TSX.V:

Savary Gold Drilling Extends Known Zones, Intersects New Gold-Bearing Lenses And Discovers A New Zone

Toronto, Canada – January 17, 2017 – Savary Gold Corp. (TSX-V: SCA) (“Savary” or the “Company”) is pleased to announce drill results for the initial phase of drilling completed in November and December 2016, on the Karankasso JV Project in south western Burkina Faso. At year-end 2016, upon closing, it is anticipated that the Karankasso JV Project is approximately 69.5% owned by Savary and 30.5% owned by Sarama Resources Limited (“Sarama”) with Savary as operator.

A total of 22 holes totalling 2,978.4 metres were completed in phase one of the drill program over a one-month period prior to year-end. Phase two of the drill program, totalling approximately 10,000 metres in approximately 90 drill holes, is planned to commence before the end of January, 2017. A summary of select results, in the order they were drilled, are presented below (see Figure 1 for locations).

2.09 g/t gold over 6.0 metres– New drill discovery

1.54 g/t gold over 7.0 metres - Diosso South Zone - 500 metres north of resource pit* limit

0.51 g/t gold over 15.0 metres – 40 metre depth extension of Diosso South Zone

5.64 g/t gold over 2 metres – gap between Diosso South Zone resource pits*

0.62 g/t Gold over 12 metres – gap between Diosso South Zone resource pits*

1.84 g/t gold over 6 metres– depth extension to Diosso South zone at approx. 50 m depth

14.95 g/t gold over 1 metre– 75 metre north extension from Karangosso Zone resource pit*

1.13 g/t gold over 10.4 metres – 75 metre north extension to Karangosso Zone resource pit*

1.87 g/t gold over 8 metres – new mineralization within Karangosso Zone resource pit*

3.75 g/t gold over 7.2 metres –Karangosso Zone – NEW LENS at base of resource pit*

4.2 g/t gold over 7.5 metres – extension to Karangosso Zone 20 metres below resource pit*

2.3 g/t gold over 8 metres – extension to Karangosso Zone – 50 metres below resource pit*

6.73 g/t gold over 7 metres – extension to Karangosso Zone to south– NEW LENS

3.45 g/t gold over 5.5metres – extension to Karangosso Zone to south

* Mineral resource estimate presented in Savary news release dated October 8, 2015

“The first phase, of what we hope will be the largest drill program to date on the Karankasso Property has led to important extensions to two of the zones with current mineral resource estimates and the discovery of a new lens of gold mineralization. The next phase of drilling, of approximately 90 holes totalling 10,000 metres, will follow-up on these results and will test targets developed in the southern portion of the property .”stated Don Dudek, President and CEO of Savary. Mr. Dudek further noted that “We are well capitalized and have abundant high quality drill targets which management believes will lead to continued value build for the Karankasso JV.” 

 karankasso

Figure 1 Karankasso JV Project – Locations of Significant fall 2016 Drill Intercepts.

The drill program was focussed on testing for both shallow depth and strike extensions to the Karangosso, Diosso South, West Trend and Splay 2 Zones. Of the 22 holes drilled, 17 holes were RC (reverse circulation) only and five holes, at the Karangosso Zone, started with RC and finished with core drilling. Overall, 63% of the first phase holes tested the Karangosso Zone area, 31% of the holes tested the Diosso South Area, 13% tested for extensions to the West Trend Zone and 13% tested for extensions to the Splay 2 Zone. Additional drilling is planned over each of these zones, with the exception of the Splay 2 zone, in the next phase of drilling. A summary of the assay composites is presented in Table 1 at the end of this news release.

Karangosso Zone

Encouraging results were returned both along strike and at depth from most of the 14 holes that tested the Karangosso Zone (see Figure 2). Drilling has succeeded in extending the Karangosso zone a further 100 metres to the north and another 50 metres to the south with the programs’ northernmost hole approximately 400 metres north of the pit limits and the southernmost hole approximately 100 metres south of the pit limits. As well, holes to depth, both below the currently modelled resource pit and to the north of the resource pit, have further extended the gold mineralized lenses.

Drilling to the south of the Karangosso Zone resource pit returned the highest composite of this drill program with an apparent new zone intercept of 6.73 g/t gold over 7.5 metres core length in hole HE-RCD-16-56 and a 50-metre south extension to the A lens of 3.45 g/t gold over 5.5 metres, in the same hole. A hole, HE-RCD-16-55, that tested the down-plunge extension of the Karangosso Zone returned three strong intercepts of 3.75 g/t gold over 7.2 metres (new lens of mineralization), 4.2 g/t gold over 7.5 metres and 2.3 g/t gold over 8.0 metres, at and below the resource pit limits. Figure 2, also presents the next phase of anticipated drilling.

 zone

 Figure 2 Karangosso Zone Drill Plan and Select Drill Results

Diosso South Zone

Seven holes were drilled to test the Diosso South Zone area (see Figure 3). Three of the holes were drilled to fill in a gap between the existing mineral resource pits where mineral resources have been delineated. Two holes were drilled to test for extensions to the mineralized lenses below the pit and two holes were drilled to test for strike extensions to the mineralized zones. Follow-up drilling is planned over the length of the area with additional wide spaced holes planned over the inferred strike extensions to the gold mineralized trend, to the north.

Of the three holes drilled in the gap between the existing resource pits, the best intercept returned 5.64 g/t gold over 2 metres. This intercept, along with drill intercepts of 2.08 g/t gold over 3 metres, 1.99 g/t gold over 3 metres and 0.62 g/t gold over 12 metres, support a potential expansion of the pit into the gap. One of the holes drilled into the gap, returned two, weaker, one metre wide intercepts that graded 1.21 and 1.43 g/t gold.

Two holes, drilled below the pit limits returned 1.86 g/t gold over 6 metres and 0.51 g/t gold over 15 metres in the southern and northern portions of the Diosso South resource area (see Figure 3).

Two holes were drilled along strike to the north of the Diosso South mineral resource pit at approximately 75 and 375 metres north of the previous northernmost holes north of the Diosso South Zone with the northernmost hole RC-16-40, located approximately 800 metres north of the Diosso South Zone mineral resource pit. Hole RC-16-41, drilled approximately 500 metres north of the mineral resource pit, returned a near surface intercept of 1.54 g/t gold over 7 metres. Hole RC-16-40, drilled another 300 metres further north, returned an intercept of 3.37 g/t gold over 2 metres.

Based on drill and geophysical data, it appears that the Diosso South Zone mineralization can be traced for approximately 2,600 metres compared to a resource modelled strike of approximately 850 metres. Additional drilling is required before an updated mineral resource estimate can be prepared in accordance with National Instrument 43-101.

West Trend Zone

This zone and target area was previously referred to as the Kueredougou West Trend Zone.

Four, wide-spaced holes were completed along the eastern edge of a strong geophysical induced chargeability anomaly (see Figure 3). One of the holes, RC-16-38, designed to undercut a spring 2016 hole that returned 0.91 g/t gold over 5 metres, intersected a new zone at the top of the hole that returned 2.09 g/t gold over 6 metres and an interval of 2.14 g/t gold over 2 metres. The latter interval appears to correlate with the interval in hole RC-16-38.

The remainder of the holes are interpreted to have been collared too far west to intersect the original target. However, two of these three holes did intersect significant gold mineralization with the best returning 2.04 g/t gold over 2 metres. These additional intercepts suggest the potential for additional, parallel lenses of gold mineralization.

Newly discovered zones of artisanal mining in the area suggest additional potential as well.

 

 

 Diosso

Figure 3 Diosso South and West Trend Drill Plan and Select Drill Results

Splay 2 Zone Drilling

Three holes were completed in the Splay 2 Zone area to follow-up on a spring 2016 drill hole that returned 9.75 g/t gold over 7 metres and 12.24 g/t gold over 4 metres. Only one of the holes returned significant results with an assay of 1.07 g/t gold over 1 metre. No further work is planned in the Splay 2 area.

Drill Target Development

In conjunction with drilling, Savary on behalf of the Karankasso JV has also completed approximately 275 line kilometers of induced polarization geophysical surveys, 8,269 metres of auger drilling in 1,229 holes, collected 857 soil samples and carried out additional mapping and prospecting over the property. This data will be interpreted and used to develop new drill targets for the planned 10,000 metre drill program.

QA/QC Comments

Savary’s procedure for handling reverse circulation drill chips comprises 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.  NQ-size core assay samples are first logged into a database and then are sawn in half with half of the core submitted for analysis; the length of the core samples depends on logged geological controls with samples varying from 0.3 metres to 2.0 metres in length.  A sample duplicate and assay blank was inserted sequentially every 5 to 14 samples and an assay standard was inserted every 29 to 34 samples. This results in 8% of the assayed samples being reference/blank/control samples. Blanks and duplicates were preferentially inserted in visually mineralized zones to better test the assay results. 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 staff from SGS Burkina Faso SA (‘SGS’) from Ouagadougou, Burkina Faso where sample preparation and analysis were performed. Each sample was dried, crushed to 75% passing 2 mm and then split to 1.5 kg by rotary splitter. This split was pulverized to 85% passing 75 mm. Fifty grams of the pulverized material was analysed for gold via fire assay with an atomic absorption spectroscopy (AAS) finish. SGS operates according to ISO 17025 standards and institutes a full Quality Assurance/Quality Control (QA/QC) program consisting of insertion of internal blanks, standard reference material, repeats and reject splits which in total account for up to 25% of all determinations conducted. All standards and blank control samples returned results within expected ranges.

About Savary Gold Corp.

Savary is a Canadian exploration company which, along with anticipated JV partner Sarama Resources Limited, is focused on exploring and developing the Karankasso Gold Project in Burkina Faso. The Project is located 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’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 at www.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
“Don Dudek”
President & Chief Executive Officer

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

Cautionary Notes

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.

Table 1 - 2016 Drill Results Summary

Hole

From

To

Width

Gold g/t

Zone/Trend

HE-RC-16-36

60.00

61.00

1.00

0.45

Splay 2

HE-RC-16-37

13.00

14.00

1.00

0.42

Splay 2

HE-RC-16-37

89.00

90.00

1.00

1.07

Splay 2

HE-RC-16-37

106.00

107.00

1.00

0.43

Splay 2

HE-RC-16-38

6.00

12.00

6.00

2.09

West Trend

HE-RC-16-38

66.00

67.00

1.00

1.03

West Trend

HE-RC-16-38

74.00

76.00

2.00

2.14

West Trend

HE-RC-16-38

87.00

89.00

2.00

1.29

West Trend

HE-RC-16-38

99.00

100.00

1.00

0.77

West Trend

HE-RC-16-39

28.00

30.00

2.00

1.01

West Trend

HE-RC-16-39

56.00

57.00

1.00

0.68

West Trend

HE-RC-16-40

55.00

58.00

3.00

0.52

Diosso

HE-RC-16-40

97.00

98.00

1.00

0.63

Diosso

HE-RC-16-40

110.00

112.00

2.00

3.37

Diosso

HE-RC-16-41

10.00

17.00

7.00

1.54

Diosso

incl

10.00

13.00

3.00

2.80

Diosso

HE-RC-16-41

147.00

153.00

6.00

0.40

Diosso

incl

147.00

148.00

1.00

0.93

Diosso

incl

152.00

153.00

1.00

0.86

Diosso

HE-RC-16-41

165.00

166.00

1.00

0.66

Diosso

HE-RC-16-42

72.00

73.00

1.00

0.60

Kwest

HE-RC-16-42

100.00

102.00

2.00

2.04

Kwest

HE-RC-16-43

NSV

HE-RC-16-44

7.00

8.00

1.00

0.82

Diosso

HE-RC-16-44

107.00

109.00

2.00

1.13

Diosso

HE-RC-16-44

129.00

144.00

15.00

0.51

Diosso

incl

129.00

133.00

4.00

1.23

Diosso

incl

129.00

130.00

1.00

3.82

Diosso

HE-RC-16-45

9.00

10.00

1.00

1.43

Diosso

HE-RC-16-45

65.00

66.00

1.00

1.21

Diosso

HE-RC-16-45

102.00

103.00

1.00

0.67

Diosso

HE-RC-16-46

10.00

12.00

2.00

5.64

Diosso

HE-RC-16-46

24.00

27.00

3.00

2.08

Diosso

HE-RC-16-47

30.00

42.00

12.00

0.62

Diosso

HE-RC-16-47

83.00

86.00

3.00

1.99

Diosso

HE-RC-16-47

98.00

99.00

1.00

0.86

Diosso

HE-RC-16-48

10.00

11.00

1.00

0.56

Diosso

HE-RC-16-48

17.00

20.00

3.00

0.52

Diosso

HE-RC-16-48

62.00

68.00

6.00

1.84

Diosso

incl

65.00

67.00

2.00

4.48

Diosso

HE-RC-16-49

30.00

31.00

1.00

0.54

Karangosso

HE-RC-16-49

102.00

108.00

6.00

2.56

Karangosso

incl

103.00

105.00

2.00

2.74

Karangosso

incl

107.00

108.00

1.00

8.66

Karangosso

HE-RC-16-50

NSV

Karangosso

HE-RC-16-51

23.00

24.00

1.00

1.16

Karangosso

HE-RC-16-51

36.00

37.00

1.00

14.95

Karangosso

HE-RC-16-51

91.00

95.00

4.00

1.00

Karangosso

HE-RCD-16-52

74.00

77.00

3.00

0.61

Karangosso

incl

74.00

75.00

1.00

1.28

Karangosso

HE-RCD-16-52

80.00

81.00

1.00

0.62

Karangosso

HE-RCD-16-53A

61.00

62.00

1.00

0.73

Karangosso

HE-RCD-16-53A

122.00

123.00

1.00

0.55

Karangosso

HE-RCD-16-53A

126.00

127.00

1.00

0.67

Karangosso

HE-RCD-16-53A

158.46

168.82

10.36

1.13

Karangosso

incl

162.40

166.00

3.60

1.34

Karangosso

incl

164.40

166.00

1.60

1.88

Karangosso

incl

167.82

168.82

1.00

1.82

Karangosso

HE-RCD-16-53A

176.82

178.35

1.53

0.53

Karangosso

HE-RCD-16-54

20.00

28.00

8.00

1.87

Karangosso

incl

22.00

26.00

4.00

3.20

Karangosso

HE-RCD-16-54

44.00

46.00

2.00

0.89

Karangosso

HE-RCD-16-54

51.00

52.00

1.00

0.99

Karangosso

HE-RCD-16-54

92.00

93.00

1.00

0.70

Karangosso

HE-RCD-16-54

120.00

123.00

3.00

0.88

Karangosso

HE-RCD-16-54

184.00

191.00

7.00

0.92

Karangosso

incl

184.00

184.70

0.70

2.38

Karangosso

incl

185.50

186.10

0.60

1.78

Karangosso

incl

189.00

189.50

0.50

2.06

Karangosso

HE-RCD-16-55

42.00

43.00

1.00

1.21

Karangosso

HE-RCD-16-55

68.00

72.00

4.00

1.43

Karangosso

HE-RCD-16-55

69.00

71.00

2.00

2.36

Karangosso

HE-RCD-16-55

75.00

76.00

1.00

0.58

Karangosso

HE-RCD-16-55

122.90

124.70

1.80

2.37

Karangosso

HE-RCD-16-55

133.00

139.00

7.00

0.65

Karangosso

HE-RCD-16-55

141.95

149.15

7.20

3.75

Karangosso

incl

141.95

143.00

1.05

13.80

Karangosso

HE-RCD-16-55

154.00

155.00

1.00

1.82

Karangosso

HE-RCD-16-55

173.10

180.60

7.50

4.20

Karangosso

HE-RCD-16-55

192.00

200.00

8.00

2.30

Karangosso

incl

193.00

193.95

0.95

8.43

Karangosso

incl

199.00

200.00

1.00

4.68

Karangosso

HE-RCD-16-56

181.60

188.60

7.00

6.73

Karangosso

HE-RCD-16-56

197.30

202.80

5.50

3.45

Karangosso

incl

199.55

201.65

2.10

7.59

Karangosso

* true widths are estimated at 65% to 80% of drilled widths