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 it has completed the historical drilling data compilation and Exploration Target estimates for the Block 4 and Block 5 permits in Oman. Savannah owns a 65% shareholding in Al Fairuz Mining, the owner of the Block 5 permit and is earning a 65% shareholding in Al Thuraya LLC, the owner of Block 4, through agreed expenditure milestones. The historical database comprises 783 drill holes totally 102,692m over a number of high priority prospects on Blocks 4 and 5. Based on the historical drill data, previous JORC-compliant resource estimates, mineralisation from current drill programme as well as supporting topographical, geochemical and geophysical data, Savannah has compiled a series of Exploration Targets. On aggregate, these high priority Exploration Targets have a non-compliant resource estimate ranging from 10.7Mt to 29.3Mt grading between 1.4% and 2.4% Cu and between 0.2 and 0.4g/t Au.
Beaufort Securities view on Savannah Resources: Whilst the above resource estimate is conceptual in nature and non-JORC compliant we are confident with the potential for continued copper mineralisation on Blocks 4 and 5 given initial results compiled from previous and current drill hole data. The above results confirm the mineralisation potential from both Blocks 4 and 5 and the potential for a central processing hub and spoke strategy for development of satellite deposits. We look forward to continued development and a JORC-compliant resource estimate from the Exploration Targets on Blocks 4 and 5. In the meantime, we maintain a Speculative Buy rating on the stock.
Beaufort Securities acts as corporate broker to Savannah Resources plc
