20/01/2016 08:11 AST
Savannah Resources Plc, which is engaged in drilling excavation projects in Blocks 4 and 5 in the Semail Ophiolite Belt in Oman, said it expects to achieve high-grade, low-cost copper concentrate production in late 2017 with additional gold upside.
With its initial reverse circulation and drilling programmed in 16 holes for 1,766.85 metres having completed, Savannah received positive results at 4.86 per cent copper, 1.54 per cent zinc, 1.3g/t gold and 37.3g/t silver.
Drilling in other seven holes is expected to be completed by the end of this month.
The company said that it’s strategy is to achieve high-grade, low-cost copper concentrate production in late 2017 with additional gold upside.
David Archer, Savannah’s Chief Executive Officer said: “We are very pleased to have completed our drilling programme. The results reported from the first part of the drilling programme have been very encouraging and point towards the expansion of the existing resource base of 1.5Mt at 2.1 per cent copper within our Block 4 and 5 projects”.
“Importantly, the results also support our strategy of commencing high-grade, low cost copper production within 24 months, with additional gold upside opportunity”, he said, adding: “We look forward to updating the market on the results of the remaining 7 holes later this month”.
Savannah has 65 per cent shareholding in the Omani company, Al Thuraya LLC, the owner of the Block 4 licence and holds a 65 per cent interest in Al Fairuz Mining, the holder of the Block 5 licence.
The projects, which have an indicated and inferred mineral resource of 1.7 metric tonnes with 2.2 per cent copper and high grade intercepts of up to 56.35m at 6.21 per cent Cu, with additional gold upside potential.
According to the company, down dip and strike extensions of the high grade 5 per cent copper zone were targeted in Mahab 4, Block 5.
Confirmation holes were made targeting the Dog’s Bone Zone of the Aarja deposit to confirm its presence as a precursor to a resource calculation in Block 4:
Also in the same Block, resource expansion holes targeted at expanding the Dog’s Bone Resource to surface and evaluating it for a potential open pit mining opportunity.
Savannah said that together with its Omani partners, the company 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 per cent and 2.4 per cent copper.
Savannah has interests in three copper blocks in the highly prospective Semail Ophiolite Belt in Oman, which is the world’s largest and best preserved thrust sheet of oceanic crust and upper mantle.
Oman Daily Observer
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