Savannah Completes Drilling in Oman

PUBLISHED: 12 Jan 2016 @ 20:39 | Comments (0) |

Drilling Completed in Oman

Savannah Resources (AIM:SAV), advises that it has completed its initial reverse circulation and diamond drilling programme over Blocks 4 and 5 in Oman, which are prospective for both copper and gold. Savannah is earning a 65% shareholding in the Omani company, Al Thuraya LLC, the owner of the Block 4 licence and holds a 65% interest in Al Fairuz Mining, the holder of the Block 5 licence.

HIGHLIGHTS:

· Block 4 and 5 RC/diamond drilling programme completed on 30 December 2015
· A total of 16 holes for 1,766.85m were completed (Table 1)

o RC drilling: 10 holes for 933m
o Diamond drilling: 6 holes for 833.85m

· Results received to date for 9 holes include:

o 9m at 4.86% copper, 1.54% zinc, 1.3g/t gold and 37.3g/t silver
o 6.6m at 6.92% copper, 5.6% zinc, 0.3g/t gold and 23.8g/t silver

· Results have expanded the high-grade (>5% copper) portion of the Mahab 4 deposit in Block 5, with drilling targeting further expansions continuing
· Remaining 7 holes expected by the end of January 2016
· Strategy to achieve high-grade, low cost copper concentrate production in late 2017 with additional gold upside

David Archer, Savannah’s Chief Executive Officer said today “We are very pleased to have completed our drilling programme. The results reported from the first part of the drilling programme have been very encouraging and point towards the expansion of the existing resource base of 1.5Mt at 2.1% copper within our Block 4 and 5 projects. Importantly, the results also support our strategy of commencing high-grade, low cost copper production within 24 months, with additional gold upside opportunity. We look forward to updating the market on the results of the remaining 7 holes later this month.”

DETAILS OF DRILLING PROGRAMME

A total of 16 drill holes were completed targeting a series of exploration and resource expansion/confirmation opportunities. A brief summary of the targets tested is provided below.

Resource Expansion/Confirmation Targets

Mahab 4, Block 5: Down dip and strike extensions of the high grade >5% copper zone were targeted.

Dog’s Bone, Block 4: Confirmation holes targeting the Dog’s Bone Zone of the Aarja deposit to confirm its presence as a precursor to a resource calculation.

Dog’s Bone Gossan, Block 4: Resource expansion holes targeted at expanding the Dog’s Bone Resource to surface and evaluating it for a potential open pit mining opportunity.

Exploration Targets

Gaddamah. Block 4: Drilling targeted a gold rich zone associated with a late stage shear zone.

VTEM 4 (Aarja) and VTEM 13 (Zuha North), Block 4: Testing of two high priority VTEM targets for the presence of VMS mineralisation.

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