Savannah Resources Share Discussion Threads

[ged5] 24/2/2017 13:20

"Although El Soldado is a small mine by Chilean mining standards, its eventual stoppage could make a difference in the market, especially now when the two largest copper deposits in the world, Escondida in Chile and Grasberg in Indonesia, are facing tough challenges."

hxxp://www.e-mj.com/news/leading-deveopments/6728-without-approval-of-redesign-anglo-american-may-suspend-el-soldado-mine.html#.WLAxpfKQDeo

So many problems with Chile and Indonesia which look like bringing about higher copper prices.

[ged5] 24/2/2017 11:58

Not sure I agree with the last bit, Bronco but it has become more important in terms of size.

Finance
£390K was used in almost 2 months. They now have 3.02M expected to increase to 4.03M so they should have enough for approximately 10 months pro rata. I can’t see this sensible management going down to the wire so I expect a placing early Autumn unless an opportunity arises.

So what can we expect in the meantime?

From today’s RNS

Ravene Scoping Study

Mineral sands industry expert TZ Minerals International ('TZMI') has been commissioned to conduct the study, with completion expected by the end of Q1 / early Q2 2017.

Environmental studies for, respectively, the Mutamba Project North and Chilubane deposit expected to be finalised by the end of Q1 / early Q2 2017.

Then pre-feasibility and feasibility studies, commission a pilot plant, proof-of-concept bulk sampling programme, determine commercially viable processing routes and commence mine construction, which is targeted to commence in 2018..

Copper

Block 5 updated Mineral Resource estimate in Q1 2017..

Then feasibility studies and ultimately Ore Reserves.
Mining targeted to commence in late 2017.

Produce first copper concentrate in 2018.

Environmental Impact Assessment ('EIA'). finalisation of the EIA is expected in Q2 2017.

Results from additional test work is also underway to further refine the recovery process and try to improve the overall copper concentrate grades. No time scale given.

The results of a high-powered ground electromagnetic ('EM') survey commenced at Lasail and Bayda are expected in Q1 2017.

Finland

Follow up work (to previous drilling) is now being planned for Q1 / early Q2 2017.

So much in FOUR months some of it in 5 weeks! Haven't this management got a record of delivering on time?

[broncowarrior] 24/2/2017 08:16

Decent no nonsense update there. Scoping study should increase book value further, sounds like it is nearly done. Should mean a chance of the feasibility studies being done this year all being well. Mineral sands seems to be pushing ahead of copper in the race to production now...

[broncowarrior] 23/2/2017 14:26

Just tucked into a few more.

[inbrackets] 22/2/2017 12:57

Yorkie, Al Ma have 2/4 directors on the board and would not be able to trade their shares during the closed period. This period is for about 2 months up until the publication of the final accounts and is not necessarily based on any other news that is set to land as far as SAV is concerned.As Ged rightly reminds, there was a placing last year prior to notification of the AGM, and it leaves the company going into the expected news season, with a full bank account. This will mean that any positive news that does land will be seen as positive news and for what it is rather than an attempt to ramp prior to a placing.Al Ma had already stated that they wanted to maintain their shareholding at the max. Remy must have decided that this was the best place for his bonus as he has increased his holding again. All in all, we should be happy.

[ged5] 22/2/2017 12:54

Indeed yorkie!

We've been told often enough. December presentation, Oman presentation, Indaba interviews. We know good news is about to break. It's only the results that bring about a closed period.

[yorkie14] 22/2/2017 12:44

Ged,
this indicates to me that news is coming with this closed period coming to an end to allow Al Marjan in for placement shares.
Must be good news coming because would you retain your holding if not?
GLA

[ged5] 22/2/2017 12:34

Last year

15-2-16 Cash Placing of £1.75 million

18-2-16 Final Results and Notice of AGM

22-2-16 Oman Copper Gold - Project Update

Closed period clarification:-

Issue 4 of Inside AIM considered the close period rule and confirmed the Exchange’s interpretation of this rule as being the period of two months preceding the publication of an issuer’s annual accounts in accordance with Rule 19 (ie when the accounts are published and sent to shareholders). They confirmed the general position that a close period ends when full compliance with Rule 19 has taken place.

Alternatively, for issuers making use of the electronic communications provisions to send accounts to shareholders, if a Nomad is satisfied that an issuer has uploaded its annual accounts on to its website in accordance with Rule 26 and this fact and the key information in those accounts has been notified to the market, then the Nomad can consider the close period ended.

This has raised the question of when the close period rule begins if an issuer publishes a preliminary statement of its results (prelims), as is often the case. AIM Regulation has verbally confirmed that, if an issuer wishes to produce prelims, the close period will begin two months prior to publication of the prelims. However, the Nomad will need to write to AIM Regulation and obtain its approval for the two month period to close on publication of the prelims.

AIM Regulation has said that this will not always be the case, eg if the prelims are unaudited or if they do not reflect closely enough the full accounts to close off the close period. However, if an issuer follows Listing Rule 9.7A.1 (preliminary statement of annual results) as a benchmark, one would hope that this would satisfy the Exchange’s requirements.

Look at the chart since then. If the format works - why change it?

[broncowarrior] 22/2/2017 09:36

On the targets people get muddled up with SAVP...no one has an 80p target on our SAV (yet).

[ged5] 22/2/2017 09:12

Where do they find these people?

hxxp://www.proactiveinvestors.co.uk/companies/news/173520/savannah-resources-fund-raise-backed-by-major-shareholder-173520.html

Philip Whiterow it's MOZAMBIQUE

stephens on the other board - previous placing price 3.5p

Daily Quint and other US sites giving target prices are for entertainment only. Northland Securities - really?

I must get up today - things are annoying me!

[broncowarrior] 22/2/2017 08:12

Agree that proving up the Finland resource and then farming a major player in is a good move.

[ged5] 22/2/2017 07:50

I don't really consider this to be news, although I had hoped for it to be at a higher price.

Shares gone into supportive hands and at least the warrants are at a premium.

Maybe a slight drag on the share price for a week or so then the news starts.

Agree IB! Zimbabwe is on the ever growing list of countries where I wouldn't invest.

[broncowarrior] 22/2/2017 07:15

Placing but at a reasonable price. Oversubscribed which is good.

[inbrackets] 21/2/2017 10:52

Yes, methinks you need to be a brave bunny to take the added political risk in Zimbabwe. See that Bacanora have taken. 50% stake in revitalising a lithium mine in Germany.The point I seem to be garnering is that whilst lithium in some form or another is readily available, not all available resource will be any where near economical to take through to mining, unless the demand outstrips supply and price acts as the adjuster. Do wonder if after getting the Finland site up to speed, ie understanding the potential, whether it would be flipped into a relatively hot market, possibly with some sort of trail fee, on the basis that not many Christmas trees are sold in January, even in Finland.

[seagullsslimjim] 21/2/2017 10:36

Things looking rosy today and laying the foundations for the Spring push to 8p with the expected newsflow

[ged5] 20/2/2017 13:18

Did you find the PDF file on Processing of a Zimbabwean petalite to obtain lithium carbonate? It mentions average percentages of 4.1% Lithium Oxide which ties in with LedZep's linked article on petalite.

Slow going this morning. I wouldn't be surprised with a tick down today with a movement up later in the week.

I've revised my hunch to news next week rather than this one.

Guess what happened as I was typing?

[inbrackets] 19/2/2017 19:43

Ged5, good find on the Finland details. Will look to read through the 'heavy stuff' this evening at some stage.Would seem to be preparing itself for a push up, which is always good.

[ged5] 19/2/2017 14:38

Thanks BW!

Worth reading further in that link. Shows how far we have to go before production there.

Didn't get to listen to this earlier in the week. From Tuesday:-

hxxp://www.proactiveinvestors.co.uk/companies/stocktube/6913/mozambique-mineral-sands-project-clearly-a-globally-significant-deposit-says-savannah-ceo-6913.html

Potential by-product of Zinc in Oman
Significant global resource in Mozambique. Rising prices of ilmenite.

[broncowarrior] 19/2/2017 13:27

Great research Ged. Once we get some cash flowing going from Oman DA can really put his foot on the gas wth that project.

[ged5] 19/2/2017 12:46

That seems about right SJ.
Indeed BW

I was checking through recent announcements to remind myself of the news to expect in the coming months and got stuck looking at the least likely prospect to produce the next news.

22nd December RNS

DA wrote this:-

"I look forward to providing further updates on our exploration programme in the New Year as we continue to prove up the resource potential of these assets."

Reading through the rest of the RNS I realised that I had misunderstood the prospects in Finland. Previously I thought it was spodumene and when I originally read the RNS didn't realise petalite was different.

From the same RNS

"Two of the pegmatites sampled returned anomalous lithium results with the most significant of these being the Torkkomaki, which contains massive zones of petalite, with results returning a high-grade lithium assay result of 4.47% Li2O (Figure 3). Mapping has traced the petalite zone for over 150m which remains open along strike in both directions."

Now for anyone else like me who knows nothing about petalite:-

"The Separation Rapids deposit is one of the largest “complex-type” lithium pegmatite deposits in the world, unusual in its enrichment in the rare lithium mineral petalite. There has been only one significant petalite producer in the world, which is located in Zimbabwe.

Petalite is the preferred lithium mineral feedstock for certain specialty glass-ceramic products. The most familiar consumer applications are Corningware® cookware and Ceran® stovetops. Petalite is preferred over other lithium alternatives in glass-ceramic products for technical reasons, notably its consistently low impurity levels.
The petalite found at the Separation Rapids deposit contains very low levels of impurities, also offering potential for a high purity lithium chemical product at a relatively low-cost, to serve the needs of lithium ion re-chargeable battery manufacturers.
Growing demand for rechargeable batteries in electric vehicles and home energy storage is expected to result in continued rapid growth in global consumption of lithium. Many industry analysts are predicting that the demand for lithium will double over the next 5-10 years, creating a supply deficit, as existing producers struggle to meet the new demand."

These extracts are from:-



There's also a paper written on the extraction of Lithium from petalite from Bikita Minerals in Zimbabwe but it's heavy going.

Perhaps not the time to get excited but maybe we have something special in Finland.

[broncowarrior] 17/2/2017 17:59

Nice finish to the week.

[seagullsslimjim] 17/2/2017 11:50

Well from the main chart above - you'll see that it has bounced off the bottom of the upward trend channel that started in January 2016.

Based on that trending channel and the recent 3 months sideways movement and we should move to the 8p level in the next month.

That in turn would open up the new 8-10p channel for the summer and should be supported by the expected news flow and as we head towards the still planned end of 2017 production start up in Oman.

[ged5] 17/2/2017 09:28

Could this pattern be considered a pennant or maybe a flag. I think the pattern at 4p was a flag.

hxxp://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:flag_pennant_continuation

[ged5] 17/2/2017 09:18

First buy of the day brings the first tick up of the day.

Now 4 v 3

Bid moved up slightly to 5.9125

Really bored!