14 November 2013
Savannah Resources Plc
Initial Drilling Completed at Jangamo
Savannah Resources plc (AIM: SAV), announces that it has completed its first drilling programme at the Company's 80% owned Jangamo heavy mineral sands project ('Jangamo' or the 'the Project'), located in a world-class mineral sands province in southern Mozambique. To view the press release with the illustrative map, please use the following link:
· 27 holes, for a total of 1,812m of reverse circulation ('RC') drilling were completed to assess the prospectivity of the key dunal systems within the Jangamo Project area
· Drilling intersected a sequence of red, beige and grey sands with geological logging showing that all holes intersected display visible signs of heavy minerals
· Assay results to confirm the presence and grades of heavy minerals are expected to be available in Q1 2014
· The Project is adjacent to Rio Tinto's major Mutamba1 mineral sands deposit which, together with another licence area in Mozambique, has an exploration target of 7-12 billion tonnes at 3-4.5% THM
Savannah's CEO, David Archer, said "This is an exciting time for the Company having been able to plan, mobilise and complete our maiden drilling campaign at our flagship Jangamo project so soon after acquisition of the Project in October 2013. Our geologists have noted the occurrence of heavy minerals in all the holes completed over the key dunal systems and we eagerly await the results of the sample analysis to confirm their observations and the grade and quality of the heavy minerals. We believe that the Project has the potential to generate significant value, and we look forward to reporting the assay results and the conclusions drawn in due course.''
Drilling Programme Completed
This initial drill programme completed a total of 27 RC drill holes for approximately 1812m and focused on defining the stratigraphy of the three main morphological zones and those parts of the stratigraphy which are thought to be more prospective for mineral sands. All holes were vertical, with a maximum depth of drilling reaching 98m (locations are shown in Figure 1). Drilling intersected a sequence of red, beige and grey sands of variable thicknesses, with all holes showing visible signs of heavy minerals in the geological logging. The drill samples will be prepared by Bureau Veritas in Mozambique before being shipped to Australia for final analysis to confirm the presence and grades of any heavy minerals within the drill samples. Further details of the drilling will be released once the assaying results have been received by the Company.
Jangamo Project - Exploration Licence 3617L
The Jangamo Project is located in Southern Mozambique within a world class mineral sands province and is highly prospective for mineral sands including zircon, ilmenite and rutile. The Project covers an area of 180 km² along an extensive dune system near the village of Jangamo, about 350km to the North East of the capital, Maputo.
Jangamo lies immediately to the west of Rio Tinto's ('Rio') Mutamba deposit, one of two major deposits Rio has defined in Mozambique1, which collectively have an exploration target of 7-12 billion tonnes at 3-4.5% THM (published in 2008). Importantly, exploration work conducted at the Project to date indicates that the geology and geomorphology of Jangamo is similar to that of Rio's adjacent Mutamba deposit.
Furthermore, a field trip conducted by Savannah in May 2013 and scout sampling in the region confirmed the presence of significant heavy minerals with samples returning up to 18.1% THM with ilmenite, zircon and rutile recorded in the mineral concentrate.
The Project area features excellent infrastructure with both grid power and the main EN1 highway cutting through the middle of the Project. The nearby town of Inhambane is serviced daily by LAMAir flights out of Maputo and there is excellent logistics in place to support operations, including a small port. The licence is valid until 10 December 2017.
Dale Ferguson: The technical information related to Exploration Results contained in this Announcement has been reviewed and approved by Mr D. Ferguson. Mr Ferguson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity to which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Ferguson is Technical Director of Savannah Resources Plc and a Member of the Australasian Institute of Mining and Metallurgy. Mr Ferguson consents to the inclusion in this Announcement of such information in the form and context in which it appears.
For further information please visit www.savannahresources.com or contact:
Savannah Resources plc
Tel: 44 (0)774 777 7911
James Maxwell / Jenny Wyllie
N 1 Singer
Tel: 44 (0)20 7496 3000
Felicity Edwards/ Charlotte Heap
St Brides Media & Finance Ltd
Tel: 44 (0)20 7236 1177
Savannah Resources Plc (AIM: SAV) is a multi-commodity focussed exploration company. Through its 80% ownership of Matilda Minerals Limitada it operates the Jangamo exploration licence 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 7-12 billion tonnes at 3-4.5% THM (published in 2008). In addition, Savannah owns an effective 25.6% strategic shareholding in Alecto Minerals Plc which provides Savannah with exposure to both the highly prospective Kossanto Gold Project in the prolific Kenieba inlier in Mali and also to the Wayu Boda and Aysid Meketel gold / base metal projects in Ethiopia for which Alecto has a JV with Centamin Plc, under which Centamin Plc is committing up to US$14m in exploration funding to earn up to 70% of each project. The Company is also evaluating additional opportunities to expand its portfolio and geographical focus.
This information is provided by RNS