Savary Gold (SCA-V) and Sarama Resources (SWA-V) Sept 11, '14 have finalized the terms of a joint venture arrangement which will unify the operatorship of Savary's Hounde South property and Sarama's Serakoro 1 property. Closing of the JV arrangement is subject to the satisfaction of certain conditions by each of Savary and Sarama. The proposed JV company will control a 750 square kilometre property in the highly prospective Hounde belt that will be 65% owned by Savary and 35% owned by Sarama, with Savary acting as the operator.
The combined properties host numerous gold-bearing drill intercepts along a 50 kilometre and a 24 kilometre long, mining camp scale, gold-in-soil anomalies (see figure). Exploration to date has identified four centres of gold mineralization on the Hounde South block, each of which host from four to ten, open ended, modelled gold zones. Geochemical and limited drill data suggest potential for additional centres of gold mineralization on the JV property. Subsequent program goals include targeted follow-up of existing zones, with a goal towards defining a material mineral resource and wide-spaced target testing designed to demonstrate the additional exploration upside of the property. The drill program is targeted to commence in late 2014, early 2015 with a management goal to publish a maiden resource by the end of the second quarter 2015.
As part of completion of the JV deal, Sarama is deemed to have participated in the previous exploration program of approximately US$1 million and will fund its pro-rata share of 35% of the previous project expenditures to a $350,000, maximum.
"This JV deal provides potential value growth for Savary shareholders in the next 10 months as we move toward defining our first resource estimate," stated Don Dudek, President and CEO of Savary Gold Corp. "In addition to teaming up with Sarama, a well respected exploration and mine finding team, Savary plans to work with Sarama's in-country technical staff and use every opportunity available to keep overhead and operational costs low through the joint utilization of Sarama's existing infrastructure and staffing, when appropriate. Through this deal, Savary shareholders will have a majority interest in a property package which essentially doubles the potential of the Hounde South property in one of the most prospective gold belts in Burkina Faso. Savary shareholders will also gain from cross-marketing opportunities and the reduction of funding risk as the project is advanced."
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.
For further information on the Company's activities, please contact:
Andrew Dinning or Paul Schmiede |
