Savary Gold Corp. (TSX-V:SCA) and Sarama Resources Ltd. (TSX-V:SWA) announce that they 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. 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.”
About Savary Gold
Savary Gold is a Canadian exploration company focused on exploring the Hounde South Gold 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 South Hounde Project, which is adjacent to Savary Gold’s property).
About Sarama Resources
Sarama Resources Ltd is a West African focused gold explorer with substantial landholdings in Burkina Faso, Liberia and Mali.
Sarama’s flagship properties are situated within the Company’s South Hounde Project area in south-west Burkina Faso. Located within the prolific Hounde greenstone belt, Sarama’s exploration programs have built on significant early success to deliver a maiden Inferred Mineral Resource estimate of 1.5 Moz gold. Outside of Burkina Faso, Sarama is focused on exploring and consolidating a number of under-explored landholdings in other emerging and established mining jurisdictions.
Incorporated in 2010, the Company’s Board and management team have a proven track record in Africa and a strong history in the discovery and development of large-scale gold deposits. Sarama is well positioned to build on its current success with a sound exploration strategy across its prospective property portfolio.
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