#SAV Savannah Resources – one year on.

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.