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Savannah Resources (LON:SAV) revealed it has identified new high grade copper mineralisation at the Aarja prospect, part of Block 4 in Oman.
The mineralisation is beneath the previously mined Aarja pit, the company added.
It comes as the company has compiled historic data gathered at the project.
“Whilst work is still continuing in finalising this model, the early signs point towards a significant zone of copper mineralisation being present under the Aarja pit and along strike,” said chief executive David Archer.
“Following completion of the data compilation and interpretation, we will look to complete some confirmatory drilling to verify the historical data as much of the previous drilling was undertaken in the 1980's.”
Archer told investors that the company plans to produce a maiden JORC complaint resource estimate for the project, so long as its own drilling verifies the historical data.
Dr Ryan Long, analyst at Northland Capital, in a note, said: “The identification of high grade copper below the old Aarja Prospect is a positive development for Savannah Resources.”
He adds that Savannah could rapidly define a JORC compliant mineral resource estimate for a relatively low cost, if the new drilling yields results consistent with the historic data.
Savannah highlighted high grade results from three areas at the project; Aarja Main, Dogs Bone and Aarja South.
At Aarja Main the historic data included an 18.58 metre interval with 4.7% copper, from a depth of 143 metres. Similarly, there was 24 metres at 3% copper and 20 metres at 2.5%. Dog’s Bone had highlight results between 7.8 metres and 33.8 metres with grades ranging between 3.35% and 8.49%. Meanwhile, Aarja South had 9.8 metres at 3.86% copper.
Savannah explained that the existing pit and underground development allows access to the identified copper mineralisation.
The company added that its own trenching, over an outcropping gossan, to the south of the main Aarja pit – which saw 14.5 metres at 8.03 grams per tonne gold and 0.9% copper – suggests potential to expand the pit to the south.