Beaufort Securities view on Savannah Resources (LON:SAV): Savannah Resources has shown quick progress in identification of the EM targets and subsequent commencement of the drilling programme at the prospect. The Semail Ophiolite belt is known to possess higher grade of copper deposits with gold credits and metallurgical ores. Interestingly, the results from the recent EM survey look extremely encouraging. The company’s future plans include developing a better understanding of the prospect through geological mapping, geochemical sampling and airborne VTEM survey. Moreover, the project in Oman benefits from superb infrastructure, low fuel costs and encouraging government that supports any potential mine development. Given the above and the encouraging results till date, we reiterate a Speculative Buy on the stock.
Yesterday, Savannah Resources announced the commencement of a ten-hole diamond drilling programme at the high priority ground electro-magnetic (EM) targets at Sarami West and Ghayth prospects in Oman. The drilling would be conducted by Oman-based Gulf Geotech. The programme is expected to last for a month and the results would be announced as they become available. Among the several ground EM anomalies detected, the strongest anomaly was found at the Sarami West, spanning over 200m with very high conductance.
