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Savannah Resources expects resource upgrade as drill results impress

Savannah is upping the tempo of its operations in Oman as the project’s resources appear to be growing through exploration drilling.

Example of drilling operations in Oman, picture from Savannah Resources website
Latest results are among the best from the project to date.

Savannah Resources Plc (LON:SAV) has gained further insights through its ongoing exploration of Blocks 4 and 5 in the Sultanate of Oman, with the latest batch of drill results returning high grade copper.

Results from six holes at the Mahab 4 area and four holes at Maqail South, in Block 5, have shown “some of the broadest and highest-grade results at the project to date”, Savannah told investors.

It highlighted that the results point to a potential expansion of the group’s current high-grade areas, which have thus far been estimated to have some 1.7mln tonnes of resources with 2.2% copper.

A new resource estimate, including these expanded areas, is expected before the end of the year, and Savannah highlighted that the deposit is still open so further upside potential remains.

David Archer, Savannah's chief executive, said: "These positive results point towards a potential expansion of the current high-grade portions of both Maqail and Mahab 4, which will build upon the soon to be published updated Mineral Resource estimate for both deposits, which is expected by the year-end. 

“With the added upside of the additional high priority targets yet to be drilled at Block 4, it is clear that the tempo of our work programmes in country are continuing to increase as we target production in late-2017 and I look forward to providing further updates along the way."

The drill programme is now complete, though work will soon start on the next programme which will target the Aarja and Bayda areas in Block 4.

Highlight results from the Mahab 4 drilling included grades of up to 10.51% copper (across 10.05 metres) and the broadest intersection spanned 67.4 metres (4.63% copper).

At Maqail South the best result had 4.42% across 5.8 metres.

The highest individual assay had just over 32% copper (in a 1 metre intersection).

Resource- focused broker SP Angel noted that while these are good looking results it was normal to drill relatively high grade mineralisation in VMS projects where they are found. 
 
Savannah has stated it wishes to fast-track its Oman projects for late 2017 copper concentrate production and the broker hopes its joint venture partners in Oman,-  Al Thuraya and Al Fairuz Mining will contribute to the capital cost of a copper concentrator and that sufficient water is available to support its operation.
 
Shares nudged 0.37% higher at 4.01p.

Quick facts: Savannah Resources PLC

Price: 2.325 GBX

AIM:SAV
Market: AIM
Market Cap: £30.17 m
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