Company name: SAVANNAH GOLDFIELDS LTD
Capital raise proceeds will place?Savannah?in a strong position to capitalise on?becoming Far North Queensland’s developing gold producer,?with a focus now on the next phases of their strategy being Phase 3 - resource expansion at Agate Creek and Georgetown as part of Savannah Goldfields’ regional expansion strategy and ultimately move to Phase 4 - establish company as mid-tier gold producer and Scale operations to optimise profitability. ?
- Georgetown gold production from Sep 2022?with first gold pour achieved during FY23 with 12,433 ounces of gold produced and sold for sale proceeds of $35.3m since production commenced (as at 25/1/2024). The next step is Critical maintenance and incremental capacity increases steadily being implemented at the processing plant, in conjunction with the Sherwood West ore (Agate Creek project) currently being mined and is being hauled to Georgetown for processing, the company is about to also commence mining also from the Big Reef deposit nearer to Georgetown.
- Once mining transitions back into higher grade zones?at Sherwood and with the processing plant back at full production levels, cash production costs should achieve current target levels of close to A$2,000 per ounce (current AUD gold price > $3,000 /oz) with Quarterly gold production of greater than 5,000 ounces targeted for later this year.
- Agate Creek Gold Mine Resource expansion?underway for potential large-scale mining and processing, with Agate Creek Mineralised System potential is larger than previously understood. Characteristics of a low-sulphidation epithermal gold system characterised by swarms of narrow chalcedonic quartz veins.The gulf savannah region of north Queensland is a renowned gold producing province with the right geological setting for large scale gold deposits.Savannah has an existing 590,000 oz gold JORC Resource inventory with significant upside potential.
- Savannah is well positioned to take advantage?of the macro economic environment. Numerous economists and banks have raised their gold price forecasts due to increased geopolitical instability, continued high inflation, and US recession concerns. From a historical perspective, gold tends to outperform other assets and preserve its purchasing power better in these scenarios. With the company looking to accelerate Phase 3 operations with the raised funds, to expand resources at Agate Creek and Georgetown and move the company to Phase 4 - establish company as mid tier gold producer and Scale operations to optimise profitability.
- Executive Chairman – Stephen Bizzell, has an established track record of delivering strong value with his previous resources companies.???Stephen was an Executive Director of Arrow Energy, a company he co-founded in 1999, and sold to a?JV between Shell and PetroChina in 2010 for $3.5 billion (20c IPO to $4.70 takeover).?He was also a c0-founder and director of Bow Energy that was taken over for $550 million (20c IPO to $1.52 takeover) and was a co-founder and director until recently of Stanmore Resources (20c IPO, currently trading around $4).? He is currently also a director of Strike Energy, Renascor Resources and Maas Group Holdings, all S&P/ASX300 index companies.
- Savannah boasts a highly experienced?Board?and?Management?Team, who have extensive hands-on operational experience in minerals exploration, mining and commercial production in Australia and around the world.
- Directors have skin in the game?– they have invested considerable amounts of their own money in via direct share purchases/capital raises, with Board & Management holding ~27.25% (~$3m) of the company and are fully committed to growing their flagship projects (Agate Creek and Georgetown) and motivated to ensure its success.
SAVANNAH GOLDFIELDS LIMITED?(SVG)?is an ASX-listed, gold mining company which holds a strategic portfolio of operating assets in North Queensland’s Gulf Savannah. The Company is focused on mining and exploring upside and scale potential in the region. ?
Flagship Regional Gold Projects & Processing Plant Agate Creek Gold Project Resource expansion underway for potential large scale mining and processing
- High-grade ore mining underway — Ore is permitted and being processed through the Georgetown Processing Plant
- Further high-grade mining — Mining operations continue to perform well with daily mining rates at or above targeted levels, and grades similar to modelled grades for the current design
Resource expansion — Current JORC Resource of 471 koz (1) at Agate Creek with an ongoing drilling campaigns delivering high-grade gold hits including 5m @54.7 g/t; 7m @ 15.1 g/t; 6m @ 30.8 g/t; and 4m @ 35.5 g/t. Georgetown Gold Processing Plant Gold mine and regional processing hub
- Strategic fit — Ownership of process infrastructure and control over own gold production while enhancing exploration optionality
- Improves Agate Creek economics – Georgetown processing cuts haulage distance down to ~100km
- Exploration potential – Large package of additional exploration and mining leases covering 515 km2 in close proximity to Georgetown mill
- Existing JORC Resource of 119 koz at Georgetown project with significant exploration upside
- Superior cashflows – Processing Agate Creek ore via Georgetown mill provides far superior cashflow outcome
- Regional optionality – The only gold plant within 400km radius providing opportunity to commercialise other stranded resources in the region
Clara Resources Australia?- Savannah Goldfields retains a 14.8% shareholding in ASX listed Clara Resources Australia (C7A). Clara retains ~23% shareholding in First Tin. First Tin listed on the London Stock Exchange main board on 8 April 2022 following a successful ￡20m IPO raising.
Ashford Coking Coal Project?- Located in Ashford Basin Northern NSW containing historic workings from previous mining to supply local power station, Savannah Goldfields retains a 60% interest in the Ashford Coking Coal Project. Work towards grant of Mining Lease continues and ongoing planning for development including scoping studies are progressing.
DISCLAIMER: ‘The information does not constitute personal financial advice. Consult your adviser or broker prior to making any investment decision.
For further information about this company, email – [email protected]
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It's thrilling to see Savannah Goldfields Limited (SVG) harnessing the rich potential of North Queensland's Gulf Savannah! ?? As Vincent Van Gogh once said, "Great things are done by a series of small things brought together." Your commitment to meticulous exploration and processing at the Agate Creek and Georgetown projects paints a bright future for SVG. Keep pioneering! ????