NEW DRILL INTERCEPTS DEMONSTRATE EXTENSIONS TO BOTH THE RESOURCE ZONE AND NEW RESOURCE TARGETS
Toronto, Canada – March 19, 2018 – Savary Gold Corp. (TSX-V: SCA) (“Savary” or the “Company”) is pleased to announce the drill results from a 3,700 metre, 63-hole, air core and reverse circulation drill program that was completed in February on the Karankasso JV Project in south western Burkina Faso, with JV partner Sarama Resources Ltd. Savary is the operator of the project and owns approximately 70%.
This first phase drill program is part of a planned, approximate 19,000 metre auger, air core, reverse circulation and diamond drill program including approximately 8,000 metres of auger drilling. Drilling, pending permitting, is scheduled to be completed by the end of June.
A summary of select results are presented below (see Figures 1 to 3 for locations and Table 1 for additional details).
Serakoro 1 West Area
Karangosso South area – New Target Area from 2017
“Our first phase drill program was successful at expanding the gold mineralization footprint in the Karangosso South, and Serakoro 1 West target areas. At Serakoro 1 West, significant gold mineralization was intersected at all four of the modelled gold-bearing structures that were tested, with two holes providing extensions to the existing resource* area. At Karangosso South, a new discovery in 2017, infill and extension holes have both expanded and validated, an open-ended, up to 70-metre wide multi-lens, 400-metre long zone of gold mineralization.” stated Don Dudek, President and CEO of Savary. Mr. Dudek further noted “we are in a great position, as we are fully funded for this, approximately $2 million 2018 exploration program and eagerly anticipate the next phase of drilling.”
The first phase drill program focussed on the southern concession block where the 2017 program indicated follow-up drilling was required. In total, 3,696 metres of drilling in 63 holes comprising 51 air core holes for 2,364 metres and 12 reverse circulation holes, totalling 1,332 metres were completed. The goal of the program included following up on drill intercepts from 2017, testing new geological models, re-testing some of the stronger gold-in-auger anomalies that did not return gold intercepts in 2017 and to test 50 to 100 ppb gold-in-auger hole anomalies. The drilling was successful in returning the 2nd and 3rd best drill intercepts for the Serakoro 1 West zone (lens SW-A), which were drilled to test for a shallow north plunge of an intercept that returned 2.55 g/t gold over 17 metres. Drilling also resulted in two significant drill intercepts 3.59 g/t gold over 11 metres and 1.23 g/t gold over 14 metres, along lens SW-D, which will require follow-up. As well, new air core holes at the newly discovered Karangosso South Zone demonstrated that the mineralization had continuity and that the mineralization likely extends to the south, proximal to a distinct geophysical anomaly. Weak drill results were returned from the CAA and Serakoro 1 Main areas.
New induced polarization geophysical data was collected along the southern end of the central gold-in-soil anomaly and immediately south of the Karangosso South Zone. The geophysical data clearly defined the southern extensions of the target areas, which, in both cases and will be used to guide future work.
An auger survey, with a focus along laterite covered areas along the western and central part of the project area, is in progress and expected to be completed this month. Drilling will resume once the auger results have been received and interpreted and all permitting is in place, with the drill programs expected to be completed near the end of June 2018.
Serakoro 1 West area
The Serakoro 1 West area (Figure 2) is a 4-kilometre long by up to 1.2-kilometre wide, open ended focus area that contains gold-in-soil values to 5,290 ppb gold. Drilling to date has identified six, moderate-east-dipping, felsic intrusion-hosted gold-mineralized structures and has intersected at least three more, that are currently not defined with intercepts to 6.42 g/t gold over 15 metres, 18.72 g/t gold over 4 metres and 2.78 g/t gold over 5 metres. As well, there are grab samples to 23.4 g/t gold that have not been tested and 25- to 40-metre wide zones of strongly anomalous gold mineralization, which suggest a robust mineralization setting. In management’s opinion, there is significant scope to add additional drill intercepts which could lead to the definition of additional mineral resources. More drilling is planned over the area based on recent drill results and new targets are being developed from an on-going auger survey. A summary of the currently interpreted individual gold-bearing lenses is presented below.
Lens SW-A – Potential 2.7-kilometre strike, current inferred*, open-pit constrained resource estimate of 19,300 ounces at 1.5 g/t gold along a 400 metres strike is open with RC holes 8 and 9 extending the zone, at shallow depth (<100 metres vertical), down dip. Gaps in trend of up to 500 metres wide, still require drill testing.
Lenses SW-B and SW-C – Footwall lenses to SWA. These lenses were not modelled as part of lens SW-A estimate. Can be traced for approximately 500 metres.
Lens SW-D – Clear structure with several good grade drill intercepts including a recent hole that returned 3.59 g/t gold over 11 metres. Target area is at least 2 kilometres long.
Lens SW-E – Drill intercepts to 9.53 g/t gold over 2 metres. Can be traced, with widespread drilling for approximately 800 metres.
Lens SW-F – 100-metre long mineralized zones with initial intercept of 8.74 g/t gold over 6 metres. Continued follow-up is planned. A new RC hole returned 2.29 g/t gold over 7 metres and 0.97 g/t gold over 7 metres. Air core holes 50 metres north and south, indicate that the mineralized system weakens, but, is still present. More work is planned in this area.
Karangosso South Area
The Karangosso South area (Figure 3) lies approximately 1,000 metres south the Karangosso Deposit (Inferred pit-constrained mineral resource* of 151,800 ounces grading 2.23 g/t gold). This 2,000-metre plus long target area was initially highlighted by strongly anomalous gold-in-auger values and initially tested in 2017 with 4 air core holes which returned up to 4.83 g/t Au over 5 metres. Recent holes returned up to 2.94 g/t gold over 7 metres. Up to six, steep-east-dipping lenses of gold mineralization have been identified along the east flank of a distinct, induced polarization geophysical anomaly that, with an apparent offset to the west, can be traced for over 2,000 metres. The southern-most group of holes returned anomalous gold values and demonstrated strong silicification and local pyrite and arsenopyrite mineralization. Gold mineralization is hosted by both felsic intrusions and intermediate composition volcanic rocks. Auger results are outstanding. A series of RC holes, to test the depth extension of the mineralization drilling, are being planned. As well, gaps at the western ends of the drill fences, where there is open-ended mineralization at the ends of several holes, need to be tested.
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 2.0-kilogram samples, as well as description and logging into a database. A duplicate 2.0-kilogram sample, prepared at the same time as the assay sample, is kept as a reference for each sample. 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 7 to 8% of the assayed samples being Savary inserted, 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 and delivered to BIGS laboratory in 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. BIGS 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. 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 70% joint venture ownership and is the operator of the project with Sarama Resources Limited. 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* of 12.3 million tonnes (Mt) grading 2.03 g/t gold for 805,000 ounces. For additional information please visit our website at 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.
* Open pit constrained Mineral resource estimate presented in Savary news release dated November 2, 2017
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 1 – Summary of Significant Intercepts from Phase 1, 2018 drill program
|Hole_Id||From||To||Length*||Au g/t||Target Area|
|HE-AC-18-001||48||50||2||1.42||Serakoro 1 West|
|HE-AC-18-002||NSV||Serakoro 1 West|
|HE-AC-18-003||NSV||Serakoro 1 West|
|HE-AC-18-004||NSV||Serakoro 1 West|
|HE-AC-18-005||35||36||1||0.64||Serakoro 1 West|
|HE-AC-18-006||NSV||Serakoro 1 West|
|HE-AC-18-007||NSV||Serakoro 1 West|
|HE-AC-18-008||NSV||Serakoro 1 West|
|HE-AC-18-009||NSV||Serakoro 1 West|
|HE-AC-18-010||47||48||1||0.57||Serakoro 1 West|
|HE-AC-18-010||36||37||1||0.53||Serakoro 1 West|
|HE-AC-18-011||NSV||Serakoro 1 West|
|HE-AC-18-012||1||9||8||0.72||Serakoro 1 West|
|HE-AC-18-012||23||24||1||0.78||Serakoro 1 West|
|HE-AC-18-012||26||27||1||0.5||Serakoro 1 West|
|HE-AC-18-013||17||18||1||1.27||Serakoro 1 West|
|HE-AC-18-014||NSV||Serakoro 1 West|
|HE-AC-18-015||5||7||2||1.07||Serakoro 1 West|
|HE-AC-18-016||NSV||Sera 1 Main South|
|HE-AC-18-017||24||25||1||1.63||Sera 1 Main South|
|HE-AC-18-018||NSV||Sera 1 Main South|
|HE-AC-18-019||NSV||Sera 1 Main South|
|HE-AC-18-019||NSV||Sera 1 Main South|
|HE-AC-18-020||NSV||Sera 1 Main South|
|HE-AC-18-021||NSV||Sera 1 Main South|
|HE-AC-18-022||NSV||Sera 1 Main South|
|HE-AC-18-023||NSV||Serakoro 1 West North|
|HE-AC-18-024||NSV||Serakoro 1 West|
|HE-AC-18-033||NSV||Serakoro 1 West North|
|HE-AC-18-043||20||25||5||0.51||Serakoro 1 West North|
|HE-AC-18-043||29||31||2||0.81||Serakoro 1 West|
|HE-AC-18-044||25||26||1||5.1||Serakoro 1 West|
|HE-AC-18-045||33||35||2||0.79||Serakoro 1 West|
|HE-AC-18-046||34||39||5||0.54||Serakoro 1 West|
|HE-RC-18-02||91||93||2||1.73||Serakoro 1 West North|
|HE-RC-18-03||65||66||1||0.8||Serakoro 1 West|
|HE-RC-18-04||16||22||6||0.87||Serakoro 1 West|
|HE-RC-18-05||22||36||14||1.23||Serakoro 1 West|
|HE-RC-18-05||6||7||1||0.54||Serakoro 1 West|
|HE-RC-18-06||8||9||1||0.53||Serakoro 1 West|
|HE-RC-18-07||14||18||4||0.98||Serakoro 1 West|
|HE-RC-18-07||75||76||1||2.84||Serakoro 1 West|
|HE-RC-18-08||73||86||13||1.82||Serakoro 1 West|
|Incl.||73||75||2||2.79||Serakoro 1 West|
|Incl.||79||86||7||2.08||Serakoro 1 West|
|HE-RC-18-08||36||37||1||0.91||Serakoro 1 West|
|HE-RC-18-08||133||134||1||0.84||Serakoro 1 West|
|HE-RC-18-08||28||29||1||0.77||Serakoro 1 West|
|HE-RC-18-08||46||47||1||0.73||Serakoro 1 West|
|HE-RC-18-09||61||70||9||1.53||Serakoro 1 West|
|HE-RC-18-09||34||35||1||1.21||Serakoro 1 West|
|HE-RC-18-09||24||25||1||0.79||Serakoro 1 West|
|HE-RC-18-10||43||54||11||3.59||Serakoro 1 West|
|Incl.||43||46||3||1.32||Serakoro 1 West|
|Incl.||51||54||3||11.37||Serakoro 1 West|
|HE-RC-18-10||75||76||1||0.6||Serakoro 1 West|
|HE-RC-18-11||NSV||Serakoro 1 Main South|
|HE-RC-18-12||49||56||7||2.29||Serakoro 1 West|
|Incl.||55||56||1||13.84||Serakoro 1 West|
|HE-RC-18-12||75||82||7||0.97||Serakoro 1 West|
|Incl.||75||76||1||1.86||Serakoro 1 West|
|Incl.||81||82||1||3.63||Serakoro 1 West|
*true widths are estimated at 65% to 90% of drilled widths