Savannah Resources, the diversified mining group focused on exploration and development of mineral sands in Mozambique and copper-gold projects in Oman, announced today that drilling is underway on the high-grade copper zones identified around the Mahab 4 deposit on the Block 5 permit in Oman. Savannah owns a 65% shareholding in Al Fairuz Mining, the owner of the Block 5 permit. The diamond drill programme is testing for continuity of high-grade copper mineralisation in both up-dip and down-dip extensions from the high-grade (>5% Cu) core of the Mahab 4 deposit. Previous drill result returned 54.86m grading 6.32% Cu (in B5MB4D071 from 63m), 51.58m grading 5.17% Cu (in GRB5D035 from 44m), 20.06m grading 5.62% Cu (in GRB5D032 from 67m) and 20.4m grading at 5.49% Cu (in GRB5D047 from 99m). The current mineral resource estimate at Mahab 4 is 1.5Mt grading 2.1% Cu containing 30,150t of copper. A total of four drill holes are planned approximately 20m from previously intercepted mineralisation to test for continuity above and below the known high-grade core.
Beaufort Securities view on Savannah Resources: We are encouraged with the potential for continued high-grade copper mineralisation at Mahab 4 and expect an increase the current resource estimate once drilling and assay results are completed. Savannah now has two drill programmes underway and we look forward to positive drill results from Mahab 4 as well as the new VTEM targets and historical copper targets around the Aarja prospect in Block 4 permit area. In the meantime, we maintain a Speculative Buy rating on the stock.
Beaufort Securities acts as corporate broker to Savannah Resources.
