Savannah Goldfields has resumed gold production at its Georgetown plant with strong sales and exploration results, backed by a $15 million capital raise to fuel growth and new project development.
- Gold production restarted at Georgetown with weekly pours and $6.4M revenue since November
- Mining initiated at Big Reef with stockpiling and ongoing exploration drilling at key prospects
- Significant assay results support resource updates at Electric Light, Red Dam, and Big Reef
- Completed $15 million share placement to repay debt and fund production and exploration
- Planning new 1 Mtpa gold plant at Agate Creek to reduce costs and unlock resources
Restarting Gold Production
Savannah Goldfields Limited has marked a significant milestone by recommencing gold production at its Georgetown Gold Processing Plant (GGPP) during the December quarter. Since the first gold pour announcement in early November 2025, the company has maintained a steady cadence of weekly gold pours, selling 354 ounces of gold and 246 ounces of silver in the quarter, with a further 580 ounces of gold and 464 ounces of silver sold in January 2026. These sales have generated over A$6.4 million in revenue, reflecting average realised gold prices around A$6,791 per ounce.
The GGPP processed nearly 20,000 tonnes of material in the quarter, blending stockpiled ore from multiple sources including Agate Creek and Big Ben rock piles. Despite some operational disruptions caused by severe weather events in northern Queensland, Savannah has managed to maintain production momentum while gathering valuable data to optimise plant performance ahead of the planned resumption of mining at Agate Creek in the second quarter of 2026.
Mining and Exploration Advances
Mining activities commenced at the Big Reef open pit in December, with approximately 200 tonnes of inferred mineral resource mined and stockpiled for processing. Although blast hole drilling was delayed due to contractor maintenance issues, the company shifted focus to processing existing mineralised material from Big Ben. Exploration drilling programs at Electric Light, Red Dam, and Big Reef prospects have delivered encouraging assay results, including high-grade intercepts such as 2.6 meters at 34.8 grams per tonne gold at Red Dam and 7 meters at 9.92 grams per tonne at Electric Light.
These results have prompted Savannah to update mineral resource estimates for Electric Light and Red Dam, with plans underway to assess further open pit mining potential and initiate a scoping study for underground mining at Electric Light. The company also updated the Jubilee Plunger mineral resource, effectively converting an exploration target into a defined resource, underscoring the potential for resource growth in the Georgetown region.
Capital Raising and Strategic Growth
To underpin its production restart and exploration ambitions, Savannah completed a well-supported share placement raising A$15 million before costs. This capital injection has strengthened the balance sheet, enabling repayment of senior secured debt and funding ongoing operations and exploration programs. Notably, key shareholders including Chairman Stephen Bizzell and major investor Wes Maas participated in the placement, signalling confidence in the company’s strategy.
Looking ahead, Savannah is advancing plans for a new 1 million tonnes per annum gold processing plant at Agate Creek. An order of magnitude study by consulting group Enthalpy has been completed, providing critical insights into capital and operating costs. The company intends to develop a feasibility study in partnership with a potential collaborator, aiming to reduce trucking costs and unlock the full value of the substantial Agate Creek mineral resources, which contain over 420,000 ounces of gold.
Regional Hub-and-Spoke Vision
Central to Savannah’s growth is its hub-and-spoke strategy, leveraging the Georgetown processing plant as a regional hub within a 400-kilometre radius. The plant’s unique position allows it to process ore from multiple stranded deposits and third-party miners, many of whom are currently producing gold on a small scale. Savannah is actively engaging with these parties to explore toll treatment opportunities, potentially expanding throughput and regional gold production.
Moreover, the company is progressing design modifications to the GGPP to accommodate future sulphide ore processing, which historically has been under-exploited in the region. This initiative could unlock significant new value from the region’s extensive gold mineralisation, which has seen over 10 million ounces mined historically but still holds substantial unmined sulphide resources.
Bottom Line?
Savannah Goldfields is poised at a pivotal juncture, balancing steady production with ambitious expansion plans that could reshape its regional footprint and unlock significant shareholder value.
Questions in the middle?
- Will the planned environmental authority amendment for Agate Creek be approved on schedule to enable Q2 mining?
- How will the feasibility study outcomes influence the timing and scale of the new Agate Creek processing plant?
- What impact will operational disruptions and contractor delays have on production forecasts and costs?