9th Dec 2015 09:12
LONDON (Alliance News) - Savannah Resources PLC Wednesday said the initial results from its drill programme in Oman were positive, intersecting high-grade copper, zinc and gold over two blocks.
Savannah is paying for and completing work on Block 4 and Block 5 in Oman in order to earn a 65% shareholding in the Omani owner of Block 4, Al Thuraya LLC, which in turn owns 65% of Al Fairuz Mining which owns the licence for Block 5.
The initial results from the 1,800 metre drill programme include:
- 9.0 metres at 4.86% copper, 1.54% zinc alongside 1.3 grammes of gold and 37.3 grammes of silver per tonne of ore, including 6.0 metres at 7% copper, 2.2% zinc, 1.9 grammes of gold and 53.8 grammes of silver.
- 6.6 metres at 6.92% copper, 5.6% zinc alongside 0.3 gramme of gold and 23.8 grammes of silver per tonne of ore.
Those results came from the Dog's Bone and Mahab 4 zones, and Savannah said it is working to test extensions and compile a mineral resource estimate for Dog's Bone. Importantly, it said the Dog's Bone zone and much of the Aarja deposit has existing underground access which would allow "rapid development and exploitation," it said.
Savannah did warn that drilling has slowed recently due to mechanical problems with the rigs, but said the 1,800 metre programme should be completed before the end of the year.
The results from the programme will be used to develop a copper concentrate production project from late 2017.
Savannah shares were down 1.0% to 1.71 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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