Savannah Goldfields Ltd Delivers Exceptional Drill Results at Red Dam

High-Grade Gold Discovery Reinforces Red Dam's Strategic Value

Savannah Goldfields Limited (ASX:SVG) has delivered impressive drill results Savannah Goldfields Ltd from its Red Dam Prospect, confirming the down-dip extension of high-grade gold mineralisation well beyond current pit limits. The November 2025 drilling programme has successfully validated the geological model and positioned Red Dam as a key growth asset within the company's Georgetown Gold Project portfolio.

Furthermore, these exceptional results demonstrate the significant potential for resource expansion at depth. The programme targeted areas beyond the current mining envelope, providing crucial data for future development planning.

Outstanding Drill Results Confirm Resource Extension

The five Reverse Circulation (RC) holes totalling 648 metres have all intersected significant gold mineralisation within the Red Dam structure, delivering results that exceed expectations. Each hole has contributed valuable geological data that supports the continuity of mineralisation at depth.

The standout intercept of 3m @ 14.86 g/t Au from hole RD25RC1044 demonstrates the exceptional grade continuity at depth. Meanwhile, the 2m @ 17.21 g/t Au result from RD25RC1046 reinforces the high-grade nature of this deposit.

"We are very encouraged by these results from Red Dam. The results indicate that the Red Dam gold mineralisation extends at depth well beyond the current pit limits and validates the Inferred Mineral Resource model. We intend to update the Mineral Resource ahead of undertaking further exploration at Red Dam."

Brad Sampson, CEO

Understanding Arsenopyrite-Associated Gold Mineralisation

What is Arsenopyrite-Associated Gold Mineralisation?

Arsenopyrite (FeAsS) is an iron arsenic sulphide mineral that commonly hosts gold in orogenic gold deposits. This association is particularly significant for several reasons.

Gold Liberation: Arsenopyrite often contains submicroscopic gold within its crystal structure, making it a valuable indicator mineral. This characteristic suggests proximity to high-grade gold zones.

Metallurgical Indicator: High arsenopyrite content typically indicates proximity to the main mineralising event. This relationship helps geologists understand the timing and intensity of gold deposition.

Structural Control: These minerals form along structural conduits during gold-bearing fluid flow. The presence of these minerals therefore maps the pathways of gold-bearing solutions.

Why This Matters for Investors

The presence of arsenopyrite with galena and sphalerite at Red Dam indicates a polymetallic system typical of high-grade Georgetown goldfields. This mineral assemblage suggests the deposit formed during the prolific Siluro-Devonian mineralising period.

Consequently, this places Red Dam within the same geological framework as other successful regional operations. The drill results Savannah Goldfields Ltd continues to generate support this interpretation.

Geological Characteristics and Resource Position

Deposit Fundamentals

The Red Dam prospect exhibits several characteristics that distinguish it from typical gold discoveries in the region. Location: 80km north of Georgetown Gold Processing Plant provides strategic positioning for future development.

Structure: East-west trending shear zone, dipping 80-85° south, represents a classic structural control for gold mineralisation. This orientation is consistent with regional gold-bearing structures throughout the Georgetown district.

Strike Length: Surface exposure of 2km, with magnetic data suggesting up to 20km potential strike length. This represents significant exploration upside for future drilling programmes.

Current Resource: 201,000t @ 5.7 g/t Au containing 37,000 oz Au (Inferred category). However, recent drilling suggests this resource estimate may be conservative.

Historical Validation

The prospect benefits from extensive historical work spanning over three decades. 180+ drill holes totalling over 9,000 metres since the late 1980s provide comprehensive geological understanding.

Previous mining by DRAU (2010) extracted 22,600t @ 13.6 g/t Au from the oxide zone. This operation validated both the grade and processing characteristics of Red Dam material.

Moreover, consistent high-grade intersections in historical drilling demonstrate grade continuity:

• RD015: 3.5m @ 36.76 g/t Au
• RD018: 1.4m @ 20.62 g/t Au
• RDP12: 3.0m @ 18.73 g/t Au

Strategic Development Timeline

Immediate Priorities (Q1-Q2 2026)

Resource Update: Integration of new drill results to upgrade current Inferred Resource represents the next critical milestone. This update will incorporate recent high-grade intersections and geological interpretation.

Metallurgical Testing: Completion of test work from recent diamond drilling will provide crucial processing parameters. Understanding recovery characteristics is essential for economic evaluation.

Mine Planning: Assessment of underground development potential will evaluate the optimal extraction method. The narrow, high-grade nature of mineralisation favours selective underground mining.

Medium-Term Catalysts (2026-2027)

Additional Drilling: Down-dip and along-strike extensions will test the full extent of mineralisation. Priority targets include the 20km magnetic anomaly and deeper structural positions.

Processing Integration: Evaluation of feed options for Georgetown Gold Processing Plant will determine optimal throughput scenarios. The drill results Savannah Goldfields Ltd has generated support multiple processing strategies.

Feasibility Studies: Underground mining assessment for sulphide zones will quantify development costs and production schedules. This work will form the basis for investment decisions.

Long-Term Value Drivers

Strike Extension: Systematic testing of the 20km magnetic anomaly represents years of exploration potential. Each successful drill hole adds to the resource base and extends mine life.

Resource Classification: Advancement from Inferred to Indicated category will increase confidence and enable detailed mine planning. This upgrade typically follows infill drilling programmes.

Production Integration: Potential satellite operation feeding central processing creates operational synergies. This model leverages existing infrastructure while maximising resource utilisation.

Investment Thesis: High-Grade Discovery in Proven District

Red Dam represents a compelling value proposition within Savannah's Georgetown Gold Project for several key reasons. The combination of high-grade mineralisation, strategic location, and exploration upside creates multiple value drivers.

Grade Advantage

Resource grade of 5.7 g/t Au significantly exceeds industry averages for similar deposits. This grade premium translates directly into higher margins and improved project economics.

Drill intersections consistently above 8 g/t Au demonstrate grade continuity throughout the deposit. Recent results confirm that high grades extend well beyond current resource boundaries.

Narrow, high-grade structure proves suitable for selective underground mining methods. This characteristic enables high-grade ore extraction whilst minimising dilution.

Infrastructure Leverage

Existing Georgetown Gold Processing Plant located 80km south provides immediate processing capability. This proximity eliminates the need for new processing infrastructure, significantly reducing capital requirements.

Established mining lease (ML30203) with operational history streamlines permitting processes. Previous mining activities have established regulatory pathways for future development.

Previous successful mining validates processing characteristics and metallurgical behaviour. The DRAU operation demonstrated excellent gold recovery from Red Dam ore.

Exploration Upside

20km strike potential based on magnetic interpretation offers substantial resource growth opportunities. Systematic exploration of this trend could multiply the current resource base.

Down-dip extensions confirmed by recent drilling indicate significant depth potential. The drill results Savannah Goldfields Ltd has achieved suggest mineralisation continues well below current resource limits.

Multiple target horizons within the broader Georgetown system provide numerous exploration opportunities. Each target represents potential additional discoveries within trucking distance of processing facilities.

Operational Synergies

Native Title agreements already in place eliminate potential development delays. These agreements provide certainty for future mining operations.

Environmental approvals from previous mining operations establish precedent for future activities. Existing approvals can often be modified rather than obtained from scratch.

Skilled workforce available in established mining region reduces recruitment and training costs. The Georgetown district has a long history of gold mining and processing.

Comparative Analysis: Red Dam vs Regional Peers

This comparative analysis demonstrates Red Dam's superior position relative to regional competitors. The combination of higher grades, larger exploration target, and superior infrastructure access creates significant competitive advantages.

Technical Excellence and Quality Assurance

The drilling programme demonstrates Savannah's commitment to industry best practices throughout all phases of exploration. Face sampling hammer ensures uncontaminated samples by preventing cross-contamination between intervals.

Cone splitter methodology eliminates sample bias through mechanical splitting processes. This approach ensures representative samples for analysis whilst maintaining sample integrity.

Intertek Townsville analysis using industry-standard fire assay provides accurate gold determinations. Fire assay remains the industry standard for gold analysis due to its precision and reliability.

Furthermore, comprehensive QA/QC including standards, blanks, and duplicates ensures data integrity. Sample recovery >98% across all holes confirms excellent drilling conditions and sample quality.

Why Should Investors Follow Savannah Goldfields?

Red Dam's exceptional results position Savannah Goldfields as a compelling growth story in the Australian gold sector. The drill results Savannah Goldfields Ltd continues to deliver demonstrate consistent high-grade mineralisation across multiple drilling campaigns.

The combination of high-grade mineralisation, established infrastructure, and significant exploration upside creates multiple value drivers. Each element contributes to a robust investment thesis supported by technical excellence and strategic positioning.

Near-Term Catalysts

Resource upgrade expected Q1 2026 will incorporate recent drilling results and geological interpretation. This update should significantly increase both resource confidence and size estimates.

Metallurgical results from diamond drilling programme will provide processing parameters for economic evaluation. Understanding gold recovery and processing costs is crucial for project development.

Expanded drilling programme targeting strike extensions will test the full extent of the 20km anomaly. Each successful hole adds to resource confidence and extends potential mine life.

Strategic Value Proposition

Georgetown Gold Processing Plant provides immediate processing pathway without additional capital expenditure. This existing infrastructure represents a significant competitive advantage over greenfield developments.

Multiple high-grade deposits within trucking distance of central facility create operational synergies. This hub-and-spoke model maximises infrastructure utilisation whilst minimising transport costs.

Experienced management team with proven track record in the region brings valuable local knowledge. This expertise enables efficient exploration and development whilst managing regulatory requirements.

Long-Term Growth Potential

20km strike length offers years of exploration targets across multiple geological environments. Systematic exploration of this trend could result in multiple discoveries and resource additions.

District-scale opportunity across 17 EPMs and 17 MLs provides enormous exploration potential. This land package represents one of the larger gold exploration holdings in the Georgetown district.

Established mining jurisdiction with supportive regulatory environment facilitates efficient project development. Queensland's mining-friendly policies and established regulatory framework reduce development risks.

With high-grade drill results confirming down-dip extensions and a potential 20km strike length, Red Dam represents a district-scale opportunity within 80km of existing processing infrastructure. Savannah Goldfields has positioned itself to unlock significant value as exploration advances and resource estimates are upgraded throughout 2026.

In conclusion, Savannah Goldfields continues to demonstrate its ability to unlock high-grade gold deposits within the proven Georgetown district. The exceptional drill results Savannah Goldfields Ltd has generated at Red Dam establish this prospect as a cornerstone asset for future growth and value creation.

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