Sulphide Processing Challenges Loom as Savannah Expands Jubilee Plunger Resource

Resource Upgrade Highlights

Savannah Goldfields Limited (ASX, SVG) has delivered a substantial update to its Jubilee Plunger Mineral Resource, part of the Georgetown Project in Far North Queensland. The company reported a 220% increase in contained gold compared to the previous estimate from February 2022, now totalling 20,000 ounces of gold at a 1.0 g/t cut-off grade. Notably, this update includes the first-ever Indicated Mineral Resource classification for Jubilee Plunger, reflecting increased confidence in the historic drilling data.

Geological Reinterpretation and Extensions

The resource upgrade follows a comprehensive collation and reinterpretation of historic drilling data, which extended the known mineralised structures south, north, and northeast beyond the previously defined open pit boundaries. The updated model incorporates both oxide and sulphide material types, with the majority of oxide ore located near the Lady Mary prospect to the south. This reinterpretation has expanded the resource to 296,000 tonnes at 2.1 g/t gold and 17 g/t silver, split between 98,000 tonnes Indicated at 2.4 g/t Au and 198,000 tonnes Inferred at 2.0 g/t Au.

Operational and Processing Implications

Jubilee Plunger lies approximately 80 kilometres by road from Savannah’s Georgetown Gold Processing Plant. While the oxide ore previously mined achieved gold recoveries exceeding 80%, the sulphide mineralisation at depth presents new challenges. Test work indicates sulphide ore requires flotation or oxidation treatment to improve gold recovery, necessitating the development of a new sulphide processing circuit at Georgetown. This technical hurdle is a key consideration as Savannah advances plans to resume gold production.

Strategic Context and Corporate Resource Position

The Jubilee Plunger update contributes to a combined Georgetown Project Mineral Resource of 1.159 million tonnes at 3.5 g/t gold, containing 131,000 ounces. When combined with the Agate Creek Project, Savannah’s total Mineral Resource now stands at 16.65 million tonnes at 1.03 g/t gold, containing 553,000 ounces. CEO Brad Sampson emphasised the importance of this resource growth in underpinning the company’s strategy to extend the processing plant’s operational life and identify near-term ore sources.

Looking Ahead

With the resource upgrade complete, Savannah is poised to focus on further exploration, verification sampling, and metallurgical test work to refine the sulphide processing approach. The company also plans to reassess the remaining exploration potential at Jubilee Plunger and may restate a new Exploration Target in due course. These steps will be critical in shaping the next phase of development and production at Georgetown.