Savannah Goldfields maintained gold production at Georgetown while preparing for expanded mining at Agate Creek. Strong exploration results and positive cash flow underpin plans for a new processing plant and extended regional operations.
- Steady gold production with 985 oz Au sold in Q1
- Big Reef mining resumed; Agate Creek expansion pending approval
- High-grade drilling results at Red Dam and Electric Light
- Positive operational cash flow of $1.24 million
- Feasibility study underway for 1 Mtpa Agate Creek plant
Gold Production Maintains Momentum Despite Planned Shutdown
Savannah Goldfields (ASX:SVG) kept gold pouring steadily at its Georgetown Gold Processing Plant (GGPP) through the first quarter of 2026, selling 985 ounces of gold and 595 ounces of silver. The company completed a planned six-week maintenance shutdown ahead of schedule and within budget, resuming operations on 28 March. Post-shutdown, processing continued with a single ball mill to gather operational data before switching back to two mills in May. This approach matched previous throughput rates despite a slightly coarser grind, indicating operational flexibility.
Gold feedstock during the quarter came exclusively from Big Ben rock piles, with an average grade around 1.4 to 1.5 grams per tonne. The company realised an average gold price of $6,907 per ounce against production costs averaging $4,389 per ounce, generating $7.03 million in sales proceeds. Operational activities delivered positive cash flow of $1.24 million, a marked improvement from earlier deficits and a sign of stabilising operations following recent challenges.
Mining at Big Reef resumed in April, with stockpiled ore awaiting haulage to the GGPP before processing begins later this month. This phase is expected to conclude in May, after which Big Ben feed will resume in June and July. Meanwhile, approval for an environmental authority amendment at Agate Creek is anticipated in May, clearing the way for mining and processing of ore from that site to restart. These developments align with the company’s strategy to sustain weekly gold pours through multiple feed sources.
Exploration Uncovers High-Grade Gold at Red Dam and Electric Light
Exploration drilling results from the previous quarter were released during this period, revealing significant high-grade gold intercepts at the Red Dam and Electric Light prospects. Highlights include 3 meters at 14.86 grams per tonne gold and 2 meters at 17.21 grams per tonne at Red Dam, alongside a standout 3 meters at 19.04 grams per tonne at Electric Light. These results confirm extensions of mineralisation beyond existing resource envelopes and support ongoing resource model updates expected in Q2 2026.
Metallurgical test work on core samples from these prospects is also underway, aiming to assess gravity gold recovery and cyanide leach performance. This data will inform the feasibility of processing sulphide ores through the existing GGPP circuits, enhancing the plant’s capacity to treat more complex ores. The company plans to finalise 2026 drilling programs after incorporating updated resource data, focusing on expanding oxide and sulphide gold mineralisation along key regional structures.
Advancing Agate Creek Plant Feasibility and Regional Hub Strategy
Savannah is progressing plans for a new 1 million tonnes per annum gold processing plant at Agate Creek, aiming to reduce trucking costs and unlock the full value of its substantial mineral resources there. The Agate Creek Mineral Resource contains approximately 422,000 ounces of gold, with Ore Reserves of 460,000 tonnes grading 2.5 grams per tonne containing 36,800 ounces. The company engaged Enthalpy Pty Ltd to define the feasibility study scope, a critical step before budgeting and execution.
The Georgetown plant remains central to Savannah’s hub and spoke strategy, serving as the sole processing facility within a 400-kilometre radius. This positioning offers opportunities to toll treat ores from multiple stranded deposits and smaller-scale miners in the region, with ongoing discussions to scale up such arrangements. The company is also advancing modifications to the GGPP to process sulphide ores, expanding its operational flexibility and regional footprint.
Engineering and environmental studies for a 3-meter lift of the GGPP tailings storage facility were completed this quarter, supporting an application to extend tailings capacity by approximately two years. This infrastructure upgrade is essential to accommodate increased throughput from Agate Creek and other projects.
These developments build on recent operational milestones including the resumption of processing at Georgetown following the maintenance shutdown, as detailed in the company’s earlier update in April 2026. Savannah’s ability to maintain production and positive cash flow while advancing exploration and feasibility studies positions it well for the next phase of growth in the Queensland goldfields region. The company’s focus on resource conversion, operational optimisation, and regional partnerships will be key to watch in the coming quarters.
Bottom Line?
Savannah Goldfields is stabilising production and cash flow while laying groundwork for a new Agate Creek plant that could reshape its cost profile and regional presence.
Questions in the middle?
- Will environmental approval for Agate Creek mining arrive on schedule in May?
- How will metallurgical test results influence sulphide ore processing strategies at Georgetown?
- What impact will the new Agate Creek plant feasibility study have on Savannah’s capital allocation?