Toronto, Canada – August 4, 2016 – Savary Gold Corp. (TSX-V: SCA) (“Savary” or the “Company”) is pleased to announce additional historical drill results and provide an exploration update for its Karankasso JV Project in south western Burkina Faso. At year end 2015, the Karankasso JV Project was approximately 66.3% owned by Savary and 33.7% owned by Sarama Resources Limited (“Sarama”).
Prior to Savary acquiring control and management responsibilities for the Karankasso Project, Shield Resources SARL/Delta Gold Limited of Australia and Sarama carried out exploration programs including RAB (Rotary Air Blast) and RC (reverse circulation) drilling over the Serakoro 1 concession. This work has returned a series of significant drill intersections and recent mapping, geophysical surveys and compilation, have provided additional context. A summary of select results are presented below (see Figure 1 for locations).
· 1.70 g/t gold over 3 metres – Serakoro 1 Main E1 Lens– RAB
· 1.48 g/t gold over 5 metres – Serakoro 1 Main E1 Lens - RC
· 10.10 g/t gold over 1 metre - Serakoro 1 Main E3 Lens - RAB
· 1.40 g/t gold over 7 metres - Serakoro 1 Main Trend - RAB
· 2.66 g/t gold over 10 meters - Serakoro 1 Main Trend - RC
· 0.70 g/t gold over 15 metres - Serakoro 1 Main Trend - RAB
· 4.37 g/t gold over 4 metres - Serakoro 1 Main E2 Lens - RC
· 0.75 g/t gold over 14 metres - Serakoro 1 Main Trend - RC
· 0.60 g/t gold over 55 metres - Serakoro 1 Main Trend - RAB
· 0.70 g/t gold over 18 metres - Serakoro 1 Main E1 Lens - RAB
· 2.40 g/t gold over 4 metres - Serakoro 1 Main Trend - RAB
· 5.40 g/t Au over 5 metres - Serakoro 1 Main Trend - RAB
· 2.80 g/t gold over 12 metres - Serakoro 1 West Trend - AC
· 9.53 g/t gold over 2 metres - Serakoro 1 West Trend - AC
· 2.49 g/t gold over 6 metres - Serakoro 1 Main Trend – AC
* Both RC and AC drilling were subjected to QAQC programs for data quality. However, it is not known if the RAB drilling carried out by Shield Resources SARL have been subjected to a QAQC program
Don Dudek, President and CEO of Savary states “The goal of this news release is to further emphasize the prospectivity of the Karankasso Project while highlighting the opportunities for new discoveries along the southern continuation of the mineralized trends. Work on the southern extension of the prospective rocks has returned significant gold-bearing intercepts that have seen little to no follow-up. Management believes these new opportunities, coupled with zones with existing resources and new discoveries from Q2, 2016, represent one of the better gold exploration plays in West Africa to work with. Our desire is to hit this project hard with an aggressive combined drill, geophysical, geochemical and geological program. ”
The drill results presented in this release are derived from work that Shield Resources SARL (“Shield”) /Delta Gold Limited “Delta Gold” carried out over the area in 1999 and 2000 and more recent work completed by Sarama in 2012 and 2013. Both Shield/Delta Gold and Sarama completed exploration programs over the Serakoro 1 Main area with Sarama not aware of the Shield/Delta Gold exploration results when they carried out their subsequent program. This historic work, combined with recent geological mapping in early 2016 and data compilation, indicates that there are at least five mineralized trends that can be traced with the longest traceable for approximately 7 kilometres in the Serakoro 1 Main area. Drill, RAB and RC fences, vary from 200 metres to 2,000 metres apart.
Most of the presented drill holes are less than 100 metres long with most intercepts within 50 metres of surface. True widths of the mineralized intercepts are unknown due to a lack of information however a reasonable rule of thumb is that the true width is 70% of the length of the drill intercept.
The Serakoro 1 Main area lies along a 45 kilometre long gold in soil trend that is bracketed by the thick red dashed lines in Figure 1. Figure 1 also presents the location of known gold zones in the northern part of the image along with the strong geophysical IP gradient chargeability trend that links the gold-bearing zones along with the extension of the trend to the south onto the Serakoro 1 concession. From this image, it appears that the Serakoro 1 Main area lies along the likely southern continuation of the structures that host the Diosso South and Kueredougou West Trend Zones at the northern part of the image. Within this area, there is an 11.5 kilometre gap in the drilling between the furthest south hole on the Diosso South Zone and the northern-most holes in the Serakoro 1 Main area. This drill and exploration gap exists due to the combination of extensive laterite cover and local alluvium cover that masks the surface expressions of the gold-bearing structures.
A second major, at least 29 kilometre long gold-in-soil anomalous bearing trend, lies along the western portion of the property and hosts the Karangosso, NWQV and Serakoro 1 West Zones. This Au-in-soil trend is up to 1.2 km wide, lies along the western margin of the Houndé Belt and is dominantly hosted by felsic intrusions that intruded into the volcanic and sedimentary rocks along the belt margin. Exploration carried out by Sarama has intersected significant gold mineralization in several AC holes with the best, newly presented Au intercept along the southern extension of this trend, being 2.80 g/t gold over 12 metres. These significant drill intercepts require follow-up, however, much of this western trend is covered by laterite which makes follow up along this trend more challenging.
A potential next step work program could include the following:
- follow-up RC drill testing of the existing and new zones;
- extending the IP geophysical grids between the Karangosso and NWQV Zones and south along the two mineralized corridors to cover the mineralized intercepts presented in this release;
- an augur drill program over the inferred mineralized structures in areas of laterite and alluvial cover to better define drill targets; and
- testing the better anomalous gold-bearing areas associated with the geophysical anomalies with RC drill holes.
An exploration plan is being developed and is expected to be presented to the Board of the Karankasso JV in September. Assuming that the recommended work program is approved, an exploration program, including RC drilling, could commence in the latter half of Q4, 2016.
Shield Resources SARL QA/QC
Shield Resources SARL, completed the RAB drilling over the Serakoro 1 Main trend. At the time of writing no QA/QC data or sampling procedures were available.
Delta Gold QAQC work (from rapport d’activities de recherche geologique et miniere sur le Permis RP95-056 ‘Serakoro’, July 1999 – 2000 by Dr Peter Turner)
The RC samples were split (75:25) and each sample composited into a 2metre samples for submission to SGS’ Tarkwa laboratory in Ghana. Each composite was assigned a sequential number and a 4kg reference sample of each one metre sample was stored for future use.
A total of 742 drill samples, including 31 blanks and 31 standards were submitted for gold and arsenic analysis. One in every twenty samples submitted was a blank sample (Tertiary sandstone samples from Bobo Dioulasso) to test the laboratories accuracy at a low detections. At the same time, one in twenty samples submitted was a standard sample (Gannet) that contained a low, medium and high concentration of gold (0.1, 1.07 and 5 ppm Au) to test the laboratory’s calibration of the atomic absorption spectrometer at low, medium and high gold concentrations.
All samples were submitted for pulverising and a 50g sample selected for fire assay with an AAS finish.
The analytical results from 37 standards gives the recommended values. It can be seen that the fire assay method is relatively accurate for gold values of between 1 and 5 ppm Au but that there is extreme variation at low detection limits. Overall, analysis of the quality control data indicates the analytical accuracy, precision, and repeatability were within acceptable limits for this stage of exploration.
Sarama QAQC Statement (Sarama August 13, 2012 news release for Serakoro 1 Concession)
Sarama undertakes geological sampling and assaying in accordance with its QA/QC program which includes the use of certified reference materials and duplicates. Gold assay work was undertaken by SGS S.A. (“SGS”) laboratories in Ouagadougou, Burkina Faso and Morilia, Mali. Assays are determined by the fire assay method using a 50 gram charge, lead collection and an AAS finish with a 0.01 g/t Au lower detection limit.
Figure 1 Karankasso JV Project – Highlights from the northern portion of the Serakoro 1 Concession
About Savary Gold
Savary Gold is a Canadian exploration company which, along with partner Sarama Resources Limited, is focused on exploring and developing the Karankasso Gold Project in Burkina Faso. The Project properties lie within the Birimian age, Houndé Greenstone Belt, which hosts Semafo’s Mana mine, Roxgold’s Yaramoko MIne and additional gold deposits that are presently subject to production decisions and extensive exploration efforts (including Endeavour Mining’s Houndé Project, Orezone’s (acquired by Sarama) Bondi Project and Sarama’s/Acacia’s South Houndé Project, which is adjacent to Savary Gold’s property). The Project contains an Inferred open pit constrained mineral resource estimate of 9.16 million tonnes grading 2.28 g/t gold (Savary news release November 24, 2015). For additional information please visit our website atwww.savarygold.com.
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 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 potential value growth of the JV, the upside of the property, the drill program, the company’s exploration plans and the timing of results, 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 statement 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.