TIDMSAV
RNS Number : 6297R
Savannah Resources PLC
13 December 2016
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector:
Mining
13 December 2016
Savannah Resources Plc
Ravene Drilling Programme Underway at Mutamba Project,
Mozambique
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'),
announces that it has commenced drilling at the Ravene deposit in
Mozambique (Figures 1-2), which forms part of the Mutamba (mineral
sands) Project, being developed by Savannah and Rio Tinto as part
of a consortium agreement (the 'Consortium'). To view the press
release with the illustrative maps and diagrams please use the
following link:
http://www.rns-pdf.londonstockexchange.com/rns/6297R_-2016-12-12.pdf
HIGHLIGHTS:
-- Auger drill programme is nearing completion at the Ravene
deposit, targeting high-grade zones where past drilling has
returned results of up to 14.7% Total Heavy Minerals ('THM')
-- Follow up RC drill programme is also underway with
approximately 88 drill holes for 3,500m of exploratory drilling and
is expected to be completed in January 2017
-- The aim of this drilling programme is to infill an existing
1,000m x 500m grid to give enough confidence to complete an
Inferred Mineral Resource estimation
-- Work being fast tracked so Ravene can be considered as part of a scoping study
Savannah's CEO, David Archer said: "Our resource definition
drilling will more precisely define the high-grade zones of THM at
the Ravene deposit, which we believe could increase the current
global Indicated and Inferred Mineral Resource inventory of 3.5
billion tonnes at 3.8% THM at the Mutamba Project North."
Introduction
Previously referred to as the Mutamba/Jangamo Project, the
Mutamba Project comprises the Jangamo, Dongane and Ravene deposits
(the "Mutamba Project North") in the province of Inhambane and the
Chilubane deposit located near Xai Xai, 180km to the south west of
the Mutamba Project North (Figure 1). There is an initial Indicated
and Inferred Mineral Resource Estimate of 3.5 billion tonnes at
3.8% THM covering the Dongane and Jangamo only (including the 65Mt
at 4.2% THM announced by Savannah in December 2014). Savannah holds
a 10% interest in the Mutamba Project with the right to earn up to
51%, subject to key milestones being met. The Mutamba project is
subject to a consortium agreement between Savannah and Rio Tinto
and is operated by Savannah.
Figure 1. Mutamba Project Location Map
Note: The Mutamba Project includes the Mutamba Project North
(consisting of Jangamo, Dongane and Ravene deposits) and the
Chilubane deposit is located 180km to the south west of the Mutamba
Project North. The current resource statement includes only the
Jangamo and Dongane deposits.
*It is important to note that the above table is a summary of
Exploration Targets and the potential quantity and grade is
conceptual in nature, there has been insufficient exploration to
estimate a Mineral Resource and it is uncertain if further
exploration will result in the estimation of a Mineral
Resource.
Figure 2. Mutamba North Project Location Map
Ravene Auger Sampling Programme
The Ravene deposit is a key target, is relatively under explored
and indications suggest that it potentially hosts significant zones
of high-grade heavy minerals (up to 14.7% THM), and has been
subject to only wide spaced drilling to date. The focus of
Savannah's exploration will be to further define the high-grade
zones, with reasonable confidence (minimum of Inferred Resource),
so that a scoping study to assess the viability of the deposit can
be carried out. To fast track this work, a reconnaissance auger
sampling programme is being carried out over the prospective dunes
in an area that has been delineated to contain high-grade THM
(Figure 3). This will entail a detailed grid based sampling
programme, which will be carried out with 400m x 400m sample
spacing and will be north-south oriented (Figure 3). Areas where
high-grade mineralisation is confirmed via the auger sampling will
then being the subject of RC drilling (Figure 4) to tighten up the
drill spacing to the point where an Inferred Resource can be
estimated.
Figure 3. Heavy mineral grade distribution for the Ravene
deposit
Ravene Drill Programme
An infill RC drill programme is underway at the Ravene Deposit,
with a total of 3,500m of exploratory drilling to be completed from
88 holes (Figure 4). The aim is to infill an existing 1,000m x 500m
grid to give enough confidence to complete an Inferred Mineral
Resource estimation. The drilling will concentrate on delineating
high-grade heavy minerals that has been outlined from previous
drilling carried out by Rio Tinto where results up to 14.7% THM
were reported. The drill programme is expected to take
approximately a month to complete.
Figure 4. Map of the Ravene deposit area with existing drill
holes in black and proposed drill holes in red
Competent Person
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.
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.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**ENDS**
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 by the Finnish
Government within the project areas has highlighted the presence of
lithium minerals spodumene, lepidolite and petalite with the
Government also identifying Somero and Erajarvi as one of the most
prospective areas to discover lithium deposits in Finland. Savannah
plans to initiate an exploration programme including data
compilation, geological mapping and surface sampling with the aim
of generating drill ready targets during 2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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