TSX.V:

Drilling Returns 13.05 G/T Gold over 4 Metres and 2.96 G/T Gold over 7 Metres at 75 Metres and 20 Metres from Surface, Respectively

Executive Summary:

  • Results from last part of Phase 2 drill program (92-holes, 9,469 metres)
  • Drilling is estimated to resume in mid-May – Phase 3 (~125-holes, up to 8,000 metres)
  • Summary of work done since the maiden resource in Q4/2015

Toronto, Canada – May 4, 2017Savary Gold Corp. (TSX-V: SCA) (“Savary” or the “Company”) is pleased to announce the final set of drill results from its 9,496 metre, phase 2, 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 24 holes totalling 2,375 metres that were completed between January 29 and March 30, 2017.  The phase 3 drill program, of approximately 125 holes totalling up to 8,000 metres, is estimated to commence in mid-May.

A summary of select results, in the order they were drilled, are presented below (see Figure for locations).

S-Nosa Zone area

  • HE-RC-17-084 - 2.43 g/t gold over 7 metres
  • HE-RC-17-085 - 13.05 g/t gold over 4 metres
  • HE-RC-17-089 - 4.32 g/t gold over 3 metres (new)

Kueredougou West Zone area

  • HE-RC-17-02 – 2.96 g/t gold over 7 metres

“The final part of our phase two drill program focussed on follow-up and new target testing in the S-Nosa area as well as expanding the mineral resource* footprint of the now 2,600-metre-long Kueredougou West Deposit. At S-Nosa, we have begun to extend the mineralized zone along strike and down dip with two good, gold-bearing holes and intend to follow-up with additional holes. At Kueredougou West, we have extended the zone to the north and south with a strong intercept at the north end of the zone and will continue to step out along strike.” stated Don Dudek, President and CEO of Savary. Mr. Dudek further noted “We are excited about our phase 3 drill program, estimated to commence in mid-May. This program will follow-up all of the new discoveries from the phase 2 program, continue to drill test for extensions to our current resources and complete a first pass test of all of the strongest gold-in-auger anomalies. Approximately 125 RC and AC holes are planned for this part of the exploration program. Our mandate is to continue to build value at the end of the drill bit.”

May 04 pic1
Figure 1 - Karankasso JV Project – Locations of Kueredougou West and S-Nosa 2017 Drill Intercepts.

Phase 2 of the program was completed at the end of April with 92 holes totalling 9,496 metres, drilled. A summary of significant results from these latest holes, predominantly using 0.5 g/t gold cut-off, are presented in Table 2 at the end of the release.

Project Advancements since Q4, 2015 Resource Estimate of In-pit Inferred Mineral Resources of 671,000 ounces* grading 2.28 g/t gold in six zones (Karangosso, Diosso South, West Trend, Kueredougou West, Kueredougou, Kien East) using a 0.5 g/t gold cut-off(see Savary News Release Oct. 8, 2015 and Figure 2, for zone locations)

Zone Summary Details or Next Steps
Karangosso zone ~75% increase in strike length
  • zone extended from ~700 metres to 1,250 metres
  • zone extended to depth below currently modeled in-pit resource estimate
Diosso South Zone ~120% increase in strike length from ~860 metres to 1,900 metres
  • Still open along strike
West Trend Zone New area of gold mineralization with three parallel lenses discovered
  • Currently 300 metres long and open along strike and to depth with more testing planned
Kueredougou West Zone ~50% increase in strike length from ~1,800 metres to 2,700 metres
  • Still open along strike
Serakoro 1 Main Zone ~3,500-metre long mineralized structure with 1.4 g/t gold to 5.17 g/t gold over 2 to eight metres wide
  • potential for higher grade zone to be tested
Serakoro 1 West Zone Two new discoveries, 2.55 g/t gold over 17 metres and 1.85 g/t gold over seven metres
  • associated with 2.0 and 1.6 km long gold-in auger anomalies, respectively. Follow-up holes planned
S-Nosa Zone expanding with two new intercepts of 13.05 g/t gold over 4 metres and 2.43 g/t gold over 7 metres.
  • Follow-up holes planned
Six New Gold-in-auger hole drill targets Targets are between 1.0 to 3.8 km long, gold-in auger targets with gold values to 2,211 ppb gold and only two partially tested (Serakoro 1 West discoveries) to date.
  • All of these targets will be tested in the Phase 3 program.

 May 04 pic2
Figure 2 – Karankasso Gold Zone locations and select results

S-Nosa Zone

New drill intercepts from this zone comprise 13.05 g/t gold over 4 metres and 2.43 g/t gold over 7 metres (see Figure). Both holes were drilled as follow-up to a 2015 core hole that returned 1.34 g/t gold over 11.6 metres. These holes are 100 metres apart, were drilled to test a mineralized structure that trends 045 degrees azimuth and are located approximately 425 metres east of the north end of the Kueredougou inferred mineral resource estimate pit. Management believes this mineralized direction is important as it is the first time that strong gold mineralization was noted along this structural direction. This mineralized trend correlates with a northeast-trending induced polarization chargeability high and a northeast-trending airborne vertical gradient magnetic high. Both of these geophysical trends intersect the south end of the Kueredougou Zone trend where follow-up drilling is planned during the phase 3, 2017 drill program.

The third intercept in the S-Nosa area, 4.32 g/t gold over 3 metres, was returned from a separate north and northeast trending structure located 400 metres to the northwest of the S-Nosa Zone.

In this area of the property, there are at least six north- to northeast-trending gold-mineralized structures, not including the nearby Kueredougou Zone. The structures are associated with shallow artisanal mining zones. A total of 7 short holes, totalling 582 metres, were drilled to test five of the gold mineralized structures in the S-Nosa Zone area.  Additional evaluation of this structurally complicated area is required.

Kueredougou West Zone

Highlights of this phase of the drill program include 2.96 g/t gold over 7 metres in a 100 metre step out, along strike, at the north end of the zone. Another hole, drilled 100 metres south of a previous hole that returned 3.00 g/t gold over 4 metres, returned 0.98 g/t gold over 4 metres approximately 40 metres from surface, within a larger, lower grade, sericite-altered zone that returned 0.36 g/t gold over 19 metres. The wide alteration zone suggests reasonable potential for additional gold mineralization.

The remainder of the holes drilled during the phase 2 drill program were designed to add information both along and below the current pit-constrained mineral resource estimate. These holes intersected the gold-bearing lenses where expected generally returning narrow gold-bearing intercepts that are believed to be supportive to the overall resource, but will not materially add to it.

Additional holes are planned at both ends of the Kueredougou West Zone. This zone has been traced for approximately 2,700 metres from an original strike length of approximately 1,800 metres, an increase of approximately 50% in strike length. Phase 3 drill holes will further test a 1,000-metre gap between the Kueredougou Zone to the north where the southern-most holes intersected 4.04 g/t gold over 5 metres and 12.8 g/t gold over 2 metres, and the Kueredougou West Zone, where the northern-most hole intersected 2.96 g/t gold over 7 metres (see Figure).

Kueredougou Zone

A recent review of artisanal mining activity at the north end of the Kueredougou Inferred resource estimate pit indicated that the area of artisanal mining has extended for an additional 300 metres north of the current pit limits. Material being mined and added to the waste pile is strongly sericite altered and contains 1 to 10% pyrite and trace to 1% arsenopyrite. This area is part of a 600-metre drilling gap at the northern end of the Kueredougou Zone, where the next hole, along the trend, had returned 2.94 g/t gold over 15 metres (see Figure). Two holes, 100 metres apart, are planned to further test the northern extension of the Kueredougou Zone.

The Kueredougou Zone area has returned some of the highest grades from drilling (to 83.35 g/t gold over 4 metres un-cut) on the Karankasso Project and has always been considered to have some of the most potential for higher grades. However, with the high grades, this area is the most impacted by artisanal mining.

Phase 3 Drill Targeting

The Phase 3 drill program, of approximately 125 holes totalling up to 8,000 metres, has been designed to both follow-up on extensions to zones with a current pit constrained Mineral Resource estimate*, follow-up new gold zones/drill intercepts and to test approximately 68 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. A summary of the currently planned holes by area, including contingency holes, is presented in Table 1, below.

Table 1 – Phase 3 drilling planned holes

Phase 3 Holes    
  # of holes # of metres

AC follow-up Gold-in-Auger
(RC drill with AC head adapter)

68

2856

Diosso South 17 1069
Serakoro 1 West 9 910
Serakoro 1 Main 6 760
Kueredougou West 5 485
Kueredougou 3 360
S-Nosa 3 240
West Trend North 4 295
Contingency 10 800
Totals 125 7775

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 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
“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 2 – Summary of Significant Intercepts

Hole # From To Length Au g/t Target Area
HE-RC-17-001 55 58 3 0.53 Kueredougou West
HE-RC-17-001 136 138 2 1.39 Kueredougou West
HE-RC-17-001 146 153 7 0.91 Kueredougou West
incl. 152 153 1 2.86 Kueredougou West
HE-RC-17-002 6 8 2 1.17 Kueredougou West
HE-RC-17-002 20 27 7 2.96 Kueredougou West
incl. 21 24 3 6.45 Kueredougou West
HE-RC-17-003 18 20 2 1.47 Kueredougou West
HE-RC-17-003 33 34 1 1.52 Kueredougou West
HE-RC-17-003 60 61 1 0.74 Kueredougou West
HE-RC-17-004 35 37 2 0.52 Kueredougou West
HE-RC-17-004 38 39 1 2.74 Kueredougou West
HE-RC-17-004 48 52 4 1.22 Kueredougou West
HE-RC-17-005 78 79 1 0.54 Kueredougou West
HE-RC-17-005 83 85 2 1.69 Kueredougou West
HE-RC-17-005 115 116 1 0.66 Kueredougou West
HE-RC-17-074       NSV Kueredougou West
HE-RC-17-075 129 130 1 0.6 Kueredougou West
HE-RC-17-076       NSV Kueredougou West
HE-RC-17-077 32 33 1 0.96 Kueredougou West
HE-RC-17-077 39 40 1 0.55 Kueredougou West
HE-RC-17-077 43 44 1 0.55 Kueredougou West
HE-RC-17-077 47 51 4 0.98 Kueredougou West
HE-RC-17-078 32 33 1 0.30 Kueredougou West
HE-RC-17-078 43 45 2 0.48 Kueredougou West
HE-RC-17-079 33 35 2 0.79 Kueredougou West
HE-RC-17-080 85 86 1 0.40 Kueredougou West
HE-RC-17-081 79 80 1 0.99 Kueredougou West
HE-RC-17-081 82 84 2 1.32 Kueredougou West
HE-RC-17-082 56 59 3 1.09 Kueredougou West
HE-RC-17-084 50 51 1 0.52 South Nosa
HE-RC-17-084 69 71 2 0.76 South Nosa
HE-RC-17-084 75 90 15 1.34 South Nosa
incl 80 87 7 2.43 South Nosa
incl 83 87 4 3.37 South Nosa
HE-RC-17-085 73 76 3 1.49 South Nosa
HE-RC-17-085 79 80 1 0.93 South Nosa
HE-RC-17-085 95 99 4 13.05 South Nosa
incl 95 98 3 17.15 South Nosa
HE-RC-17-086 68 70 2 0.91 South Nosa
HE-RC-17-087 9 10 1 1.06 South Nosa
HE-RC-17-088 0 3 3 0.86 South Nosa
HE-RC-17-088 55 56 1 1.06 South Nosa
HE-RC-17-089 30 33 3 4.32 South Nosa
HE-RC-17-090       NSV Kueredougou West
HE-RC-17-091 23 24 1 0.96 Kueredougou West
HE-RC-17-091 28 29 1 0.61 Kueredougou West
HE-RC-17-091 36 37 1 0.62 Kueredougou West
HE-RC-17-091 49 50 1 0.61 Kueredougou West
HE-RC-17-091 70 72 2 0.72 Kueredougou West
HE-RC-17-092 106 108 2 1.9 Kueredougou West
HE-RC-17-092 109 110 1 0.69 Kueredougou West

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