Savannah Resources PLC · LSE:SAV
Savannah Resources — Mines & Money London December 2014
38 slides from Savannah Resources's conference presentation, December 2014
Slide 1: Savannah Resources Plc
Savannah Resources Plc Generating Value - Building a Multi-Commodity Portfolio of Assets HEAVY MINERAL SANDS – MOZAMBIQUE COPPER - OMAN GOLD – MALI, ETHIOPIA AND MAURITANIA
Slide 2: Disclaimer
Disclaimer These presentation slides (“the Slides”) do not comprise an admission document, listing particulars or a prospectus relating to Savannah Resources plc (“the Company”), or any subsidiary of the Company, do not constitute an offer or invitation to purchase or subscribe for any securities of
Slide 3: Savannah at a glance
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 addi
Slide 4: Portfolio structure
Portfolio structure Savannah Resources Plc United Kingdom AIM listed, parent company Mauritania Mali Oman Ethiopia MOZAMBIQUE OMAN INVESTMENT Jangamo Blocks 4,5 & 6 Copper Alecto Minerals Plc Projects (Matilda Minerals Limitada Oman (earn in up to 65%, United Kingdom 80% ownership) 65% & up to 70% A
Slide 5: Proven track record
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
Slide 6: Board and management team
Board and management team Mike Johnson (Emeritus) Professor Mike Johnson was previously the Director of Environmental Science and the Industrial Ecology Research Centre at the Chairman University of Liverpool. He was Chairman of Glebe Mines Ltd from 2000 until 2008. He is currently Chairman of Alect
Slide 7: Key data
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 David Archer (Director) - 10.8% Options (3.0p -12.5p av. 5.7p) 26,523,443 Shares not in p
Slide 8: OMAN: Copper
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 capabili
Slide 9: OMAN: Prospective location
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
Slide 10: OMAN: Current Portfolio
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 10
Slide 11: OMAN: Current Portfolio
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 4 – 408km² tenement ~20km southwest of export port of Sohar • Earn-in agreement to acquire up to 65% interest b
Slide 12: OMAN: Blocks 5 and 6 VTEM
OMAN: Blocks 5 and 6 VTEM – Multiple targets identified Savannah Resources Plc | December 2014 12
Slide 13: OMAN: Blocks 5 and 6 VTEM – Multiple targets identified
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 Target SW1 Target SW2 Target
Slide 14: OMAN: Block 4
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 •
Slide 15: Mozambique: Heavy mineral sands
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 Tit
Slide 16: Mozambique: Current Portfolio
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 - Ma
Slide 17: Jangamo
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 surfa
Slide 18: Alecto Minerals: Gold
Alecto Minerals: Gold 19.7% interest in Alecto Minerals Plc provides exposure to: • Mali – Kossanto • Mali – Karan • Ethiopia – Wayu Boda JV with Centamin • Ethiopia – Aysid-Metekel • Mauritania – Wad Amour (copper-gold) Savannah Resources Plc | December 2014 18
Slide 19: Development milestones
Development milestones JANGAMO – MOZAMBIQUE OCT 2013 FEB-MAR 2014 MAR 2014 Q2/Q3 2014 Q4 2014 Q1 2015 Completion of NOV 2013 Initial assay & further Raised £1.5m for 2014 Geophysics and 2 Potential JORC resource Commence Scoping acquisition & £500,000 Completion of drilling analysis of results explo
Slide 20: Investment case
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 • Prospectiv
Slide 21: Contact
Contact CEO David Archer Savannah Resources Plc 18 Pall Mall London, SW1Y 5LU United Kingdom T: +44 20 7389 5019 E: info@savannahresources.com Savannah Resources Plc | December 2014 21
Slide 22: APPENDIX – Oman
APPENDIX OMAN HEAVY MINERAL SANDS – MOZAMBIQUE COPPER - OMAN GOLD – MALI, ETHIOPIA AND MAURITANIA Savannah Resources Plc | December 2014 22
Slide 23: Geology
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 1.5-2.0km thick pillow-lava sequence • Hosts cyprus-type VMS deposits • Deposits found in clusters –
Slide 24: Stratigraphic position of Oman VMS deposits
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
Slide 25: Blocks 5 and 6 Exploration
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 p
Slide 26: Block 5 – Mahab
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
Slide 27: Block 5 JORC Resource
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-
Slide 28: Block 5 – Mahab high grade copper intercepts
Block 5 Mahab 4 – high grade copper intercepts Hole No. From To Mineralisation Intercept Copper Gold Zinc Silver Mahab 4 m m 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
Slide 29: Block 6
Block 6 Large areas of transported cover Prospective rocks under transported cover Savannah Resources Plc | December 2014 29
Slide 30: APPENDIX – Mozambique
APPENDIX Mozambique HEAVY MINERAL SANDS – MOZAMBIQUE COPPER - OMAN GOLD – MALI, ETHIOPIA AND MAURITANIA Savannah Resources Plc | December 2014 30
Slide 31: Mineral sands – A promising market
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 sp
Slide 32: Mozambique: Current Portfolio
Mozambique: Current Portfolio • 180km2 Jangamo Project in Southern Mozambique • 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 3- 4.5% THM • Heavy mineral strand line system and mineralised
Slide 33: Jangamo – Evaluation
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 adv
Slide 34: Jangamo – 2014 Scout Drilling Programme
Jangamo Evaluation 2014 Scout Drilling Programme • 96 Holes, 3990m Savannah Resources Plc | December 2014 34
Slide 35: APPENDIX – Mali, Ethiopia and Mauritania
APPENDIX MALI, ETHIOPIA AND MAURITANIA HEAVY MINERAL SANDS – MOZAMBIQUE COPPER - OMAN GOLD – MALI, ETHIOPIA AND MAURITANIA Savannah Resources Plc | December 2014 35
Slide 36: Alecto Minerals Plc
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-explo
Slide 37: Alecto – Mali
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 multipl
Slide 38: Alecto – Ethiopia and Mauritania
Alecto ETHIOPIA MAURITANIA “Mining and exploration in Ethiopia is increasing • Three gold and base metal licences - Chegar with majors and juniors alike gaining exposure to (756km2), Wad Armour (613km2) and Zreibya the highly prospective gold mineralisation in- (459km2) country” • Exposure to a high
Savannah Resources — Mines & Money London December 2014 on 6ix