Block 4 and 5 Copper Projects, Oman

Key Info

Savannah has been operating in the Sultanate of Oman since 2014 and has rights to two blocks covering 1,004km² on the copper-rich, Semail Ophiolite Belt, a region proven to host clusters of moderate to high-grade copper deposits with gold credits and metallurgically simple ores. Savannah holds a 65% interest in Block 5 and has the right to earn up to a 65% stake in Block 4 (currently at 51%). The two blocks are located approximately 180km northwest of Muscat, the capital city of Oman, and within close proximity to the export Port of Sohar. The Company’s strategy had centred on building a copper and gold resource inventory to support high margin, low cost operations, but Savannah is currently undertaking a strategic review of its Oman portfolio to determine the best means of accreting value from these assets for shareholders.

Mineral Resources

The Ophiolite belt is characterised by medium to high grade copper deposits with gold credits and metallurgically simple ores that have been shown to be amenable to profitable, open-cut development, to produce high quality copper concentrates for local or overseas smelters. Despite the region's rich history of copper production there has been only limited modern prospecting in Oman. The Company and its Omani partners have capitalised on this by applying rigorous, modern prospecting techniques such as Versatile Time Domain Electromagnetic Surveying (VTEM). Importantly, all new discoveries in Oman over the past 10 years have largely come out of the application of VTEM.

Block 5 has a current Indicated and Inferred Mineral Resource of 1.7Mt at 2.2% copper (Cu), split between the Mahab 4 deposit (1.51Mt at a grade of 2.1% Cu) and the Maqail South deposit (0.16Mt at a grade of 3.8% copper). The Mahab 4 deposit also includes a high-grade zone of 0.5Mt at 4.5% Cu. Significant potential has been identified to increase the current resource potential, with the deposits remaining open along strike. Block 5 is complemented by Block 4 to the north which is currently in a renewal process.

Development Plan

Savannah's Oman portfolio should support a modest sized, high margin, low cost mining operation, thanks to the relatively high grades. To support near term development objectives, Savannah continues to assess a number of potential production routes relating to the establishment of a central processing facility in Oman. Leveraging shared infrastructure with other local operators will help minimise capital expenditure and maximise operating margins.

Mining licences were applied for in September 2016 for open-cut development at the Maqail South deposit and for an underground development at the Mahab 4 deposit on Block 5. In August 2019, Savannah was informed by the Public Authority for Mining in Oman (“PAM”) that, following approvals from a series of government authorities and its own review, it intends to grant the mining licences once new licensing fees have been set under the new Mining Law which came into effect in March 2019. The Mining Licences are still yet to be awarded.

Strategic Review

Given the delays experienced with the issue of licences in Oman and the establishment of Mina do Barroso in Portugal as our flagship project, Savannah initiated a Strategic Review of its Oman portfolio in 2019. Concluding and actioning the findings of that review, ideally after the award of the Block 5 related mining licences has been made, is a goal for 2020.

Savannah holds a 65% interest in the Block 5 Copper Project and has the right to earn up to a 65% stake in Block 4 (currently at 51%)

Current Indicated and Inferred Mineral Resource of 1.7Mt at 2.2% Cu, including a high-grade zone of ~0.5Mt at 4.5% Cu

Two mining licence applications pending approval. PAM intends to grant the licences once licensing fees are set under Oman’s new 2019 Mining Law

Oman portfolio under strategic review

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