Savary Gold Corp.
TSX VENTURE : SCA

Savary Gold Corp.

June 16, 2015 07:00 ET

Savary Gold Drills 3.33 g/t Gold Over 41 Metres

Several new zones discovered with intercepts of 13.89 g/t gold over 4 metres and 5.21 g/t gold over 9 metres

TORONTO, ONTARIO--(Marketwired - June 16, 2015) - Savary Gold Corp. (TSX VENTURE:SCA) ("Savary" or the "Company") is pleased to announce its best drill intercept to date which returned 3.33 g/t gold over 41 metres at the Karangosso Zone. Drill testing of several of the newly identified gold zones has also resulted in several new discoveries, one of which returned an intercept of 13.89 g/t gold over four metres.

To date, Savary has completed approximately 10,000 metres of a planned 15,000 metre drill program at its Karankasso Joint Venture Project in Burkina Faso, owned 65% by Savary and 35% by Sarama Resources Ltd. ("Sarama"). Highlight intercepts, for four of the exploration targets, are presented below:

  • 3.33 g/t gold over 41 metres at Karangosso
  • 6.61 g/t gold over 10 metres at Karangosso
  • 2.02 g/t gold over 11 metres at Karangosso
  • 2.30 g/t gold over 9 metres at Karangosso
  • 1.97 g/t gold over 8 metres at Karangosso
  • 1.94 g/t gold over 11 metres at Karangosso
  • 1.79 g/t gold over 10 metres at Karangosso
  • 13.89 g/t gold over 4 metres at Kueredougou untested - new zone
  • 5.21 g/t gold over 9 metres at Kueredougou West Trend - new zone
  • 2.52 g/t gold over 8 metres at Kueredougou West Trend - new zone
  • 3.53 g/t gold over 15 metres Kueredougou West zone

Don Dudek, Savary's President and CEO commented: "Drill results received to-date continue to support our view of the excellent exploration potential along the 45 kilometre belt on the Property. The current drill program has again extended the areas of known mineralization, discovered new mineralized zones and returned Savary's best intersection to date. High gold grades, the search for a 'centre-of-gravity' zone and the desire to define a material gold resource continues to be our focus in the current drill program. It was great to see the development of a high-grade core at the felsic intrusion-hosted Karangosso Zone and a clear indication of its strike continuity to the north. The new discovery at the Kueredougou West trend, as well as the continuity and local higher grades at the Kueredougou West and Kueredougou Untested zones are very encouraging. Savary's plan is to immediately follow up these results with a portion of the remaining drill budget and with the reception of additional good results, plan and complete additional holes during the 2015 program."

The Karankasso Property (the "Property") is located approximately 300 kilometres southwest of Ouagadougou, Burkina Faso's capital city and 60 kilometres east of Bobo Dioulasso, the second largest city in Burkina Faso. The Property can be accessed by a paved highway with both rail and grid power coming within approximately 65 kilometres of the Property.

During the period from April 21, 2015 to June 30, 2015, Savary and Sarama completed approximately 10,000 metres of drilling in 78 reverse circulation holes on the Property. After a two week drilling break, to allow for the return of assays, drilling resumed at the Karangosso Zone.

Drill holes have tested previously known gold zones and geochemical and geophysical targets at the Kien East, Kueredougou North, Koure East Sulphide, Koure South, Kueredougou South, Kueredougou West zone, Kueredougou Untested, Kueredougou West Trend, Karangosso and Serakoro 1 West (see Figure 1). This release discusses the results from four of the 11 targets that were tested. A summary of the results are presented in Table 1 at the end of the release.

To View Figure 1: Karankasso Project - Select 2015 Significant Intercepts, please visit the following link: http://media3.marketwire.com/docs/1012693-F1.pdf

Karangosso Zone

The Karangosso Zone, was initially discovered in 2013 when a reverse circulation hole, testing a gold-in-soil anomaly, returned an intercept of 10.14 g/t gold over ten metres. Subsequent drilling in 2014, returned up to 2.97 g/t gold over 27 metres and extended the gold-bearing portion of the altered alkaline granite for 800 metres along strike. Drilling in 2015 was primarily designed to complete enough drilling to define a resource as the previous holes were spaced on fences 200 metres apart. As well, a hole was drilled to 200 metres to the north of the zone to determine if the zone extended northwards (see Figure 2). The drilling was successful in extending the higher grade portion of the initial discovery 100 metres to the north and in extending the mineralized zone a further 200 metres to the north, where it is still open, for a total mineralized strike of 1,000 metres. The zone has been tested to approximately 150 metres depth.

A 100 metre, step-out hole, returned Savary's best hole to date with an intercept of 3.33 g/t gold over 41 metres in hole 15-43. Approximately 20 to 30 metres below this intercept, hole 15-50 intersected 1.72 g/t gold over five metres and 6.61 g/t gold over ten metres; these intercepts correlate with the zone in hole 15-43. As well, hole 15-50 intersected 2.3 g/t gold over nine metres further down the hole in what appears to be a new zone. Shallow, near-surface intercepts, on the same section, returned intervals of 2.02 g/t gold over 11 metres, 1.94 g/t gold over 11 metres and 1.97 g/t gold over eight metres.

The 200 metre step-out to the north returned shallow intercepts of 1.71 g/t Au over 10 metres and 1.81 g/t gold over three meters.

Drilling of an additional eight holes has commenced at Karangosso with a goal to further extend the zone along strike an additional 200 metres to the north, ensure at least two holes are completed through the zone every 100 metres, further test the higher grade portion of the zone along strike and to test an interpreted cross structure.

The Karangosso Zone is part of a group of felsic intrusion-hosted zones that lie along the western portion of the property, which, until recently, have not been subject to sustained exploration. Considering the local high grades that have been encountered at the Karangosso and Serakoro 1 West zones, management believes that further exploration along this part of the property should be a priority.

To view Figure 2: Karangosso Zone - Completed and Planned Holes, please visit the following link: http://media3.marketwire.com/docs/1012693-F2.pdf

Kueredougou West Zone - Kueredougou Untested Zone

The Kueredougou West and Kueredougou Untested zones, which together may be traced for two kilometres, are presented together since both are associated with the same induced polarization geophysical chargeability anomaly (see Figure 3).

Two holes were drilled into the Kueredougou West Zone to validate historic drill intercepts which returned values to 2.90 g/t gold over 22 metres and 1.64 g/t gold over 20 metres. The new holes returned 3.53 g/t gold over 15 metres in hole 15-36 and 0.97 g/t gold over 10 metres in hole 15-35 as well as intercepts of 1.98 g/t gold over three metres and 2.22 g/t gold over five metres (new zone).

A third hole, drilled to test the southern extension of the Kueredougou West Zone, with a step out of 400 metres, returned 1.00 g/t gold over six metres and a near-surface intercept of 0.62 g/t gold over seven metres.

Four holes were drilled into the newly discovered Kueredougou Untested Zone with the best intercept returning 13.89 g/t gold over four metres in hole 15-38. A hole, 200 metres to the south, returned 0.94 g/t gold over seven metres, demonstrating the extension of the zone. One hole was drilled to test a parallel zone of artisanal workings, located 150 metres to the east, returned an intercept of 2.76 g/t gold over three metres.

The combined trend of the Kueredougou West and Kueredougou Untested zones demonstrates likely continuity of the mineralized system along an open-ended two kilometre strike with local higher grade zones. Follow-up drilling of eight holes, will test the down-dip extension of the mineralized systems and complete 100 to 400 metre step-outs to validate the assumed continuity of the mineralized system while probing for higher grade sections.

To view Figure 3: Kueredougou West to Kueredougou Untested zones - Completed and Planned Holes, please visit the following link: http://media3.marketwire.com/docs/1012693-F3.pdf

Kueredougou West Trend

The Kueredougou West Trend can be traced for approximately eight kilometers using gold-in-soil geochemical data and artisanal workings.

During the first part of the 2015 drill program, two holes were completed over a wider section of artisanal workings along this newly identified mineralization trend. Both holes, spaced 150 metres apart, returned good results with intercepts of 5.21 g/t gold over nine metres and 2.52 g/t gold over eight metres in holes 15-42 and 15-41, respectively (see Figure 4).

To view Figure 4: Kueredougou West Trend - Completed and Planned Holes, please visit the following link: http://media3.marketwire.com/docs/1012693-F4.pdf

Results for drilling on the other targets that were drilled during this program will be presented once the drill and assay data have been further evaluated and put into context.

QA/QC Comments

Savary's procedures for handling reverse circulation drill chips comprise 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. Assay standards, sample duplicates and assay blanks were inserted sequentially every 14 samples resulting in an assay standard inserted every 42 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 collected at site by SGS Laboratory or Actlabs staff from Ouagadougou, Burkina Faso. Sample preparation and fire assays were performed by SGS Laboratories and Actlabs, both based in Ouagadougou. Each sample was dried, crushed to 85% passing 2mm and then split to 1.5 kg by riffle splitter. The 1.5 kg, 2 mm split was pulverized to 95% passing 106mm. Fifty grams of the pulverized material was analysed for gold via fire assay with an atomic absorption spectroscopy (AAS) finish. SGS Burkina Faso SA operates according to ISO 17025 standards and institutes a full Quality Assurance/Quality Control (QA/QC) program consisting of insertion of blanks, standard reference material, repeats and reject splits which in total account for up to 25% of all determinations conducted.

About Savary Gold

Savary Gold, a Canadian exploration company, along with partner, Sarama Resources Limited, are focused on exploring the 750 km2 Karankasso Property in Burkina Faso. The Properties is in the Birimian age Houndé Greenstone Belt, which hosts Semafo's Mana mine and additional gold deposits that are presently subject to extensive exploration efforts (including Endeavour Mining's Houndé Project, Roxgold's Yaramoko Project and Sarama's/Acacia's South Houndé JV Project, which is adjacent to the Karankasso JV property). For additional information please visit our website at www.savarygold.com and follow us on Facebook, LinkedIn and Twitter.

Qualified Person

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

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 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.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons (as defined in Regulation S under the 1933 Act) absent such registration or an applicable exemption from such registration requirements.

Table 1 - 2015 Results Summary - Karangosso, Kueredougou West, Kueredougou Untested and Kueredougou West Trend Zones

Hole From
(m)
To
(m)
Width
(m)**
Au
g/t
Comments
HS-RC-15-35 0 1 1 0.58 Validation hole Kueredougou West
HS-RC-15-35 28 31 3 1.98 Validation hole Kueredougou West
HS-RC-15-35 47 57 10 0.97 Validation hole Kueredougou West
incl 47 51 4 3.42 Validation hole Kueredougou West
HS-RC-15-35 70 72 2 1.80 Validation hole Kueredougou West
HS-RC-15-35 85 90 5 2.22 New zone, Kueredougou West
HS-RC-15-36 0 1 1 0.55 Validation hole Kueredougou West
HS-RC-15-36 6 7 1 0.81 Validation hole Kueredougou West
HS-RC-15-36 11 12 1 1.05 Validation hole Kueredougou West
HS-RC-15-36 15 16 1 0.50 Validation hole Kueredougou West
HS-RC-15-36 20 35 15 3.53 Validation hole Kueredougou West
HS-RC-15-36 50 51 1 2.15 Validation hole Kueredougou West
HS-RC-15-37 0 1 1 0.59 Kueredougou Untested
HS-RC-15-37 22 24 2 0.98 Kueredougou Untested
HS-RC-15-37 33 34 1 0.55 Kueredougou Untested
HS-RC-15-38 36 37 1 1.63 Kueredougou Untested
HS-RC-15-38 42 46 4 13.89 New zone - Kueredougou untested
HS-RC-15-38 87 92 5 0.35 Kueredougou Untested
HS-RC-15-39 23 26 3 2.76 Kueredougou Untested
HS-RC-15-40 69 76 7 0.94 Kueredougou Untested
HS-RC-15-41 42 50 8 2.52 New zone Kueredougou West Trend
HS-RC-15-42 3 12 9 5.21 New zone Kueredougou West Trend
HS-RC-15-42 15 20 5 0.53 New zone Kueredougou West Trend
HS-RC-15-42 57 59 2 1.59 New zone Kueredougou West Trend
HS-RC-15-43 33 34 1 0.98 Karangosso step out holes
HS-RC-15-43 40 81 41 3.33 Karangosso step out holes
HS-RC-15-43 94 95 1 1.30 Karangosso step out holes
HS-RC-15-44 1 12 11 2.02 Karangosso step out holes
HS-RC-15-44 27 29 2 1.42 Karangosso step out holes
HS-RC-15-44 74 76 2 0.65 Karangosso step out holes
HS-RC-15-46 54 55 1 0.87 Karangosso step out holes
HS-RC-15-46 61 62 1 1.89 Karangosso step out holes
HS-RC-15-46 115 116 1 0.75 Karangosso step out holes
HS-RC-15-47 112 114 2 1.54 Karangosso step out holes
HS-RC-15-47 135 136 1 0.70 Karangosso step out holes
HS-RC-15-48 NSV* Karangosso step out holes
HS-RC-15-49 146 147 1 0.61 Karangosso step out holes
HS-RC-15-50 76 78 2 0.49 Karangosso step out holes
HS-RC-15-50 91 96 5 1.72 Karangosso step out holes
HS-RC-15-50 100 110 10 6.61 Karangosso step out holes
HS-RC-15-50 112 113 1 1.05 Karangosso step out holes
HS-RC-15-50 127 129 2 2.39 Karangosso step out holes
HS-RC-15-50 137 139 2 0.60 Karangosso step out holes
HS-RC-15-50 144 153 9 2.30 Karangosso step out holes
HS-RC-15-50 158 160 2 0.70 Karangosso step out holes
HS-RC-15-51 2 10 8 1.97 Karangosso step out holes
HS-RC-15-51 17 28 11 1.94 Karangosso step out holes
HS-RC-15-51 30 31 1 1.09 Karangosso step out holes
HS-RC-15-51 94 95 1 2.09 Karangosso step out holes
HS-RC-15-51 111 112 1 0.65 Karangosso step out holes
HS-RC-15-51 129 131 2 1.63 Karangosso step out holes
HS-RC-15-76 39 49 10 1.79 Karangosso zone - north extension
HS-RC-15-76 77 80 3 1.81 Karangosso zone
HS-RC-15-76 119 120 1 1.42 Karangosso zone
HS-RC-15-77 18 23 5 1.04 Karangosso zone
HS-RC-15-77 60 62 2 1.69 Karangosso zone
HS-RC-15-77 102 103 1 1.26 Karangosso zone
HS-RC-15-78 51 52 1 0.98 Karangosso zone
HS-RC-15-78 112 115 3 0.84 Karangosso zone
HS-RC-15-78 124 126 2 0.98 Karangosso zone
HS-RC-15-78 128 130 2 2.94 Karangosso zone
HS-RC-15-78 136 138 2 1.53 Karangosso zone
* No Significant Values
** True widths are estimated at 70% of core length for the Karangosso Zone and Kueredougou West Trend intercepts and at 90% for the Kueredougou West and Kueredougou Untested zones
Tables presents all composite assays values returning greater than 0.5 g/t gold over 1 metre and those holes were no assays greater than 0.5 g/t gold over 1 metre were received

Contact Information