Toronto, Canada – August 19, 2015 – Savary Gold Corp. (TSX-V: SCA) (“Savary” or the “Company”) is pleased to announce the intersection of additional wide zones of gold mineralization at its Karangosso Zone. The Karangosso Zone has returned the best intercepts to date at 3.33 g/t gold over 41 metres (Savary Gold new release June 15, 2015). The Karangosso Zone is one of several zones defined along an approximately 45 kilometre long corridor of gold enrichment (partially shown in Figure 1).
During the 2015 spring drill program Savary completed 26 reverse circulation holes totalling 3,504 metres over the Karangosso Zone at its Karankasso Joint Venture Project in Burkina Faso, owned 65% by Savary and 35% by Sarama Resources Ltd. (“Sarama”). This release presents the results of the remaining 14 holes that were drilled, along with the results of the initial 12 holes that were released on June 15, 2015. Highlight intercepts, for the Karangosso Zone are presented below:
*previously reported intercept
Don Dudek, Savary’s President and CEO commented: “We continue to receive encouraging results from the Karangosso Zone which is still open in all directions. In management’s opinion, the setting, style and potential for grades greater than 2 g/t gold, continue to support the belief that the Karangosso Zone could be a centre-of-gravity deposit for the Karankasso Project. Our southern-most modelled hole intersected 0.77 g/t gold over 26.1 metres and our northern-most hole on the zone, 900 metres to the north, intersected 0.87 g/t gold over 30 metres. As well, drilling has returned intercepts of 6.61 g/t gold over 10 metres, within approximately 80 metres of surface, that we have tested below. In summary, the Karangosso Zone mineralized system appears to have a lot more room to grow.”
The Karankasso Property (the “Property”) is located approximately 300 kilometres southwest of Ouagadougou, Burkina Faso’s capital city, and 60 kilometres east of Bobo Dioulasso, the second largest city in Burkina Faso. The Property can be accessed by a paved highway with both rail and grid power coming within approximately 65 kilometres of the Property.
During the period from April 21, 2015 to June 30, 2015, Savary and Sarama completed approximately 15,515 metres of drilling in 115 reverse circulation holes on the Property.
The Karangosso Zone was initially discovered in 2013 when a reverse circulation drill hole, testing a gold-in-soil anomaly, returned an intercept of 10.14 g/t gold over ten metres. Subsequent drilling in 2014 returned up to 2.97 g/t gold over 27 metres and extended the gold-bearing portion of the altered alkaline granite for 800 metres along strike. Drilling in 2015 was primarily designed to complete enough drilling to define a resource, as the previous holes were spaced on fences 200 metres apart. As well, holes were drilled along strike with a goal to extend the strike length of the zone. Mineralization has been intersected for a distance of approximately 1,400 metres along strike with zone modeling completed along 900 metres of strike (Figure 2) to a maximum depth of approximately 150 metres. The modeled zones, A through D, appear to be open along strike and to depth with width and mineralization grades, apparently increasing at depth in several areas. It is likely that the D zone extends to the north, just west of the collars of holes 15-113 and 15-114, since the only gold-bearing mineralization was only intersected at the top of the holes. Further, mapping indicates that the host intrusion likely extends for at least another 1,000 metres to the north-northeast.
The Karangosso Zone is hosted by a pinkish potassic granitic rock that when altered becomes grey in color, silicified, sericitic, carbonate-bearing and weakly to moderately pyritic. Gold values are related to pyritic quartz vein zones with traces of tourmaline. Left-lateral-sheared, silicified, well layered, sedimentary rocks, with a moderate north-northeast plunge, lie to the east of the host felsic intrusion, and well foliated to sheared intermediate volcanic rock lie immediately to the west of the host felsic intrusion. A silicified, manganese-enriched sedimentary unit located 500 metres to the east that can be traced for approximately 2.6 kilometres, provides a good regional marker horizon. For reference, Endeavour’s Vindaloo Zone on the Houndé Property, is 300 metres west of a similar-character manganese-enriched marker horizon.
More drill testing is required along strike to the north and to the south, where the zone appears to be open. As well, some deeper, likely core holes, will be required as the good grades persist and locally increase to depth with one hole, 15-110 returning 12.71 g/t gold over 2 metres, at the end of the hole. During the recent program, the RC drill had difficulties, due to water, to drill below 100 metres vertically. Mapping and additional IP geophysical surveys should also be carried out over the inferred strike extent of the mineralized intrusion, especially to the north, where another larger artisanal mining area, 2,000 metres to the north, has not been examined.
Figure 1: Karankasso Project - Select 2015 Significant Intercepts
Figure 2: Karangosso Zone – Surface Plan and Assay Summary
A summary of all assay composites, using a cut-off of 0.5 g/t Au, from all of the 2015 hole,s is presented in Table 1.
Timed, bottle roll metallurgical tests were completed over two, gold-mineralized, fresh rock samples from the Karangosso Zone in 2014. This work indicated an average gold recovery, for the two samples, of 87.2% (see Savary news release August 21, 2014).
Results for drilling on the other targets that were drilled during this program will be presented over the next month.
Savary’s procedures for handling reverse circulation drill chips comprise initial riffle splitting of the rock chips from one metre drill length samples into approximately 2.5 kilogram samples, as well as description and logging into a database. A duplicate 2.5 kilogram sample, prepared at the same time as the assay sample, is kept as a reference for each sample. Assay standards, sample duplicates and assay blanks were inserted sequentially every 14 samples resulting in an assay standard inserted every 42 samples. This sampling procedure was periodically reviewed by Savary’s President and CEO, and the Company QP, Don Dudek, P. Geo. All assay samples were collected at site by SGS Laboratory or Actlabs staff from Ouagadougou, Burkina Faso. Sample preparation and fire assays were performed by SGS Laboratories and Actlabs, both based in Ouagadougou. Each sample was dried, crushed to 85% passing 2mm and then split to 1.5 kg by riffle splitter. The 1.5 kg, 2 mm split was pulverized to 95% passing 106mm. Fifty grams of the pulverized material was analysed for gold via fire assay with an atomic absorption spectroscopy (AAS) finish. SGS Burkina Faso SA operates according to ISO 17025 standards and institutes a full Quality Assurance/Quality Control (QA/QC) program consisting of insertion of blanks, standard reference material, repeats and reject splits which in total account for up to 25% of all determinations conducted.
About Savary Gold
Savary Gold, a Canadian exploration company, along with partner, Sarama Resources Limited, are focused on exploring the 750 km2 Karankasso Property in Burkina Faso. The Properties is in the Birimian age Houndé Greenstone Belt, which hosts Semafo’s Mana mine and additional gold deposits that are presently subject to extensive exploration efforts (including Endeavour Mining’s Houndé Project, Roxgold’s Yaramoko Project and Sarama’s/Acacia’s South Houndé JV Project, which is adjacent to the Karankasso JV property). For additional information please visit our website at www.savarygold.com and follow us on Facebook, LinkedIn and Twitter.
Don Dudek, P.Geo., President and CEO of the Company and a qualified person under National Instrument 43-101, has reviewed and approved the scientific and technical information in this press release.
SAVARY GOLD CORP.
On behalf of the Board
President & Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements. These statements include statements regarding the details of the drill program, the company’s exploration plans, the focus on existing drill targets and new targets. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons (as defined in Regulation S under the 1933 Act) absent such registration or an applicable exemption from such registration requirements.
Table 1 – 2015 Results Summary - Karangosso Zone
|Hole||From (m)||To (m)||Width (m)***||Au g/t|
* Previously released drill intercepts
** No Significant Values
*** True widths are estimated at 70% of drilled length for the Karangosso Zone Tables presents all composite assays values returning greater than 0.5 g/t gold over 1 metre and those holes where no assays greater than 0.5 g/t gold over 1 metre were received