TORONTO, ONTARIO--(Marketwired - Jan. 20, 2014) - SAVARY GOLD CORP. ("Savary" or the "Company") (TSX VENTURE:SCA) today provides an update on its Houndé South property, located in south-western Burkina Faso. Exploration has returned economic grade intercepts from each of the four areas that have been drilled as highlighted below (also see figure):
- Karangosso - 10.14 g/t Au over 10.0 metres and 5.82 g/t Au over 8.0 metres
- Kien - 7.36 g/t Au over 8.0 metres and 2.00 g/t over 21.0 metres
- Kueredougou - 21.13 g/t Au over 3.9 metres*
- Diosso South - 3.44 g/t Au over 14.0 metres*
* Avion Gold Corporation news release January 26, 2010
The gold zones in each of these areas are open both along strike and to depth. An updated table presenting the results of the 2013 drill program is attached at the end of this release.
Don Dudek, President and CEO states, "My recent visit to the site has reaffirmed my belief that Savary's property displays potential for better than average grades and large gold-bearing systems that have the potential to support a right-sized economic zone. While at site, a detailed review of the drill results has led to several highlighted positive observations including the size and grade potential of the unique, intrusive-hosted Karangosso zone, the strong similarities of the Kien zone to Endeavour's Vindaloo zone and the common high grades encountered in the drill programmes on Savary's property to date. Interest in projects in Burkina Faso has been rekindled as a result of high grade discoveries by Roxgold, Semafo and Orbis Gold in addition to the recently announced mergers of Volta Resources, Ampella Mining and Teck's strong financial support of True Gold. Savary's goal is to complete the option earn-in of the Houndé South property by completing a drill-focused exploration program in the first half of 2014."
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/sca120-F1.pdf.
The Karangosso zone represents a separate mineralized trend (see figure 2) and an exciting new type of mineralization in the project area. At Karangosso, drilling returned intercepts of 10.14 g/t Au over 10.0 metres, 5.82 g/t Au over 8.0 metres and 1.82 g/t Au over 7.0 metres in two holes that clipped the northern end of the interpreted intrusive body. The mineralization is hosted by a deeply weathered, sericite-altered, quartz porphyry felsic intrusion that magnetic data suggests is approximately 1,200 metres by approximately 350 metres in size. The combination of a large target area, good grades and deep weathering, (implies robust metallurgy and cheap mining costs) makes this new occurrence the highest priority target on the property. Several other magnetic lows occur along this contact suggesting other felsic intrusions and new target areas. This contact zone has seen limited to no exploration in the past even though Semafo's Mana deposit appears to occur in a similar structural position as does Endeavour's Grand Espoir zone.
To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/sca120-F2.pdf.
Savary's other zones Kien, Kueredougou and Diosso South lie along a well-defined gold enriched structural corridor, as shown in the compiled soil geochemical data, that extends at least 40 kilometres southward from the Kien zone onto Sarama's Serakoro 1 property (see figure 3). Management believes that it is highly likely that not only can these current zones be extended along strike and to depth, but, that other zones will be discovered along this trend as well.
To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/sca120-F3.pdf.
Recent drilling at Kien zone displayed gold values associated with strong sericite, pyrite and fuschite altered, quartz veined mafic volcanic rocks that are visually similar to the mineralization style at Endeavour's Vindaloo zone. Drilling has returned intercepts of 2.0 g/t Au over 21.0 metres and 7.35 g/t Au over 7.9 metres along 800 metres of a minimum 1,000 meter long Au-in-soil anomaly which appear to extend to the north and south.
New holes at the northern end of the Kueredougou zone extended the mineralized zone for 1,000 metres to 2,500 metres along strike with good grade intercepts of 2.51 g/t Au over 18.0 metres including 7.52 g/t Au over 5.0 metres, in hole HS-RC-13-54. The Kueredougou zone is still open to the north where a high quality structural target needs drill testing along with follow-up of high grade drill intercepts.
The assay results reported here represent drill results from previous programs, the most recent of which, was carried out in March and April of 2013. To date, Savary has spent approximately $2.1 of a $3 million work commitment in order to earn a 100% interest in the property from Endeavour Mining. Savary's goal is to carry out an approximate $1 million drill program from March to May, 2014 with a focus on extending, and better defining, the gold zones at Karangosso, Kien and Kueredougou. The Company's objective is to work toward publishing a maiden mineral resource estimate as soon as a threshold mineral resource is defined. Once sufficient resources have been defined, management believes the logical next step is to initiate a preliminary economic assessment.
The Houndé South property consists of two exploration licenses, Diosso and Mandiasso, totalling 375 square kilometres and two exploration concession applications totalling 125 square kilometres, and is located in the Birimian age Houndé Greenstone Belt of West Africa, currently the fastest growing gold producing area in the world.
Drilling was carried out by Major Drilling Burkina Faso SA. using a track-mounted, RC drill rig. Sampling of the RC chips was conducted on one metre intervals from surface. 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. Although not accredited, 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. In addition to SGS QA/QC procedures, Savary Gold instituted its own QAQC program consisting of blind and random insertion of standard reference material (1 in 20 samples), field duplicates (3 in 100 samples) and blank samples (2 in 100 samples). Both Major Drilling Burkina Faso SA. and SGS Burkina Faso SA., are independent of Savary Gold.
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. Mr. Dudek has been leading exploration activities in the Houndé belt since 2010 starting with Avion Gold Corp. and more recently with Endeavour Mining Corp. where he supervised the completion of a feasibility study on Endeavour's Houndé property.
About Savary Gold
Savary Gold is a Canadian exploration company focused on exploring the Houndé South Gold Property in Burkina Faso. The property 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 and Sarama's South Houndé Project, which is adjacent to Savary Gold's property). For additional information please visit our website at www.savarygold.com and follow us on Facebook and Twitter: @SavaryGold.
SAVARY GOLD CORP.
On behalf of the Board
Don Dudek, President & Chief Executive Officer
Cautionary Note Regarding Forward-Looking Information
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. Forward-looking statements or information relate to, among other things, the details and timing of the Company's exploration plan, the results of the recently completed drilling and sampling, and the exploration potential of the Company's properties. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the risks associated with outstanding litigation, if any; risks associated with project development; the need for additional financing; operational risks associated with exploration; fluctuations in gold and other commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and other risks and uncertainties, including those described in the Company's most recent Management Discussion & Analysis report filed with the Canadian Securities Administrators and available at www.sedar.com. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements.
Neither the 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.
| Savary 2013 Drill Program Assay Composite summary |
|||||
| Hole # | From | To | Width | Au g/t | Comment |
| HS-RC-13-27 | 1.0 | 5.0 | 4.0 | 1.15 | Kien Area |
| HS-RC-13-27 | 13.0 | 22.0 | 9.0 | 1.24 | Kien Area |
| HS-RC-13-28 | 49.0 | 53.0 | 4.0 | 3.61 | Kien Area |
| HS-RC-13-28 | 79.0 | 82.0 | 3.0 | 0.99 | Kien Area |
| HS-RC-13-29 | 50.0 | 52.0 | 2.0 | 0.85 | Kien Area |
| HS-RC-13-30 | 0.0 | 9.0 | 8.0 | 2.48 | Kien Area |
| HS-RC-13-30 | 13.0 | 16.0 | 3.0 | 0.55 | Kien Area |
| HS-RC-13-30 | 27.0 | 28.0 | 1.0 | 0.89 | Kien Area |
| HS-RC-13-30 | 74.0 | 75.0 | 1.0 | 0.85 | Kien Area |
| HS-RC-13-31 | 54.0 | 75.0 | 21.0 | 2.00 | Kien Area |
| HS-RC-13-31 | 79.0 | 80.0 | 1.0 | 0.90 | Kien Area |
| HS-RC-13-31 | 94.0 | 95.0 | 1.0 | 1.11 | Kien Area |
| HS-RC-13-32 | 3.0 | 11.0 | 8.0 | 7.36 | Kien Area |
| HS-RC-13-32 | 18.0 | 19.0 | 1.0 | 0.79 | Kien Area |
| HS-RC-13-32 | 98.0 | 104.0 | 6.0 | 1.28 | Kien Area |
| HS-RC-13-33 | 8.0 | 9.0 | 1.0 | 0.80 | Kien Area |
| HS-RC-13-33 | 12.0 | 13.0 | 1.0 | 0.55 | Kien Area |
| HS-RC-13-33 | 16.0 | 20.0 | 4.0 | 0.65 | Kien Area |
| HS-RC-13-33 | 31.0 | 32.0 | 1.0 | 1.41 | Kien Area |
| HS-RC-13-34 | NSV | ||||
| HS-RC-13-35 | 52.0 | 57.0 | 5.0 | 0.88 | Kien Area |
| HS-RC-13-36 | NSV | ||||
| HS-RC-13-37 | NSV | ||||
| HS-RC-13-38 | 49.0 | 52.0 | 3.0 | 0.64 | Kien Area |
| HS-RC-13-38 | 85.0 | 86.0 | 1.0 | 0.90 | Kien Area |
| HS-RC-13-42 | 61.0 | 62.0 | 1.0 | 1.43 | Keuredougou area |
| HS-RC-13-43 | 13.0 | 14.0 | 1.0 | 0.50 | Keuredougou area |
| HS-RC-13-43 | 36.0 | 37.0 | 1.0 | 0.81 | Keuredougou area |
| HS-RC-13-43 | 53.0 | 54.0 | 1.0 | 0.88 | Keuredougou area |
| HS-RC-13-44 | 88.0 | 89.0 | 1.0 | 0.86 | Keuredougou area |
| HS-RC-13-46 | 10.0 | 12.0 | 2.0 | 4.50 | Keuredougou area |
| HS-RC-13-46 | 64.0 | 65.0 | 1.0 | 3.82 | Keuredougou area |
| HS-RC-13-47 | 41.0 | 42.0 | 1.0 | 0.66 | Keuredougou area |
| HS-RC-13-47 | 101.0 | 102.0 | 1.0 | 2.00 | Keuredougou area |
| HS-RC-13-49 | 107.0 | 108.0 | 1.0 | 0.71 | Keuredougou area |
| HS-RC-13-49 | 112.0 | 113.0 | 1.0 | 0.62 | Keuredougou area |
| HS-RC-13-51 | 5.0 | 15.0 | 10.0 | 1.06 | Keuredougou area |
| HS-RC-13-52 | 87.0 | 88.0 | 1.0 | 17.00 | Keuredougou area |
| HS-RC-13-54 | 13.0 | 31.0 | 18.0 | 2.51 | Keuredougou area |
| includes | 26.0 | 31.0 | 5.0 | 7.52 | Keuredougou area |
| HS-RC-13-54 | 51.0 | 52.0 | 1.0 | 1.78 | Keuredougou area |
| HS-RC-13-55 | 83.0 | 87.0 | 4.0 | 0.84 | Keuredougou area |
| HS-RC-13-60 | 37.0 | 38.0 | 1.0 | 0.52 | Karangosso area |
| HS-RC-13-63 | 53.0 | 61.0 | 8.0 | 5.77 | Karangosso area |
| HS-RC-13-63 | 84.0 | 94.0 | 10.0 | 10.14 | 4.23 g/t capped at 30 g/t Au |
| HS-RC-13-63 | 93.0 | 94.0 | 1.0 | 1.37 | Karangosso area |
| HS-RC-13-64 | 19.0 | 26.0 | 7.0 | 1.82 | Karangosso area |
| HS-RC-13-72 | 89.0 | 90.0 | 1.0 | 0.77 | Kueredougou area |
| HS-RC-13-73 | NSV | Kueredougou area | |||
Contact Information:
Michael McAllister
Manager, Investor Relations
416-309-2134
info@savarygold.com
www.savarygold.com