Source
MARKET NEWS
Date 10/08/2015
Time 06:35:51 AM
Company
Savary Gold Corp.
Title Establishes an
Initial Pit Constrained Inferred
CDNX Symbol: SCA
Press Release
[200/News Release] SCA V SAVARY GOLD CORP OCT 08 2015 06:34
AM Establishes an
Initial Pit Constrained Inferred Mineral Resource of 671,000 Ounces of
Gold
grading 2.28 g/t on its Karankasso JV Project in Burkina Faso --->@NEWS
RELEASE
SAVARY GOLD CORP ("SCA-V")
- Establishes an Initial Pit-Constrained Inferred Mineral
- Resource of 671,000 Ounces of Gold grading 2.28 g/t on its
- Karankasso JV Project in Burkina Faso
Savary Gold Corp. ("Savary" or the "Company") is pleased to
announce an initial mineral resource estimate for its Karankasso Joint
Venture Project in Burkina Faso of 9.2 million tonnes grading 2.28 g/t
gold at a 0.5 g/t gold cut-off.
This release presents pit constrained Inferred Mineral Resources
for six different zones. All zones appear to be open along strike and
to depth. A summary of the zones is presented below:
-Pit constrained Inferred Mineral Resources of 671,000 ounces*
grading 2.28 g/t gold within 9.2 million tonnes in six zones using a
0.5 g/t gold cut-off
-All mineralized zones remain open in at least two directions with
modelled mineralized zones extending beyond the pit constrained mineral
resources at all zones.
-Preliminary metallurgical work on three of the six zones suggest
average fresh rock recoveries of in excess of 90% (see Savary news
release August 21, 2014)
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 quantity and grade of reported Inferred mineral resources in
this estimation are uncertain in nature and there has been insufficient
exploration to define these Inferred resources as an Indicated or
Measured mineral resource and it is uncertain if further exploration
will result in upgrading them to an Indicated or Measured mineral
resource category.
3.The Karankasso Property Resource Estimates were prepared by
Eugene Puritch, P. Eng. 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 estimate was the Aug 31/15
approximate two year trailing average of US$1,250/oz. Gold recovery was
93% and mining costs were US$2.75/tonne. Processing and G&A costs
combined were US$18.50/tonne. Pit optimization slopes were 50 degrees.
Bulk densities used for the resource estimate were as follows;
Saprolite 1.98 t/m3, Sap Rock 2.45 t/m3 and Fresh Rock 2.80 t/m3.
6.The effective date of the Mineral Resource Estimate will be
October 7, 2015.
Don Dudek, Savary's President and CEO commented: "From the
drilling completed to date, all zones extend beyond their
pit-constrained limits with most zone resources grading in excess of 2
g/t Au to a high of 3.28 g/t Au. Looking forward, management believes
that Savary can continue to expand on the existing mineralized zones
and discover new zones. Our focus will be to further test those zones
that show the highest potential to increase in size combined with good
grades and low potential strip ratios."
The Karankasso Property (the "Property") is located approximately
300 kilometres southwest of Ouagadougou, Burkina Faso's capital city
(see Figure), 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.
During the period from April 21, 2015 to June 30, 2015, 115
reverse circulation drill holes were completed on the Property for a
total of approximately 14,514 metres of drilling. Following the drill
program the various zones were interpreted by Savary and resource model
wire frames were provided to P&E Mining Consultants Inc. for validation
and subsequent resource estimation.
Mineral Resources have been estimated for six zones: Kien East,
Kueredougou, Kueredougou West, Diosso South, Kueredougou West Trend and
Karangosso, along an approximate 21 kilometre strike length in the
northern half of the property (see Figure 1). Approximately 20% of the
Pit constrained Inferred Mineral Resources are oxidized saprolite and
sap rock with the remainder of the resources in fresh rock. The Kien
East Zone is the largest of the six deposits containing approximately
3.6 million tonnes of Pit constrained Inferred Mineral Resources
grading 1.65 g/t gold totaling 191,000 ounces (see Figure 2). The
Kueredougou West Zone is the second largest zone with Pit constrained
Inferred Mineral Resources of 1.9 million tonnes grading 2.12 g/t gold
totaling approximately 130,000 ounces. The Kueredougou Main Zone is the
highest grade containing 0.8 million tonnes of Pit constrained Inferred
Mineral Resources grading 3.31 g/t gold totaling 85,000 ounces (see
Figure 3) followed closely by the Kueredougou West Trend Zone
containing Pit constrained Inferred Mineral Resources of 0.6 million
tonnes grading 3.28 g/t gold totaling 66,000 ounces.
The resource estimation is based on a total of 194 reverse
circulation and diamond drill holes totaling 23,208 metres.
Resource estimation utilized 3D constraining wireframes, capped 1m
composites (capped between 20g/t and 30 g/t) and inverse distance cubed
(1D3) grade interpolation.
Mineral resource depletion, due to artisanal mining activity, was
estimated for all zones using the following parameters:
--Kueredougou Main Zone - Saprolite - 75% removed, Saprock - 75%
removed from Main 2 zone from 1196575N to 1196625N to 50 m depth
--Diosso South- Saprolite - 50% removed
--Kien East (West lens) - Saprolite - 50% removed
--Kueredougou West Trend - Saprolite 50% removed
--Karangosso - no artisanal mining
--Kueredougou West Zone - no significant artisanal mining
--Kien East - no significant artisanal mining
Preliminary metallurgical work indicated average fresh rock gold
recoveries for three of the six zones (Kien East, Kueredougou and
Karangosso) of 93% (see Savary Gold new release August 21, 2014). It is
expected that the Diosso South and Kueredougou West Zones will have
similar gold recovery characteristics as the Kueredougou Zone, as they
are hosted by the same structural zone and that gold recoveries in
oxidized rock would be slightly better. Preliminary metallurgical work
is planned for the Diosso, Kueredougou West and Kueredougou West Trend
Zones.
The mineralized zones are structurally-controlled and hosted by a
variety of sediment, intermediate volcanic, potassic granite and
diorite porphyry. Hydrothermal alteration minerals comprise a mixture
of quartz vein, sericite, carbonate and pyrite with local fuchsite,
arsenopyrite and tourmaline.
A summary of the of the Inferred Mineral Resource estimates,
within an optimized pit shell, is presented in Table 1 with resource
estimate details for each deposit, presented in Table 2. Cut-off grades
at both, 0.5 g/t gold and 1.0 g/t gold, are presented with the mineral
resource at a 0.5 g/t gold cut-off grade chosen as the base case.
Optimized pit depths range from less than 100 metres for the
Kueredougou West Zone to approximately 160 metres depth at the
Karangosso Zone where locally higher grades draw the pit deeper.
Table 1 - Pit Constrained Mineral Resource Estimate and
Sensitivity Summary*
//st
----------------------------------------------------------------Zone
Au Cut-Off
Mineralization Tonnes
Au
Au oz
Type
g/t
--------------------------------------------------------------Summary 0.5 g/t
Saprolite
1.96
Resource
916,000
57,700
Estimate
------------------------------------Sap Rock
1,135,000 2.10 76,500
------------------------------------Fresh
7,111,000 2.35 536,800
------------------------------------Total
9,162,000 2.28 671,000
------------------------------------------------------1.0 g/t
Saprolite
717,000 2.30
Resource Estimate
52,900
Sensitivity
-------------------------------------
Sap Rock
876,000 2.49
70,100
------------------------------------Fresh
6,122,000 2.60 512,200
------------------------------------Total
7,715,000 2.56 635,200
----------------------------------------------------------------//et
*
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 quantity and grade of reported inferred resources in this
estimation are uncertain in nature and there has been insufficient
exploration to define these Inferred resources as an Indicated or
Measured mineral resource and it is uncertain if further exploration
will result in upgrading them to an Indicated or Measured mineral
resource category.
3.The Karankasso Property Resource Estimates were prepared by
Eugene Puritch, P. Eng. 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 estimate was the Aug 31/15
approximate two year trailing average of US$1,250/oz. Gold recovery was
93% and mining costs were US$2.75/tonne. Processing and G&A costs
combined were US$18.50/tonne. Pit optimization slopes were 50 degrees.
Bulk densities used for the resource estimate were as follows;
Saprolite 1.98 t/m3, Sap Rock 2.45 t/m3 and Fresh Rock 2.80 t/m3.
6.The effective date of the Mineral Resource Estimate will be
October 7, 2015.
Table 2 - Pit Constrained Mineral Resource Estimate and
Sensitivity Details by Zone*
//st
------------------------------------------------------------------------Zone
Au Cut-Off
Mineralization Tonnes
Au
Au oz
Type
g/t
-----------------------------------------------------------------------Karangosso
0.5 g/t
Saprolite
285,000 2.19 20,100
Resource
Estimate
------------------------------------Sap Rock
165,000 2.72 14,500
------------------------------------Fresh
975,000 2.81 87,900
------------------------------------Total
1,425,000 2.68 122,500
------------------------------------------------------1.0 g/t
Saprolite
233,000 2.50 18,700
Resource Estimate
Sensitivity
------------------------------------Sap Rock
140,000 3.06 13,800
------------------------------------Fresh
821,000 3.19 84,100
------------------------------------Total
1,194,000 3.04 116,600
-----------------------------------------------------------------------Diosso
South 0.5 g/t
Saprolite
5,000
1.44 200
Resource
Estimate
------------------------------------Sap Rock
174,000
2.28 12,800
------------------------------------Fresh
642,000
3.12 64,400
------------------------------------Total
821,000
2.93 77,400
------------------------------------------------------1.0 g/t
Saprolite
3,000
1.89 200
Resource Estimate
Sensitivity
------------------------------------Sap Rock
143,000
2.63 12,000
------------------------------------Fresh
563,000
3.44 62,300
------------------------------------Total
709,000
3.27 74,500
-----------------------------------------------------------------------Kueredougou West 0.5 g/t
Saprolite
34,000 3.78 4,100
Trend
Resource
Estimate
------------------------------------Sap Rock
177,000
3.21 18,200
------------------------------------Fresh
413,000
3.27 43,500
------------------------------------Total
624,000
3.28 65,800
------------------------------------------------------1.0 g/t
Saprolite
33,000 3.84 4,100
Resource Estimate
Sensitivity
------------------------------------Sap Rock
151,000
3.61 17,500
-------------------------------------Fresh
334,000
3.88 41,700
------------------------------------Total
518,000
3.80 63,300
-----------------------------------------------------------------------Kueredougou West 0.5 g/t
Saprolite
274,000
2.16 19,000
Resource
Estimate
------------------------------------Sap Rock
180,000 1.93 11,200
------------------------------------Fresh
1,450,000 2.13 99,500
------------------------------------Total
1,904,000 2.12 129,700
------------------------------------------------------1.0 g/t
Saprolite
240,000 2.35 18,200
Resource Estimate
Sensitivity
------------------------------------Sap Rock
165,000 2.04 10,800
------------------------------------Fresh
1,293,000 2.30 95,600
------------------------------------Total
1,698,000 2.28 124,600
-----------------------------------------------------------------------Kueredougou
0.5 g/t
Saprolite
15,000 2.84 1,400
Main
Resource
Estimate
------------------------------------Sap Rock
27,000 2.79 2,400
------------------------------------Fresh
753,000
3.33 80,700
------------------------------------Total
795,000
3.31 84,500
------------------------------------------------------1.0 g/t
Saprolite
12,000 3.39 1,300
Resource Estimate
Sensitivity
------------------------------------Sap Rock
25,000 2.96 2,300
------------------------------------Fresh
672,000
3.64 78,700
------------------------------------Total
709,000
3.61 82,300
------------------------------------------------------------------------
Kien East
0.5 g/t
Saprolite
Resource
Estimate
------------------------------------Sap Rock
412,000 1.32 17,400
304,000
1.33
13,000
------------------------------------Fresh
2,877,000 1.74 160,700
------------------------------------Total
3,593,000 1.65 191,100
------------------------------------------------------1.0 g/t
Saprolite
196,000 1.67 10,500
Resource Estimate
Sensitivity
------------------------------------Sap Rock
253,000 1.67
13,600
------------------------------------Fresh
2,437,000 1.91 149,800
------------------------------------Total
2,886,000 1.87 173,900
------------------------------------------------------------------------//et
Based on a 0.5 g/t gold cut-off, a $2.75 per tonne mining cost,
$15.00 per tonne for milling, $3.50 per tonne for G&A and 50 degree pit
walls.
Figure 2 - Kien East Zone modelled gold-mineralized lenses and
Optimized pits
(img src='https://www.thenewswire.com/client_files/tnwv3KK2A_.png'
/) @ https://www.thenewswire.com/client_files/tnwv3KK2A.png
Click Image To View Full Size
Figure 3 - Kueredougou Main Zone modelled gold-mineralized lenses
and Optimized pits
(img src='https://www.thenewswire.com/client_files/tnwkBtbjA_.png'
/) @ https://www.thenewswire.com/client_files/tnwkBtbjA.png
Click Image To View Full Size
The Property is 65% owned by Savary and 35% owned by Sarama, with
Savary acting as the operator.
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 staff from Ouagadougou, Burkina Faso. Sample preparation and
fire assays were performed by SGS Laboratories 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 106?m. 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 Property is in the Birimian
age Hounde Greenstone Belt, which hosts Semafo's Mana mine and
additional gold deposits that are presently subject to extensive
exploration efforts (including Endeavour Mining's Hounde Project,
Roxgold's Yaramoko Project and Sarama's/Acacia's South Hounde JV
Project, which is adjacent to the Karankasso JV property). For
additional information please visit our website at www.savarygold.com.
Qualified Persons
The mineral resource estimates in this press release were prepared
by Eugene Puritch, P.Eng., and Antoine Yassa, P.Geo., of P&E Mining
Consultants Inc., each an independent Qualified Person, as defined by
National Instrument 43-101 ("NI 43-101"). Mr. Puritch has reviewed and
approved the contents of this news release.
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 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.
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, potential extensions to the gold zones, potential gold
recoveries, whittle pit parameters, new targets and management's belief
in the potential of the project. 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.
TSX Venture closing price for SCA-V
Date: 2015/10/07
Closing Price: 0.03
TEL: 647-259-2097 Don Dudek
E:
info@savarygold.com
Internet: www.savarygold.com
____________________________________________________________
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Toronto:(416)366-8881
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