Savannah Resources Plc
Generating Value - Building a Multi-Commodity Portfolio of Assets
HEAVY MINERAL SANDS – MOZAMBIQUE
COPPER - OMAN
GOLD – MALI, ETHIOPIA AND MAURITANIA
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Savannah Resources Plc | December 2014
2
Savannah at a glance…
AIM listed growth exploration and development company with a multi-commodity
portfolio in Oman and Mozambique.
• Skilled board and management team - with a proven track record in acquiring, developing
and adding value to resource assets
• Solid project pipeline – targeting additional value accretive growth in existing geographies
through exploration and consolidation
• Oman - A high calibre portfolio of advanced development and early stage exploration
copper projects. Targeting high margin, low cost, copper/gold operations with low
geological risk to establish Savannah as a mid-sized copper producer
• Mozambique Heavy Mineral Sands - 80% shareholding in Matilda Minerals Limitada –
Matilda owns the highly prospective 180km2 Jangamo Project in Mozambique, located in a
world class heavy mineral sands province
• Gold - Strategic 19.7% shareholding in AIM listed Alecto Minerals plc (‘Alecto’),
Savannah Resources Plc | December 2014
3
Portfolio structure
Savannah Resources Plc
United Kingdom
AIM listed, parent company
Mauritania
Mali
MOZAMBIQUE
Jangamo
OMAN
Blocks 4,5 & 6 Copper
Projects
INVESTMENT
Alecto Minerals Plc
(Matilda Minerals Limitada
80% ownership)
Heavy Mineral Sands
Exploration Licence
Oman (earn in up to 65%,
65% & up to 70%
respectively)
early to advanced
exploration projects
United Kingdom
AIM listed
19.7% ownership
Ethiopia
Oman
Mozambique
Key
Savannah Resources Plc | December 2014
4
Proven track record
CEO – David Archer
“Proven record of building value for shareholders through exploration, bringing assets into
production and successfully completing trade sales”
• Savage Resources Limited (ASX listed)
•
•
•
•
•
•
Developed from a small IPO in 1987 to a major mid-tier mining group with a market capitalisation of
approximately AUD$400m
CEO and Deputy Chairman
The Metropolitan Colliery (underground coal mine, New South Wales)
Liddell Colliery (open-cut and underground coalmines, New South Wales)
The Ernest Henry Copper Mine (a 49% interest in the 10mtpa copper mine, Queensland)
Tennessee zinc mines and Clarkesville zinc refinery (United States)
• Hillgrove Resources Limited (ASX listed)
•
•
•
•
•
•
From a listed shell in 2002/3, undertook a capital reconstruction and developed it into a profitable, dividend
paying, AUD$200m market capitalisation company
As Managing Director responsible for:
The development of the Kanmantoo Copper Mine (2.4mtpa open-cut copper mine, South Australia)
Operation of the Kanmantoo heap-leach circuit and copper cement plant (copper, South Australia)
Securing and launching exploration programmes for epithermal gold (Sumba) and porphyry copper-gold (West
Papua) exploration projects in Indonesia
The sale of Hillgrove’s strategic shareholding in Eastern Star Gas Limited for a profit of AUD$155m
• PowerTel Limited (ASX listed)
•
Now part of Telecom New Zealand, as CEO and Executive Chairman developed the Company from inception as
the first listed Australian telephone company to the third largest fibre-optic network owner and operator in
Australia
Savannah Resources Plc | December 2014
5
MANAGEMENT
BOARD
Board and management team
Mike Johnson
Chairman
(Emeritus) Professor Mike Johnson was previously the Director of Environmental Science and the Industrial Ecology Research Centre at the
University of Liverpool. He was Chairman of Glebe Mines Ltd from 2000 until 2008. He is currently Chairman of Alecto Minerals plc and Antracor
Mining Limited and a Director of Columbus Copper Corporation. Professor Johnson presently holds a number of business and environmental
advisory positions including with Rio Tinto plc, New Boliden SA and Lundin Mining Corporation, and is an adviser on sustainable development
programmes for several governments, UNEP and the World Bank. Qualifications : DSc., PhD, MTech, BSc.
David Archer
Chief Executive Officer
David is a non-practising Barrister of the Supreme Court of New South Wales, holds a B.Ec and is a Fellow of the Australasian Institute of Mining
and Metallurgy. He has had wide experience in the mining industry for over 30 years, with specific expertise in the development and operation of
copper/gold projects. David has held executive and non-executive roles in a number of listed companies and has been actively involved in the
international resources industry for over 30 years. He is the former Managing Director and Deputy Chairman of Savage Resources Limited, the
Managing Director of Hillgrove Resources Limited, Executive Chairman of PowerTel Limited and Chairman of Hostworks Group Limited. He was a
director of Eastern Star Gas Limited from 2006 to 2009.
Charlie Cannon-Brookes
Non Executive Director
Charlie is the Investment Director of Arlington Group Asset Management Limited and the Investment Manager of Praetorian Resources Limited,
an AIM listed closed ended investment company focused on the natural resources sector. Previously he acted as investment manager to
Arlington Special Situations Fund; a Cayman domiciled OEIC (2005-2010). For the previous five years (2000 – 2005), he ran Arlington Group Plc.’s
proprietary trading book, managing all of its public equity exposure. He has extensive fund management experience and has advised and sat on
the board of a number of other funds and trusts in a non-executive capacity.
Dale Ferguson
Technical Director
Dale graduated in 1993 with a BSc with 1st Class Honours, Double Major in Geology, from Latrobe University, Melbourne and is a Member of the
Australasian Institute of Mining and Metallurgy.
He has over 20 years’ experience in the resources industry with Hillgrove Resources Limited, Thundelarra Exploration, Savage Resources Limited
and Gasgoyne Gold Mines. His experience spans greenfields and near mine exploration, resource delineation, feasibility studies, due diligence
investigations and mine development and operations.
Paul O’Donoghue
Country Manager
Mozambique
Paul holds a MA in Development Studies from the University of East Anglia. He jointly founded Matilda Minerals. Prior to this he served as a
Diplomatic Attaché with the Embassy of Ireland in Maputo and with a number of NGOs. Paul lives in Maputo and is a fluent speaker of
Portuguese. Paul has managed Savannah’s operations in Mozambique since October 2013.
Dr Durair A’Shaik
General Manager Business
Development Oman
Dr Durair is an internationally recognised expert in the genesis of base metal deposits and VMS style mineralisation, has published extensively
and adds to the geological capability of Savannah’s team. Dr Durair is an Omani national, is based in Muscat. Formerly a senior executive of the
Oman mines department.
Michael McGarty
Chief Financial Officer
A graduate in Finance from Manchester University’s Business School, and a qualified accountant (Chartered Institute of Management
Accountants, UK). He gained 16 years of experience working with Ingersoll Rand (NYSE:IR), a leading global diversified manufacturer of industrial
and engineered products. During which time he has worked in roles of increasing responsibility, covering all areas of accounts payable /
receivable, and financial / management accounting. He led the European implementation of the Sarbanes Oxley compliance initiative, and has
served for seven years as financial controller for businesses covering Europe, Middle East and Africa, including the provision of business partner
support and strategic planning. Michael has four years’ experience in the financial management of African exploration operations.
Savannah Resources Plc | December 2014
6
Key data
Major Shareholders
Market
AIM
Ticker
SAV
Share Price*
4.4p
Market Capitalisation*
£9.1m
Shares on issue**
206.7m
Cash (pro-forma at 20.11.14)
£2.3m
Warrants outstanding (3.0p-11.0p av. 4.6p)
13,911,112
Options (3.0p -12.5p av. 5.7p)
26,523,443
Shares not in public hands
12.7%
Strategic Investment in Alecto Plc (0.65p*)
19.7% = £1.1m
David Archer (Director) - 10.8%
Praetorian Resources - 5.9%
Fiske - 3.6%
Other - 79.8%
*as at 28.11.14
**includes Tranche 1 of November 2014 placement. 15,049,692 to be issued at 4.45p per share subject to shareholder approval in December 2014
Savannah Resources Plc | December 2014
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OMAN: Copper
Targeting developing high margin, low cost, copper/gold operations with low geological
risk to establish Savannah as a mid-sized copper producer
•
Strategic Positioning - Secured major, 1,279km² position in the Omani VMS Belt
• Credentialing Savanah by demonstrating exploration capabilities in-country
• Build a strategic platform via consolidation of isolated VMS deposits
• Develop deposits and discoveries with hub and spoke model with a central
processing plant
• Outstanding Geology – Significant potential for base and precious metals discoveries
• Clusters of 1Mt -15Mt deposits typical of VMS belts
• Generally near surface resources
• Metallurgically simple ores that produce well accepted copper concentrates
• Medium to high grade copper ores with gold credits - Mawarid Mining’s Hatta and
Shinas mines made US$120m of free cash-flow in first year of operation
• Attractive Fiscal Terms – Five year tax holiday, 12% corporation tax, 5% royalty
• Excellent Infrastructure – Projects located close to smelter, port, roads, power and water
• Low personnel and fuel costs
Savannah Resources Plc | December 2014
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OMAN: Prospective location
The Semail Ophilite belt is an
extensive arc of metal
bearing rocks extending
some 500km, which hosts a
large number of volcanic
massive sulphide deposits
containing copper and gold
Semail Ophiolite Belt
>150 volcanogenic massive sulphide (‘VMS’)
prospects discovered along the 500km strike
length of the Oman (Semail) Ophiolite
Arabian Ophiolite Belt
Savannah Resources Plc | December 2014
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OMAN: Current Portfolio
A high calibre portfolio of advanced development and early stage exploration copper
projects, an opportunity to create high margin mines with low inherent operating costs:
Savannah Resources Plc | December 2014
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OMAN: Current Portfolio
Three highly prospective Blocks containing high grade Cyprus-type VMS resources, covering 870km²
of the highly prospective copper-rich Semail Ophiolite belt
•
Block
•
•
•
•
•
•
Block 5 – 598km² Tenement 50km south of Sohar
• Near surface Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% Cu (including a high-grade zone of ~0.5Mt
@ 4.5% Cu)
• Equity holding 65% in Al Fairuz Mining LLC .
• Omani Partner - Al Fairuz Group – Heavy earthmoving equipment & construction/cannery/ boats.
• Cost US$800,000 plus three milestone cash/share payments of US$1.0m each on final investment decision first
sales of concentrate and six months into production.
• High grade copper intersections reported to date include 56.4m at 6.2% copper from 63.2m in B5MH4071 from
Mahab 4 prospect in Block 5.
• Multiple high priority exploration targets at Block 5 including:
• Maqail South – 6.68m at 7.42% copper , Hara Kilab – 5.54m at 3.96% copper, Mahab 2 – 5m at 2.81% copper.
•
Block 6 – 273km² Tenement ~80km southeast of Sohar
• Beneficial interest of 40% in Al Zuhra Mining LLC – right to earn-in to 70% by funding to completion of BFS
• Omani Partner – Sheikh Ahmed Fahrid – owner of 21 companies in Oman
• Capital Return Agreements – Savannah to re-coup 100% of exploration, feasibility & development costs on
commencement of mining before dividend distribution on equity share holdings
4 – 408km² tenement ~20km southwest of export port of Sohar
Earn-in agreement to acquire up to 65% interest by spending $4.6M over 4 years
Omani partners – Al Bahja Group (copper cable manufacturer in Oman) and WJ Towell conglomerate
Secures over 35km in strike of prospective ophiolite with multiple contacts
Prime target for VTEM technology as little modern exploration has taken place
Historical exploration returned encouraging results (Rockchipping at Salahi 5: 11.3g/t gold and 4.5% copper; Drilling
at Zuha: 19.3m at 2.79% Copper from 2.5m)
• Area has been a prolific copper producer
Savannah Resources Plc | December 2014
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OMAN: Blocks 5 and 6
VTEM – Multiple targets identified
Savannah Resources Plc | December 2014
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OMAN: Blocks 5 and 6
VTEM – Multiple targets identified
Highlights from reprocessing 2010 VTEM survey data on Block 5 and Block 6
New VTEM anomalies identified in the vicinity of known
VMS copper deposits and mineralisation indicates excellent
potential for VMS clusters
• 94 prospective anomalies identified: 8 Priority 1, 12
Priority 2 and 74 Priority 3
• Initial ground reconnaissance of VTEM targets at the Sarami
West Prospect has highlighted three high priority VTEM
anomalies located on the key Geotime/Lasail geological
contact - the most mineralised contact within the Oman
Ophiolite Belt
• Significantly, umber units which represent a significant time
break to allow potential VMS deposits to form were also
noted at these contacts
• The SW3 anomaly at Sarami West Prospect is larger and of
Target SW1
Target SW2
Target SW3
similar intensity to the nearby Mahab 4 copper
deposit anomaly (existing Indicated and Inferred Mineral
Resource of 1.7Mt @ 2.2% copper)
• Results underpin potential to increase current Indicated
and Inferred Mineral Resource of 1.7Mt at 2.2% Cu
(including a high-grade zone of ~0.5Mt at 4.5% Cu)
• On track to drill in first quarter 2015
Enlarged VTEM image for the Sarami West Prospect (SW1 to 3) showing a series of untested VTEM
anomalies which could potentially form part of a VMS cluster at Sarami West.
Savannah Resources Plc | December 2014
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OMAN: Block 4
Delivering Oman expansion strategy
Recently acquired Block 4 Permit – Savannah now holds 32km strike of the Semail Ophiolite belt
•
Block 4 - 408km² Tenement 20km south west of Sohar
• Acquiring 65% interest from Omani company Al
Thuraya by spending $2m on exploration over
two years
• Secures over 35km in strike of prospective
ophiolite with multiple contacts
• Prime target for VTEM technology as little
modern exploration has taken place
• Historical exploration returned encouraging
results:
Rockchipping
• Salahi 1: 0.3% copper, 37.4g/t gold, 88g/t silver
• Salahi 3: 1.17% copper 0.4g/t gold and 0.39% zinc
• Salahi 4: 1.8g/t gold and 8.19% copper
• Salahi 5: 11.3g/t gold and 4.5% copper
Drilling
• Zuha (AZU009): 19.3m at 2.79% Copper from
2.5m
Savannah Resources Plc | December 2014
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Mozambique: Heavy mineral sands
• Multiple, world class heavy mineral deposits
discovered along 2,700km of coastline - heavy
mineral assemblage weighted to ilmenite with
low slimes
• 4th largest producer of TiO2 feed-stocks and
5th largest producer of zircon
• Kenmare operates the producing Moma
Titanium Minerals Mine, located on the north
east coast of Mozambique – target production
of 864,000 tpa @3.7% THM
• Well understood but under-explored geology in
major dune systems – strong potential to make
new commercial discoveries
• Established
infrastructure
relatively
inexpensive energy (hydroelectricity, natural gas
and, in the near future, thermal coal), excellent
natural ports and a motivated and available
workforce
• Pro-mining government committed to creating
the conditions for new mine developments
Savannah Resources Plc | December 2014
15
Mozambique: Current Portfolio
•
Matilda Minerals Limitada (‘Matilda’) – 80%
shareholding. Matilda wholly owns the 180km2
Jangamo Project in southern Mozambique
•
Contiguous to Rio Tinto’s Mutamba deposit –
exploration target of 7-12Bt at 3-4.5% THM
•
Large dunal heavy mineral sands accumulation Magnetic surveys have identified possible strandline
deposits – scout drilling appears to have confirmed
the presence of these strandline targets
•
Scout sampling returned results of up to 18.1% total
heavy mineral, with an ilmenite dominant assemblage
•
Strandline system appears to run from the Jangamo
Project into Rio Tinto’s Mutamba Project
•
Savannah finances 100% of expenditure to advance
the Project to a Definitive Feasibility Study stage
•
Expecting to release maiden JORC Mineral Resource
during Q4 1014
Savannah Resources Plc | December 2014
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Jangamo
Drilling
•
3,990m RC Drilling, completed in Q2 2014,
intersected broad zones up to 39 metres deep with
THM of up to 9.2%
•
Five significant HMS mineralised zones identified
with potential for higher grade HMS mineralisation
ranging from 2km to 15 km strike length.
•
Better results from surface including:
• 33m at 5.9% HMS, including 12m at 9.2%
• 33m at 5.1% HMS, including 12m at 7%
•
Higher grade mineralisation highlighted, much
commencing from surface. Peak result of 3m at
10.3% HMS.
•
Final heavy mineral product likely to contain high
percentage of titanium dioxide minerals (inc
ilmenite, leucoxene and rutile) and appears to be
low in slimes.
•
Discovered a new mineralised dune system in the
north-western part of the Project, which
significantly expands the exploration potential.
•
Current drill programme focussing on defining
potential of strand line target in the west (39m at
2.9% HMS) and the Grid drill out of the higher
grade HMS as defined by the scout drilling in the
east of the Project area.
Savannah Resources Plc | December 2014
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Alecto Minerals: Gold
19.7% interest in Alecto Minerals Plc provides
exposure to:
• Mali – Kossanto
• Mali – Karan
• Ethiopia – Wayu Boda
• Ethiopia – Aysid-Metekel
JV with Centamin
• Mauritania – Wad Amour (copper-gold)
Savannah Resources Plc | December 2014
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Development milestones
JANGAMO – MOZAMBIQUE
OCT 2013
Completion of
acquisition & £500,000
cash placement
NOV 2013
Completion of drilling
FEB-MAR 2014
MAR 2014
Q2/Q3 2014
Q4 2014
Q1 2015
Initial assay & further
analysis of results
Raised £1.5m for 2014
exploration programme
Geophysics and 2
drilling programmes
Potential JORC resource
at Jangamo
Commence Scoping
Study
OMAN
APRIL 2014
APRIL 2014
MAY 2014
Agreement to
acquire interest in
Block 5&6
Secures
investment of up
to US$6.3 million
Commence
exploration on
Block 5
JULY 2014
NOV 2014
H1 2015
Complete
acquisition
Agreement to
acquire Block 4
VTEM survey of
Block 4
H1 2015
Drilling to define
mineralisation in
Block 5
ALECTO 2014
Develop portfolio of Malian and Ethiopian gold projects and Mauritanian copper-gold project
Utilise JV with Centamin for development of Ethiopian assets
PIPELINE PORTFOLIO
Targeting additional multi-commodity projects that add value and complement existing portfolio
Savannah Resources Plc | December 2014
19
Investment case
• Growth company with defined strategy – focussed on building a multi-commodity,
geographically diverse exploration and development company
• Secured rare opportunity with a major position in copper-rich Oman – focussed on
developing as mid-tier copper production company
• Prospective Jangamo project located in world class mineral sands province in Mozambique
– targeting a maiden resource in Q4 2014 and commencing scoping study Q1 2015
• Strategic 19.7% investment in Alecto provides upside potential to gold markets with no
expenditure costs
• Strong project pipeline – continue to target additional value accretive organic growth in
existing geographies
• Completed significant milestones on time and on budget – further strong news flow
scheduled over coming months
• Strong balance sheet with cash and current assets of £3.4m
Savannah Resources Plc | December 2014
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Contact
CEO David Archer
Savannah Resources Plc
18 Pall Mall
London, SW1Y 5LU
United Kingdom
T: +44 20 7389 5019
E: [email protected]
Savannah Resources Plc | December 2014
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APPENDIX
OMAN
HEAVY MINERAL SANDS – MOZAMBIQUE
COPPER - OMAN
Savannah Resources Plc | December 2014
GOLD – MALI, ETHIOPIA AND MAURITANIA
22
Geology
• >150 volcanogenic massive sulphide (VMS)
prospects discovered along the 500km strike
length of the Oman (Semail) Ophiolite
• Copper has been mined in Oman since the
Bronze Age
• Confined to
sequence
1.5-2.0km
thick
pillow-lava
• Hosts cyprus-type VMS deposits
• Deposits found in clusters – containing ~10Mt
of massive sulphide
• Clusters spaced
volcanic centres
~20-25km
apart
around
• Fault–controlled deposits on sea floor positions
• 2 metallogenic types:
•
•
Cyprus-type - copper, cobalt, selenium, nickel &
molybdenum [eg. Bayda & Lasail]
Rift Graben-type – copper, zinc, lead, silver &
gold [eg. Aarja]
• Alteration: Silicification,
Epidotization
Savannah Resources Plc | December 2014
Chloritization
&
23
Stratigraphic position
of Oman VMS deposits
Lasail
Lasail/Geotimes
Contact Zone
Geotimes
• Clear Exploration Model: Most of the known deposits to date occur near the top of the
Geotimes unit or within the Lasail or Alley units
• Past exploration focused only on the Geotimes – Lasail contact
Savannah Resources Plc | December 2014
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Blocks 5 and 6
Exploration
Savannah is planning to implement a fast paced exploration programme with a view to
commencing drilling in H2 2014
The initial work programme will include:
• Detailed targeting assessment of the geophysical data
looking at subtle targets, targets under cover, and targets
potentially concealed by cover along known prospective
trends
• Acquire, compile and assess all data and GIS databases
• Improve understanding through better characterisation of
known deposits, inside and outside the Blocks, especially
through litho-geochemical signatures of mineralisation
and alteration and a better definition of structural and
litho-stratigraphic control
• Drill targets on identified target trends will be defined by a
combination of VTEM conductors, ground EM follow-up,
systematic surface geochemistry, and litho-geochemical
targeting
• Ground EM along known mineralised trends and downhole EM will be considered for all prospect drill testing
• Further geological mapping, geochemical sampling and
drilling
Savannah Resources Plc | December 2014
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Block 5
Mahab 4 – typical cyprus type VMS deposit
• Resource of 1Mt drilled out on 25m-50m spacing
• 330m long massive sulphide 10-50 m thick massive
sulphide wedge
• Open-pittable depth (20-90m)
GRB5D035: 54.19m
@ 4.97% Copper
GRB5D047: 24.40m
@ 4.68% Copper
Mineralised Zone
Savannah Resources Plc | December 2014
26
Block 5
JORC Resource
Oxide Resources at Mahab 4 (0.3g/t Au cut-off) in Block 5
Tonnage
Density
Cu
Au
Ag
Pb
Zn
(kt)
(t/m3)
(%)
(g/t)
(g/t)
(%)
(%)
Mahab 4
Indicated
9
2.4
0.2
1.4
19.7
0.01
0.04
Mahab 4
Inferred
19
2.4
0.1
0.8
7.7
0.03
0.04
Sulphide Resources at Mahab 4 and Maqail South (0.3% Cu cut-off) in Block 5
Tonnage
(kt)
Density
(t/m3)
Cu
(%)
Au
(g/t)
Ag
(g/t)
Pb
(%)
Zn
(%)
Mahab 4
Indicated
916
3.5
2.8
0.2
8.5
0.080
0.54
Mahab 4
Inferred
590
3.3
0.9
0.1
2.5
0.012
0.14
Maqail South
Inferred
160
3.6
3.8
0.1
2.4
0.002
0.02
Total Indicated
916
3.5
2.8
0.2
8.5
0.080
0.54
Total Inferred
750
3.3
1.5
0.1
2.5
0.010
0.12
Significant figures quoted do not imply precision and are to minimise round-off errors
Savannah Resources Plc | December 2014
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Block 5
Mahab 4 – high grade copper intercepts
Hole No.
From
To
Mahab 4
m
m
Mineralisation
Intercept
Copper
Gold
Zinc
Silver
m
%
g\t
%
g/t
GRB5D020
40.15
55.55
MS
15.40
7.40
0.17
0.91
7.90
GRB5D030
32.05
63.00
MS + SMS + QVS
30.95
3.16
0.28
1.29
17.40
GRB5D032
67.15
87.45
Jasper + MS
20.30
5.79
0.37
2.42
22.00
GRB5D035
44.42
98.61
MS + SMS + QVS
54.19
4.97
0.19
0.85
9.60
B5MB4D059
33.50
43.69
MS
10.19
6.69
0.48
3.20
20.00
B5MB4D064
13.50
53.00
GOS/MS/SMS
39.50
4.81
0.25
0.38
16.70
B5MB4D070
12.42
36.46
MS
24.04
6.32
0.49
1.10
24.2
B5MB4D071
63.15
120.00
MS + SMS
56.85
6.21
0.22
0.90
10.4
B5MB4D074
70.35
105.44
MS
35.09
4.82
0.38
17.70
0.85
B5MB4D083
45,15
88.44
MS + SMS + QVS
43.29
3.62
0.24
0.90
11.8
Savannah Resources Plc | December 2014
28
Block 6
Large areas of transported cover
Prospective rocks
under transported
cover
Savannah Resources Plc | December 2014
29
APPENDIX
Mozambique
HEAVY MINERAL SANDS – MOZAMBIQUE
COPPER - OMAN
Savannah Resources Plc | December 2014
GOLD – MALI, ETHIOPIA AND MAURITANIA
30
Mineral sands
A promising market
Global demand for titanium dioxide and zircon is expected to outstrip levels of supply in 2014 –
provides Savannah with favourable market dynamics for growth
•
Heavy mineral sands are placer deposits formed usually in
beach environments by concentration due to the specific
gravity of the mineral grains
•
Ilmenite and Rutile:
•
•
•
•
Used in the manufacture of titanium dioxide pigment
and titanium metal
Titanium dioxide (TiO2) is a very white, opaque
compound used in products such as paint, plastics and
paper
Titanium feedstock production represents an approximately
US$2 billion per annum industry and the TiO2 pigment supply
chain has annual revenues of over US$10 billion, which in turn
supply products to other industries
TiO2 Feedstock Supply/Demand Balance
Zircon:
•
•
Zircon sand supplied to a wide range of consuming
industries, of which the ceramics sector is the largest
consuming end use market
Zircon sand supply sector represents an approximately
US$1.2 billion per annum industry, which in turn is
supplied to end user markets generating strong annual
revenues
Zircon Supply/Demand Balance
Savannah Resources Plc | December 2014
31
Mozambique: Current Portfolio
• 180km2 Jangamo
Mozambique
Project
in
Southern
• Project contiguous to Rio Tinto’s Mutamba
deposit, which, combined with Rio’s
Mutamago deposit in Mozambique, has a
declared exploration target of 7-12Bt at 34.5% THM
• Heavy mineral strand line system and
mineralised horizons appear to run from Rio
Tinto’s Mutamba deposit into Jangamo
• Scout sampling returned results of up to
18.1% THM, with ilmenite, rutile and zircon
recorded in the mineral concentrate
• Targeting to delineate a JORC resource in H2
2014
• Established infrastructure and services
Savannah Resources Plc | December 2014
32
Jangamo
Evaluation
• 2014 field exploration programme commenced
early April 2014 – comprising geophysics,
further drilling and mineralogical studies
• Ground magnetic survey confirmed it is
possible to detect the geophysical signature of
the HMS deposits using an airborne platform will rapidly advance and lower cost of
exploration
• Primary objective to drill out and further
define mineralisation and identify target zones
for drilling – due to commence in Q3 2014
• Commissioned leading minerals sands
consulting group TZ Minerals International to
scope out and characterise potential of
Jangamo and outline a path for the Project
through to a Scoping Study
• Focussed on defining a maiden JORC resource
in Q4 2014 and commencing scoping study Q4
2014 / Q1 2015
Savannah Resources Plc | December 2014
33
Jangamo
Evaluation
2014 Scout Drilling Programme
• 96 Holes, 3990m
Savannah Resources Plc | December 2014
34
APPENDIX
MALI, ETHIOPIA AND MAURITANIA
HEAVY MINERAL SANDS – MOZAMBIQUE
COPPER - OMAN
Savannah Resources Plc | December 2014
GOLD – MALI, ETHIOPIA AND MAURITANIA
35
Alecto Minerals Plc
Following the strategic sale of three gold assets in Mali to Alecto Minerals Plc in October
2013, and two legacy assets in March 2014, Savannah owns 19.7% of Alecto
• AIM Listed resource company with a multi-commodity portfolio across highly prospective
but previously under-explored regions of Africa
• Strong management team with solid in-country contacts and experience developing
mining projects
Event
Quantity Shares
Shareholding
Divestment of AME West Africa / Kossanto Gold Project
(£1,250,000)
108,695,652
12.4%
New shares subscribed for in cash (£150,000)
13,043,481
1.5%
New shares acquired via Convertible Loan Note
subscribed for in cash (£350,000)
30,434,783
3.6%
Divestment of remaining Malian permits (£250,000)
20,000,000
2.3%
Total Shareholding
172,173,916
19.7%
Savannah Resources Plc | December 2014
36
Alecto
Mali
• 207km² project located in the highly prospective
Kenieba inlier in western Mali:
•
The Gourbassi target in Kossanto East currently
holds a JORC-code compliant inferred resource
estimate of 247,000 oz Au* – an increase of 131%
since acquisition in October 2013
•
In Kossanto West multiple high-grade targets were
discovered and drill tested in 2014 making the
area ready for a dedicated exploration drill
programme in the forthcoming season
• Strong potential to increase resource potential:
•
•
Alecto undertaking further RC drilling in order to
prove continuity between two gold zones at
Gourbassi West
Additional RAB drilling at Gourbassi West has
demonstrated a further wide zone of
mineralisation
• Located close to and in between major mines:
•
•
•
•
Randgold’s 12.5 Moz Au Loulo mine
AngloGold Ashanti and IAMGOLD’s 13.0 Moz
Sadiola Gold Mine
Randgold’s 5.4 Moz Au Gounkoto mine
Teranga Gold’s 3.0 Moz Au Sabodala mine
Savannah Resources Plc | December 2014
ALO Projects
37
Alecto
ETHIOPIA
“Mining
and exploration in Ethiopia is increasing
with majors and juniors alike gaining exposure to
the highly prospective gold mineralisation incountry”
•
Two highly prospective gold licences (Wayu Boda and AysidMeketel) in Ethiopia covering 2,898km² – both close to known
economic deposits and have strong exploration potential
•
US$14m JV with Centamin to significantly accelerate
development of Alecto’s Ethiopian gold properties to earn up
to a 70% JV interest
Wayu Boda Gold Project:
• 945 km² licence in the Adola greenstone belt, southern
Ethiopia
• Field work commenced – core drilling to commence shortly
• Rock chip samples of up to 47.4 g/t Au
• 24km south of National Mining Corporations’ 17Moz Dawa
gold discovery
Aysid-Metekel Gold Project:
• 1,953 km² North-West Ethiopia
• Six exploration targets identified
Savannah Resources Plc | December 2014
MAURITANIA
• Three gold and base metal licences - Chegar
(756km2), Wad Armour (613km2) and Zreibya
(459km2)
• Exposure to a highly prospective and emerging
mineral district – targeting Iron Oxide Copper
Gold (IOCG) style mineralisation
• Four phase exploration programme underway –
focussed on the Zreibya and Wad Amour
licences
• Delineated two defined copper anomalies with
strike lengths of over 800m and 900m at the
Wad Amour licence - Alecto likely to implement
a scout drilling programme to improve
understanding of the mineralisation at the
licence areas
38