Source - RNS
RNS Number : 4572J
Savannah Resources PLC
12 September 2016
 

 

Savannah Resources Plc / Index: AIM / Epic: SAV / Sector: Mining

 

12 September 2016

 

Savannah Resources Plc

High Grade Copper Intersected in Oman - Resource Drilling Update

 

Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'), the AIM quoted resource development company, announces that it has now received further results from the ongoing drill programme over its highly prospective Block 4 and 5 properties in the Sultanate of Oman, which are prospective for copper and gold.  Savannah is earning a 65% shareholding in the Omani company, Al Thuraya LLC, the owner of the Block 4 Project, and is a 65% shareholder in Al Fairuz Mining, the holder of the Block 5 licence.  To view the press release with the illustrative maps and diagrams please use the following link:

 http://www.rns-pdf.londonstockexchange.com/rns/4572J_-2016-9-9.pdf

 

HIGHLIGHTS:

·    A further six drill holes for a total of 608m have been completed and assayed

·    Broad high grade zones of copper intersected at both Mahab 4 and Maqail South in Block 5:

o Mahab 4

§ 16B5DD012, 15.18m at 4.02% copper and 0.2g/t gold from 62.50m

o Maqail South

§ 16B5DD001, 25.63m at 2.66% copper and 0.1g/t gold from 49.37m

§ 16B5DD001A, 20.55m at 3.09% copper and 0.1g/t gold from 48.95m

·    New results point towards a potential expansion of the current high grade portions of both the Mahab 4 and Maqail South resources, which have a current Indicated and Inferred Mineral Resource of 1.7Mt at 2.2% copper

·    Highest individual assays of 23.47% copper over 0.4m from 56.95m (16B5DD003) and 7.60% zinc (not same sample)

·    Additional drilling at Bayda in Block 4 suggests a larger tonnage, lower grade deposit target

o Drilling intersected a broad mineralised zone with 33.4m at 0.69% copper and 0.1g/t gold in 16B4DD003 from 87m, including 4m at 1.56% copper and 5.1m at 1.22% copper

·    Drilling is ongoing and expected to be completed before the end of Q3 2016

·    An updated Mineral Resource for both Maqail and Mahab 4 will be released in Q4 2016

·    Drilling will also assist the completion of initial geotechnical and metallurgical testwork for both Blocks 4 and 5, which will feed into feasibility studies and ultimately Ore Reserves as the Company continues to target production in late-2017

 

David Archer, Savannah's Chief Executive Officer said today "The broad, high grade copper intersections outlined by the drilling underscore the very appealing, early development potential of the Block 4 and 5 licences in Oman.  The Mahab 4 and Maqail South deposits in Block 5 already have a current Indicated and Inferred Mineral Resource of 1.7Mt at 2.2% copper and these recent drill results further underpin our confidence in their potential.

 

"The drilling is part of a wider set of preliminary studies being undertaken, with the intention that a central processing facility can be established to support the development of multiple, geocentric deposits.  A broad, lower grade copper intersection was drilled at Bayda in Block 4, with the results consistent with our understanding of this deposit.  We will continue to target this deposit as a potential larger tonnage, lower grade deposit alongside the higher grade Block 5 targets, as we continue to target production in late-2017."

 

Figure 1. Location Map showing Position of Proposed Drilling - see PDF link

  

DRILLING PROGRAMME UPDATE

 

The introduction of a third drilling rig has seen a significant improvement in the drill rate of the resource definition programme on Block 4 and Block 5. To date the following holes have been completed and are summarised in Table 1.

 

·    Mahab 4: One drill hole 16B4DD012 (81m) completed and assayed.

·    Maqail South: Three drill holes 16B5DD001 (93m). 16B5DD001A (73m) and 16B5DD003 (72m) completed and assayed.

·    Bayda: Two drill holes 16B4DD002 (139m) and 16B4DD003 (150m) completed and assayed.

 

Table 1. Drill Hole Collar and Significant Drill Intercept Summary Table

 

Hole ID

Prospect

Northing

Easting

rL

Azimuth

Dip

EOH

From (m)

To (m)

Down hole

Grade

Grade

Grade

Grade

 

 

 

 

 

(Deg)

(Deg)

(m)

 

 

Interval (m)

% Cu

% Zn

g/t Au

g/t Ag

*16B5DD001

Maqail South

2661240.0

453578.0

403.0

276

-54

93.00

49.37

75.00

25.63

2.66

0.02

0.1

1

*16B5DD001A

Maqail South

2661240.0

453578.0

403.0

276

-54

75.00

48.95

68.50

20.55

3.09

0.00

0.1

3

16B5DD002

Maqail South

2661240.0

453578.0

403.0

314

-55

81.50

47.50

49.50

2.00

6.84

0.02

0.3

5

*16B5DD003

Maqail South

2661240.0

453578.0

403.0

135

-80

72.80

56.00

57.35

1.35

7.86

0.00

0.0

4

 

including

 

 

 

 

 

 

56.95

57.35

0.40

23.47

0.00

0.1

14

16B5DD004

Maqail South

2661278.0

453520.0

390.0

180

-75

 

Hole in Progress

16B5DD005

Maqail South

2661210.0

453553.0

407.0

23

-72

 

Assays Pending

16B5DD006

Maqail South

2661210.0

453553.0

407.0

259

-71

 

Assays Pending

16B5DD007

Maqail South

2661230.0

453530.0

412.0

261

-70

 

Assays Pending

16B4DD001

Dogs Bone/Aarja

2692584.0

440376.0

225.0

342

-72

261

109.30

115.10

5.75

1.84

0.09

0.8

8

 

 

 

 

 

 

 

 

131.12

133.60

2.51

2.62

0.07

1.0

6

*16B4DD002

Bayda

2694175.0

441040.0

226.0

270

-74

139

45.00

47.00

2.00

0.49

0.00

0.0

0

 

 

 

 

 

 

 

 

72.00

76.00

4.00

0.50

0.00

0.0

0

 

 

 

 

 

 

 

 

105.90

109.00

3.10

0.51

0.00

0.0

0

*16B4DD003

Bayda

2694275.0

440997.0

223.0

0

-90

150

87.00

120.40

33.40

0.69

0.00

0.1

1

 

including

 

 

 

 

 

 

101.00

105.00

4.00

1.56

0.15

0.5

3

 

including

 

 

 

 

 

 

111.90

117.00

5.10

1.22

0.00

0.1

1

16B5DD008

Mahab 4

2656070.0

468769.0

218.0

256

-60

 

Assays Pending

16B5DD009

Mahab 4

2656070.0

468769.0

218.0

256

-68

 

Assays Pending

16B5DD010

Mahab 4

2656125.0

468767.0

221.0

256

-53

 

Hole in Progress

16B5DD012

Mahab 4

2656216.0

468700.0

251.0

103

-55

81

57.50

59.40

1.90

4.39

7.60

0.52

37

 

 

 

 

 

 

 

 

62.50

77.68

15.18

4.02

1.00

0.2

12

16B5DD013

Mahab 4

2656216.0

468700.0

251.0

103

-62

 

Assays Pending

16B5DD015

Mahab 4

2656216.0

468700.0

251.0

51

-60

 

Assays Pending

16B5DD017

Mahab 4

2656305.0

468760.0

220.0

256

-63

 

Hole in Progress

16B5DD018

Mahab 4

2656202.0

468639.0

238.0

113

-25

 

To be Completed

·    New results highlighted in bold and marked with a *

·    Full details can be found in the JORC Table 1 attached

 

Mahab 4

 

Drilling at Mahab 4 is targeting an expansion of the high grade portion and an upgrade of the current resource classification to establish Indicated and Measured Resources, which can be used as part of the ongoing financial evaluations of the project. The results from the first completed hole (16B5DD012) have been very encouraging returning results of 1.9m at 4.39% copper, 7.6% zinc and 0.52g/t gold from 59.40m, and 15.18m at 4.02% copper and 0.2g/t gold from 62.50m.

 

Figure 2. Diamond drill core from 16B5DD012 showing the massive sulphide zone - see PDF link

 

Figure 3. Mahab 4 - Vertical Long Section showing new drilling targeting the high grade portion of the resource - see PDF link

 

Maqail South

 

Maqail South has an Inferred Mineral Resource of 0.16Mt at a grade of 3.8% Cu, which was been defined by five holes completed by Gentor Resources. Seven diamond holes for 550m are proposed (Figure 2) to infill the resource to a hole spacing of 25m centres which will allow for an Indicated Resource Classification and to continue exploration to the west where the resource remains open. Results from an additional three holes have now been received, which include:

·    16B5DD001, 25.63m at 2.66% copper and 0.1g/t gold from 49.37m

·    16B5DD001A, 20.55m at 3.09% copper and 0.1g/t gold from 48.95m

·    16B5DD003, 1.35m at 7.86% copper from 56m

 

The results from 16B5DD001 and 16B5DD001A are significant as the broadest intersection returned in past drilling at Maqail South was 8.46m in GRB5D031. The mineralised intersection of 25.63m in 16B5DD001 points towards the potential for an upgrade in the high grade core of the Maqail South project, which has excellent potential as a high grade open pit opportunity.

 

Figure 4. Diamond drill core from 16B5DD001 showing the massive sulphide zone - see PDF link

 

 

Figure 5. Maqail South - Longitudinal Projection (Plan View) showing new drilling - see PDF link

 

Bayda

 

Bayda is a historic mining area that was mined by OMCO between 1980 and 1994 producing 1Mt at a grade of ~3% Cu from a small underground operation. Two diamond drill holes were drilled to test the presence of the mineralisation and the continuity of mineralised zones of greater than 1% Cu which are at the southern end of the mineralised area.

 

Drilling intersected a broad mineralised zone with 33.4m at 0.69% copper and 0.1g/t gold in 16B4DD003 from 87m including 4m at 1.56% copper and 5.1m at 1.22% copper. Further work is now required to fully understand the mineralisation, with a particular focus on the higher grade zone of mineralisation below this zone which has been partially mined in the early 1990's.

 

Competent Person

 

The information in this announcement that relates to exploration results is based upon information compiled by Mr Dale Ferguson, Technical Director of Savannah Resources Limited. Mr Ferguson is a Member of the Australian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Ferguson consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

 

**ENDS**

 

For further information please visit www.savannahresources.com or contact:

 

David Archer

Savannah Resources plc

Tel: +44 20 7117 2489

David Hignell / Gerry Beaney (Nominated Adviser)

Northland Capital Partners Ltd

Tel: +44 20 3861 6625

Jon Belliss / Elliot Hance

(Corporate Broker)

Beaufort Securities Ltd

Tel: +44 20 7382 8300

Charlotte Heap / Lottie Brocklehurst

St Brides Partners Ltd

Tel: +44 20 7236 1177

 

Notes

Savannah Resources Plc (AIM: SAV) is a growth oriented, multi-commodity, development company.

 

Savannah has agreed to acquire 100% of Matilda Minerals Limitada which currently operates the Jangamo exploration project, and has agreed with Rio Tinto to form a joint venture in Mozambique to develop the combined Mutamba/Jangamo ProjectFormation of the joint venture remains subject to approval by the Ministry of Mineral Resources and Energy of the Republic of Mozambique. Jangamo has a 65Mt Inferred Mineral Resource at a grade of 4.2% total heavy minerals ("THM") at a 2.5% cut-off grade.  The Mutamba, Dongane and Chilubane deposits have a combined exploration target of 7-12Bn tonnes at a grade of 3-4.5% THM (published in 2008).

 

Savannah has interests in three copper blocks in the highly prospective Semail Ophiolite Belt in Oman.  The projects, which have an Indicated and Inferred Mineral Resource of 1.7Mt at a grade of 2.2% copper and high grade intercepts of up to 56.35m at a grade of 6.21% Cu, with additional gold upside potential, provide Savannah with an excellent opportunity to potentially evolve into a mid-tier copper and gold producer in a relatively short time frame. Together with its Omani partners, Savannah 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% and 2.4% copper.

 

 

 

APPENDIX 1 - Mahab 4 and Maqail South JORC 2012 Table 1

Section 1 Sampling Techniques and Data

 

 

 

Sampling techniques

·   Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

·   Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

·   Aspects of the determination of mineralisation that are Material to the Public Report.

·   In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

·   All data at the Maqail South and Mahab 4 Prospects has been gathered from diamond core. HQ and NQ core sizes have been used.  Holes have been angled to optimally intersect lithology structures.

·   Sampling from diamond drilling is by half core sampling of NQ or HQ core

·   Core is geologically logged and samples selected based on geological logging.  Samples are then dispatched to Bureau Veritas in Turkey for analysis using the following process route.

·     Whole sample is dried at 85°C, Crush to 70% -10 mesh (2mm), 100% pulverize to 85%passing -200 mesh (75 μm).

·     Au: 30gr Fire Assay / lead collection fusion / AAS finish / 5ppb - 10ppm

·     Au>10ppm (& Ag if also over-limit): 30gr / fire assay fusion / GRAVIMETRIC finish

·     24 Element (Mo, Cu, Zn, Ag, Ni, Co, Mn, Fe, As, Sr, Cd, Sb, Bi, Ca,P, Cr, Mg, Al, Na K, W, Hg, S) Aqua Regia Digest ICP-OES finish.

 

·   Bulk density determinations are made for all samples that are assayed, using the Archimedes method.  This measurement is completed in Oman by Savannah employees.

Drilling techniques

·   Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

·   Diamond drilling used HQ2 or NQ2 sized equipment.  Diamond core was not orientated.

·   Down hole surveys are completed using a single shot Tropari device at approximately 30-50m intervals down hole.

Drill sample recovery

·   Method of recording and assessing core and chip sample recoveries and results assessed.

·   Measures taken to maximise sample recovery and ensure representative nature of the samples.

·   Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

·   Diamond core recoveries were recorded in the drill logs.  It is unknown if a relationship exists between sample recovery and grade.

·   Areas of poor recoveries were observed in some areas and recorded in the logging.

·   In areas of poor recovery additional drilling muds were applied to improve recovery.

 

Logging

·   Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

·   Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

·   The total length and percentage of the relevant intersections logged.

·   All drill holes were logged for recovery, RQD, geology and structure.

·   Logging of recorded lithology, mineralogy, mineralisation, weathering, colour and other features of the samples. Diamond core was photographed wet.

·   All drill holes were logged in full.

Sub-sampling techniques and sample preparation

·   If core, whether cut or sawn and whether quarter, half or all core taken.

·   If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

·   For all sample types, the nature, quality and appropriateness of the sample preparation technique.

·   Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

·   Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

·   Whether sample sizes are appropriate to the grain size of the material being sampled.

·   HQ and NQ core was cut in half using a core saw. 

·   Certified reference standards, blanks and duplicates are routinely inserted in the sample sequence to assess the quality of sampling and analysis.

·   Sample sizes are considered appropriate for the style of mineralisation expected.

Quality of assay data and laboratory tests

·   The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

·   For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

·   Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

·   The analytical techniques used are appropriate for the elements and mineralization styles being explored for.

·   Savannahs QAQC protocol is to industry standards with standard reference material and blanks submitted at a minimum of 5% frequency rate.

Verification of sampling and assaying

·   The verification of significant intersections by either independent or alternative company personnel.

·   The use of twinned holes.

·   Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

·   Discuss any adjustment to assay data.

·   No independent or alternative verification of the assays has been made

·   No twin holes have been drilled

·   No adjustments have been made to the assay data

Location of data points

·   Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

·   Specification of the grid system used.

·   Quality and adequacy of topographic control.

·   Holes have been located using a handheld GPS unit using WGS84 Zone 40N co-ordinates.

·   Holes have been downhole surveyed using a Tropari single shot device

·   Detailed topographic data is available for Maqail South and Mahab 4.

·   The quality of the topographic data is excellent with elevations recorded to an accuracy of 0.1m.  

Data spacing and distribution

·   Data spacing for reporting of Exploration Results.

·   Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

·   Whether sample compositing has been applied.

·   Hole spacing is approximately 25m by 25m at Maqail South.

·   Hole spacing at Mahab 4 is approximately at 25m centers or less and have been designed to selectively target the mineralized zone.

·   Data at Maqail South and Mahab 4 is sufficient to establish geological and grade continuity needed for Mineral Resource estimation.  The current drilling is infilling previously reported Mineral Resources.

Orientation of data in relation to geological structure

·   Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

·   If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

·   Drill holes are angled approximately perpendicular to the orientation of the lithological trends.

·   Orientation of the holes does not bias sampling data.

·   Reported intervals are down hole widths and are not necessarily true widths of mineralisation.

Sample security

·   The measures taken to ensure sample security.

·   Chain of custody is managed by Savannah. Samples are stored on site in a locked yard.  Samples are then transported to Turkey by airfreight.  Savannah personnel have no contact with the samples once they have been dispatched.

Audits or reviews

·   The results of any audits or reviews of sampling techniques and data.

·   No audits or reviews of the sampling techniques or data have been completed.

 

 

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

 

 

 

Mineral tenement and land tenure status

·   Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

·   The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.

·   The Maqail South and Mahab 4 prospects are located with the exploration permit referred to as Block 5 Savannah has a 65% interest in the Block with the remainder being held by a local JV partner.

·   The tenement is in good standing with no known impediment to renewal.

Exploration done by other parties

·   Acknowledgment and appraisal of exploration by other parties.

·   Previous exploration has been completed at Maqail South and Mahab 4 by Gentor Resources between 2010 - 2012.

Geology

·   Deposit type, geological setting and style of mineralisation.

·   The deposit type being tested is the Cyprus type VMS model.  VMS mineralisation is interpreted to have formed on a mid ocean ridge and then emplaced as an ophiolite on the Arabian Craton.  Several examples of this model exist in the region.

Drill hole Information

·   A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

o dip and azimuth of the hole

o down hole length and interception depth

o hole length.

·   If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

·   The location of the drilling at Mahab 4 and Maqail South are summarised in Table 1 in the body of this release.

·   Previously completed holes by Gentor at Maqail South are not all reported in this release.

·   Not all holes completed in this program by Savannah have been reported in this release.

Data aggregation methods

·   In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

·   Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

·   The assumptions used for any reporting of metal equivalent values should be clearly stated.

·   Significant intersections are based on assays greater than 0.5% Cu and may include up to a maximum of 3.0m of internal dilution, with a minimum composite grade of 0% Cu.  The minimum width for an intersection is 0.2m.

·   Cu grades used for calculating significant intersections are uncut.

·   Minimum and maximum diamond core sample intervals used for intersection calculation are 0.2m and 1.2m respectively subject to location of geological boundaries.

·   No metal equivalents are used in the intersection calculation.

·   Where core loss occurs; the average length weighted grade of the two adjacent samples are attributed to the interval for the purpose of calculating the intersection.  The maximum interval of missing core which can be incorporated with the reported intersection is 1m.

Relationship between mineralisation widths and intercept lengths

·   These relationships are particularly important in the reporting of Exploration Results.

·   If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

·   If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

·   Exploration results are reported as length weighted averages.

·   No high grade cuts have been applied to the reporting of the exploration results.

·   No metal equivalent values have been used.

·   Down hole intervals have been reported.  True widths are not known.

Diagrams

·   Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

·   Relevant diagrams and maps have been included in the main body of the release.

Balanced reporting

·   Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

·   All results have been reported.

Other substantive exploration data

·   Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

·   The interpretation of the results at Maqail South and Mahab 4 are consistent with the observations and information obtained from historical data collected.

Further work

·   The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

·   Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

·   No further drilling is planned for Mahab 4 or Maqail South.  Recent results will be incorporated into an updated mineral resource estimate.

 

 

 

APPENDIX 2 - Bayda JORC 2012 Table 1

Section 1 Sampling Techniques and Data

 

 

 

Sampling techniques

·    Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

·    Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

·    Aspects of the determination of mineralisation that are Material to the Public Report.

·    In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

·    All data at the Bayda Prospect has been gathered from diamond core. HQ and NQ core sizes have been used.  Due to topographic constraints the angle of some holes is not optimal to test true thickness of mineralisation.

·    Sampling from diamond drilling is by half core sampling of NQ or HQ core

·    Core is geologically logged and samples selected based on geological logging.  Samples are then dispatched to Bureau Veritas in Turkey for analysis using the following process route.

·      Whole sample is dried at 85°C, Crush to 70% -10 mesh (2mm), 100% pulverize to 85% passing -200 mesh (75 μm).

·      Au: 30gr Fire Assay / lead collection fusion / AAS finish / 5ppb - 10ppm

·      Au>10ppm (& Ag if also over-limit): 30gr / fire assay fusion / GRAVIMETRIC finish

·      24 Element (Mo, Cu, Zn, Ag, Ni, Co, Mn, Fe, As, Sr, Cd, Sb, Bi, Ca,P, Cr, Mg, Al, Na K, W, Hg, S) Aqua Regia Digest ICP-OES finish.

 

·   Bulk density determinations are made for all samples that are assayed, using the Archimedes method.  This measurement is completed in Oman by Savannah employees.

Drilling techniques

·    Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

·    Diamond drilling used HQ2 or NQ2 sized equipment.  Diamond core was not orientated.

·    Down hole surveys are completed using a single shot Tropari device at approximately 30-50m intervals down hole.

Drill sample recovery

·    Method of recording and assessing core and chip sample recoveries and results assessed.

·    Measures taken to maximise sample recovery and ensure representative nature of the samples.

·    Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

·    Diamond core recoveries were recorded in the drill logs.  It is unknown if a relationship exists between sample recovery and grade.

·    Areas of poor recoveries were observed and recorded in the logging.

·    In areas of poor recovery, additional drilling muds were applied to improve recovery.

 

Logging

·    Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

·    Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

·    The total length and percentage of the relevant intersections logged.

·    All drill holes were logged for recovery, RQD, geology and structure.

·    Logging of recorded lithology, mineralogy, mineralisation, weathering, colour and other features of the samples. Diamond core was photographed wet.

·    All drill holes were logged in full.

Sub-sampling techniques and sample preparation

·    If core, whether cut or sawn and whether quarter, half or all core taken.

·    If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

·    For all sample types, the nature, quality and appropriateness of the sample preparation technique.

·    Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

·    Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

·    Whether sample sizes are appropriate to the grain size of the material being sampled.

·    HQ and NQ core was cut in half using a core saw. 

·    Certified reference standards, blanks and duplicates are routinely inserted in the sample sequence to assess the quality of sampling and analysis.

·    Sample sizes are considered appropriate for the style of mineralisation expected.

Quality of assay data and laboratory tests

·    The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

·    For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

·    Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

·    The analytical techniques used are appropriate for the elements and mineralization styles being explored for.

·    Savannahs QAQC protocol is to industry standards with standard reference material and blanks submitted at a minimum of 5% frequency rate.

Verification of sampling and assaying

·    The verification of significant intersections by either independent or alternative company personnel.

·    The use of twinned holes.

·    Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

·    Discuss any adjustment to assay data.

·    No independent or alternative verification of the assays has been made

·    No twin holes have been drilled

·    No adjustments have been made to the assay data

Location of data points

·    Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

·    Specification of the grid system used.

·    Quality and adequacy of topographic control.

·    Holes have been located using a handheld GPS unit using WGS84 Zone 40N co-ordinates.

·    Holes have been downhole surveyed using a Tropari single shot device

 

·    Limited topographic data is available for the area surrounding the Bayda prospect.

Data spacing and distribution

·    Data spacing for reporting of Exploration Results.

·    Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

·    Whether sample compositing has been applied.

·    Hole spacing is approximately 25m by 25m at Bayda.

·    Data at Bayda is sufficient to establish geological and grade continuity needed for Mineral Resource estimation.  The current drilling will be used to estimate a mineral resource estimate.

·    No compositing of samples has been applied.

Orientation of data in relation to geological structure

·    Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

·    If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

·    Due to topographic constraints the orientation of some drill holes is not optimal and there is potential for some sampling bias to occur due sampling down the dip of mineralised structures.

·    Reported intervals are down hole widths and are not necessarily true widths of mineralisation.

Sample security

·    The measures taken to ensure sample security.

·    Chain of custody is managed by Savannah. Samples are stored on site in a locked yard.  Samples are then transported to Turkey by airfreight.  Savannah personnel have no contact with the samples once they have been dispatched.

Audits or reviews

·    The results of any audits or reviews of sampling techniques and data.

·    No audits or reviews of the sampling techniques or data have been completed.

 

 

 

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

 

 

 

Mineral tenement and land tenure status

·    Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

·    The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.

·    The Bayda Prospect is located with the exploration permit referred to as Block 4.  Savannah has a 65% interest in the Block with the remainder being held by a local JV partner.

·    The tenement is in good standing with no known impediment to renewal.

Exploration done by other parties

·    Acknowledgment and appraisal of exploration by other parties.

·    Previous exploration has been completed around Bayda between 1980-1994 by OMCO with historical mining being completed in the area.

 

Geology

·    Deposit type, geological setting and style of mineralisation.

·    The deposit type being tested is the Cyprus type VMS model.  VMS mineralisation is interpreted to have formed on a mid ocean ridge and then emplaced as an ophiolite on the Arabian Craton.  Several examples of this model exist in the region.

Drill hole Information

·    A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

o dip and azimuth of the hole

o down hole length and interception depth

o hole length.

·    If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

·    The location of the drilling at Bayda are summarised in Table 1 in the body of this release.

·    Previously completed holes by OMCO at Bayda are not all reported in this release.

·    All holes completed in this program by Savannah have been reported in this release.

Data aggregation methods

·    In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

·    Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

·    The assumptions used for any reporting of metal equivalent values should be clearly stated.

·    Significant intersections are based on assays greater than 0.5% Cu and may include up to a maximum of 4.0m of internal dilution, with a minimum composite grade of 0% Cu. The minimum width for an intersection is 0.2m.

·    Cu grades used for calculating significant intersections are uncut.

·    Minimum and maximum diamond core sample intervals used for intersection calculation are 0.2m and 1.2m respectively subject to location of geological boundaries.

·    No metal equivalents are used in the intersection calculation.

·    Where core loss occurs; the average length weighted grade of the two adjacent samples are attributed to the interval for the purpose of calculating the intersection. The maximum interval of missing core which can be incorporated with the reported intersection is 1m.

Relationship between mineralisation widths and intercept lengths

·    These relationships are particularly important in the reporting of Exploration Results.

·    If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

·    If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

·    Exploration results are reported as length weighted averages.

·    No high grade cuts have been applied to the reporting of the exploration results.

·    No metal equivalent values have been used.

·    Down hole intervals have been reported.  True widths are not known.

Diagrams

·    Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

·    Relevant diagrams and maps have been included in the main body of the release.

Balanced reporting

·    Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

·    All results have been reported.

Other substantive exploration data

·    Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

·    The interpretation of the results at Bayda are consistent with the observations and information obtained from historical data collected and geophysical surveys completed in the area.

Further work

·    The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

·    Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

·    Further drilling is planned for Bayda to test for depth extensions to known mineralisation specifically to target higher grade zones.

 

 


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