Savannah Goldfields Advances Agate Creek Mining with Resource Upgrades

Gold Production Holds Steady Amid Grade Challenges

Savannah Goldfields (ASX:SVG) maintained a steady gold production run at its Georgetown Gold Processing Plant (GGPP) through the June quarter, selling 834 ounces of gold and 212 ounces of silver. July sales added another 349 ounces of gold and 128 ounces of silver, generating over $7 million in combined proceeds across the quarter and July to date at average realised prices of $6,241 per ounce for gold.

However, production was hampered by lower-than-expected grades from the Inferred Mineral Resource mined at Big Reef, with average processed grades declining from 1.23 g/t Au in April to approximately 0.76 g/t Au in July. This shortfall prompted a review of grade control methodologies as the company seeks to align assay results with resource estimates. The unit cost of production rose accordingly to $5,778 per ounce, reflecting the grade dip.

Environmental Authority Unlocks Agate Creek Mining Restart

A key milestone was achieved with the Queensland Government granting an Environmental Authority amendment on 7 July, permitting expanded mining operations at Agate Creek. This clears the way for mining to recommence imminently, with the Drill and Blast contractor mobilising in early August and mining equipment deployment scheduled to follow swiftly.

Ore from Agate Creek is slated to feed the GGPP once mining resumes, expected to materially reduce production costs compared to the June quarter. The company also submitted an amendment to raise the GGPP Tailings Storage Facility by 3 metres, enhancing capacity by approximately two years without public opposition during the notification period.

Resource Upgrades at Electric Light and Red Dam Bolster Growth Prospects

Savannah released significant Mineral Resource updates for its Electric Light and Red Dam prospects, reporting Indicated Mineral Resources for the first time. Electric Light now hosts 364,000 tonnes at 3.9 g/t Au containing 46,000 ounces, while Red Dam’s resource increased by 59% to 396,000 tonnes at 4.6 g/t Au with 58,600 ounces of gold.

These upgrades reflect extensive geological and assay data integration, supporting planned exploration drilling to test extensions down dip and along strike. Cultural Heritage surveys completed in July pave the way for drilling to commence once reports are finalised. The company’s metallurgical test work confirmed gold recoveries exceeding 70% from sulphide ores at both prospects using the existing plant, with further flotation testing planned to target recoveries above 95%.

Exploration and Hub Strategy Drive Future Growth

Exploration activities resumed with rock chip sampling and mapping at Red Dam, Electric Light, and along the Big Wonder fault near the GGPP. Drilling priorities include shallow oxide gold targets along Big Reef and nearby prospects such as Big Wonder and Caledonia, as well as deeper sulphide extensions at the upgraded prospects.

The Georgetown processing plant remains a strategic hub within a 400km radius, surrounded by numerous under-explored sulphide deposits. Savannah is advancing plant modifications to accommodate sulphide ore processing and is engaging with local miners interested in toll treating their material through the GGPP, reinforcing a hub-and-spoke model for regional gold production.

Corporate Moves Strengthen Balance Sheet Ahead of Production Ramp-Up

To support its operational plans, Savannah completed a $1.5 million equity placement and sold royalty interests over its Agate Creek and Georgetown tenements for $2 million, with $1.5 million settled during the quarter. The lead investor, DGR Global Ltd, brings deep expertise in resource exploration and development, having recently exited a major stake in SolGold plc.

Quarterly expenditures on exploration and development totalled $144,000, primarily at Georgetown, while corporate and administrative costs amounted to $60,000.