Toronto, Canada – April 10, 2017 – Savary Gold Corp. (TSX-V: SCA) (“Savary” or the “Company”) is pleased to announce the second set of drill results from a 9,500 metre, 92-hole drill program that commenced at the end of January on the Karankasso JV Project in south western Burkina Faso. This news release presents results for 41 holes totalling 4,489 metres that were completed from February 13 to March 16, 2017. Results for another 26 holes for the Kueredougou West and S-Nosa Zone areas are pending. The phase 3 drill program of approximately 80 holes totalling up to 8,000 metres will commence in early May.
A summary of select results, in the order they were drilled, are presented below (see Figure 1 for locations).
Serakoro 1 Main area
Karangosso Zone area
Diosso South Zone area
West Trend Zone area
“This part of our phase two drill program focussed on expanding the resource* footprint of the Diosso South, Karangosso and West Trend Deposit areas. Significant progress was made at the DIosso South Zone along with intriguing new mineralization intersected along the north strike extension of the West Trend Zone” stated Don Dudek, President and CEO of Savary. Mr. Dudek further noted “Results are pending for recent holes completed along the Kueredougou West Zone and to follow-up on a 2016 drill discovery at the S-Nosa Zone. Planning has commenced for the phase three drill program which will include more follow-up holes at the Diosso South, West Trend, Kueredougou, Serakoro Main and Serakoro West zones and the first pass testing of the >100 ppb, gold-in-auger anomalies. Drilling is set to resume on or about May 1 after a one month hiatus.”
Figure 1 - Karankasso JV Project – Locations of Select, New 2017 Drill Intercepts.
This portion of the drill program materially extended the gold mineralization along strike and to depth of the project’s current pit constrained mineral resources* and extended a new, 2017 discovery, along strike.
Phase 2 of the program is complete with 92 holes totalling 9,496 metres, drilled. A summary of significant results predominantly using 0.5 g/t gold cut-off, are presented in Table 1 at the end of the release.
Diosso South Area
The recent series of holes were successful in intersecting significant amounts of gold mineralization between the current pit constrained mineral resource pits and along strike, both to the north and south of the previously identified mineral resource estimate. This mineralized trend is still open along strike to the north, south and to depth. Follow-up holes have been planned for the phase 3 drill program.
A total of 15 holes totalling 1,497 metres were drilled in the Diosso South Zone area (see Figure 2 for detailed locations). The goal of this drilling was to support extensions to the current inferred pit constrained mineral resource estimate* of 820,000 tonnes grading 2.93 g/t gold. The Diosso South Zone lies predominantly within an up to 70- to 80-metre-wide sericite-quartz-pyrite altered shear zone that is hosted by intermediate volcanic rocks. Better gold bearing intervals occur near the contacts of the shear zone and sometimes within it and these higher-grade zones appear to plunge shallowly to the north. Drilling has traced, up to six lenses of gold mineralization, for approximately 1,900 metres along strike from an initial inferred mineral resource pit strike length of approximately 860 metres.
Highlights include the following (see Figure 2 for hole locations):
Figure 2 - Diosso South and West Trend Areas, New 2017 and Select Results
A total of 11 holes totalling 1,094 metres have been drilled predominantly to the north and south of the current Inferred Mineral Resource* pit limits (see Figure 3 for locations). Six of the holes were drilled to the north of the resource area. For the most part, these holes returned gold bearing intervals where expected with better intercepts of:
- 3.62 g/t gold over 3 metres at 69 metres below the surface, and below the current Inferred Mineral Resource* pit
- 6.30 g/t gold over 2 metres at 45 metres below the surface and 180 metres north of the current Inferred Mineral Resource* pit
- 1.66 g/t gold over 9 metres at 69 metres below the surface and 300 metres north of the current Inferred Mineral Resource* pit
Five holes were drilled to trace the mineralization both up dip of previous intercepts of 3.45 g/t gold over 5.5 metres and 6.73 g/t gold over 7 metres and along strike. Two of the holes were not completed due to drilling complications and the other three holes, did not intersect any significant mineralization. The higher-grade intercepts noted above, lie approximately 144 metres below the surface; no significant mineralization was returned from hole RC-17-041 that intersected the mineralized lens at 75 metres below the surface. A significant, deeper, higher grade target exists in this area, but, testing it is beyond the scope of the current program.
Figure 3 - Karangosso Zone Area New 2017 and Select Results
West Trend Area
A total of 9 holes comprising 1,137 metres were drilled in the West Trend Zone area (see Figure 2 for hole locations). Four of the holes tested the limits of the current Inferred Mineral Resource and five holes tested the inferred, West Trend northern strike extent. Two of the four holes at the West Trend Zone intersected significant amounts of gold mineralization including 1.34 g/t gold over 12 metres at approximately 95 metres depth, near the base of the Inferred Mineral Resource* pit and 3.25 g/t gold over 4 metres at 59 metres depth, both below the Inferred Mineral Resource* pit.
The remaining five holes were drilled a minimum of 1,200 metres north of the West Trend Zone where a previous hole returned a near surface intercept of 2.09 g/t gold over 6 metres. Four of the five holes tested both the down-dip and strike extension of this new occurrence. These few holes have resulted in the delineation of a 300-metre-long zone to 100 metres depth with three mineralized lenses interpreted across a 100-metre-wide area. New intercepts from a newly recognized gold mineralized lens WTN2 comprise 2.74 g/t gold over 4 metres in hole RC-17-70, 1.54 g/t gold over 8 metres in hole RC-17-71 and 3.91 g/t Au over 3 metres in hole RC-17-72. Lens WTN2 has now been intersected in six holes. Lens WTN1 was discovered during November, 2016 with a near surface intercept of 2.09 g/t gold over 6 metres. Hole RC-17-71 intersected the same zone with an intercept of 1.57 g/t gold over 5 metres at 37 metres vertical. Narrow intercepts of gold mineralization in hole RC-17-70 of 0.96 g/t gold over 1 metre and 1.37 g/t gold over 1 metre may be the strike continuation of lens WTN1, 100 metres to the south and north, respectively.
A final hole, RC-17-073, is a 400-metre step-out along the mineralized trend to the north. This hole intersected a 57-metre-wide, strongly sericite-quartz-pyrite altered intermediate volcanic with the hole ending in alteration. This mineralization style is very similar to that associated with the Diosso South Zone. Several narrow zones of gold mineralization were intersected with the best returning 1 g/t gold over 2 metres.
Serakoro 1 Main Area
Results for four additional holes were received for the Serakoro 1 Main area including a new intercept of 2.05 g/t Au over 5 metres (see Figure 4). This intercept lies along the eastern edge of the Serakoro 1 Main area artisanal workings and appears to correlate with a 2017 intercept of 5.17 g/t gold over 2 metres, located 800 metres to the south and with several other 2017 drill intercepts along an approximate, 3,500 metre trend. Additional drilling should be carried out over this area to determine if the higher-grade portions of this mineralized structure have continuity.
Figure 4 - Serakoro 1 Main Area, 2017 Drill Hole Plan and Summary Results
Phase 3 Drill Targeting
The Phase 3 drill program, of approximately 80 holes totalling up to 8,000 metres, is being designed to both follow-up on extensions to zones with current pit constrained Mineral Resources*, follow-up new gold zones/drill intercepts and to test approximately 70 gold-in-auger anomalies containing >100 ppb gold. The gold-in-auger anomaly targets comprise seven mineralized trends ranging from 1,000 to 3,800 metres long and one distinct Kueredougou West Trend area target. Final hole selection is pending assays for the remaining drill holes of the Phase 2 drill program and a review by the Karankasso JV Board.
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 JV partner Sarama Resources Limited, is focused on exploring and developing the Karankasso Gold Project in Burkina Faso. Upon closing, it is anticipated that the Karankasso JV Project will be approximately 69.5% owned by Savary and 30.5% owned by Sarama Resources Limited (“Sarama”) with Savary as operator. 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.
* Open pit constrained Mineral resource estimate presented in Savary news release dated October 8, 2015
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.
Table 1 – Summary of Significant Intercepts
|Hole #||From||To||Length||Au g/t||Target Area|
|HE-RC-17-041||Hole not completed - lost||NSV||Karangosso|
|HE-RC-17-042||Hole not completed - lost||NSV||Karangosso|
* true widths are estimated at 65% to 80% of drilled widths