Savannah Resources Plc Completes Acquisition of Strategic Omani Copper Projects
Savannah Resources plc (AIM: SAV) announces that it has completed the acquisition of interests in the highly prospective Block 5 and Block 6 copper projects (the 'Projects') in the Sultanate of Oman from TSX-V listed Gentor Resources Inc. (TSX-V: GNT) ('GRI'). The acquisition of these Projects forms part of Savannah's growth strategy of building a globally diverse, multi-commodity exploration and development company.
- Completed acquisition of 100% of GRI's subsidiary, Gentor Resources Limited ('GRL') , which has a 65% interest in Block 5 and the right to earn up to a 70% interest in Block 6
- Projects cover 870km² of the highly prospective copper-rich Seminail Ophiolite belt in the Sultanate of Oman - proven to host clusters of moderate to high grade copper deposits with gold credits and metallurgically simple ores
- First round re-processing of geophysical data completed and eight Priority 1 and 12 Priority 2 exploration targets identified at both Block 5 and 6
- Projects have an Indicated and Inferred Mineral Resource of 1.7Mt at 2.2% Cu (including a high-grade zone of ~0.5Mt at 4.5% Cu)
- Opportunity to significantly increase resource potential:
High grade intersections reported to date include 56.35m at 6.21% copper from 63.15m in B5MH4071 from Block 5, Mahab 4 prospect
- Priority exploration targets targeted for future exploration include Maqail South (6.68m at 7.42% copper), Hara Kilab (5.54m at 3.96% copper) and Mahab 2 (5m at 2.81% copper)
- Exploration programme being designed to commence drilling late 2014 - focussed on evaluating potential open-pittable targets
- Proven team in place to ensure rapid implementation of the exploration programme - based out of the port city of Sohar near Blocks 5 and 6
Savannah's CEO, David Archer said, "The acquisition of two highly prospective copper projects with multiple high priority targets is a key strategic development for Savannah. The Projects provide Savannah with a strong profile in a key industrial metal, at a time when copper supply is increasingly challenged by mine disruptions, reduced capital investment and high costs in major producer countries. Conversely, Oman is a very favourable setting for the discovery of medium to high grade copper deposits. It is a low cost operating region, with well-developed road, power and port infrastructure, low fuel costs and a favourable fiscal regime.
"Importantly, the re-processing of existing geophysical data has already highlighted eight high priority targets on Block 5 for follow up by our highly capable, exploration team which is based out of the port city of Sohar. Drilling of targets is slated to start in late 2014."