TSX.V:

Savary Gold Establishes an Initial Pit-Constrained Inferred Mineral Resource of 671,000 Ounces of Gold grading 2.28 g/t on its Karankasso JV Project in Burkina Faso

Toronto, Canada – October 8, 2015 – Savary Gold Corp. (TSX-V: SCA) (“Savary” or the “Company”) is pleased to announce an initial mineral resource estimate for its Karankasso Joint Venture Project in Burkina Faso of 9.2 million tonnes grading 2.28 g/t gold at a 0.5 g/t gold cut-off.

This release presents pit constrained Inferred Mineral Resources for six different zones.  All zones appear to be open along strike and to depth. A summary of the zones is presented below:

  • Pit constrained Inferred Mineral Resources of 671,000 ounces* grading 2.28 g/t gold within 9.2 million tonnes in six zones using a 0.5 g/t gold cut-off
  • All mineralized zones remain open in at least two directions with modelled mineralized zones extending beyond the pit constrained mineral resources at all zones.
  • Preliminary metallurgical work on three of the six zones suggest average fresh rock recoveries of in excess of 90% (see Savary news release August 21, 2014)
    *
  1. Mineral resources which are not mineral reserves do not have demonstrated economic viability.  The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues..
  2. The quantity and grade of reported Inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
  3. The Karankasso Property  Resource Estimates were prepared by Eugene Puritch, P. Eng. and Antoine Yassa, P. Geo. from P&E Mining Consultants Inc., Qualified Persons under NI 43-101 who are independent of the Company
  4. The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council..
  5. The gold price used in this estimate was the Aug 31/15 approximate two year trailing average of US$1,250/oz. Gold recovery was 93% and mining costs were US$2.75/tonne. Processing and G&A costs combined were US$18.50/tonne.  Pit optimization slopes were 50 degrees. Bulk densities used for the resource estimate were as follows; Saprolite 1.98 t/m3, Sap Rock 2.45 t/m3 and Fresh Rock 2.80 t/m3.>
  6. The effective date of the Mineral Resource Estimate will be October 7, 2015.

Don Dudek, Savary’s President and CEO commented: “From the drilling completed to date, all zones extend beyond their pit-constrained limits with most zone resources grading in excess of 2 g/t Au to a high of 3.28 g/t Au. Looking forward, management believes that Savary can continue to expand on the existing mineralized zones and discover new zones. Our focus will be to further test those zones that show the highest potential to increase in size combined with good grades and low potential strip ratios.”

The Karankasso Property (the “Property”) is located approximately 300 kilometres southwest of Ouagadougou, Burkina Faso’s capital city (see Figure), 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.

During the period from April 21, 2015 to June 30, 2015, 115 reverse circulation drill holes were completed on the Property for a total of approximately 14,514 metres of drilling. Following the drill program the various zones were interpreted by Savary and resource model wire frames were provided to P&E Mining Consultants Inc. for validation and subsequent resource estimation.

Mineral Resources have been estimated for six zones: Kien East, Kueredougou, Kueredougou West, Diosso South, Kueredougou West Trend and Karangosso, along an approximate 21 kilometre strike length in the northern half of the property (see Figure 1). Approximately 20% of the Pit constrained Inferred Mineral Resources are oxidized saprolite and sap rock with the remainder of the resources in fresh rock. The Kien East Zone is the largest of the six deposits containing approximately 3.6 million tonnes of Pit constrained Inferred Mineral Resources grading 1.65 g/t gold totaling 191,000 ounces (see Figure 2). The Kueredougou West Zone is the second largest zone with Pit constrained Inferred Mineral Resources of 1.9 million tonnes grading 2.12 g/t gold totaling approximately 130,000 ounces. The Kueredougou Main Zone is the highest grade containing 0.8 million tonnes of Pit constrained Inferred Mineral Resources grading 3.31 g/t gold totaling 85,000 ounces (see Figure 3) followed closely by the Kueredougou West Trend Zone containing Pit constrained Inferred Mineral Resources of 0.6 million tonnes grading 3.28 g/t gold totaling 66,000 ounces.  

The resource estimation is based on a total of 194 reverse circulation and diamond drill holes totaling 23,208 metres.

Resource estimation utilized 3D constraining wireframes, capped 1m composites (capped between 20g/t and 30 g/t) and inverse distance cubed (1D3) grade interpolation.

Mineral resource depletion, due to artisanal mining activity, was estimated for all zones using the following parameters:

-  Kueredougou Main Zone - Saprolite - 75% removed, Saprock - 75% removed from Main 2 zone from 1196575N to 1196625N to 50 m depth
-  Diosso South- Saprolite - 50% removed
-  Kien East (West lens) - Saprolite - 50% removed
-  Kueredougou West Trend - Saprolite 50% removed
-  Karangosso - no artisanal mining
-  Kueredougou West Zone - no significant artisanal mining
-  Kien East - no significant artisanal mining

Preliminary metallurgical work indicated average fresh rock gold recoveries for three of the six zones (Kien East, Kueredougou and Karangosso) of 93% (see Savary Gold new release August 21, 2014). It is expected that the Diosso South and Kueredougou West Zones will have similar gold recovery characteristics as the Kueredougou Zone, as they are hosted by the same structural zone and that gold recoveries in oxidized rock would be slightly better. Preliminary metallurgical work is planned for the Diosso, Kueredougou West and Kueredougou West Trend Zones.

The mineralized zones are structurally-controlled and hosted by a variety of sediment, intermediate volcanic, potassic granite and diorite porphyry. Hydrothermal alteration minerals comprise a mixture of quartz vein, sericite, carbonate and pyrite with local fuchsite, arsenopyrite and tourmaline.

A summary of the of the Inferred Mineral Resource estimates, within an optimized pit shell, is presented in Table 1 with resource estimate details for each deposit, presented in Table 2. Cut-off grades at both, 0.5 g/t gold and 1.0 g/t gold, are presented with the mineral resource at a 0.5 g/t gold cut-off grade chosen as the base case. Optimized pit depths range from less than 100 metres for the Kueredougou West Zone to approximately 160 metres depth at the Karangosso Zone where locally higher grades draw the pit deeper.

Table 1 – Pit Constrained Mineral Resource Estimate and Sensitivity Summary*

Zone

Au Cut-Off

Mineralization Type

Tonnes

Au g/t

Au oz

Summary

0.5 g/t

Resource

Estimate

Saprolite

   916,000

1.96

  57,700

Sap Rock

1,135,000

2.10

  76,500

Fresh

7,111,000

2.35

536,800

Total

9,162,000

2.28

671,000

1.0 g/t

Resource Estimate Sensitivity

Saprolite

  717,000

2.30

  52,900

Sap Rock

  876,000

2.49

  70,100

Fresh

6,122,000

2.60

512,200

Total

7,715,000

2.56

635,200

    *
  1. Mineral resources which are not mineral reserves do not have demonstrated economic viability.  The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues..
  2. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
  3. The Karankasso Property  Resource Estimates were prepared by Eugene Puritch, P. Eng. and Antoine Yassa, P. Geo. from P&E Mining Consultants Inc., Qualified Persons under NI 43-101 who are independent of the Company
  4. The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
  5. The gold price used in this estimate was the Aug 31/15 approximate two year trailing average of US$1,250/oz. Gold recovery was 93% and mining costs were US$2.75/tonne. Processing and G&A costs combined were US$18.50/tonne.  Pit optimization slopes were 50 degrees. Bulk densities used for the resource estimate were as follows; Saprolite 1.98 t/m3, Sap Rock 2.45 t/m3 and Fresh Rock 2.80 t/m3.
  6. The effective date of the Mineral Resource Estimate will be October 7, 2015.

pic1S

Table 2 – Pit Constrained Mineral Resource Estimate and Sensitivity Details by Zone*

Zone

Au Cut-Off

Mineralization Type

Tonnes

Au g/t

Au oz

Karangosso

0.5 g/t

Resource

Estimate

Saprolite

  285,000

2.19

  20,100

Sap Rock

  165,000

2.72

  14,500

Fresh

  975,000

2.81

  87,900

Total

1,425,000

2.68

122,500

1.0 g/t

Resource Estimate Sensitivity

Saprolite

  233,000

2.50

  18,700

Sap Rock

  140,000

3.06

  13,800

Fresh

  821,000

3.19

  84,100

Total

1,194,000

3.04

116,600

Diosso     South

0.5 g/t

Resource

Estimate

Saprolite

    5,000

1.44

     200

Sap Rock

174,000

2.28

12,800

Fresh

642,000

3.12

64,400

Total

821,000

2.93

77,400

1.0 g/t

Resource Estimate Sensitivity

Saprolite

    3,000

1.89

    200

Sap Rock

143,000

2.63

12,000

Fresh

563,000

3.44

62,300

Total

709,000

3.27

74,500

Kueredougou West Trend

0.5 g/t

Resource

Estimate

Saprolite

  34,000

3.78

  4,100

Sap Rock

177,000

3.21

18,200

Fresh

413,000

3.27

43,500

Total

624,000

3.28

65,800

1.0 g/t

Resource Estimate Sensitivity

Saprolite

  33,000

3.84

  4,100

Sap Rock

151,000

3.61

17,500

Fresh

334,000

3.88

41,700

Total

518,000

3.80

63,300

Kueredougou West

0.5 g/t

Resource

Estimate

Saprolite

   274,000

2.16

  19,000

Sap Rock

   180,000

1.93

  11,200

Fresh

1,450,000

2.13

  99,500

Total

1,904,000

2.12

129,700

1.0 g/t

Resource Estimate Sensitivity

Saprolite

   240,000

2.35

  18,200

Sap Rock

   165,000

2.04

  10,800

Fresh

1,293,000

2.30

  95,600

Total

1,698,000

2.28

124,600

Kueredougou

Main

0.5 g/t

Resource

Estimate

Saprolite

  15,000

2.84

  1,400

Sap Rock

  27,000

2.79

  2,400

Fresh

753,000

3.33

80,700

Total

795,000

3.31

84,500

1.0 g/t

Resource Estimate Sensitivity

Saprolite

  12,000

3.39

  1,300

Sap Rock

  25,000

2.96

  2,300

Fresh

672,000

3.64

78,700

Total

709,000

3.61

82,300

Kien East

0.5 g/t

Resource

Estimate

Saprolite

   304,000

1.33

  13,000

Sap Rock

   412,000

1.32

  17,400

Fresh

2,877,000

1.74

160,700

Total

3,593,000

1.65

191,100

1.0 g/t

Resource Estimate Sensitivity

Saprolite

  196,000

1.67

  10,500

Sap Rock

  253,000

1.67

  13,600

Fresh

2,437,000

1.91

149,800

Total

2,886,000

1.87

173,900

Based on a 0.5 g/t gold cut-off, a $2.75 per tonne mining cost, $15.00 per tonne for milling, $3.50 per tonne for G&A and 50 degree pit walls.

Figure 2 – Kien East Zone modelled gold-mineralized lenses and Optimized pits

 pic2S

Figure 3 – Kueredougou Main Zone modelled gold-mineralized lenses and Optimized pits

pic3S

The Property is 65% owned by Savary and 35% owned by Sarama, with Savary acting as the operator.

QA/QC Comments
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 staff from Ouagadougou, Burkina Faso. Sample preparation and fire assays were performed by SGS Laboratories 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 Property 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.

Qualified Persons
The mineral resource estimates in this press release were prepared by Eugene Puritch, P.Eng., and Antoine Yassa, P.Geo., of P&E Mining Consultants Inc., each an independent Qualified Person, as defined by National Instrument 43-101 (“NI 43-101”). Mr. Puritch has reviewed and approved the contents of this news release.

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
“Don Dudek”
President & Chief Executive Officer

For more information, please contact:
Don Dudek
T: 647-259-2097
E: info@savarygold.com
www.savarygold.com

Cautionary Notes

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, potential extensions to the gold zones, potential gold recoveries, whittle pit parameters, new targets and management’s belief in the potential of the project. 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.