Red Dam Drilling Confirms Gold Beyond Pit Limits, But Challenges Remain
Savannah Goldfields has reported strong high-grade gold assay results from recent drilling at its Red Dam Prospect, confirming mineralisation continuity beyond existing pit limits and setting the stage for a resource update.
- Five Reverse Circulation drill holes intersect significant gold mineralisation
- Best intercept, 3m at 14.86 g/t gold from 104m depth
- Results validate and extend the existing Inferred Mineral Resource
- Historical drilling and prior mining support high-grade continuity
- Company plans resource update and further exploration drilling
Strong Drilling Results at Red Dam
Savannah Goldfields Limited (ASX, SVG) has announced encouraging assay results from five Reverse Circulation (RC) drill holes completed in November 2025 at its Red Dam Prospect, part of the Georgetown Gold Project in Queensland. Each hole intersected significant gold mineralisation within a narrow, steeply dipping east-west shear zone, with the standout intercept being 3 metres at 14.86 grams per tonne (g/t) gold from 104 metres depth.
This drilling campaign was designed to test the down dip continuity of the mineralised structure beneath the historic open pit, and the results confirm that the gold mineralisation extends well beyond the current pit limits. The mineralisation remains open at depth and along strike, suggesting further exploration upside.
Context and Historical Significance
The Red Dam deposit has a rich exploration history dating back to the late 1980s, with over 180 drill holes completed by various explorers including CRA Exploration and Deutsche Rohstoff Australia Pty Ltd (DRAU). DRAU mined a small high-grade oxide open pit in 2010, extracting 22,600 tonnes at an impressive 13.6 g/t gold.
The current Inferred Mineral Resource at Red Dam stands at 201,000 tonnes grading 5.7 g/t gold, containing approximately 37,000 ounces of gold. Savannah’s recent drilling results not only validate this resource model but also provide evidence to support an upcoming resource update, which could enhance the project's economic potential.
Geological Insights and Exploration Potential
Geologically, Red Dam is characterised by a narrow shear zone, typically between 1.3 to 3 metres wide, hosting high-grade gold mineralisation associated with sulphides such as arsenopyrite and galena. The shear zone extends over a strike length of up to 20 kilometres, with mineralisation best developed in meta-dolerite host rocks.
The recent drilling focused on the down dip extension of this structure, intersecting gold mineralisation at vertical depths exceeding 100 metres. The continuity of mineralisation at depth and along strike remains open, presenting a compelling case for further exploration drilling to delineate additional resources.
Next Steps for Savannah Goldfields
CEO Brad Sampson expressed optimism about the results, highlighting their role in validating the existing resource and extending the known mineralisation. The company plans to update the Mineral Resource estimate in the near term and undertake further drilling to test lateral and depth extensions of the Red Dam shear zone.
These developments come on the back of recent diamond drilling at Red Dam aimed at metallurgical test work, underscoring Savannah’s methodical approach to advancing the project towards potential production.
Bottom Line?
Savannah Goldfields’ latest drilling at Red Dam confirms high-grade gold continuity, setting the stage for a resource upgrade and renewed exploration momentum.
Questions in the middle?
- How will the updated Mineral Resource estimate impact Savannah’s project valuation?
- What are the timelines and scale for the planned follow-up drilling campaigns?
- Could the high sulphide content affect metallurgical processing and recovery rates?
