METALS & MINING EQUITIES
SAVANNAH RESOURCES*† (LON:SAV)— High-grade Results from Salahi 1 Prospect, Oman — The AIM-quoted resources company focused on base metals and mineral sands exploration in Oman and Mozambique has announced further high-grade gold results from a rock chipping and trenching programme as part of the geological mapping exercise over Block 4, Oman. The Block 4 licence is held by Omani company Al Thuraya, in which Savannah is earning a 65% interest.
Grab samples produced results of up to 13.9 g/t at the Salahi 1 prospect and 8.2 g/t at Salahi North Gossan. Meanwhile, as reported on 3 June, trench sampling results included 12m at 11.9 g/t gold in SCH16. Anomalous gold results have now been identified along a 1km strike length, remaining open to the north and south, and further sampling is now planned to define the extent of mineralisation further and determine the most prospective drilling targets.
RFC Ambrian Comment: Further evidence of the prospectivity of Block 4 is clearly positive, and we look forward to further results from the sampling and mapping programme as the company looks to define potential drill targets. We note that rock chip sampling cannot be seen as representative of overall grade, in light of the fact that a small number (ten) samples were collected as part of the most recent programme. Whilst several of the samples returned elevated gold values, with four grading over 5 g/t Au, the company has advised that more detailed mapping will now be required to determine the exact location of mineralisation prior to drilling.
HERENCIA RESOURCES† (LON:HER)— Expansion of the Picachos Project and Delineation into Four Mineralised Zones — The AIM-listed company focused on multi-commodity exploration and development in Chile has combined results of the recent surface XRF sampling programme at its flagship Picachos Project with a geological/structural mapping programme to identify four distinct zones of mineralisation with a combined strike length of approximately 4km.
The four zones can be separated into:
- 40M Shaft Zone — Now extending over 1.2km, including the 40M Shaft, 40M Shaft East & Flor del Bosque
- Central Zone — Extending over 1.2km
- Santa Rosa Zone — Now extending over 1.4km and includes Santa Rosa and Rancho 4
- Eastern Zone — A new zone that currently extends to over 0.5km
RFC Ambrian Comment: The company believes the four zones — which are located in the central-south area of the tenements and do not take into account northern sections including Leoncito or La Dura — could represent an opportunity for a multiple open-pit mine plan.
As covered before, the company has signed an MOU with the Errazuriz Group providing the opportunity to merge its copper assets with Errazuriz’ nearby Tambillos operation. This includes a 1Mt nameplate treatment plant with excess capacity, which could be used to treat Picachos ore. Alternately we understand the company would seek to negotiate a toll treatment arrangement.