TIDMSAV
RNS Number : 6592V
Savannah Resources PLC
01 February 2017
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector:
Mining
1 February 2017
Savannah Resources Plc
Ravene Drilling Programme Completed at Mutamba Project,
Mozambique
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'),
announces that it has completed drilling at the Ravene deposit in
Mozambique (Figures 1-3 - See PDF), 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/6592V_-2017-1-31.pdf
HIGHLIGHTS:
-- Completed a total of 107 drill holes for a total of 2,914m at
the Ravene deposit over a 21km strike of potentially mineralised
sand dunes
-- Targeted high-grade zones where past drilling has returned
results of up to 14.7% Total Heavy Minerals ('THM')
-- Drilling was carried out on a 1,000m x 500m grid to infill
existing drilling carried out by Rio Tinto previously
-- Results will be used to estimate an initial inferred resource
over the Ravene prospect to potentially increase the Mutamba
Project's recently defined initial Indicated and Inferred Mineral
Resource Estimate of 3.5 billion tonnes at 3.8% THM
-- All samples from the drilling are currently being analysed
for their heavy mineral concentration
-- The analysis is expected to be completed in February with results available thereafter
-- The results of the resource estimation will be fast tracked
and included into the commissioned scoping study, which is
currently underway
Savannah's CEO, David Archer said: "The completion of this
fast-paced resource definition drilling programme highlights the
capabilities of Savannah's in-country operations team. The
programme was planned to 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. We
look forward to receiving the drill results in the coming weeks,
which we intend to include in our scoping study for the project,
which is underway and continues to progress well."
Introduction
The Ravene deposit is part of the Mutamba Project and is
situated to the northeast of the Dongane deposit as outlined by
previous drilling, and is located on the same system of sand dunes
that host the high concentrations of heavy minerals at Dongane. The
Ravene deposit is relatively under-evaluated and indications
suggest that it has the potential to host significant zones of
high-grade heavy minerals, with previous drilling by Rio Tinto
highlighting specific zones of significant heavy minerals with
values up to 14.7% THM, carried out on a 1,000m x 500m grid. This
1km spacing of the drill lines is considered too wide to provide
enough confidence for an inferred resource estimation.
The aim of the drilling at Ravene was to infill the original
grid on a 500m line spacing to provide drilling information at a
concentration of 500m x 500m. The results from this programme will
be used to as the basis for an anticipated maiden Mineral Resource
Estimate at Ravene, which will feed into the scoping study that is
currently underway.
The Mutamba Project is subject to a consortium agreement between
Savannah and Rio Tinto and is operated by Savannah. The Mutamba
Project includes the Mutamba Project North (consisting of Jangamo,
Dongane and Ravene deposits) and the Chilubane deposit is located
180km to the southwest of the Mutamba Project North. The current
resource statement includes only the Jangamo and Dongane deposits
(Figure 1 - See PDF).
Figure 1. Mutamba Project Location Map - See PDF
Figure 2. Mutamba North Project Location Map - See PDF
Ravene Drill Programme
The mineralisation at Ravene is found within an extensive set of
dunes that NE-SW and are found along the entire extent of the
Ravene tenement arm. The drilling at Ravene (Figure 3 - See PDF)
was carried out over a 21km extent of these mineralised dunes, and
is targeting specific zones of high-grade mineralisation to add to
the significant resources already outlined at Dongane and Jangamo.
Previous drilling intersected several zones with high
concentrations of heavy minerals with grades of up to 14.7% THM.
Other zones of greater than 10% THM were seen in 14 other drill
holes.
Drilling at Ravene started during the middle of December 2016,
targeting the mineralised dunes outlined by the previous drilling.
The area drilled is split into two zones, consisting of a northern
and southern zone, separated by a large blow-out of recent dune
cover. The programme was completed in January 2017, with 107 holes
drilled for a total of 2,914m. Samples from the drilling have been
submitted for analysis to determine the concentration of heavy
minerals in each sample interval. All of the samples are currently
in the laboratory and it is expected that the final results will be
available for the resource estimation in February 2017.
Figure 3. Map of the Ravene prospect area with Savannah's
completed drilling (blue) and existing drilling (black) - See
PDF
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 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).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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