5th May 2015 07:42
LONDON (Alliance News) - Savannah Resources PLC Tuesday said it has received further "encouraging" drill results from the Gaddamah and Gyath prospects on Block 4 in Oman but said it failed to find any anomalies on the Sarami West prospect on Block 5.
The company said it conducted a five-hole diamond drill programme to test a series of high calibre ground electromagnetic anomalies at the Sarami West prospect on Block 5, and the Gyath prospect on Block 4.
At Gyath, drilling confirmed the presence of volcanogenic massive sulphide style mineralisation returning intersections of 1.15 metres at 3.6% copper from 35.5 metres. Further drilling on Gyath will be conducted to define full extent of mineralisation and potential resource, Savannah said.
Drilling at the Sarami West anomaly on Block 5 failed to locate the targeted electromagnetic anomalies, but intersected a strong alteration system similar to those seen around the margins of volcanogenic massive sulphide deposits, it said in a statement.
A downhole electromagnetic survey is planned at Sarami West to confirm and provide an accurate location of the original electromagnetic anomalies.
"We are pleased to confirm volcanogenic massive sulphide mineralisation at Ghayth, which continues to provide strong indications that an economic copper deposit could be present. Whilst we have not yet intersected copper mineralisation at Sarami West, the results clearly highlight that we are hunting in the right area as we are seeing strong evidence of an alteration system that could host volcanogenic massive sulphide mineralisation," said Chief Executive David Archer.
In a separate statement, Savannah said it has identified further areas of high-grade gold mineralisation with associated copper and zinc at its Gaddamah Prospect which also lies on Block 4 in Oman. The results form part of a recently completed rock chipping, trenching and geological mapping programme at the prospect, which is 7 kilometres south of the Ghayth prospect.
Individual 1 metre trench samples produced results up to 60.7 grammes of gold per tonne, with grades of 9.1% zinc and 1% copper.
Other trench sample results from a different area included 5 metres at 18.49 grammes of gold per tonne at 1.7% zinc and 0.53% copper, 4.9 metres at 18.82 grammes of gold per tonne at 0.96% zinc and 0.76% copper, and 7.7 metres at 11.35 grammes of gold per tonne at 1.45% zinc and 0.4% copper.
Additional trench sampling will now be conducted to establish the strike and depth extents of the mineralisation.
Savannah shares rose by 2.4% to 2.00 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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