TIDMSAV
RNS Number : 2246N
Savannah Resources PLC
24 October 2016
Savannah Resources Plc / Index: AIM / Epic: SAV / Sector:
Mining
24 October 2016
Savannah Resources Plc
Environmental Impact Assessment Underway at Mahab 4 and Maqail
South
Savannah Resources plc (AIM: SAV) ('Savannah' or 'the Company'),
the AIM quoted resource development company, announces that it has
commenced the preparation of the Environmental Impact Assessment
("EIA") for the Mahab 4 and Maqail South deposits in Oman, which
have a current Indicated and Inferred Mineral Resource of 1.7Mt at
2.2% copper. The EIA is required to be submitted to the Ministry of
Environment and Climate Affairs ("MECA") in the Sultanate of Oman
as part of the licencing requirements for new mine developments in
Oman (Figure 1). Both the Mahab 4 and Maqail South deposits are
located in Block 5 and Savannah 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/2246N_-2016-10-21.pdf
HIGHLIGHTS:
-- Commencement of the EIA is a key milestone towards the
Company's target of commencing copper mining in late 2017
-- Leading Omani Environmental Consultant, Geo Resources
Consultancy, has been contracted to commence the EIAs
-- The EIAs are for an open-cut development at the Maqail South
deposit and for an underground development at the Mahab 4
deposit
-- Discussions with Government ministries have commenced
-- The EIA is expected to take around six months to prepare and go through the approvals process
David Archer, Savannah's Chief Executive Officer said "Savannah
is targeting to be in production by late 2017 and the lodging of
the Mining EIA is an important milestone regarding the development
of the combined deposits as an integrated operation. The tempo of
our work is increasing and studies that will form the basis of our
plans, such as metallurgical testwork and various baseline studies,
are now underway.
"The higher grade nature of the two deposits makes them
attractive for priority mine development to be followed by the
development of other deposits such as those on Block 4. Following
an intensive round of drilling over recent months, an updated
Mineral Resource for both Maqail South and Mahab 4 will be released
in Q4 2016, which will form an important part of our mining studies
regarding a mine development targeted for late 2017."
Figure 1 - see PDF link
Geo Resources Consultancy ("GRC")
Savannah has contracted GRC to complete and co-ordinate the
required EIA, which is required for the licensing of the project.
GRC is an Omani consulting group registered as Grade One with the
Ministry of Commerce and Industry. GRC provides a comprehensive
range of multidisciplinary consultancy services and tailors
individual support packages for project planning, design,
management, integration and supervision, including environmental
assessment and management. GRC has prepared environmental
permitting documentation for a number of mining /open pit mining
projects within Oman and successfully had them approved.
The primary scope of work to be completed by GRC includes:
-- Preparing Scoping and Strategy for Assessment Document and submitting it to MECA
-- Undertaking baseline monitoring of the Mahab 4 and Maqail
South deposits, reflecting possible emissions and land impacts
arising from the mine development and operation
-- Preparing and submitting an EIA document to MECA consistent
with good Omani and international practice
-- Preparing a mining permit application form in the prescribed manner
-- Preparation of request letters and supporting information to
apply for and maintain the mining permits
-- Assisting in discussions with the various government
departments and stakeholders to ensure a timely approval of the
EIA
Providing there are no delays in the process, it is anticipated
that the approval process for the EIA is should take approximately
six months
Figure 2 - see PDF link
Figure 3 - See PDF link
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 Northland Capital Partners Tel: +44 20 3861
(Nominated Adviser) Ltd 6625
Jon Belliss / Elliot Hance Beaufort Securities Tel: +44 20 7382
(Corporate Broker) Ltd 8300
Charlotte Page / St Brides Partners Ltd Tel: +44 20 7236
Lottie Brocklehurst 1177
Notes
Savannah Resources Plc (AIM: SAV) is a growth oriented,
multi-commodity, development company.
Mozambique
Savannah operates combined projects with Rio Tinto, and can earn
a 51% interest in heavy mineral sands projects in Mozambique, which
have a combined exploration target of 7-12Bn tonnes at 3-4.5% THM
(published in 2008). Under the terms of the agreement with Rio
Tinto Savannah must deliver the following to earn corresponding
interest in the combined projects: Scoping Study - 20%;
pre-feasibility study - 35%; feasibility study - 51%. Additionally
there is an offtake agreement for Rio Tinto to take 100% of
production.
Oman
Savannah has interests in two 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.
Finland
Savannah has Reservation Permits over two new lithium projects,
Somero and Erajarvi, covering an area of 159km(2) in Finland.
Savannah holds a 100% interest in these projects through its
Finnish subsidiary Finkallio Oy. Geological mapping by the Finnish
Government within the project areas has highlighted the presence of
lithium minerals spodumene, lepidolite and petalite with the
Government also identifying Somero and Erajarvi as one of the most
prospective areas to discover lithium deposits in Finland. Savannah
plans to initiate an exploration programme including data
compilation, geological mapping and surface sampling with the aim
of generating drill ready targets during 2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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