Savannah Goldfields Nearly Doubles Red Dam Gold Resource with New Indicated Category

Resource Upgrade Transforms Red Dam’s Potential

Savannah Goldfields Limited (ASX:SVG) has nearly doubled the size of its Red Dam gold Mineral Resource within the Georgetown Gold Project, lifting contained gold to 58,600 ounces from the previous 2022 estimate. The updated resource, now totalling 396,000 tonnes at 4.6 g/t gold, also marks the first time an Indicated Mineral Resource category has been assigned, signalling greater geological confidence and a step closer to mining readiness.

This leap is driven by new drilling completed in late 2025, which included five Reverse Circulation (RC) and three diamond core holes, alongside a comprehensive review and correction of historic data. Additional bulk density measurements and a drone Lidar topography survey have further refined the geological model, reducing grade variance and confirming mineralisation continuity within the narrow, steeply dipping fault zone that hosts Red Dam.

Geological and Metallurgical Insights Support Mining Plans

The Red Dam deposit extends approximately 1.6 kilometres along an east-west shear, plunging steeply southwards, with mineralisation averaging 1.7 metres in width. The central high-grade zone, now tightly drilled at 25 to 30 metre spacing, supports the Indicated classification, while the broader resource area remains Inferred due to wider drill spacing.

Metallurgical test work, including recent gravity and leach tests by Savannah, indicate promising gold recoveries of around 70% from sulphide ores using the existing Georgetown CIL plant. Historic flotation tests suggest recoveries could exceed 90%, offering potential for processing upgrades. However, elevated arsenic levels associated with sulphides will require careful management in concentrate handling and environmental controls.

Mining and Exploration Outlook

Red Dam’s mineralisation remains open at depth and along strike, with an Exploration Target of 430,000 to 1,060,000 tonnes at grades between 3.3 and 5.4 g/t gold unchanged by the resource update. Savannah plans further drilling in 2026 to test these extensions and refine the resource base.

Mining options under consideration include both open pit and underground methods, with the deposit’s narrow, vertical orientation favouring narrow vein stoping below shallow pits. The existing shallow open pit mined in 2010-2011 extracted high-grade oxide ore, but the current resource is predominantly sulphide, necessitating updated mining studies.

While the mining lease renewal for ML30203 is pending, negotiations with native title holders and landowners are progressing without expected impediments. Savannah’s CEO Brad Sampson highlighted the resource upgrade’s potential to extend feed to the Georgetown processing plant, significantly prolonging operational life.

Savannah’s Broader Resource Base Strengthened

Combined with recent updates at other Georgetown deposits such as Electric Light and Jubilee Plunger, Savannah’s total Georgetown Mineral Resource now stands at 1.33 million tonnes averaging 3.56 g/t gold for 152,000 ounces. Including the Agate Creek project, Savannah’s total Mineral Resources exceed 16.8 million tonnes at 1.06 g/t gold containing 574,000 ounces, underpinning the company’s growing regional footprint.

These developments follow metallurgical findings confirming over 70% gold recovery from sulphide ores at Red Dam and Electric Light, processed through the existing Georgetown plant without major modifications, validating Savannah’s processing strategy and resource expansion plans Savannah Goldfields Confirms 71% Gold Recovery.