Savary Gold Corp (TSXV:SCA) provided an update on the ongoing exploration activities at the Karankasso JV project (69.5% SCA / 30.5% SWA) in Burkina
Faso. Savary has collected 5,231 soil samples and completed auger drilling of 1,381 holes and 275 line km of IP gradient geophysical surveys since
the current exploration program was initiated in October 2016. Of note, the program has delineated a 3.9 km long untested target that links the Diosso
South, West Trend, Kueredougou West and Kueredougou Main. In addition, geophysical surveying at the Serakoro 1 Main area appears to have extended the
control shear/alteration structure an additional 13 km to the south to a total traceable distance of ~43 km. In our view, these initial results are
promising and suggest that further resource growth is possible outside the existing resources. The current 10 km, 90 hole Phase 2 drill program that
commenced in January 2017 has been focused on exploration drilling in the southern part of the property. In our view, pending drill results from the
drill campaign that is ~27% complete with 28 holes drilled, and the resource update expected in H2 2017, are likely to benefit Savary’s share price.
Savary currently trades at a discount to peers (C$27/oz vs. peers at C$43/oz), suggesting that Karankasso’s potential resource growth is not yet priced
into the stock.
Derek Macpherson | VP Mining Analysis
Sunneva Bernhardsdottir | Associate, Mining Analysis
Victoria Ellis Hayes | Associate
Red Cloud Klondike Strike Inc.
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Toronto ON, M5K 1H1
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Company Specific Disclosure Details
Sarama Resource Ltd. - TSXV:SWA - 2,3,4
Savary Gold Corp. - TSXV:SCA - 3,4,6,7
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