Savannah Goldfields has identified a new gold exploration target at the Red Dam deposit, about 80km from the company’s Georgetown processing plant.

The exploration target is estimated to be between 430,000 tonnes and 1,060,000 tonnes, with gold grades ranging between 3.3 g/t and 5.4 g/t.

Deutsche Rohstoff AG mined the Red Dam site in 2010, extracting 22,600 tonnes of ore at 13.6 g/t gold to a depth of about 18m.

Red Dam has an established inferred mineral resource over a central drilled area of 201,000 tonnes at 5.7 g/t gold.

Related: Savannah poised to restart gold production

Savannah said the new exploration target represented a potential extension down dip and along strike from the previous mined zones and inferred mineral resource.

It is hoped to support the company’s ‘hub and spoke’ strategy to provide multiple sources of feed into the Georgetown processing plant.

Savannah said the exploration target its geologists had identified at Red Dam was the first of a number of exploration targets expected to be defined as part of the work being undertaken across its project portfolio.

Further exploration targets are expected to be outlined on the Electric Light, Big Reef, Jubilee Plunger and Phily’s deposits in the near term.

“It is very pleasing that we have commenced definition of our exploration potential in parallel to our current work towards recommencing gold production operations,” chief executive officer Bradley Sampson said.

“We eagerly await the completion of this exploration target identification exercise on our other exploration areas and the finalisation of our exploration strategy to grow our existing mineral resources and generate additional feed into the Georgetown processing plant.”

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