Savannah Goldfields Nearly Doubles Red Dam Gold Resource to 58,600 Ounces at Georgetown Project

Comparison of Updated Red Dam Resource to 2022 Estimate

The 2022 Red Dam Mineral Resource comprised 201,000 tonnes at 5.7 g/t gold, totaling roughly 37,000 ounces, classified entirely as Inferred. The 2026 update more than doubles the contained ounces to 58,600 across 396,000 tonnes, reflecting new drilling, database corrections, and additional bulk density measurements since the earlier estimate. The overall grade has decreased to 4.6 g/t gold from 5.7 g/t, attributed to the inclusion of lower-grade peripheral material and a refined understanding of the deposit's geometry rather than a decline in the core high-grade zone.

This substantial growth—a 96% increase in tonnage and 59% rise in contained gold ounces over about four years—indicates the deposit was significantly underdrilled at the time of the 2022 estimate. Targeted deeper RC drilling to extend the high-grade sulphide zone at depth was a major factor in the tonnage increase, while database validation, including recovery of previously missing high-grade assays, also boosted the contained ounce count.

First Indicated Classification at Red Dam Demonstrates Enhanced Geological Confidence

A key technical milestone is the first reporting of an Indicated Mineral Resource at Red Dam, totaling 68,000 tonnes at 7.9 g/t gold and 11.1 g/t silver, containing about 17,000 ounces of gold. According to the JORC Code 2012, Indicated classification requires greater geological understanding and data density than Inferred, allowing use in pre-feasibility studies to support economic evaluations and mine planning.

The Indicated Resource is defined within the central high-grade zone, approximately 200 metres long, drilled at 25 to 30-metre spacing. This drill density meets JORC guidelines for moderate geological and grade continuity confidence. This classification enables more advanced studies, including open pit or underground mining scenarios, as highlighted by the company's CEO.

CEO Brad Sampson Highlights Red Dam's Potential for Georgetown Processing Plant

CEO Brad Sampson emphasized the resource upgrade's significance and its relevance to the Georgetown Gold Processing Plant (GGPP). He stated that the enhanced confidence, including the first Indicated classification, is "beneficial as we work to understand the open pit and underground mining potential at this Deposit." Sampson added that Red Dam "has the potential to provide additional feed to the Georgetown Gold Processing Plant and significantly extend the processing life of the operation."

He confirmed further exploration drilling at Red Dam is planned for 2026, focusing on deposit extensions at depth. Sampson expressed eagerness for the drilling commencement, indicating management views the 2026 program as a key catalyst for resource growth. The comments frame Red Dam’s strategic value as extending mill feed to existing processing infrastructure, a lower-cost development path likely to improve future mining economics.

Red Dam Located 80 Kilometres North of Georgetown Gold Processing Plant

Red Dam lies about 80 kilometres north of Savannah's Georgetown Gold Processing Plant (GGPP), an existing capital asset that could potentially process ore from Red Dam. Recent metallurgical testing suggests Red Dam sulphide material may be processed through the Georgetown Carbon-in-Leach (CIL) gold plant, according to the company.

The 80-kilometre haulage distance is a factor for investors and analysts assessing future mining economics. While no formal economic study, cost estimate, or mine plan has been released, supplementing feed to an existing plant rather than building new infrastructure is a more capital-efficient development approach in gold mining. Ongoing metallurgical work on sulphide material indicates active investigation into processing design.

Red Dam's Exploration History: From 1980s CRA Exploration to 2025 Savannah Drilling

Red Dam has a multi-decade exploration and mining background. Originally discovered by CRA Exploration in the late 1980s and 1990s through stream sediment and soil sampling, followed by trenching and drilling targeting oxide gold mineralisation. Georgetown Mining and later Deutsche Rohstoff Australia (DRAU) conducted further definition and metallurgical drilling in 2006 and 2010, focusing on oxide ore.

DRAU mined oxide ore from October 2010 to July 2011 via a shallow open pit, delivering material to the Georgetown gold leach plant. They also drilled into the sulphide zone and conducted flotation metallurgical tests, indicating high gold recoveries from sulphides. Savannah’s 2025 drilling program, including five RC holes and three diamond core holes, built on this foundation to produce the updated resource.

Details of 2025 Drilling and Database Corrections Driving Resource Upgrade

The updated Mineral Resource incorporates new data from the 2025 drilling, additional bulk density measurements, historic drill database validation and correction, and a drone LiDAR topography survey. The database review was impactful, uncovering positive corrections such as previously missing high-grade assays and revised 2006 assay results that were 20% higher than originally recorded due to handling issues with high-arsenic samples.

Drill hole collar resurvey data resolved previous misinterpretations of the mineralised structure. The deposit is considered to have good continuity, though grade continuity varies due to the high-grade domain nature. Recent data corrections have "reduced the high grade variance perceived by previous parties," suggesting earlier estimates may have been conservative. The 2025 deep RC drilling extended the high-grade zone’s depth and strike length, contributing to tonnage growth.

Red Dam Deposit Geometry: 1,600-Metre Fault Zone with High-Grade Core

The deposit lies along a narrow fault zone about 1,600 metres long and up to 180 metres deep. The Mineral Resource averages 1.7 metres in width, mostly within a single mineralised structure featuring a high gold-grade core associated with high-arsenic sulphides, surrounded by a narrow halo of medium to lower-grade gold.

The central high-grade zone (~200 metres long) is more densely drilled, supporting the Indicated classification. Outside this zone, drill spacing extends up to 80 metres, with extrapolation of up to 40 metres near surface and 20 metres at depth. Mineralisation remains open at depth and along strike, supporting the 2026 drilling program targeting extensions. The block model uses 5 m by 2 m by 5 m resource blocks, sub-blocked to 2.5 m by 0.5 m to 1.25 m, with inverse distance squared estimation.

Silver and Arsenic Content in the Red Dam Mineral Resource

Alongside gold, the resource contains a consistent silver credit of 11.1 g/t across both Indicated and Inferred categories, with a silver-to-gold ratio up to 2:1. While silver is not the primary economic metal, it may provide a modest positive impact on future economic assessments. The company has not disclosed any assigned value for silver in internal studies.

Arsenic and sulphur are also present, with arsenic at 2.2% in the Indicated category and averaging 1.4% overall. High arsenic is characteristic of the sulphide mineralisation and will be important in future processing and environmental evaluations. Ongoing metallurgical testing addresses management of sulphide material and arsenic through the Georgetown CIL plant or flotation.

Exploration Target Remains Unchanged, Indicating Further Potential

The Red Dam Exploration Target, released in May 2025, remains unchanged after the updated Mineral Resource. It is estimated between 430,000 tonnes and 1,060,000 tonnes with grades from 3.3 g/t to 5.4 g/t gold. The Exploration Target is conceptual, with insufficient exploration to classify as a Mineral Resource and uncertainty whether further exploration will convert it.

The unchanged Exploration Target suggests the 2025 drilling and database corrections primarily expanded the resource within prior boundaries, leaving conceptual upside intact. The 2026 drilling targeting depth and strike extensions could convert parts of the Exploration Target into Mineral Resources, offering a near-term growth opportunity.

Investor Outlook: Upcoming 2026 Drilling and Metallurgical Work at Red Dam

The next key event for Savannah Goldfields is the planned 2026 drilling program targeting deposit extensions down-dip and along strike, outside the current resource boundary but within the Exploration Target. Investors will watch assay results that could support further resource updates and increased Indicated material through higher drill density.

Additionally, ongoing metallurgical testing of Red Dam sulphide material through the Georgetown CIL plant may confirm technical and economic feasibility, potentially leading to advanced studies such as scoping or pre-feasibility studies, which require an Indicated Mineral Resource. No timeline for such studies was provided. The immediate share price impact of the resource upgrade was not evident at the time of reporting.