Toronto, Canada – May 4, 2017 – Savary 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
Kueredougou West Zone area
“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.”
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||
|Diosso South Zone||~120% increase in strike length from ~860 metres to 1,900 metres||
|West Trend Zone||New area of gold mineralization with three parallel lenses discovered||
|Kueredougou West Zone||~50% increase in strike length from ~1,800 metres to 2,700 metres||
|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||
|Serakoro 1 West Zone||Two new discoveries, 2.55 g/t gold over 17 metres and 1.85 g/t gold over seven metres||
|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.||
|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.||
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).
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
|Serakoro 1 West||9||910|
|Serakoro 1 Main||6||760|
|West Trend North||4||295|
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 2 – Summary of Significant Intercepts
|Hole #||From||To||Length||Au g/t||Target Area|
* true widths are estimated at 65% to 80% of drilled widths