SAVANNAH RESOURCES PLC

Regulatory Filings • Mar 13, 2015

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RNS Number : 3382H

Savannah Resources PLC

13 March 2015

Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining

13 March 2015

Savannah Resources Plc

Gold Mineralisation Identified within Block 4, Semail Ophiolite Belt, Oman

Savannah Resources plc (AIM: SAV) ('Savannah' or the 'Company') is pleased to announce that it has identified areas of gold mineralisation with associated copper mineralisation at Block 4 in Oman.  The results follow a recently completed rock chipping and geological mapping programme at Block 4.  To view the press release with the illustrative maps and diagrams please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/3382H_-2015-3-12.pdf

HIGHLIGHTS:

·    Reconnaissance mapping and rock chip sampling within Block 4 has identified a series of anomalies with high levels of gold mineralisation associated with copper mineralisation

·    Rock chip sampling produced results up to 5.7% copper and 3.7g/t gold (not from same rock sample) with a large number of the anomalous samples being returned from the Gaddamah prospect in Block 4

·    Prospectivity of Gaddamah prospect in Block 4 also highlighted by historical drill intercept of 15.9m @1.91 g/t gold and 1.2% copper from BEC23

·    Diamond drilling is underway at both the Sarami (Block 5) and Ghayth (Block 4) prospects with five of the planned 10 hole diamond drill programme completed to date. A further update on the programme will be provided in coming weeks once it has been completed.

·    Semail Ophiolite belt is proven to host clusters of relatively high grade copper deposits with gold credits and metallurgically simple ores

Savannah's CEO, David Archer said, "Work is progressing well on our Blocks 4, 5 and 6 projects with the primary focus being on VMS style copper deposits. Recent results demonstrate there are also high levels of gold anomalism present, which is highly exciting and can often be found with copper mineralisation in addition to being prospective in its own right.  We see these unexplained gold anomalies, especially Gaddamah, which is located close to the old Lasail (9.2Mt at 1.6% copper) and Lasail West (0.4Mt at 1.0% copper) copper mines, as significant opportunities and we intend to analyse and evaluate these prospects further over the coming months.

"Our review and analysis of the historical database has highlighted many gold occurrences throughout the Semail Ophiolite belt, many of which have not been followed up or their significance fully understood."

Geological Mapping and Rock Chip Sampling Programme

Initial work has focused on the Gaddamah, Zuha and Ghayth prospects in Block 4 with reconnaissance mapping and sampling completed over each prospect with a total of 22 rock chip samples collected (Table 1).

Results from these 22 rock chip samples returned some encouraging results with some particularly elevated gold results obtained, especially from the Gaddamah Prospect.

Samples collected at Gaddamah returned encouraging anomalous results with a maximum copper result of 5.7% and a maximum gold result of 3.7g/t gold (not from same rock sample). Of particular interest at Gaddamah was the concentration of gold rich values within the western area of the prospect.

Rock chip samples from the Zuha prospect around the main gossan have returned a number of elevated results ranging between 0.5% copper to a maximum value of 2.9% copper, confirming past work, together with elevated gold up to 0.59 g/t Au also returned. 

Sampling at the Ghayth prospect failed to return any significant results.

Sample	Type	Easting	Northing	Gold (g/t)	Copper (%)
Z001	Rock	452252	2675776	0.189	2.944
Z002	Rock	452244	2675790	0.534	0.893
Z003	Rock	452239	2675804	0.15	1.437
Z004	Rock	452223	2675867	0.081	0.896
Z005	Rock	452131	2676309	0.13	0.036
Z006	Rock	452181	2675670	0.014	1.843
Z007	Rock	452170	2672381	0.011	1.696
Zuha010	Rock	452191	2675965	0.055	0.071
Zuha011	Rock	452191	2675965	0.072	0.046
Zuha012	Rock	452191	2675965	0.036	0.004
Zuha013	Rock	452192	2675996	0.017	0.02
Zuha014	Rock	452192	2675996	0.591	0.049
Zuha015	Rock	452122	2675974	0.017	0.063
Zuha016	Rock	452122	2675974	0.01	0.018
GAD001	Rock	441227	2684561	0.033	3.818
GAD002	Rock	441227	2684561	0.116	5.772
GAD003	Rock	440342	2684553	1.992	1.639
GAD004	Rock	440332	2684565	3.739	1.423
Ghayth1	Rock	443000	2690796	0.044	0.046
Ghayth2	Rock	443090	2690615	0.013	0.102
GR4137	Rock	458909	2662289	0.019	0.006
GR4150	Rock	460135	2662210	0.013	0.004

Table 1. Summary of Results from Rock Chipping Programme

Rock chips were assayed via the following method

·    The tested samples were dried at 85°C, crushed and pulverized to 75 μm.

·    The method for gold analysis was using was fire assay (using 30g samples) with an atomic absorption spectrometry (AAS) finish, which detected gold in the range of 5ppb - 10ppm. A re-assay with gravimetric finish was used when the initial assay detected >10ppm gold (and silver) using a further 30g sample.

·    The method for copper analysis was a 24 element inductively coupled plasma optical emission spectrometry (ICP-OES) analysis of an Aqua Regia digest.

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.

**ENDS**

For further information please visit www.savannahresources.com or contact:

David Archer	Savannah Resources plc	Tel: +44 20 7389 5019
Samantha Harrison (Nominated Adviser) Charlie Cryer (Corporate Broker)	RFC Ambrian Limited	Tel: +44 20 3440 6800
Felicity Winkles/ Charlotte Heap	St Brides Partners Ltd	Tel: +44 20 7236 1177

Notes

Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, exploration and development company.

It has an 80% shareholding in Matilda Minerals Limitada which operates the Jangamo exploration project. On 31 December 2014 Savannah announced maiden, 65Mt Inferred Mineral Resource @4.2% total heavy minerals ("THM") at a 2.5% cut-off grade for Jangamo The project is located in a world class mineral sands province in Mozambique which borders Rio Tinto's Mutamba deposit, one of two major deposits Rio Tinto has defined in Mozambique, which collectively have an exploration target of 7-12Bn tonnes at 3-4.5% THM (published in 2008).

Savannah has interests in three 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, provide Savannah with an excellent opportunity to potentially evolve into a mid-tier copper 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.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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