Savannah submits two applications for mining in Oman

Muscat: Savannah Resources has submittedapplications for two mining licence with the Public Authority of Mining in Oman.
The licence applications relate to the Mahab4and Maqail South deposits in Block 5, the London-listed firm said in a press statement.
Savannah is a 65 per cent shareholder in Al Fairuz Mining, theholder of the Block 5 licence.
The company said that applications for licences are a key milestone towards its target of commencing copper mining in late 2017.
Mining licences applied for over the Mahab4 and Maqail South deposits in Block 5 with current indicated and inferred mineral resource of 1.7Mt at 2.2 per cent copper.
The applications are for an open-cut development at the Maqail South deposit and for an underground development at the Mahab 4 deposit, added the press release.
The company has already reached an advanced stage of discussion with Oman’s ministries and technical feedback is being sought from eight government departments in order to finalise financial evaluations of the mine developments.
Also, milestones have reached for Savannah to acquire a 51 per cent shareholding in Al Thuraya Mining (owner of Block 4)
In another development, the company has terminated its interest in Block 6 due to relative progress and prospectivity in Blocks 4 and 5.
“Savannah is targeting to be in production by late 2017 and the lodging of the mining licence applications is an important milestone regarding the development of the combined deposits as an integrated operation. The tempo of our work is increasing and studies that will form the basis of our plans, such as metallurgical testwork and various baseline studies, are well underway,” said David Archer, chief executive officer of Savannah Resources.
“The higher grade nature of the two deposits makes them attractive for priority mine development to be followed by the development of other deposits such as those on Block 4.”
“Following an intensive round of drilling over recent months, an updated mineral resource for both Maqail South and Mahab 4 will be released in the fourth quarter of 2016, which will form an important part of our mining studies regarding a mine development targetedfor late 2017.”
Mahab 4
Mahab 4has an indicated and inferred mineral resource of 1.5Mt at a grade of2.1 per cent Cu,which was defined by extensive diamond drillingcompleted by Gentor Resources.
An additional eightdiamond drill holes for 940m have been recently completedby Savannah to infill the resource to a hole spacing of 25m centres and to collect metallurgical and geotechnical information.This information will also be used in an updated mineral resource estimation for the high grade portion of the Mahab 4 resource due for completion in the fourth quarter of 2016.
Maqail South
Maqail South has a current inferred mineral resource of 0.16Mt at a grade of 3.8 per cent Cu, which was defined by five holes completed by Gentor Resources. An additional eight diamond drill holes for 620m have recently been completed by Savannah to infill the resource to a hole spacing of 25m centres. This will allow for an indicated mineral resource classification to be made in the fourth quarter of 2016.
As a result of the company's ongoing portfolio review process, and in light of the very positive results reported along with thesignificant progress that has been made on both Blocks 4 and 5, the company has terminated its interest in Block 6 in Omanas it is considered immaterial to the company’s overall growth strategy.
The company is prioritising its efforts around commencing miningat Block 5 in late 2017. Any value assigned to Block 6 will be written off at the next balance sheet date.