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Savannah Resources (LON:SAV) shares advanced as it continues to see good gold grades at its Block 4 project area in Oman and has identified a new prospect - Salahi 1.
Recent trenching, rock chip and grab samples have produced results of up to 72.2 grams per tonne (g/t) gold, with finds including 12 metres at 11.87 g/t gold.
Gold results stretch along a 180 metre strike that remains open to the north and south, and additional trenching is underway as a precursor to drilling, the mining firm revealed.
Savannah has been carrying out the work on behalf of Block 4 licence owner Al Thuraya, in which Savannah is earning a 65% holding.
Block 4 is one of three blocks in Oman Savannah is exploring, primarily for copper. It completed an airborne magnetic (EM) survey over the area at the start of April.
Last month, it said it had found more strong indications of gold during its exploration programme at Gaddmah West - also in Block 4.
Savannah's chief executive David Archer told investors: "Al Thuraya and Savannah are very encouraged by the gold mineralisation observed at both the Gaddamah West target and now at Salahi 1 within the Block 4 project area.
"The zone of gold mineralisation defined at Salahi 1 has good strike length, varying in width from 12m to 1m, and importantly remains open along strike to the north and south.
"Notably, at this early stage we are seeing some good gold grades which make this new prospect attractive.
"These gold prospects suggest there is potential for other metals within Block 4 in addition to its outstanding copper potential."
He added the company remained focused on further defining and expanding these gold zones.
"Work is continuing on the review and analysis of the historical database, which to-date has highlighted many gold occurrences in Block 4.
"Al Thuraya and Savannah look forward to highlighting the resource potential of these key prospects, in addition to identifying new ones."
Jim Taylor, analyst at broker RFC Ambrian, noted that this area of Oman was host to a number of copper mines and an associated concentrator and a smelter.
"Blocks 4 & 5 cover areas of the ophiolite belt that are prospective for copper-rich VMS deposits and have numerous known gold and base metals occurrences, which are targets for exploration," he said.
Meanwhile resource-focused City broker SP Angel added: "The discovery of near surface gold mineralisation adds to the copper potential of the Block 4 area; however, although they are encouraging, these are still early stage results which will require more detailed follow up."
"The company raised approximately £1.3mln in November and will need to be rigorous in allocation of resources between a number of highly promising early stage exploration projects in Oman."
Savannah shares are up 3.85% to 2.025p but were over 8% higher in early deals.