Pending Assays and Metallurgical Tests Could Define Red Dam’s Future Trajectory

Exploration Breakthrough at Red Dam

Savannah Goldfields Limited (ASX – SVG) has released promising assay results from its recent diamond drilling campaign at the Red Dam Prospect, the northernmost target within its Georgetown Gold Project in Queensland. The three diamond holes, totaling 185 meters, successfully intersected the gold-bearing shear zone, confirming the presence of high-grade mineralisation.

The standout intercept came from hole RD25DD1041, which returned an impressive 2.6 meters grading 34.80 grams per tonne (g/t) gold starting at 51.4 meters downhole. This result not only highlights the high-grade nature of the deposit but also supports the historical drilling data previously collected at Red Dam.

Validating Historical Data and Advancing Metallurgical Studies

The primary objective of the diamond drilling was to obtain PQ core samples for metallurgical testwork, a critical step in determining the most effective processing methods for the gold sulphide mineralisation typical of the Red Dam shear zone. The sulphide-rich mineralisation, dominated by arsenopyrite and galena, is characteristic of the Siluro-Devonian age lodes that define the Georgetown region.

Alongside the diamond drilling, Savannah completed five Reverse Circulation (RC) holes totaling 648 meters to explore the down-dip extensions beneath the historic open pit. While assay results from these RC holes are still awaited, all intersected sulphide mineralisation, suggesting continuity of the gold-bearing structure at depth.

Resource Context and Future Potential

Red Dam currently hosts an inferred mineral resource of approximately 201,000 tonnes at 5.7 g/t gold, equating to around 37,000 ounces. This resource was previously updated in October 2025 and forms part of the broader Georgetown Gold Project portfolio, which includes other deposits such as Jubilee Plunger and Electric Light.

The recent drilling results provide a strong foundation for an updated resource estimate anticipated in 2026. Moreover, the acquisition of high-quality core samples will enable detailed metallurgical testing, which is essential for optimising gold recovery and assessing the economic viability of future mining operations.

Strategic Location and Geological Setting

Located about 80 kilometers north of Savannah’s Georgetown processing plant, Red Dam lies within a narrow, steeply dipping east-west shear zone extending over 2 kilometers at surface, with geophysical data suggesting a strike length of up to 20 kilometers. The deposit’s geological setting within the Etheridge Goldfield is known for its mesothermal gold-sulphide veins, making it a compelling target for ongoing exploration.

Historical mining by Deutsche Rohstoff Australia in 2010 exploited oxide resources from a small open pit, extracting 22,600 tonnes at 13.6 g/t gold. Savannah’s recent drilling aims to build on this legacy by targeting sulphide mineralisation at depth and along strike.

Next Steps and Market Implications

With assay results from the RC drilling pending and metallurgical testwork underway, Savannah Goldfields is well positioned to refine its understanding of Red Dam’s resource potential. The company plans further drilling to extend and infill the mineralised zones, which could enhance the resource classification and support future development decisions.

Investors will be watching closely as these next phases unfold, with the potential for Red Dam to contribute meaningfully to Savannah’s production pipeline and overall project value.