A MULTI-COMMODITY PORTFOLIO WITH NEAR TERM DEVELOPMENT ... · A MULTI-COMMODITY PORTFOLIO WITH NEAR...
Transcript of A MULTI-COMMODITY PORTFOLIO WITH NEAR TERM DEVELOPMENT ... · A MULTI-COMMODITY PORTFOLIO WITH NEAR...
CORPORATE
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FINLAND
A MULTI-COMMODITY PORTFOLIO WITH NEAR TERM DEVELOPMENT OPPORTUNITIES
INVESTOR EVENING
CORPORATE PRESENTATIONDECEMBER 2016 l AIM:SAV
CORPORATE
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Disclaimer
These presentation slides (“the Slides”) do not comprise an admission document, listing particulars or a prospectus relating toSavannah Resources plc (“the Company”), or any subsidiary of the Company, do not constitute an offer or invitation to purchaseor subscribe for any securities of the Company and should not be relied on in connection with a decision to purchase orsubscribe for any such securities. The Slides and the accompanying verbal presentation do not constitute a recommendationregarding any decision to sell or purchase securities in the Company.
The Slides and the accompanying verbal presentation are confidential and the Slides are being supplied to you solely for yourinformation and may not be reproduced or distributed to any other person or published, in whole or in part, for any purpose. Noreliance may be placed for any purpose whatsoever on the information contained in the Slides and the accompanying verbalpresentation or the completeness or accuracy of such information. No representation or warranty, express or implied, is given byor on behalf of the Company or their respective shareholders, directors, officers or employees or any other person as to theaccuracy or completeness of the information or opinions contained in the Slides and the accompanying verbal presentation, andno liability is accepted for any such information or opinions (including in the case of negligence, but excluding any liability forfraud).
The Slides contain forward-looking statements, which relate, inter alia, to the Company’s proposed strategy, plans and objectives.Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond thecontrol of the Company that could cause the actual performance or achievements of the Company to be materially differentfrom such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and the Companyaccepts no obligation to disseminate any updates or revisions to such forward-looking statements.
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Savannah at a glance…
Prospective multi-commodity portfolio:
• Blocks 4 and 5, Oman – 1,006km² brownfields copper
portfolio of advanced development projects with additional
gold upside targeting first mine development in late 2017
• Mutamba Project, Mozambique – Consortium Agreement
with Rio Tinto to develop heavy mineral sands project, which
has an initial Indicated and Inferred Mineral Resource
Estimate of 3.5 billion tonnes at 3.8% Total Heavy Minerals
• Somero and Erajarvi Projects, Finland – Two new lithium
projects, covering an area of 159km² of highly prospective
pegmatite terrain. Aiming to generate drill ready targets
during 2016 for drilling in early 2017
Skilled board and management team:
• Proven track record in acquiring, developing and operating
resource assets
• Directors represent 35.76% of the share register – fully
aligned with shareholders
KEY DATA
MARKET AIM
TICKER SAV
SHARE PRICE1 6p
MARKET CAP1 £26.92 million
SHARES ON
ISSUE1 450,946,455
CASH2 £1.8 million
SHAREHOLDERS
Al Marjan Limited – 29.90%
David Archer – 5.75%
Rémy Welschinger – 4.70%
1as at 08.12.162as at 26.09.16
AIM quoted development company with an
established multi-commodity portfolio
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Board
Matthew King
Chairman• Qualified solicitor and specialist in
operational risk, compliance and internal
audit – prev. Head of Operational Risk at
HSBC
• Director of Funding Circle Ltd a leading
peer-to-peer lending platform and Allsop
MyRa Ltd, a provider of specialist risk
management solutions
David Archer
Chief Executive Officer• Over 35 years’ experience in the mining
industry, with specific expertise in developing
and operating copper/gold mines
• Founded large cap Savage Resources Limited
and PowerTel Limited, and is Senior
Independent Director of Anglo Pacific Group
Plc
Maqbool Ali Sultan
Non-Exec Director• Significant corporate and Board level
experience in Oman, the Middle East and
internationally
• Minister of Commerce and Industry in Oman
for 20 years following role as President of the
Oman Chamber of Commerce and Industry
Dale Ferguson
Technical Director• Qualified geologist with over 20 years’
experience in the resources industry
• Experience spans greenfield and near mine
exploration, resource delineation, feasibility
studies, due diligence investigations and
mine development and operations
Imad Kamal Abdul Redha Sultan, Non-
Exec Director• Vice Chairman and Deputy Managing Director
of W J Towell and Co. LLC
• Extensive managerial and board experience –
previously a director on the boards of the
National Bank of Oman and Ominvest in the
past, and currently a director of National
Hospitality Institute & Oman Arab Bank
Experienced team with proven success in bringing resource assets into production
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Management team and alternates
MANAGEMENT
Paul O’Donoghue
Country Manager, Mozambique• Served as a Diplomatic Attaché with the Embassy
of Ireland in Maputo and with a number of NGOs
• Lives in Maputo and fluent in Portuguese
• Managed Savannah’s operations in Mozambique
since Oct 2013
Durair A’Shaikh
General Manager Business Development Oman • An internationally recognised expert in the genesis
of base metal deposits and VMS style
mineralisation
• An Omani national, based in Muscat
• Formerly a senior executive of the Oman mines
department
Michael McGarty
Chief Financial Officer• Qualified accountant with extensive accounting
and finance experience, including publicly listed
and multi-national companies
• Significant experience in strategic planning, M&A
transactions, fundraising and resource
development
David Price
Exploration Manager, Oman• Qualified geologist with 18 years’ experience in
the mining and exploration business
• Worked on a wide range of commodities inc. gold,
nickel, copper, lead/zinc, bauxite & manganese
• Lives in Sohar and has managed Savannah’s
exploration activities in Oman since June 2014
BOARD ALTERNATES
Manohar Pundalik Shenoy
Alternate for Maqbool Ali Sultan• Qualified Accountant with over 40 years’ corporate
experience
• Currently Group CFO of W J Towell and Co. LLC
and a member it’s Finance and Investment sub-
committees
• Previously worked with a number of multi-national
corporations as Finance Director / CFO
Murtadha Ahmed Sultan
Alternate for Imad Kamal Abdul Redha Sultan• Director of W J Towell and Co. LLC with wealth of
board level experience and extensive experience
working with publicly limited companies
• Member of Omani government organisations The
Public Authority for Investment Promotion &
Export Development (ITHRAA) and Corporate
Governance – Capital Market Authority (CMA)
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Oman
Cu Au
Aarja
Zuha
Lasail
Bayda
Salahi 1 – gold
Gaddamah - copper and gold
Mahab 4 - 1.51Mt at a grade of 2.1% copper for
31,500t of contained copper
Maqail South – 0.16Mt at a grade of 3.8% copper
BLO
CK 4408km²
BLO
CK 5598km²
old copper mines (collectively
produced over 212,000t copper)
Strategy: Targeting a resource inventory to support high
margin, low cost, copper/gold operations to commence
mine production in late 2017
Highly prospective asset portfolio covering 1,006 km²
Source: Company photos
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Exploration
Target1
of between
10,700,000t and
29,250,000t
grading at
between 1.4% and
2.4% copper for
150,000t and
700,000t of
contained copper
with additional
gold credits
estimated
1 It is important to note that the potential quantity and grade of the Exploration Target conceptual in nature, there has been insufficient
exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
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Why copper?
• Copper is a critical metal and a fundamental requirementfor the world’s expanding middle class
• Copper demand continues to rise with more than 6Mt ofnew copper demand expected to hit the markets by 2020
• New supply additions will peak by late 2016 at 21Mt and gointo deficit by 2017
• An additional 4-6Mt of copper is required by 2025 whichwill be a key driver of the next copper price cycle
• Optimal time to invest to maximise leverage from turnin the cycle
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Source: Rio Tinto corporate presentation 2015
Demand continues to rise
USES OF COPPER
Copper has a wide range of appliances, including:
• Pipes and electrical cables
• Building construction
• Power generation and transmission
• Electronic manufacturing
• Industrial machinery
• Transport - the average car contains 1.5km (0.9
mile) of copper wire, with 20-55kg copper
Graph produced June 2015
Graph produced June 2015
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Oman: an outstanding location
Outstanding geology
VMS Clusters of 1Mt -15Mt -Oman hosts one of the largestconcentrations of VMS depositsin the world
Metallurgically simple ores
Medium to high-grade deposits
Pro-mining Government
Power
Port
Roads
Low Fuel Cost
Oman offers a compelling
investment opportunity,
offering low CAPEX and OPEX
mine development options
Source: Company data
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Block 5: established resource: Mahab 4 and Maqail South
MAHAB 4 MAQAIL SOUTH DRILLINGDRILLING
JORC RESOURCE
Current Indicated and Inferred JORC Mineral Resource of 1.7Mt at 2.2% copper:
1.51Mt at 2.1% copper at Mahab 40.16Mt at 3.8% at Maqail South
FURTHER UPSIDE
Mahab 4 deposit remains open along strike to north and both up and down dip• Drilling to test extensions completed December 2015 – results include 6.6m at 6.92% copper, 5.6% zinc, 0.3g/t gold and
23.8g/t silver and 16m at 0.85%Cu• Past results from previous exploration of the high-grade (>5% copper) portion of the Mahab 4 deposit include 51.58m at 5.2%
copper and 56.35m at 6.2% copper
Maqail South has returned intersects of 6.68m at 7.42% Cu and remains open to the west
DRILLING COMPLETED
Initial results received September and November 2016 point towards a potential expansion of the currenthigh-grade portions of both the Mahab 4 and Maqail South resources, results include:• Mahab 4 - 16B5DD009: 67.4m at 4.64% copper, 1.13% zinc and 0.3g/t gold from 18.6m incl. 35.4m at 8.30%
copper, 2.1% zinc and 0.4g/t gold from 18.6m- 16B5DD017: 47m at 6.07% copper, 1.43% zinc and 0.3g/t gold from 52m
• Maqail South - 25.63m at 2.66% copper and 0.1g/t gold from 49.37m and 20.55m at 3.09% copper and 0.1g/t goldfrom 48.95m
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MINING LICENCES
Two mining licence applications submitted to the Public Authority of Mining in the Sultanate of OmanSeptember 2016, for:• open-cut development at Maqail South• underground development at Mahab 4
Preparation for Environmental Studies commenced October 2016
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Block 5: Mahab 4
Eight holes completed October
2016 to improve confidence in
resource estimate and collect
material for metallurgical
testing
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Mahab 4: drill results 11
A resource drilling programme was completed at Mahab 4 and Maqail South in October 2016.
Savannah is targeting an updated resource estimate in Q1 2017. New results from the drill
programme are shown in blue:
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Mahab 4: significant results
Hole ID Prospect Down hole interval (m)
Grade % Cu Grade % Zn Grade g/t Au Grade g/t Ag
16B5DD008 Mahab 4 5.80 9.53 15.06 1.7 49
Including 1.80 28.99 6.00 1.7 52
16B5DD009 Mahab 4 67.40 4.64 1.13 0.3 15
Including 35.40 8.30 2.10 0.4 28
16B5DD010 Mahab 4 10.05 10.51 2.67 0.4 19
16B5DD012 Mahab 4 1.90 4.39 7.60 0.5 37
15.18 4.02 1.00 0.2 12
16B5DD013 Mahab 4 19.80 6.15 1.80 0.4
16B5DD015 Mahab 4 13.55 6.43 0.68 0.2 16
16B5DD017 Mahab 4 47.00 6.07 1.43 0.3 16
2.00 3.37 1.75 0.3 6
16B5DD018 Mahab 4 14.25 3.86 0.62 0.2 7
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Mahab 4: mining licence application
• Preparation of scoping
document for Environmental
Impact Assessment
commenced
• Community Meeting held at
Wali Office
N.B. The mine layout is conceptual in nature
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Mahab 4: conceptual underground development
Underground mining is more expensive than open pit mining but has some significant benefits
• Much easier to control dust and noise and their potential impacts on our neighbours• The surface area required for mining is much smaller and easier to manage• The environmental impact is far smaller and easier to manage• The visual impact of the operation is minimised
N.B. The mine layout is conceptual in nature
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Maqail South 19
Results from the October 2016 drill campaign point towards a potential expansion of the
current high-grade portions of both the Mahab 4 and Maqail South resources. Savannah is
targeting an updated resource estimate in Q1 2017. New results are shown in blue:
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Maqail South cross section
Eight holes completed October 2016 to improve confidence in resource estimate. New
results from the drill programme are shown in blue:
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Maqail South: significant results
Hole ID Prospect Down hole interval (m)
Grade % Cu Grade % Zn Grade g/t Au Grade g/t Ag
16B5DD001 Maqail South 25.63 2.66 0.2 0.1 1
16B5DD001A Maqail South 20.55 3.09 0.00 0.1 3
16B5DD002 Maqail South 2.00 6.84 0.02 0.3 5
16B5DD003 Maqail South 1.35 7.86 0.00 0.0 4
including 0.40 23.47 0.00 0.1 14
16B5DD004 Maqail South 5.80 4.42 0.00 0.2 2
16B5DD005 Maqail South 0.98 5.20 0.00 0.1 3
16B5DD006 Maqail South 0.90 1.95 0.00 0.2 4
16B5DD007 Maqail South 2.15 3.70 0.00 0.1 0
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Maqail South: mining licence application
• Introduction meetings held with MECA and Ministry of Water Resources• Scoping Assessment for Environmental Impact assessment submitted to MECA• Letters of No objection received from four ministries ROP, Defence, Tourism, and
Culture• EIA process commenced
N.B. The mine layout is conceptual in nature
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Community engagement
• Savannah has continued with its community engagement programsincluding having regular meeting with Sheikhs and local officials
• Savannah continues to give financial support to appropriatecommunity projects
• Community meeting program under development to build anagreed framework to work together
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Block 4: near mine copper / gold targets
Of the targets identified at Block 4,four were part of previouslyproducing mines:
• Commercially mined in the 1980s –produced over 190,000t copper
• No near mine exploration since the early1990s
• Significant opportunity to fast track toproduction
• 3,700km VTEM survey completed H12015
• Most of the significant VMS discoveriesin Oman over the past 10 years havebeen identified by VTEM
• Identified multiple prospective targets:
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Source: Company data
AARJA
LASAIL
BAYDA
ZUHA
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Block 4: near mine targets - Aarja
• Previously produced 2.6Mt at a grade of 1.4% copper between 1988-1994 - existing underground access would support rapiddevelopment
• 144 holes historically drilled for 26,671m, and three primary areas identified:o Aarja Main – 18.58m at 4.7% copper from 143m (hole 10-23)o Dog's Bone – 33.8m at 3.35% copper from 153.1m (hole AEX-39)o Aarja Pit - depth extents of the gossan at the southern end of the Aarja pit returned a trenching result of 14.5m at 8.03g/t gold and
0.9% copper
• Drill testing completed December 2015 (7 holes), identified Dog’s Bone as a primary target:o 9m at 4.86% copper, 1.54% zinc, 1.3g/t gold and 37.3g/t silver from 103m, Incl. 6m at 7.01% copper, 2.20% zinc, 1.9g/t gold and
53.8g/t silver from 103mo 5m at 2.17% copper, 0.37% zinc, 0.4g/t gold and 7g/t silver from 151m
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Drilling at Dog’s Bone
May 2016 programme to confirm
location and continuity of
mineralisation and ultimately
support resource definition
• One hole received August 2016
confirmed the position of known
mineralisation and validated
historical drilling with an
intercept of 5.75m at 1.84%
copper and 0.8g/t gold from
109.3m
• A revised geological
interpretation of Dog's Bone and
Aarja is being completed to allow
for further targeting of depth
extensions to mineralisation
October 2016 a new 600m diamond
drilling programme commenced
targeting areas of known
mineralisation to establish a JORC
compliant mineral resource estimate
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Block 4: near mine targets - Bayda
• Previously produced 1Mt at a grade of 3% copper between 1980 and 1994 from a small
underground operation
• Historic mining focused on high-grade massive sulphide mineralisation ignoring the lower-grade
disseminated sulphide mineralisation
• Review of historic data has identified that a significant volume of disseminated sulphide
mineralisation remains
• Initial results received September 2016 intersected a broad mineralised zone with 33.4m at
0.69% copper and 0.1g/t gold in 16B4DD003 from 87m, including 4m at 1.56% copper and 5.1m
at 1.22% copper – results suggest asset could be developed as a larger tonnage, lower grade
operation
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Ground EM at Bayda
• Significant VTEM anomaly defined at Baydawhere historically 1Mt at 3% copper wasmined from a small underground during theearly 1990’s
• Detailed ground EM survey has beendesigned and will be completed as aprecursor to further RC and diamond drilling
Map shows the Bayda VTEM anomaly and planned Fixed Loop Transient Electromagnetic (“FLTEM”) survey location
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Targeting near term production
2016
• Resource drilling programme
• Mining lease applications
• Scoping Studies
• Reserve drilling
2017
• Environmental Studies and licensing
• Define Processing Solution
• Feasibility study
• Negotiate offtake contract
• Final investment decision
• Mining commences
2018
• First Concentrate produced
• Resource Expansion/Development
• Exploration of new projects
• Project Acquisitions
Source: Company photosSource: Company photos
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Oman highlights: near term production
Uniquely attractive copper development project poised to deliver into stronger copper prices in 2017/18
Fast-track Oman projects to start mining in late 2017
JORC Exploration Target of 10.7 to 29.3Mt at 1.4-2.4% copper and 0.38g/t gold
Exploration Target of 151,500 - 702,500 tonnes contained copper and 55,000 - 362,000 oz. gold
Superb infrastructure setting – nearby power, copper smelter (under care & maintenance) and export port hub with global copper concentrate blending 30km by road
Low capex with rapid payback period projected
Low opex projected, including low fuel costs, with moderate high-grades expected
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MozambiqueConsortium agreement
with Rio Tinto
Initial Indicated and Inferred
Mineral Resource Estimate of 3.5
billion tonnes at 3.8% Total Heavy
Minerals (THM)
World class minerals region
M
U T
A
M
B A
P R
O J
E C
T
THM
Source: Company photos
Strategy: Focussed on defining a dry
mining operation for staged, early
development in conjunction with Rio
Tinto
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Why heavy mineral sands?
• The mineral sands industry consists of two principal
product streams; titanium dioxide minerals – in the
form of ilmenite, rutile and leucoxene; and zircon
• Heavy mineral sands are placer deposits formed
most usually in beach environments by
concentration due to the specific gravity of the
mineral grains
USES
• Titanium dioxide pigment is a pure white, highly refractive and ultraviolet light absorbing product, which is commonly used in paints, plastics, paper, textiles and inks
• Titanium dioxide feedstock is also used in the manufacture of welding electrodes and can be used in foodstuffs, pharmaceuticals and cosmetics
• Zircon is used in the ceramics industry in the production of opacifiers, which are used in surface glazes and pigments
Positive price indications for ilmenite:
• Ilmenite prices are reported to have
stabilised in Q1 2016, as a result of
improving demand from pigment
manufacturers and reductions in supply
– pigment manufacturers sold an
estimated 6-12% more pigment
compared to the previous year
• Prices for ilmenite in Q2 2016 have risen
tentatively in the Chinese spot market
for sulphate-grade material – China is
the largest market for this grade of
ilmenite
• Late April 2016 Sierra Rutile (primary
rutile producer) recommenced sales in
the titanium-metals market after several
years of subdued demand
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East Africa: an excellent address
• Favourable source rocks and trap sites
• Strong evidence of high unit-value mineral
assemblages
Source: Company data and photos
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• Large operating mines to the north, south and east
• Major operations in the region demonstrate
infrastructure solutions and established markets
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Rio Tinto / SAV Consortium Agreement
• Rio Tinto and Savannah entered into a ConsortiumAgreement October 2016 to define a potential drymining operation for staged, early development
• Legal ownership of Savannah’s Jangamo project andRio Tinto’s Mutamba (inc. Jangamo, Dongane andRavene deposits) and Chilubane projects to betransferred to a consortium company at a future date(which is expected to be subsequent to grant of amining lease)
• Projects are located close to existing road, grid power,water and port infrastructure and will have access toRio Tinto’s existing camp and equipment
• Savannah will operate the enlarged Mutamba Projectand will have an initial 10% beneficial interest in thecombined mineral sands projects, with the potential toincrease to 51% beneficial interest on the achievementof milestones
• Offtake agreement for the sale of 100% of productionto Rio Tinto (or an affiliate)
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Terms of the Consortium Agreement:
Phase 1: Scoping Study - Savannah 20% participating interest on
completion
Phase 2: Pre-feasibility Study - Savannah 35% participating interest
on completion
Phase 3: Feasibility Study – Savannah 51% participating interest on
completion
Construction Decision
Note: (1) *It is important to note that the above table is a summary of Exploration Targets and the potential quantity and grade is conceptual in nature, there has been insufficient
exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource
(2) The Mutamba Project includes three deposit areas: Jangamo, Dongane and Ravene. The Chilubane Deposit is located 180km to the south west of the Mutamba Project.
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Resource potential
• Initial Indicated and Inferred Mineral Resource Estimate of 3.5 billion tonnes at
3.8% THMo Calculation covers the Jangamo and Dongane deposits at Mutamba, previously operated by
Rio Tinto
o Contains 81 million tonnes (“Mt”) of ilmenite, 2.2Mt rutile and 3.8Mt zircon
o 52% of Mineral Resource in the Indicated Category, 48% in the Inferred Category
o Estimate compares favourably against Mozambique mineral sands producer Kenmare
Resources 31 December 2015 global resource of 6.5Bt at 2.9% THM and mining reserve of
1.6Bt at 3.3%THM
o Additional upside potential:o Resource estimation in respect of the Ravene and Chilubane deposits still to be completed
o Drilling underway at Ravene – 88 drill holes for 3,500m of exploratory drilling expected to be
completed before the end of December 2016
• Savannah currently considers a mineable inventory of c.200Mt at c.7% THM will
provide sufficient scale for the initial mine development, producing c.+600ktpa of
ilmenite and 40ktpa of rutile plus zircon (“non-mag”) concentrate, either as final
products or a bulk HMC
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Ravene drilling programme
• Auger drill programme nearingcompletion targeting high-grade zones where past drillinghas returned results of up to14.7% THM
• Follow up RC drill programme isalso underway withapproximately 88 drill holes for3,500m of exploratory drillingexpected to be completed inJanuary 2017
• The aim of this drillingprogramme is to infill anexisting 1,000m x 500m grid togive enough confidence tocomplete an inferred MineralResource estimation
• Work being fast tracked soRavene can be considered aspart of a scoping study
Map of the Ravene deposit area with existing drill holes in black and proposed holes in red
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Pre-development programme
SCOPING
STUDY
ENVIRONMENTAL STUD
Y
Mineral sands expert TZ Minerals International commissioned to conduct a scoping study to evaluate an initial phase, low capex, long life, dry mining operation around a potential 200Mt well graded resource
• Expected to take around 4 months to complete
• To focus on large mineralised areas of >5% THM, identified from Mineral Resource Estimate work conducted at Mutamba and Chilubane Projects
Leading Mozambican environmental consultants IMPACTO and ERM have been awarded the contract to conduct environmental studies for the Mutamba and Chilubane Projects, which is expected to take 3-4 months to complete
• An environmental study is a key document, which is required for the lodging of a mining concession for any potential development
Data compilation and a detailed review of the Chilubane deposit is underway to further understand and evaluate the project which is expected to take 6-8 weeks to complete
In addition to new staff hired, all of Rio Tinto’s very experienced former in country team has been employed by Savannah and integrated into the in-country team
CORPORATE
OMAN
MOZAMBIQ
UE
INVESTMENT
FINLAND
MOZAMBIQ
UE
Infrastructure
• Located ~450km northeast of the capital city of Maputoand ~40km from the ports of Inhambane and Maxixie
• Lindela substation located 5km away
• Proven local workforce
• Established camp facilities, including accommodation and ablution blocks and site clinic
• On-site laboratory and sample storage warehouse
36
Laboratory
Sample Storage
Site clinic
Site accommodation
Source: Company Photos and Data
CORPORATE
OMAN
MOZAMBIQ
UE
INVESTMENT
FINLAND
Development timetable
2016
• Auger Drilling
• Mineral Resource Estimate Update
• Complete Resource drilling at Ravene
• Expanded team fully operational
2017
• Complete Scoping Study and environmental studies
• Pilot plant test work commences
• Marketing studies
• Pre-feasibility study
• Feasibility study
• Negotiate offtake contract
• Mining Concession applications
2018
• Mining Concession Granted
• Environmental Licences granted
• Final investment decision
• Mine construction commences
Source: Company photos
37
CORPORATE
OMAN
MOZAMBIQ
UE
INVESTMENT
FINLAND
MOZAMBIQ
UE
Mozambique highlights: staged development
World class heavy
mineral sands province
Consortium Agreement with mining major Rio
Tinto
Initial Indicated and
Inferred Mineral
Resource Estimate of 3.5 billion tonnes at 3.8% THM
Focussed on defining a dry mining
operation for staged, early development
Established infrastructure
to support low capex
development
38
CORPORATE
OMAN
MOZAMBIQ
UE
INVESTMENT
FINLAND
Two new lithium projects covering an area of 159km²
of highly prospective
lithium terrain
Finland
Li
STRATEGY:
to determine lithium resource
potential – drill targets to be
identified 2016
39
CORPORATE
OMAN
MOZAMBIQ
UE
INVESTMENT
FINLAND
FINLAND
Lithium: growing demand
There is a revolution underway in how we generate and use energy; as
such, the demand for materials such as lithium, which is a key component
in new energy storage solutions, is rising at record rates
40
By 2022 there will be 3x the number
of Electric Vehicle models on sale as
in 20161 - China has set a target to
have 5 million “new energy” vehicles
on the road by 20202
Consumer demand
from smartphones,
tablets, laptops and
power tools was
27.5kt in 2014 and
is expected to grow
at more than 10%1
Macquarie have forecast a CAGR of 9% to 2021
for lithium, with new energy vehicle batteries
leading demand at a 31% CAGR to 2021, at which
point they would account for one-third of all
lithium demand versus just one-tenth today
Global lithium demand was 184,000t in
2015. Based on Deutsche Bank’s
analysis, global lithium demand will
increase to 534,000t by 2025, with
batteries accounting for 70% of global
demand
Favourable pricing environment – prices expected to remain
>$6,000/t lithium carbonate equivalent*
Energy storage
represents a small
part of current
lithium demand, but
growth potential is
high with renewable
sources set to
potentially rival EV
growth rates3
1 Liberum: The Lithium Landscape, May 2016 | 2 Berenberg: Battery adoption at the tipping point – Feb 16 | 3 Deutsche Bank: Company Data
CORPORATE
OMAN
MOZAMBIQ
UE
INVESTMENT
FINLAND
FINLAND
Finland: a strategic location
Excellent access to high quality
infrastructure
Close to potential end-customers, inc.
battery producers
Low sovereign risk and excellent mining
law - Finland ranked number one in the
2014 Fraser Institute of 122 jurisdictions
around the world (it maintained its
position in in the top 10 mining
jurisdictions in the 2015 index)
Region proven to host hard rock lithium
deposits
Finnish company Keliber Oy has
defined a resource of 5.5Mt at
1.19% Li2O in the Kaustinen
region
Finland has access to good geological
and exploration data, has favourable
tectonic history for the formation of
Lithium-Cesium-Tantalum ('LCT')
pegmatites, a history of lithium mining
and has been poorly explored for
lithium to date
41
Source: Company Data
Europe is a major importer of lithium
consuming 24% of global market (second
only to China), but has no internal lithium
supply
CORPORATE
OMAN
MOZAMBIQ
UE
INVESTMENT
FINLAND
FINLAND
Project portfolio
Located just north of the township of Somero,approximately 100km northwest of the Finnishcapital Helsinki
Covers one of the more prospective parts of theSomero-Tammela rare earth pegmatite belts
Comprises at least 56 complex pegmatitesenriched in lithium, niobium and tantalum,reaching up to 1.2km in length and 50m wide
• Occurs just to the south of TSX listed NortecMinerals Kietyonmaki and Hirvikalio lithiumdeposits
• Historical geological mapping of the area by theFinnish geological survey has confirmed thepresence of the lithium minerals but nogeochemical sampling was completed makingthese a high priority for sampling
42
Somero Lithium Project – 60.5km² Erajarvi Lithium Project – 98.5km²
Located approximately 200km north of theFinnish capital Helsinki, near the town of Orivesi
Historical geological mapping by the Finnishgeological survey has confirmed the presenceof lithium rich minerals
Dykes within the tenement reach up to 600mlength and 50m wide
About 61 complex pegmatites have beenmapped in the area to date – they contain aseries of complex and simple pegmatites
Complex pegmatites often distinctly zonedand contain lithium rich minerals includingspodumene and lepidolite
CORPORATE
OMAN
MOZAMBIQ
UE
INVESTMENT
FINLAND
FINLAND
Development programme
• 4 weeks of an 8-10 week reconnaissance geologicalmapping and rockchip sampling programmecompleted September 2016
• 70 rockchip samples collected and submitted tothe laboratory for analysis, with 3 assay resultsreturned to date
• Initial analysis and geological mapping hashighlighted:
o Somero Project has prospective pegmatites up to1,200m long and 50m wide with an initial rockchipassay of 4% lithium oxide (‘Li2O’)
o Erajarvi Project has prospective pegmatites up to800m long and 30m wide with an initial rockchipassay of 1.29% Li2O
• Key lithium minerals petalite, spodumene andlepidolite were identified in hand specimens
43
Exploration programme including data compilation, geological mapping and surface
sampling aiming to generate drill ready targets during 2016
CORPORATE
OMAN
MOZAMBIQ
UE
INVESTMENT
FINLAND
FINLAND
Finland highlights: the opportunity 44
2 ATTRACTIVE
PROJECTS
covering an area of
159km² of highly
prospective lithium
terrain in Finland
HIGHLY
PROSPECTIVE
LITHIUM MARKET
Strong market
dynamics from the
burgeoning battery
market
FAVOURABLE
PRICING MARKET
significant growth
forecast, prices
expected to remain
>US$6,000/t lithium
carbonate
equivalent
DEFINED
PLAN
to determine lithium
resource potential –
drill targets to be
identified 2016
ATTRACTIVE
LOCATION
Finland has low
sovereign risk, a
supportive mining
code and has been
proven to host
commercial lithium
deposits
Excellent access to
high quality
infrastructure and
close to potential
end-customers,
such as battery
producers
PROVEN
MINERALISATION
Key lithium
minerals
spodumene,
lepidolite and
petalite identified
MUTLI-COMMODITY
EXPOSURE
Complements SAV’s
established
development portfolio
– copper in Oman
and mineral sands in
Mozambique
CORPORATE
OMAN
MOZAMBIQ
UE
INVESTMENT
FINLAND
INVESTMENT
Investment case
Active growth strategy in place to build a multi-commodity, geographically diverse development and production company
Focussed on commencing commercial copper production in Oman in 2017, with additional gold upside
Highly skilled development team with proven track record of mine
development and investment success
Developing commercial heavy minerals sands mining project with Rio
Tinto
46
Two attractive lithium
projects in Finland with
defined development plan
to identify drill targets 2016
Building the value of the
company with high
tempo activity across
asset portfolio
Supportive
cornerstone
investor
CORPORATE
OMAN
MOZAMBIQ
UE
INVESTMENT
FINLAND
Contact Us
David ArcherCEO, Savannah Resources Plc
Source: Company photos
47
CORPORATE
OMAN
MOZAMBIQ
UE
INVESTMENT
FINLAND
MOZAMBIQ
UE
Appendix: Mutamba Project Resource 48
Resources Category Sand
(Mt)% THM1
% Ilmenite
in THM
% Ilmenite
in sand
% Rutile
in sand
% Zircon in
sand THM (Mt)
Ilmenite
(Mt)
Rutile
(Mt)Zircon (Mt)
Jangamo Indicated 1336L Indicated 1780 3.8 62 2.4 0.06 0.11 68 42 1.1 2.0
Jangamo Inferred 1336L Inferred 200 3.5 63 2.2 0.03 0.11 7.1 4.5 0.1 0.2
Jangamo Inferred 3617L Inferred 65 4.2 60 2.5 0.08 0.15 2.7 1.6 0.1 0.1
Dongane Inferred 1400 3.8 61 2.3 0.07 0.10 54 33 1.0 1.4
Total Jangamo & Dongane2 3500 3.8 62 2.35 0.06 0.11 130 81 2.2 3.8
1 THM is “Total Heavy Mineral”, minerals with specific gravity greater than 2.85g/cm3.
2 Tonnes and grades have been rounded and small differences appear in the totals.
Additional upside – resource estimation in respect of the Ravene and Chilubane deposits
(previously operated by Rio Tinto) still to be completed
Mineral Resource Estimate – Jangamo and Dongane deposits, part of Mutamba
(previously operated by Rio Tinto