Toronto, Canada – February 28, 2019 – Savary Gold Corp. (TSX-V: SCA) (“Savary” or the “Company”) announces the start of a drill program, as part of an ~US$2 million exploration program on the Karankasso JV Project, Burkina Faso, West Africa.
The 2019 exploration program consists predominantly of the following:
Don Dudek, President and CEO states “This exploration program represents a continuation of our work on the Karankasso project where we are focussed on adding value with work on the ground. During this program, we are systematically adding to, and defining, more than 10 mineralized zones, one hole at a time, with new holes planned as results come in. As well, we continue to develop, new, good quality targets with the auger data and refined geological interpretations.” Don Dudek, further states “this program is being carried out even as we work towards a binding agreement to formalize Semafo’s expressed interest in acquiring Savary, in order to fulfill previous commitments with regards to the drill program and its timing, as approved by the Karankasso JV.”
The field portion of this program commenced in the middle of January and is expected to continue through to the end of June, 2019.
Assay results from the completed auger drilling, returned 41 sites with weathered rock samples (saprolite) returning >100 ppb gold to a maximum of 3,065 ppb gold, and an additional 30 sites containing from 50 to 100 ppb gold. Sites with >100 ppb Au are generally considered first pass exploration drill targets. Previous auger surveys, have led to the identification of nine new gold zones that are being further delineated in the current program.
UPDATE ON SEMAFO TRANSACTION
Savary has entered into a non-binding letter of intent pursuant to which SEMAFO Inc. has expressed an interest to acquire all of the outstanding shares of Savary (see joint news release dated February 11, 2019). Savary and SEMAFO remain committed to completing the proposed transaction and continue to work towards entering into a binding agreement by March 11, 2019.
Savary’s procedure for handling auger chip samples comprises random sampling of one metre drill length return into approximately 1.5 to 3.0-kilogram samples, as well as description and logging into a database. Representative samples of each metre of the auger hole are also preserved in chip trays for future reference. An assay blank or standard was inserted sequentially every 22-26 samples This sampling procedure was periodically reviewed by Savary’s President and CEO, and the Company QP, Don Dudek, P. Geo. All assay samples were delivered to Savary staff who then arranged delivery to BIGS laboratory in Ouagadougou, Burkina Faso where sample preparation and analysis were performed. Auger samples, would be sorted, weighed and placed on stainless trays and dried at 90°C until dry. The samples would then be jaw crushed to <2mm using a Boyd Crusher, if necessary, and the crushed material will then be split using a riffle splitter unit to create 2 samples of approximately 1 kg of mass, each. One of the two samples would then be pulverised using an LM2 pulveriser system to give a product of 90% passing 75µm. This pulverised product will then be weighed for Fire Assay determination of the Au content using an Aqua Regia digestion followed by a Flame AAS finish. The samples would be treated in batches of 50, consisting of (from the lab) 1 Blank, 2 QC Standards and 2 repeats. Under normal conditions, a repeat portion will be selected at a 1:20 ratio, and these “preparation” repeats would be included in the sample batch of 50 as discussed earlier. Thus, each batch of samples would include 1 blank, 2 QC standards and 4 repeats (including the 2 preparation repeats). Each sample would be subjected to a process using the “Leachwell” is based on a typical digest for a 12-hour leach with fluid analysed for gold after 12 hours.Most standards and blank control samples returned results within expected ranges. Those batches that returned standard values outside an approved range are being re-assayed. None of the re-assayed batches impacted the results presented here-in.
About Savary Gold Corp.
Savary is a Canadian exploration company focused on exploring and developing the Karankasso Gold Project in Burkina Faso. The Company holds an approximate 75.2% deemed joint venture ownership at year end 2018 and is the operator of the joint venture. The project is located within the Houndé Greenstone Belt, which hosts SEMAFO’s Mana mine, Roxgold’s Yaramoko Mine and Endeavor’s Houndé Mine. The project contains an inferred mineral resource estimate (November 2, 2017) of 12.3 million tonnes (Mt) grading 2.03 g/t gold for 805,000 ounces.
For additional information please visit 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
President & Chief Executive Officer
Figure 1 – Summary 2019 Auger Results
Figure 2 – Currently planned 2019 Phase 1 drill holes
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 timing and amount of estimated future exploration; costs of future activities; success of exploration activities; the likelihood that the SEMAFO transaction will progress to a binding commitment on the timeline estimated or at all; the details of the potential value growth of the JV, the upside of the property, and our expectations with respect to lower costs, cross marketing and funding synergies resulting from the JV, the drill program, the company’s exploration plans, 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 statements 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.