Savannah Resources Plc · LSE:SAV
Savannah Resources — Investor Presentation (May 2016)
37 slides from Savannah Resources's investor presentation, May 2016
Slide 1: High Grade Copper & Heavy Mineral Sands Developer
High Grade Copper & Heavy Mineral Sands Developer Corporate Presentation l May 2016 AIM:SAV
Slide 2: Disclaimer
Disclaimer 2 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
Slide 3: Savannah at a glance
Savannah at a glance… 3 Prospective multi-commodity portfolio: KEY DATA • Blocks 4, 5 and 6, Oman – 1,270 km² brownfields copper MARKET AIM portfolio of advanced development projects with additional gold upside targeting first concentrate production in late 2017 TICKER SAV • Mutamba/Jangamo Project,
Slide 4: Board and management team
Board and management team 4 Experienced team with proven success in bringing resource assets into production Matthew King A graduate in law from Durham University, Matthew is currently a Director of Funding Circle Limited a leading peer-to-peer lending Chairman platform and of Allsop MyRa Limited, a
Slide 5: Oman
5 Oman Targeting a resource Three highly prospective blocks covering 1,270 km² inventory to support high Aarja* margin, low cost, Zuha copper/gold operations to BLOCK 4 old copper mines (collectively Lasail commence commercial 408km² produced over 212,000t copper) Bayda* Salahi 1 – gold production i
Slide 6: Why copper?
Why copper? 6 • Copper is a critical metal and a fundamental USES OF COPPER requirement for the world’s expanding middle class Copper has a wide range of appliances, including: • Copper demand continues to expand with demand expected to exceed 25Mt by 2020 • Pipes and electrical cables • Building co
Slide 7: Copper mining and production
Copper mining and production 7 Transport ore to Identify an Mine the copper the copper economic ore either via open Design a mine plan processing plant to concentration of pit or underground extract the copper copper ore mining methods from the ore Processing Route The copper ore is fed into a mill
Slide 8: Oman: an outstanding location
Oman: an outstanding location 8 Oman offers a compelling investment opportunity, offering low CAPEX and OPEX mine development options Outstanding geology VMS Clusters of 1Mt -15Mt - Oman hosts one of the largest concentrations of VMS deposits in the world Metallurgically simple ores Medium t
Slide 9: Oman Ownership Structure
Oman Ownership Structure 9 Savannah Resources Plc United Kingdom AIM listed, parent company Gentor Resources Ltd, USD B.V.I Holding Company Earning 65% 70% Earning Interest Interest 65% Al Zuhara Mining LLC, OMR Al Thuraya Mining LLC, OMR Al Fairuz Mining LLC, OMR Oman Oman Oman Licence owner – Bloc
Slide 10: Blocks 4 & 5: Multiple Targets
Blocks 4 & 5: Multiple Targets 10 • Database containing ~100,000m of drilling data compiled over a series of potential resources across Blocks 4 and 5 in November 2015 “Savannah has a good degree of confidence that, with appropriate • Based on these historical drill results and other exploration fac
Slide 11: Block 4: Near Mine Copper / Gold Targets
Block 4: Near Mine Copper / Gold Targets 11 Of the targets identified at Block 4, four were part of previously producing mines: AARJA BAYDA LASAIL ZUHA • Commercially mined in the 1980s – produced over 190,000t copper • No near mine exploration since the early 1990s • Significant opportunity to fast
Slide 12: Block 4: Aarja Mine
Block 4: Aarja Mine 12 AARJA DRILLING BAYDA DRILLING LASAIL ZUHA • Previously produced 2.6Mt at a grade of 1.4% copper between 1988-1994 - existing underground access via existing portals and workings would support rapid development • 144 holes historically drilled for 26,671m • Three primary areas
Slide 13: Block 4: Aarja Exploration Target
Block 4: Aarja Exploration Target 13 AARJA DRILLING BAYDA DRILLING LASAIL ZUHA Source: Company data It is important to note that the above table is a summary of Exploration Targets and the potential quantity and grade is conceptual in nature, there has been insufficient exploration to estimate a Min
Slide 14: Block 4: Lasail Mine
Block 4: Lasail Mine 14 AARJA DRILLING BAYDA DRILLING LASAIL ZUHA • 155 holes drilled historically for 18,745m – data compilation has highlighted a number of potential mining opportunities. Significant results identified to date include: o 16.8m at 3.1% copper from 86.37m in hole 2-29 o 15.8m at 3.9
Slide 15: Block 4: Lasail Exploration Target
Block 4: Lasail Exploration Target 15 AARJA DRILLING BAYDA DRILLING LASAIL ZUHA Source: Company data It is important to note that the above table is a summary of Exploration Targets and the potential quantity and grade is conceptual in nature, there has been insufficient exploration to estimate a Mi
Slide 16: Block 4: Lasail Target
Block 4: Lasail Target 16 AARJA DRILLING BAYDA DRILLING LASAIL ZUHA High-grade open-cut and underground copper potential Source: Company data
Slide 17: Block 4: Bayda Mine
Block 4: Bayda Mine 17 AARJA DRILLING BAYDA DRILLING LASAIL ZUHA • Previously produced 1Mt at a grade of 3% copper between 1980 and 1994 from a small underground operation • Historic mining focused on high-grade massive sulphide mineralisation ignoring the lower- grade disseminated sulphide minerali
Slide 18: Block 4: Bayda
Block 4: Bayda 18 AARJA DRILLING BAYDA DRILLING LASAIL ZUHA Source: Company data It is important to note that the above table is a summary of Exploration Targets and the potential quantity and grade is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and i
Slide 19: Block 4: Zuha Mine
Block 4: Zuha Mine 19 AARJA DRILLING BAYDA DRILLING LASAIL ZUHA • Three Priority 1 and seven Priority 2 anomalies identified • Highly prospective geology and copper float found on a number of the targets • Drilling commenced Q4 2015 to test high priority VTEM targets for VMS mineralisation Source: C
Slide 20: Additional Gold Upside: Gaddamah
Block 4 – Additional Gold Upside: Gaddamah 20 GADDAMAH • Gold potential first identified in March 2015 following rock chip sampling and further underpinned in May 2015 through trench sampling, with results including: o 5m at 18.49g/t gold, 1.7% zinc and 0.53% copper in GDT08 o 4.9m at 18.82g/t gold,
Slide 21: Established Resource: Mahab and Maqail South
Block 5 – Established Resource: Mahab 4 and Maqail South 21 MAHAB 4 DRILLING MAQAIL SOUTH DRILLING Current Indicated and Inferred Mineral Resource of 1.7Mt at 2.2% copper: • 1.53Mt at 2.1% copper at Mahab 4 • 0.16Mt at 3.8% at Maqail South Significant further upside: • Mahab 4 deposit remains open a
Slide 22: Established Resource: Mahab and Maqail South
Block 5 – Established Resource: Mahab 4 and Maqail South 22 B5MB4D084A 36.5m @ 3.15% Cu GRB5D030 22.5 m @ 4.11% Cu Surface B5MB4D066 B5MB4D064 30.9m @ 6.09% Cu B5MB4D097 18.5m @ 5.25% Cu N Mahab 4 drill results 4.9m @ 15.94% Cu 15B5DD005 B5MB4D070 B5MB4D093 24.04m @ 6.3% Cu 6.6m @ 6.92% Cu 12.7m @ 5
Slide 23: Targeting near term production
Targeting near term production 23 9 months to production once fully licensed and processing route finalised • Resource drilling programme – underway • Scoping Studies • Environmental Studies and licensing 2016 • Reserve drilling and Feasibility Studies • Option/Purchase Copper Float plant Developmen
Slide 24: Community Engagement
Community Engagement 24 • Savannah wants the communities in which it operates to develop an understanding of both the benefits and impacts of exploration and mining. To achieve this the Company: o Regularly consults with community leaders regarding current and future activities o Hosts presentations
Slide 25: Oman highlights – near term production
Oman highlights – near term production 25 Uniquely attractive copper development project poised to deliver into stronger copper prices in 2017 Fast-track Oman projects for late 2017 copper concentrate production with gold credits JORC Mineral Resource from Exploration Target of 10.7 to 29.3Mt at 1.4
Slide 26: Mozambique
26 Mozambique JV with Rio Tinto M U TA M B A / J A N G A M O Inferred Mineral Resource of 65Mt at 4.2% total heavy minerals (from Savannah’s Jangamo asset) Exploration Target of between 7.0 and 12.0Bt at a grade ranging from 3 to 4.5% total heavy minerals (from Rio Tinto’s assets) THM Source: Compan
Slide 27: Heavy mineral sands
Heavy mineral sands 27 USES • The mineral sands industry consists of two principal product streams; titanium • Titanium dioxide pigment is a pure white, highly refractive and ultraviolet light absorbing dioxide minerals – in the form of product, which is commonly used in paints, ilmenite, rutile and
Slide 28: Heavy mineral sands: market dynamics
Heavy mineral sands: market dynamics 28 Positive price indications for ilmenite: • Ilmenite prices are reported to have stabilised in Q1 2016, as a result of improving demand from pigment manufacturers and reductions in supply – pigment manufacturers sold an estimated 6-12% more pigment compared to
Slide 29: East Africa – An Excellent Address
East Africa – An Excellent Address 29 • Favourable source rocks and trap sites • Large operating mines to the north, south and east • Strong evidence of high unit- value mineral assemblages • Major operations in the region demonstrate infrastructure solutions and established markets Mutamba Source:
Slide 30: Mutamba/Jangamo Joint Venture
Mutamba /Jangamo Joint Venture 29 • Transformational Joint Venture agreement in June 2015 with Rio Tinto to develop a large-scale commercial heavy minerals sands mining project • Combined Jangamo project with Rio’s adjacent Mutamba and Dongane deposits, and Chilubane deposit • Maiden JORC compliant
Slide 31: JV Earn-in Terms
JV Earn-in Terms 31 • Phase 1: Scoping Study - Savannah 20% participating interest on completion o Initial reconnaissance exploration programme to detect zones of high grade HMS o Follow-up scout RC drilling focusing on coherent zones of high grade HMS o Six month (approx) Scoping Study on the viabi
Slide 32: Mutamba/Jangamo: Resource Potential
Mutamba/Jangamo: Resource Potential 32 Resource Table (2.5% Cutoff) % Ilmenite % Ilmenite % Rutile in % Zircon Ilmenite Zones Category Sand (Mt) % THM HM (Mt) Rutile (Mt) Zircon (Mt) in HM in sand sand in sand (Mt) Jangamo Inferred 65 4.2 60 2.5 0.083 0.15 2.7 1.6 0.054 0.10 Exploration Target Tonna
Slide 33: Mutamba/Jangamo: Infrastructure
Mutamba/Jangamo: Infrastructure 33 • Located ~450km northeast of the capital • Established camp facilities, including city of Maputo and ~40km from the ports accommodation and ablution blocks and of Inhambane and Maxixie site clinic • Lindela substation located 5km away • On-site laboratory and samp
Slide 34: Mutamba/Jangamo: Development Timetable
Mutamba/Jangamo: Development Timetable 34 • Auger Drilling • Indicated and Inferred Mineral Resource Update • Complete scoping study • Pilot plant test work commences 2016 • Marketing studies • Pre-feasibility study • Order long lead time items Development • Feasibility study • Negotiate offtake con
Slide 35: Mozambique highlights
Mozambique highlights 35 Targeting definition of a World class high-grade JV with heavy mineral heavy mining major sands minerals Rio Tinto province development for ilmenite price recovery
Slide 36: Investment Case
Investment Case 36 Focussed on commencing commercial copper production in Oman in 2017, with additional gold upside Active growth strategy in place to build a multi-commodity, geographically diverse development and production company Completed significant value accretive milestones on time and on bu
Slide 37: Contact Us
37 Contact Us David Archer CEO, Savannah Resources Plc E: info@savannahresources.com Source: Company photos
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