TSX.V:

Karankasso

KarankassAfrica Location Mapo Project

Burkina Faso, West Africa

Savary Gold Corp. is focused on the exploration and development of its Karankasso gold Project. Savary has formed a joint venture arrangement between Savary (69.5%) and Sarama Resources (30.5%) which creates a 688 km2 property in the prolific Houndé Gold Belt. The property lies within an emerging gold camp, located about 130 km southwest of SEMAFO’s Mana Mine and 60 km south of Endeavour’s Houndé Deposit.

Savary highlights include:

  • Pit Constrained Inferred Mineral Resources of 11.9 million tonnes grading 1.97 g/t gold totalling 757,000 ounces and Underground Inferred Mineral Resources of 0.42 million tonnes grading 3.57 g/t gold 48,000 ounces*
  • All zones are open with modelled mineralized lenses extending beyond the pit constrained mineral resources at all zones
  • New gold discoveries to follow-up – 2017 drilling returned 2.55 g/t Au over 17 metres, 14.66 g/t Au over 6 metres and 6.73 g/t Au over 7 metres
  • More than 60 new gold occurrences discovered in last 3 years, five regional > 15 km long gold mineralized systems along with numerous, parallel subsidiary mineralized structures
  • Recent drill program returned 1.73 g/t Au over 28 metres at Karangosso and 9.75 g/t Au over 7 metres at a new zone
  • Attractive, high potential asset, in sought after gold belt that is being closely watched by numerous groups

Karankasso Project Claims------------------------------------------------------------------

  • Property includes five exploration licences totalling 688 km2
  • The combined strike of anomalous Au-in-soil trends is approximately 93 km
  • Acacia, formerly African Barrick, has optioned properties to the north, east and south of the Property
  • Semafo controls the property immediately east of the Serakoro 1 property, which hosts the Bantou gold zone

Karankasso Project Deposit Locations

Regional Scale Gold Systems----------------------------------------------------------------

  • Regional scale mineralizing system 5 to 8 km wide x 45 km long
  • Well developed alteration system with higher grade intercepts up to 3.33 g/t Au over 41 metres
  • >45 kilometre long, strong associated, gold-in-soil anomaly
  • Drilling and prospecting has resulted in the discovery of in excess of 60 gold occurrences with samples or drill intercepts containing more than 1 g/t gold.

Regional Geochem 2017

 

Recent Drill Results (Q4, 2016 to 1H, 2017)--------------------------------------------------

A total of 19,221 metres of RC and AC drilling was completed in three program phases between November, 2016 and July, 2017. A summary of new discoveries from the drill programs are listed below (see Figure below for locations).

• Karangosso South – 2.58 g/t gold over 9 metres, minimum 400 m long zone
• CAA – 1.71 g/t Au over 7 metres
• Serakoro 1 West - 2.55 g/t gold over 17 metres – now a new, open-ended resource
• Serakoro 1 Main – 14.66 g/t gold over 6 metres – Extended zone 100 m S
• S-Nosa – 13.05 g/t gold over 4 metres – new mineralized direction
• West Trend North – 2.06 g/t gold over 6 metres – now a new, open-ended resource

 Karankasso Gold Zones Occurrences website

In addition to new discoveries, the drill programs increased the strike length at multiple known zones.

• Karangosso ~75% increase in strike length – open with new intercepts
• Diosso South ~130% increase in strike length from ~860 metres to 2,000 metres
• Kueredougou West ~55% increase in strike length from ~1,800 metres to 2,800 metres

For more detailed information related to each drill program, please use the news release links below.

Savary Gold Drilling Extends Known Zones, Intersects New Gold-Bearing Lenses And Discovers A New Zone January 17, 2017

Savary Gold Drilling Returns 2.55 G/T Gold over 17 Metres and 14.66 G/T Gold over 6 Metres from Southern Part of The Karankasso JV, Burkina Faso March 3, 2017

Savary Gold Drilling Returns 1.95 G/T Gold Over 14 Metres And 19.91 G/T Gold Over 2 Metres Both Approximately 60 Metres From Surface April 10, 2017

Drilling Returns 13.05 G/T Gold over 4 Metres and 2.96 G/T Gold over 7 Metres at 75 Metres and 20 Metres from Surface, Respectively May 4, 2017

Savary Announces Results from The Phase 3 Drill Program August 21, 2017

Resources----------------------------------------------------------------------------------

Up 20% to 12.3 Mt grading 2.03 g/t for 805,000 Ounces of Gold
Pit constrained Inferred Mineral Resources of 11.9 Mt grading 1.97 g/t gold for 757,000 ounces within six different zones using a 0.5 g/t gold cut-off*
Pit-constrained Mineral Resource Estimate and Sensitivity Summary*
resource table open pit oct 2017
 
Underground Inferred Mineral Resources of 0.42 Mt grading 3.57 g/t gold 48,000 ounces*
Underground Mineral Resource Estimate and Sensitivity Summary*
resource table ug oct 2017
*
1. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
2. The Inferred Mineral Resource in this estimate has a lower level of confidence that that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
3. The Karankasso Property Mineral Resource Estimates were prepared by Eugene Puritch, P. Eng., Yungang Wu, P.Geo. and Antoine Yassa, P. Geo. from P&E Mining Consultants Inc., Qualified Persons under NI 43-101 who are independent of the Company
4. The Mineral Resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council
5. The gold price used in this Mineral Resource Estimate was the Sep 30/17 approximate two-year trailing average of US$1,250/oz. Gold recovery ranges from 80% to 97% with an average of 85% and mining costs were US$2.00/tonne for waste and $3.00 per tonne for mineralized material. Processing and G&A costs combined were US$18.50/tonne. Pit optimization slopes were 50 degrees. Bulk densities used for the Mineral Resource Estimate varied by deposit with ranges as follows; Saprolite 1.75 to 1.98 t/m3, Sap Rock 2.20 to 2.45 t/m3 and Fresh Rock 2.70 to 2.80 t/m3.
6. The effective date of the Mineral Resource Estimate is October 5, 2017.
 
 For more detailed resource information please use links below.

Toronto, Canada – November 2, 2017 – Savary Gold Corp. (TSX-V: SCA) (“Savary” or the “Company”) Savary Increases its Karankasso JV Inferred Mineral Resource Estimate

 

Exploration Upside--------------------------------------------------------------------------

  • All mineralized zones are open along strike and to depth
  • The mineralized zones are connected by through-going geophysical anomalies that have seen limited to no drilling between mineralized zones
    • Multi km long sections of anomaly have not been tested
    • The gold-bearing structure hosts a series of wider good grade mineralized lenses separated by sections of weaker mineralization – ‘pearls on a string’
    • There are numerous, parallel and cross-cutting mineralized structures
  • Recent gold-in-auger drill hole results have led to the development and discovery of several new, significant zones of gold mineralization

 Exploration Upside

Southern Extent of Gold System
  • Recently drilled ore grade intercepts requiring follow-up
  • At Serakoro 1 Main-Only wide-spread, first pass testing with good results to date. Drill fences are spaced from 200 to 2,000 metres apart on a 7 km long zone of mineralization
  • An 6 kilometre gap in drilling along the trend from the southern-most CAA area hole and the Serakoro 1 Main area
    • Auger drilling is proposed along the gap in order to develop drill targets
  • Gold Mineralization extends to the southern concession boundary with a 5-km portion not covered by geophysics. Geophysics and AC drilling will be used to trace the gold-bearing trend to the southernmost portion of the property
  • In Savary’s opinion, the likelihood of defining additional resources on the southern portion of the concession is high

 Southern Extent of Gold System

What's Next----------------------------------------------------------------------------------

  • Exploration program for 1stH, Q1, 2018 is being proposed to JV Board
    • ~9,000+ metres of RC drilling
      • Increase inferred resources on known zones
      • Follow-up on new drill discoveries
      • Test new targets
    • ~1,900+ metres of Core drilling
      • To test higher grade zones at depth, get higher quality geology and structural information and collect additional metallurgical samples
    • ~1,700+ metres of AC drilling
      • Follow-up on new drill discoveries
      • Test new targets
    • ~8,200 metres of auger drilling
      • Test for gold zones in covered areas
    • 63 line km of geophysical surveys
      • Trace Karangosso South Zone target area to the south
      • Trace central gold mineralized trend to southern concession boundary
    • Geological mapping