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Canadian exploration company Savary Gold Corp and West African explorer Sarama Resources have finalised the terms of a joint venture (JV) to operate properties containing gold deposits in Burkina Faso
According to the terms of the JV, the proposed company that will be formed as part of the arrangement, will control a 750 sq km property in the Houndé belt. 65 per cent of the belt will be owned by Savary Gold Corp and 35 per cent by Sarama Resources, with Savary Gold Corp acting as the operator.
“This JV deal provides potential value growth for Savary shareholders in the next 10 months as we move toward defining our first resource estimate. In addition to teaming up with Sarama, Savary plans to work with its in-country technical staff and use every opportunity available to keep overhead and operational costs low through the joint utilisation of Sarama’s existing infrastructure and staffing,” said Don Dudek, CEO of Savary Gold Corp.
The properties have several gold-bearing drill intercepts along a 50 km and 24 km-long mining camp scale. Exploration activities have revealed four centres of gold mineralisation in the Houndé South Block, and geochemical data suggested the presence of additional areas for gold mineralisation, said officials from Savary Gold Corp.
The drill programme is targeted to commence in late 2014 or early 2015, added officials from Savary Gold Corp.