4th Nov 2015 10:02
LONDON (Alliance News) - Savannah Resources PLC Wednesday said it has started drilling targets on Block 4 in Oman which has so far yielded some positive trenching results.
However, it warned that drilling has been "slower-than-expected" due to some equipment breakdowns. However, normal operations will continue within the next two weeks, it said.
"This new drill programme marks the start of a very exciting new phase for Savannah and our joint venture partners Al Thuraya as we begin drill testing some of the highly prospective exploration targets and begin work to confirm the historical drill results," said Chief Executive David Archer.
Savannah is earning a 65% stake in the company that owns the block by conducting exploration work on the block. This programme will comprise of 10 holes targeting the Aarja, Zuha and Gaddamah prospects.
The targets to be included in the programme are the two high-priority targets identified from the VTEM survey, Aarja 4 and Zuha 13. A VTEM survey is a versatile time domain electromagnetic survey, which involves flying helicopters equipped with equipment that can evaluate geological features hidden beneath the earth's surface to try to identify suitable areas for drilling.
"Given the strength of the new VTEM targets and their favourable location within the geology we think our chances of a new discovery are very good," said Archer.
Drill testing at the depth extents of the gossan and the southern end of the Aarja pit yielded a trenching result of 14.5 metres at 8.03 grammes of gold per tonne and 0.9% copper. Drill testing at Gaddamah gossan produced results of 7.7 metres at 11.35 grammes of gold, 1.45% zinc and 0.4% copper.
A gossan is an iron-containing secondary deposit, largely consisting of oxides and typically yellowish or reddish, occurring above a deposit of a metallic ore.
"Drilling to verify the historical data will also commence and if successful we plan to complete a maiden JORC compliant mineral resource estimate before the end of the 2015 calendar year," said Archer.
Savannah shares were down 1.3% to 1.95 pence per share on Wednesday.
By Joshua Warner; [email protected]; @JoshAlliance
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