Savannah Resources upbeat on hydrogeological assessment results

The AIM-traded firm confirmed it had successfully completed hydrogeological baseline assessments for the proposed tailings storage facility, which would support development at both mines, and which already had approval in-principle from the Ministry of Environment and Climate Affairs subject to studies and test work being presented.

It described it as a “key study” to bolster the TSF's in-principle approval concept, which remained subject to further studies and test work being presented to MECA.

The company also reported “solid progress” towards the grant of mining licences for the first two of a planned series of high-grade copper mine developments in Oman.

Regulatory approval or ‘no objection’ had been received from five ministries for the Maqail South Licence application to date, where the company was targeting open cut development.

Additionally, regulatory approval or ‘no objection’ had received from four ministries for the Mahab 4 Licence application to date, where it was targeting underground development.

Savannah also said it had commenced the environmental impact assessment (EIA) into the design and efficacy of the proposed tailings storage facility and copper concentrator / processing plant

It said the economic scoping study for the potential mine development was approaching completion, and it was aiming to start mining in the first half of 2018.

“Solid progress continues to be made towards the award of mining licences for each of the initial mine developments, the processing plant and the TSF,” said Savannah chief executive David Archer.

“We are working towards the mining licences being awarded around the year end, with the licence for the TSF targeted to be granted soon thereafter.

“In parallel, we have largely completed the economic scoping study for the initial mine developments; this is based on two run-of-mine ore streams being treated at a common, centrally located copper concentration plant with an associated TSF.”

Archer said the study had been conceived and undertaken so that it could be converted into a detailed design with relative ease and speed, to meet its development timelines of commencing production in the first half of 2018.

“Furthermore, the proposed plant and TSF have been designed to treat ores from both Maqail South and Mahab 4 but also offer the potential to treat ore from other high-grade copper deposits, located in Oman, adding further potential upside.”