Beaufort Securities view on Savannah Resources: We are encouraged with the potential for continued high-grade copper mineralisation on Blocks 4 and 5 on the back of the initial assay results, this bodes well for the expansion of the existing resource base of 1.5Mt grading 2.1% Cu. The above results confirm the mineralisation potential from both Blocks 4 and 5. We look forward to the remaining assay results as well as an updated JORC-compliant resource estimate on Blocks 4 and 5. In the meantime, we maintain a Speculative Buy rating on the stock.
Savannah Resources, the diversified mining group focused on exploration and development of mineral sands in Mozambique and copper-gold projects in Oman, announced today that it has completed its drilling programme over Blocks 4 and 5 in Oman. Savannah owns a 65% shareholding in Al Fairuz Mining, the owner of the Block 5 permit and is earning a 65% shareholding in Al Thuraya LLC, the owner of Block 4, through agreed expenditure milestones. The initial reverse circulation and diamond drilling programme comprised 16 holes totalling 1,766.85m and targeted a series of exploration and resource expansion opportunities. As previously mentioned, assays results from Block 4 licence (Dog’s Bone deposit) returned 9m grading 4.86% Cu, 1.54% Zn, 1.3g/t Au and 37.3g/t Ag from a depth of 103m, including 6m grading 7.01% Cu, 2.2% Zn, 1.9g/t Au and 53.8g/t Ag in drill hole 15B4RC003. Assay results from Mahab 4 (Block 5 licence) returned 6.6m grading 6.92% Cu, 5.6% Zn, 0.3g/t Au and 23.8g/t Ag from a depth of 67m in drill hole 15B5DD005. Results are still pending from seven holes and are expected by the end of January 2016. Savannah’s strategy is to commence high-grade low cost copper production by end of 2017.
Beaufort Securities acts as corporate broker to Savannah Resources plc
