SVG – Savannah Goldfields
Not so awe inspiring … penny dreadful, but …. Kindly conduct your own due diligence.
- Total gold recovered for the September Quarter was 1,965 ounces with 2,006 ounces of gold and 1,158 ounces of silver refined and sold during the Quarter for total proceeds of $7.6 million.
- To 26 October 2023, the Company has now sold 11,025 ounces of refined gold as well as 6,587 ounces of refined silver and received gold sale proceeds of A$30.9 million (inclusive of third-party gold sales and with average received gold price of approximately A$2,872 per ounce) since commencement of production in September 2022.
- Total cash production costs for the Quarter were A$4,146 per ounce reflecting the reduction in gold produced due to the lower average grade mined and processed during the Quarter and the relatively high fixed cost component of the mining and processing costs.
- It is expected that with mining now transitioned into higher grade zones and with the plant now back at full production levels, cash production costs should improve significantly to current target levels of closer to A$2,000 per ounce.
- Institutional component of Entitlement Offer successfully completed, raising approximately $0.95 million before costs, representing ~30% of the total Entitlement Offer raising amount
- Savannah’s Directors and their associated entities have subscribed for entitlements worth approximately $0.8 million in aggregate
- Savannah shares to recommence trading on ASX today on an ex-entitlement basis •
- Retail Entitlement Offer opens on 3 January 2024 •
- Entitlement Offer is raising approximately $3.2 million in total and is fully underwritten by Bizzell Capital Partners Pty Ltd, an entity associated with Savannah Chairman Stephen Bizzell.
Not holding.
Kind regards
rcw1
Article written in the Townsville Daily Bulletin yesterday arvo (27/12/23) sparked rcw1 attention, know that country. Yes there is gold there, but the costs involved… man… not sure about this one yet.
Savannah Goldfields: Production jump at refurbished NQ mine
North Queensland miner Savannah Goldfields is looking to drum up $3.2m on the back of a healthy production quarter.
December 27, 2023 – 4:00PM
Townsville Bulletin
North Queensland miner Savannah Goldfields is looking to drum up $3.2m on the back of a healthy production quarter. The company has its gold operations centred around Agate Creek and Georgetown, about 275km west of Ingham.
The area is encompassed by more than 40 mine development, exploration and fossicking leases.
Total processed tonnes rose 33 per cent this past quarter, though grams-per-tonne slipped by a third.
Savannah Goldfields requested a trading halt on December 20. The company is expected to announce results of an accelerated entitlement offer on Thursday, before a retail offer opens January 3.
Savannah Goldfields’ operations.
The accelerated offer aims to raise $3.2m. The cash would pay for drilling programs, gold processing upgrades, payment of borrowings and working capital.
Having so many tenements around Georgetown and Agate Creek opens the chance for a “hub and spoke” regional expansion strategy, the company says in an investment case pitch on the ASX.
Savannah Goldfields bought in $5.9m from 3100 ounces of refined gold and silver last quarter.
“The Gulf Savannah region is a renowned gold producing province with the right geological setting for large scale gold deposits,” the ASX announcement says.
The company raised $4m in January to make the final payments on, and upgrade the Georgetown project.
Savannah Goldfields poured its first gold in September 2022, when it was called Laneway Resources.
Laneway managing director Brad Gordon said at the time the company had successfully and rapidly executed on the refurbishment and recommissioning of the plant and the recommencement of mining at Agate Creek.
Developed in the 1980s and refurbished in 2010, the plant, about 350km northwest of Townsville, had little use since.
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