Savannah Resources Plc · LSE:SAV
Savannah Resources — Indaba Presentation, Cape Town 2017
42 slides from Savannah Resources's conference presentation, March 2017
Slide 1: Indaba Corporate Presentation, Cape Town
INDABA PRESENTATION CORPORATE PRESENTATION CAPE TOWN MARCH 2017 |l FEBRUARY AIM:SAV 2017 AIM:SAV CORPORATE A MULTI-COMMODITY MOZAMBIQUE PORTFOLIO WITH NEAR TERM DEVELOPMENT OPPORTUNITIES OMAN FINLAND INVESTMENT
Slide 2: Disclaimer
Disclaimer 2 These presentation slides (“the Slides”) do not comprise an admission document, listing particulars or a prospectus relating to CORPORATE Savannah Resources plc (“the Company”), or any subsidiary of the Company, do not constitute an offer or invitation to purchase or subscribe for any s
Slide 3: Savannah at a glance
Savannah at a glance… 3 AIM quoted development company with an CORPORATE established multi-commodity portfolio Prospective multi-commodity portfolio: • Mutamba Project, Mozambique – Consortium Agreement MOZAMBIQUE with Rio Tinto to develop heavy mineral sands project, which has an initial Indicated
Slide 4: Board and Management Team
Board and Management Team 4 Experienced team with proven success in bringing resource assets into production CORPORATE Matthew King Chairman MOZAMBIQUE David Archer Chief Executive Officer OMAN Imad Kamal Abdul Maqbool Ali Sultan Dale Ferguson Redha Sultan Non-Exec Director Technical Director Non-Ex
Slide 5: World-class Heavy Mineral Sands Project: Mozambique
World-class Heavy Mineral Sands 5 Project: Mozambique CORPORATE Consortium agreement with: MOZAMBIQUE MUTAMBA PROJECT Initial Indicated and Inferred OMAN Mineral Resource Estimate of 4.4 billion tonnes at 3.9% Total Heavy Minerals (THM) World class minerals region FINLAND Strategy: Focussed on defin
Slide 6: Why heavy mineral sands?
Why heavy mineral sands? 6 USES The mineral sands industry consists of two principal CORPORATE • • Titanium dioxide pigment is a pure white, highly product streams; titanium dioxide minerals – in the refractive and ultraviolet light absorbing product, form of ilmenite, rutile and leucoxene; and zirc
Slide 7: Rio Tinto / SAV Consortium Agreement
Rio Tinto / SAV Consortium Agreement 7 • Rio Tinto and Savannah entered into a CORPORATE Consortium Agreement October 2016 to define a potential dry mining operation for staged, early development • Savannah is the operator, with an initial 10% MOZAMBIQUE beneficial interest and potential to increase
Slide 8: Significant resource potential
Significant resource potential 8 CORPORATE Covers the Jangamo, Dongane and Initial Indicated and Ravene deposits Inferred Mineral Contains 102 million tonnes (“Mt”) of Resource Estimate ilmenite, 2.2Mt rutile and 4.7Mt zircon of 4.4 billion tonnes MOZAMBIQUE Includes a high-grade portion of 92Mt at
Slide 9: Peer Comparison
Peer Comparison 9 Valuable THM % Other / Non Mineral (Millions Total Sub Company Operation Country Valuable THM % Ilmenite Rutile Zircon CORPORATE Estimate Tonnes) Total THM % Kenmare Moma *** Mozambique 6,472 2.90% 2.40% 0.10% 0.16% 2.66% 0.25% Savannah Resources Mutamba North* Mozambique 4,400 3.9
Slide 10: Pre-development programme
Pre-development programme 10 Mineral sands expert TZ Minerals International commissioned to conduct a scoping study to evaluate an CORPORATE SCOPING initial phase, low capex, long life, dry mining operation around a potential 200Mt well graded resource STUDY • Expected to take around 4 months to com
Slide 11: Dry Mining: the process
Dry Mining: the process 11 Cohesive community CORPORATE engagement programme to be implemented alongside operational activities MOZAMBIQUE Faster route to production Allows staged Lower cost OMAN approach Mutamba resource Ability to amenable to FINLAND mine high dry mining Lower risk grade The Port
Slide 12: Infrastructure
Infrastructure 12 • Located ~450km northeast of the capital city of Maputo and ~40km from the ports of Inhambane and Maxixie CORPORATE • Lindela substation located 5km away • Proven local workforce • Established camp facilities, including accommodation and ablution blocks and site clinic MOZAMBIQUE
Slide 13: Community Engagement
Community Engagement 13 CORPORATE Maintaining positive relationships with the Supporting regional development communities in which we operate Ensuring high standards of social and Ensuring honest, timely and transparent environmental compliance communication MOZAMBIQUE Active development programmes:
Slide 14: Development timetable
Development timetable 14 CORPORATE • Complete Scoping Study and environmental studies • Pilot plant test work commences • Implement community engagement programme Marketing studies MOZAMBIQUE • • Pre-feasibility study 2017 • • Commence Feasibility study Mining Concession applications OMAN • Mining C
Slide 15: Oman
Oman 15 CORPORATE Highly prospective asset portfolio covering 1,006 km² Aarja Exploration BLOCK 4 Zuha old copper mines (collectively Target1 Lasail of between 408km² produced over 212,000t copper) MOZAMBIQUE Bayda 10,700,000t and Salahi 1 – gold 29,250,000t Gaddamah - copper and gold grading at bet
Slide 16: Why copper?
Why copper? 16 USES OF COPPER • Copper is a critical metal and a fundamental requirement CORPORATE for the world’s expanding middle class Copper has a wide range of appliances, including: • Pipes and electrical cables • Copper demand continues to rise with more than 6Mt of • Building construction ne
Slide 17: Oman: an outstanding location
Oman: an outstanding location 17 Oman offers a compelling investment opportunity, CORPORATE offering low CAPEX and OPEX mine development options ✓ Outstanding geology MOZAMBIQUE ✓ VMS Clusters of 1Mt -15Mt - Oman hosts one of the largest concentrations of VMS deposits in the world ✓ Metallurgically
Slide 18: Block 5: established resource: Mahab and Maqail South
Block 5: established resource: Mahab 4 and Maqail South 18 MAHAB 4 MAQAIL SOUTH CORPORATE Current Indicated and Inferred JORC Mineral Resource of 1.7Mt at 2.2% copper: JORC RESOURCE 1.51Mt at 2.1% copper at Mahab 4 0.16Mt at 3.8% at Maqail South MOZAMBIQUE Mahab 4 deposit remains open along strike t
Slide 19: Block 5, Mahab 4: drill results
Block 5, Mahab 4: drill results 19 Resource drill programme (eight holes) completed in October 2016 to improve confidence CORPORATE in resource estimate and collect material for metallurgical testing. New results from the drill programme are shown in blue: MOZAMBIQUE OMAN FINLAND INVESTMENT
Slide 20: Mahab 4: cross section
Mahab 4: cross section INVESTMENT FINLAND OMAN MOZAMBIQUE CORPORATE
Slide 21: Mahab 4: metallurgically attractive
Mahab 4: metallurgically attractive 21 Chalcopyrite identified as the sole copper bearing mineral, which is likely to lead to a simple, quick and relatively low CORPORATE cost flotation process to concentrate the copper ('Cu') Test data indicates that any potential development should enjoy favourabl
Slide 22: Mahab 4: mining development
Mahab 4: mining development ✓ Preparation of scoping document for Environmental Impact Assessment commenced CORPORATE ✓ Community Meeting held at Wali Office MOZAMBIQUE OMAN FINLAND Underground mining is more expensive than open pit mining but has some significant benefits • Much easier to control d
Slide 23: Block 5: Maqail South
Block 5: Maqail South 23 Results from the October 2016 drill campaign point towards a potential expansion of the current high-grade portions of Maqail South. Savannah is targeting an updated resource CORPORATE estimate in Q1 2017. New results are shown in blue: MOZAMBIQUE OMAN FINLAND INVESTMENT
Slide 24: Maqail South cross section
Maqail South cross section Eight holes completed October 2016 to improve confidence in resource estimate. New CORPORATE results from the drill programme are shown in blue: MOZAMBIQUE OMAN FINLAND INVESTMENT
Slide 25: Maqail South: mining licence application
Maqail South: mining licence application CORPORATE MOZAMBIQUE OMAN FINLAND ✓ Introduction meetings held with MECA and Ministry of Water Resources ✓ Scoping Assessment for Environmental Impact assessment submitted to MECA ✓ Letters of No objection received from four ministries ROP, Defence, Tourism,
Slide 26: Block 4: near mine copper / gold targets
Block 4: near mine copper / gold targets 26 AARJA BAYDA CORPORATE LASAIL ZUHA Of the targets identified at Block 4, four were part of previously producing mines: MOZAMBIQUE • Commercially mined in the 1980s – produced over 190,000t copper • No near mine exploration since the early 1990s • Significan
Slide 27: Block 4: near mine targets - Aarja
Block 4: near mine targets - Aarja 27 • Previously produced 2.6Mt at 1.4% copper between 1988-1994 - existing underground access supportive of rapid development CORPORATE • Three primary target areas identified: o Dog's Bone o Aarja Main o Aarja Pit • Drilling at Dog’s Bone targeting areas of known
Slide 28: Block 4: near mine targets - Bayda
Block 4: near mine targets - Bayda 28 • Previously produced 1Mt at a grade of 3% copper between 1980 and 1994 from a small underground operation CORPORATE • Historic mining focused on high-grade massive sulphide mineralisation ignoring the lower-grade disseminated sulphide mineralisation • Review of
Slide 29: Community engagement
Community engagement • Savannah has continued with its community engagement programs CORPORATE including having regular meeting with Sheikhs and local officials • Savannah continues to give financial support to appropriate community projects MOZAMBIQUE • Community meeting program under development t
Slide 30: Targeting near term production
Targeting near term production 30 CORPORATE • Mineral resource increase • Scoping studies • Environmental Studies and licensing • Define Processing Solution • Feasibility study • Negotiate offtake contract MOZAMBIQUE 2017 • Final investment decision • Mining commences OMAN • First Concentrate produc
Slide 31: Oman highlights: near term production
Oman highlights: near term production 31 CORPORATE Uniquely attractive copper development project poised to deliver into stronger copper prices in 2017/18 MOZAMBIQUE Fast-track Oman projects to start mining in late 2017 JORC Exploration Target of 10.7 to 29.3Mt at 1.4-2.4% copper and 0.38g/t gold OM
Slide 32: Finland
32 Finland CORPORATE MOZAMBIQUE Two new lithium projects covering an area of 159km² of highly OMAN prospective lithium terrain FINLAND STRATEGY: determine lithium resource potential to take advantage of INVESTMENT strong market dynamics from the burgeoning battery market Li
Slide 33: Lithium: growing demand
Lithium: growing demand 33 There is a revolution underway in how we generate and use energy; as CORPORATE such, the demand for materials such as lithium, which is a key component in new energy storage solutions, is rising at record rates By 2022 there will be 3x the number of Global lithium demand w
Slide 34: Finland: a strategic location
Finland: a strategic location 34 ▪ Excellent access to high quality Europe is a major importer of lithium CORPORATE infrastructure consuming 24% of global market (second Close to potential end-customers, inc. ▪ battery producers only to China), but has no internal lithium supply MOZAMBIQUE ▪ Low sov
Slide 35: Project portfolio
Project portfolio 35 Somero Lithium Project – 60.5km² Erajarvi Lithium Project – 98.5km² CORPORATE ▪ Located just north of the township of Somero, ▪ Located approximately 200km north of the Finnish approximately 100km northwest of the Finnish capital Helsinki, near the town of Orivesi capital Helsin
Slide 36: Development programme
Development programme 36 • 524 rockchip samples collected from Somero (244 CORPORATE samples) and Erajarvi (288 samples) • Results have highlighted seven pegmatites with anomalous lithium - two on Somero and five on Erajarvi MOZAMBIQUE • Geological mapping and rock chip sampling has highlighted: o S
Slide 37: Finland highlights: the opportunity
Finland highlights: the opportunity 37 CORPORATE MOZAMBIQUE 2 ATTRACTIVE HIGHLY ATTRACTIVE DEFINED PROJECTS PROSPECTIVE LOCATION PLAN covering an area of LITHIUM MARKET Finland has low to determine lithium 159km² of highly Strong market sovereign risk, a resource potential – prospective lithium dyna
Slide 38: Summary
Summary 38 INVESTMENT FINLAND OMAN MOZAMBIQUE CORPORATE
Slide 39: Investment case
Investment case 39 CORPORATE Active growth strategy in place to build a multi-commodity, geographically diverse development and production company MOZAMBIQUE Proven commercial potential of heavy minerals sands project in Mozambique with additional upside potential (being developed in partnership wit
Slide 40: Contact Us
Contact Us 40 David Archer CEO, Savannah Resources Plc CORPORATE E: info@savannahresources.com MOZAMBIQUE OMAN FINLAND INVESTMENT Source: Company photos
Slide 41: Board
Board 41 Experienced team with proven success in bringing resource assets into production CORPORATE Matthew King David Archer Chairman Chief Executive Officer • Qualified solicitor and specialist in • Over 35 years’ experience in the mining operational risk, compliance and internal industry, with sp
Slide 42: Management team and alternates
Management team and alternates 42 MANAGEMENT CORPORATE Michael McGarty Paul O’Donoghue Chief Financial Officer Country Manager, Mozambique • Qualified accountant with extensive accounting • Served as a Diplomatic Attaché with the Embassy and finance experience, including publicly listed of Ireland i
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