Savannah Resources has managed a fantastic 12 months. Just
over 12 months ago Savannah had finished its first scout drilling on its only
license area, but with no results. It had a good BOD and shares in ALO but everything
else was pure potential.
I have already written 3 blogs on SAV and am very conscious
that I don’t want to keep repeating my thoughts.
Well we have drilled nearly 200 holes now, only weeks away
from a JORC resource estimate for Mozambique, having confirmed 2 indicated
resources areas and 2 more strong possibilities in the strandlines and the
southern zone. The geology has firmed up, the understanding of the alluvial
deposition. Grades have been getting better and better, good depths, all
shallow at surface.
The Oman has been added giving us a tremendous mid-tier low
cost copper potential in a established part of the middle-east. We have multiple
license areas and multiple projects.
An expanded team has been put in place, we have or will have
soon, multiple JORC’s.
This is against a background of explorers in AIM where
underachieving has been the norm, where exploration has added very little value
to most stocks.
So where does this leave us. Well grades in the JORC zones
look to be around 4 to 4.5% on average which is very good news. Importantly
it’s obvious that Mozambique is a low cost surface strip scenario, drag down
the channels, layering at depth, transport to a centralised processing area,
concentrate sludge from dry extraction and take along the railway that’s a few
hundred yards away to port and to customer’s ships.
There really isn’t anything that can go wrong with it. A
small pilot plant can be produced or higher cost multiple extraction sites.
I’ve put the latest diagram alongside a diagram I produced
nearly 12 months ago and tbh the areas are very consistent. David’s plans are
running perfectly to schedule.
I would be more than happy for the JORC to be delayed now
until the first half of January. From next week onwards, volume falls of a
cliff, we have sellers cashing in money for Christmas, combined with folks who
like to sell up over the Christmas period to hedge against anything bad happening.
Private Investors are more concerned with family matters and
the busy holiday period and so are less likely to research etc. It is truth be
told, a very bad time to release news.
This might be a difficult thing for short term traders
hoping that SAV bounces back, but for anybody who is prepared to wait a few
weeks a delay in news is essential.
Going forward I would really like to have a chat with David
if time allows to discuss how the company will move forward next year, plans
for the company and a view on how 2014 has gone.
Keep in your minds the fantastic job that David has done,
the journey at breakneck speed that Savannah is currently on, the potential of
the resources and the overall risk strategy. Combine that with David’s track
record and I hope most will see that Savannah Resources is not like most AIM
(waste a fortune) explorers.
