Accuracy and confidence discussions should extend to
specific discussions of any applied Modifying Factors
that may have a material impact on Ore Reserve
viability, or for which there are remaining areas of
uncertainty at the current study stage.
* It is recognised that this may not be possible or
appropriate in all circumstances. These statements of
relative accuracy and confidence of the estimate
should be compared with production data, where
available.
--------------- ------------------------------------------------------------ ------------------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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February 06, 2017 02:00 ET (07:00 GMT)
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