Savannah Goldfields Unveils Third Gold Exploration Target at Georgetown Project
Savannah Goldfields (ASX:SVG) has identified a significant new gold exploration target at its Big Reef Deposit, adding to the company's growing portfolio of potential gold resources at its 100% owned Savannah Goldfields Georgetown Project in Queensland.
New Big Reef Exploration Target Expands Resource Potential
The newly identified exploration target at Big Reef comprises two distinct zones – Big Reef Main and Big Reef Extended – which together are estimated to contain between 190,000 and 420,000 tonnes of material with gold grades ranging from 2.0 to 3.5 g/t Au. This represents a potential addition of 12,000 to 48,000 ounces of gold to the company's resource base.
The Big Reef deposit is strategically located approximately 50 kilometres from Savannah's Georgetown Processing Plant and close to the township of Forsayth, making it an ideal candidate for near-term development under the company's "Hub and Spoke" strategy.
| Exploration Target Zone | Tonnage Range (kt) | Grade Range (g/t Au) | Contained Gold (koz) |
|---|---|---|---|
| Big Reef Main | 80-120 | 2.0-3.5 | 5-14 |
| Big Reef Extended | 110-300 | 2.0-3.5 | 7-34 |
| Total | 190-420 | 2.0-3.5 | 12-48 |
"It is very pleasing that the work to define Exploration Targets is progressing quickly and that targets are being defined with potential to increase the amount of oxide feed and extend the processing life at the Georgetown plant," said Brad Sampson, CEO of Savannah Goldfields.
Proven Production History Enhances Confidence
The Big Reef deposit has a successful production history, having been previously mined in 2013 by JKO Mining Pty Ltd, which extracted 22,700 tonnes of ore at approximately 2.5 g/t Au to depths of about 20 meters. This historical production adds confidence to the geological model and the potential for future mining operations.
Additionally, Big Reef already hosts a current Inferred Mineral Resource of 107,000 tonnes at 3.0 g/t Au across the same two zones identified in the exploration target. The new exploration target represents potential extensions down dip and along strike from both the previously mined area and the existing resource.
Building a Multi-Source Gold Production Strategy
This new exploration target at Big Reef is the third in a series of exploration targets identified by Savannah as part of its work to build multiple ore sources for its Georgetown Processing Plant. Previous exploration targets have been identified at Red Dam and Electric Light.
Importantly, these exploration targets are additional to and separate from the company's existing JORC Mineral Resources of 471,000 ounces of gold at its Agate Creek Project and 119,000 ounces of gold at its Georgetown Project. For investors looking for similar potential, Austin Metals begins drilling gold target near top producers offers another interesting opportunity in the gold sector.
Understanding Exploration Targets
An exploration target is a conceptual estimate of the potential size and grade of a mineral deposit based on geological evidence and limited exploration data. The potential quantity and grade is conceptual in nature, with insufficient exploration to estimate a mineral resource, and uncertainty whether further exploration will result in the estimation of a mineral resource.
What Makes a Good Exploration Target?
In the case of Big Reef, several factors support the exploration target estimate:
- Consistent gold mineralisation demonstrated along strike, down dip, and plunge
- Historical mining data showing correlation with the current geological model
- Surface sampling and mapping indicating potential extension along strike
- Established mining infrastructure and processing capabilities in the region
The approach mirrors successful strategies used in other regions, such as where Great Western Exploration made a major copper-gold discovery through systematic target identification and exploration.
Next Steps for Savannah Goldfields
As part of the company's progress toward resuming gold production operations, mining is planned to commence initially at Big Reef. To advance this exploration target toward potential mineral resource status, Savannah is developing an exploration program that may include:
- Infill and extensional drilling
- Updated geological modelling and structural analysis
- Metallurgical test work
- Assessment of oxide versus sulphide material distribution
Why Investors Should Follow Savannah Goldfields Georgetown Project
Savannah Goldfields represents an attractive opportunity for investors interested in near-term gold production potential with significant resource upside:
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Multiple Resource Growth Opportunities: With three exploration targets now identified and more expected at Phily's and Jubilee Plunger deposits, the company has multiple pathways to expand its resource base.
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Processing Infrastructure in Place: The Georgetown Processing Plant provides Savannah with immediate processing capacity once mining operations resume.
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Staged Development Approach: The company's "Hub and Spoke" strategy allows for efficient capital deployment and staged development of multiple deposits.
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Near-Term Production Potential: With plans to recommence mining initially at Big Reef, Savannah is positioned to transition from explorer to producer in the near term.
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Exploration Upside: The potential for additional resource discoveries across the company's extensive tenement package provides significant long-term growth potential.
With gold prices near all-time highs and a clear pathway to production, Savannah Goldfields Georgetown Project represents a compelling opportunity for investors seeking exposure to the gold sector. Furthermore, investors may also be interested in Sunstone Metals' high-grade gold discovery as another promising gold exploration play.
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