Savannah Resources (LON:SAV) – CORP: Oman update
Market Cap: £17m; Current Price: 4p
Impressive results from Block 5 drill programme
Savannah Resources has reported the assay results from a further six drill holes at Mahab 4 and four holes at Maqail South.
Results at Mahab 4 include; 67.4m at 4.64% Cu, 1.13% Zn and 0.3g/t Au from 18.6m (16B5DD009*), 10.05m at 10.51% Cu, 2.67% Zn and 0.4g/t Au from 65.2m (16B5DD010), 19.8m at 6.15% Cu, 1.8% Zn and 0.4g/t Au from 65.2m, (16B5DD013), 13.55m at 6.43% Cu, 0.68% Zn and 0,2 g/t Au from 84.5m (16B5DD015), and 47m at 6.07% Cu, 1.43% Zn and 0.3g/t Au from 52m (16B5DD017*). *drilled oblique to section to maximise sample size for metallurgical testing.
Results at Maqail South include; 5.8m at 4.42% Cu and 0.2g/t Au from 58.6m (16B5DD004) and 2.15m at 3.17% Cu and 0.1g/t Au from 80.7m (16B5DD007).
The current Block 5 drill programme is completed and the resource definition drill programme at Aarja and Bayda (Block 4) is expected to commence in Q416.
An updated mineral resource estimate for both Mahab 4 and Maqail South is also expected in Q416.
NORTHLAND CAPITAL PARTNERS VIEW: A very set of positive assay results from Savannah Resources with these holes returning some of the broadest and highest-grade intersections at the Oman Project to date. The results point toward a potential expansion of the current high-grade sections of Mahab 4 and Maqail South that form part of the current mineral resource estimate of 1.7mt at 2.2% Cu. An updated mineral resource estimate, due to be published before the end of the year will be an important milestone for the Company.
Premier African Minerals (LON:PREM) – CORP: Catapu acquisition
Market Cap: £7.4m; Current Price: 0.38p
Closes acquisition of controlling interest in TCT IF
Premier African Minerals has completed the acquisition of 52% in TCT Industrias Florestais (TCT IF), which owns the Catapu limestone project located in Mozambique, for a total consideration of US$2.1m
TCT IF is currently self-sustaining and will contribute to positive cash flow in 2017.
The early test work completed at the Project suggests the potential for local demand for lime for cement production, agricultural and many other applications including aggregates.
The revenue and existing infrastructure from the operational forestry business is expected to reduce the exploration and development cost of the project.
Prem has acquired a 26% interest in TCT IF from Transport Commodity Trading Mozambique (TCTM) for a total consideration of US$1.1m payable in cash or shares at TCTM’s election over four tranches. The first tranche is US$220,000 payable within five days. The second tranche of US$440,000 payable 60 days after the first. The third of US$220,000 within 90 days and the fourth of US$220,000 within 120 days.
Prem also acquired 26% from GAPI Sociedade de Investimentos (GAPI) for US$1m payable in cash or shares at GAPI’s election over five tranches. The first tranche is US$220,000 payable within five days. The second tranche of US$195,000 payable 13 months after the first. The third and fourth of US$195,000 within 21 months and the fifth of US$195,000 within 36 months.
NORTHLAND CAPITAL PARTNERS VIEW: A major development for premier African Minerals as it closes the acquisition of a controlling interest in the Catapu limestone and forestry business. The forestry business is currently self-sustaining and is expected to have a positive impact to Prem’s cash flow in 2017. The limestone project is of particular significance because of the Tete/Beira rail link, complete with 3-line siding, runs adjacent to the northern boundary of the property allowing the product to be transported at a low-cost and importantly means the capex cost for the project will be relatively low.