I have opened a speculative position in Savannah Resources (LON:SAV) an AIM listed exploration and development company which hold a portfolio of interesting and potential high impact resources interests. Savannah Resources is led by David Archer who has personally made a substantial cash investment in Savannah, which I rate as important in aligning interests.
Of key interest Savannah hold rights to acquire a 65% interest and earn up to a 70% interest in two copper projects in Oman, with some impressive sounding potential with some indication in a JORC Indicated & Inferred Mineral Resource of 1.7Mt @2.2% copper.
Commenting David Archer the CEO is aiming to establish Savannah as a ‘mid-tier copper producer’ stating:
“With an Indicated and Inferred Mineral Resource of 1.7Mt @ 2.2% Cu and high grade intercepts of up to 56.35m at 6.21% Cu at Block 5, this certainly sets the scene for a targeted, fast paced exploration programme commencing as early as May 2014.”“Significantly, the Ophiolite belt is characterised by small to medium size, high grade copper deposits that have been shown to be amenable to profitable, open-cut development, to produce high quality copper concentrates for local or overseas smelters.”
Savannah also hold a 80% shareholding in Matilda Minerals Limitada, where Matilda owns the highly prospective 180km2 Jangamo Project in Mozambique, located in a world class heavy mineral sands province. Also of interest with this project is, that it shares a border to RioTinto’s Mutamba deposit.
Commenting on the Matilda project David Archer, CEO stated:
“The Project is now at a very exciting stage as we continue to confirm the potential for Jangamo to host a major heavy minerals system, and we look forward to further positive results as our 2014 exploration programme picks up pace and we work towards defining a JORC resource by the end of 2014.”
Savannah Resources in addition hold a strategic near 21% shareholding in AIM listed Alecto Minerals (LON:ALO) which provides upside potential from a number of projects including gold and a JV with Centamin.
As always resources stocks are a punt, but I feel at £8m cap and with a quality CEO at the helm there is a chance here that we could be at the start of something special, hence…
