Savannah Goldfields Advances Restart Plans with $5.7M Capital Raise and New CEO
Savannah Goldfields is gearing up to restart gold production by July at its Georgetown and Agate Creek projects, bolstered by a $5.7 million capital raise and the appointment of a seasoned mining CEO.
- Targeted July restart of gold production at Georgetown and Agate Creek
- Completion of $5.7 million in capital raising towards a $14 million goal
- New pit designs and environmental approvals progressing
- Appointment of Brad Sampson as new CEO with extensive mining experience
- Exploration focus on expanding 590,000-ounce gold Mineral Resource
Restarting Gold Production
Savannah Goldfields Limited is making significant strides towards resuming gold production at its key Gulf Savannah Region projects, Georgetown and Agate Creek. Mining and processing activities remain on hold pending environmental approvals, but the company is targeting a July restart. This initial phase will focus on transporting approximately 5,900 tonnes of stockpiled ore from Agate Creek to the Georgetown processing plant, followed by mining operations at the Big Reef project and processing recommencement.
The Georgetown processing plant, currently under care and maintenance, has undergone annual electrical inspections and mill rotations to ensure readiness. New open pit designs and production schedules have been developed incorporating recent geotechnical advice, laying the groundwork for a smooth operational restart.
Capital Raising and Corporate Developments
To underpin this operational push, Savannah has advanced a $14 million capital raising program, completing approximately $5.7 million during the quarter. This includes a $1.2 million upfront share placement, a fully underwritten pro-rata entitlement offer raising $4.2 million, and the settlement of an initial tranche of convertible notes worth $0.3 million. An Extraordinary General Meeting in April ratified key elements of this program, enabling further capital raising activities in the current quarter.
Adding to the momentum, Savannah appointed Brad Sampson as CEO in mid-April. Sampson brings over 30 years of international mining experience, including leadership roles at Discovery Metals Ltd, Kore Potash Ltd, and senior executive positions at Newcrest Mining Ltd. His track record in operational excellence and shareholder value creation is expected to guide Savannah through its critical production restart and growth phases.
Exploration and Resource Growth
While no exploration drilling occurred this quarter, Savannah’s geologists have been actively reviewing existing data to identify new exploration targets. The company currently holds a JORC-compliant Mineral Resource base of 590,000 ounces of gold, with efforts focused on expanding oxide gold mineralisation to feed the Georgetown plant. New exploration targets are anticipated to be defined across multiple project areas in the coming quarter, potentially underpinning medium to long-term production sustainability.
Strategic Hub-and-Spoke Model
Savannah is advancing a hub-and-spoke strategy centered on the Georgetown processing plant, the only facility within a 400-kilometre radius. This plant is surrounded by numerous stranded gold deposits and historic open pits, many of which contain unexploited sulphide mineralisation. The company is progressing design modifications to process sulphide ores, aiming to unlock significant regional opportunities. Ownership of the plant also positions Savannah to pursue joint ventures or acquisitions of nearby deposits, with ongoing evaluations of third-party ore processing agreements.
Environmental and Operational Preparations
Environmental approvals remain a gating factor for mining resumption. Savannah has appointed a full-time environmental manager and engaged a leading consulting firm to expedite amendments to existing Environmental Authorities. Test work on ore characterisation and processing approvals is underway, alongside engagement with potential mining, haulage, and crushing service providers. These preparatory steps are critical to ensuring compliance and operational efficiency once production restarts.
Bottom Line?
Savannah’s July restart target and strategic leadership changes set the stage for a pivotal phase—pending environmental approvals and full capital raise completion.
Questions in the middle?
- When will the pending environmental approvals be finalized to enable mining recommencement?
- How will the new CEO’s strategic vision influence Savannah’s growth and operational priorities?
- What impact will the completion of the remaining capital raising have on project timelines and exploration activities?