2019 Karankasso Exploration Budget Set at $5 Million
September 17, 2019
2019 KARANKASSO EXPLORATION BUDGET SET AT $5 MILLION
VANCOUVER, CANADA. Sarama Resources Ltd. (“Sarama” or the “Company”) (TSX-V:SWA) is pleased to announce that
Semafo Inc (“Semafo”), its partner and operator in the Karankasso Project Joint Venture (“Karankasso”), announced
on 16 September 2019, that the 2019 exploration budget for the Karankasso program has been set at $5 million. The
program will focus on testing an extensive number of soil anomalies, many of which are located along the Karankasso
trends that host the existing 805,000-ounce inferred mineral resource.
The objective of the 2019 Karankasso program is to identify new mineralization that can be delineated and added to
the resources base in 2020.
Sarama holds approximately 22% participating interest in Karankasso.
Sarama’s President and CEO, Andrew Dinning, commented:
“We are pleased to be working with our new JV Partner SEMAFO who have a successful track record in country and
bring a competent and experienced team to the project.”
For further information on the Company’s activities, please contact:
Andrew Dinning or Paul Schmiede
t: +61 (0) 8 9363 7600
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ABOUT SARAMA RESOURCES LTD
Sarama Resources Ltd (TSX-V: SWA) is a West African focused gold explorer and developer with substantial landholdings
in Burkina Faso. Sarama is focused on consolidating under-explored landholdings in Burkina Faso and advancing its key
projects towards development.
Sarama’s South Houndé and ThreeBee Projects, in which the Company has the ability to hold a 100% interest (4,6), are
located within the prolific Houndé Greenstone Belt in south-west Burkina Faso and are the exploration and development
focus of the company. Its exploration programs have successfully discovered an inferred mineral resource estimate of
2.1Moz gold(1) at the South Houndé Project which is complemented by the ThreeBee Project’s Bondi Deposit (historical
estimate of mineral resources of 0.3Moz Au measured and indicated and 0.1Moz Au inferred(2)).
Together, the projects form a cluster of advanced gold deposits, within trucking distance of one another, which
potentially offers a development option for a central processing facility in the southern Houndé Belt region of Burkina
Faso, fed from multiple sources.
Sarama has also built a growth pipeline which features a new 600km² exploration position in the highly pro spective
Banfora Belt in south-western Burkina Faso. The Koumandara Project hosts several regional -scale structural features
and trends of gold-in-soil anomalism extending for over 40km along strike.
Sarama holds approximately 22% participating interest in the Karankasso Project Joint Venture (“JV”) which is situated
adjacent to the Company’s South Houndé Project in Burkina Faso and is a JV between Sarama and Semafo . Semafo is
the operator of the JV, having acquired the previous operator, Savary Gold Corp. (“Savary”). In October 2015, Savary
declared a maiden inferred mineral resource estimate of 671,000 ounces of contained gold(3) at the Karankasso Project
JV.
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 property portfolio.
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FOOTNOTES
1. South Houndé Project - 43.0Mt @ 1.5g/t Au (reported above cut-off grades ranging 0.3 -2.2g/t Au, reflecting the mining methods and
processing flowsheets assumed to assess the likelihood of the inferred mineral resources having reasonable prospects for eventual economic
extraction). This mineral resource con tains an oxide and transition component of 16.0Mt @ 1.2g/t Au for 611koz Au (reported at a cut -off
grade of 0.3g/t Au for oxide and 0.8g/t Au for transition material). The effective date of the Company’s inferred mineral resource estimate is
February 4, 2 016. For further information regarding the mineral resource estimate please refer to the technical report titled “NI 43 -101
Independent Technical Report South Houndé Project Update, Bougouriba and Ioba Provinces, Burkina Faso”, dated March 31, 2016 and
prepared by Adrian Shepherd. Adrian Shepherd is an employee of Cube Consulting Pty Ltd and is independent of Sarama. The technical report
is available under Sarama’s profile on SEDAR at www.sedar.com .
2. Bondi Deposit - 4.1Mt @ 2.1g/t Au for 282,000oz Au (measured and indicated) and 2.5Mt @ 1.8g/t Au for 149,700oz Au (inferred), reported
at a 0.5 g/t Au cut-off.
i. The historical estimate of the Bondi Deposit reflects a mineral resource estimate compiled by Orezone Gold Corporation (“Orezone”)
which has an effective date of February 20, 2009. The historical estimate is contained in a technical report titled “Technic al Report on
the Mineral Resource of the Bondigui Gold Project”, dated date of February 20, 2009 and prepared by Y ves Buro (the “Bondi Technical
Report”). Yves Buro is an employee of Met -Chem Canada Inc and is independent of Orezone and Sarama. The technical report is
available under Orezone’s profile on SEDAR at www.sedar.com .
ii. Sarama believes that the historical estimate is relevant to investors’ understanding of the property, as it reflects the most re cent
technical work undertaken in respect of the Bondi Deposit.
iii. The historical estimate was informed by 886 drillholes, assayed for gold by cyanidation methods, were used to interpret mineralised
envelopes and geological zones over the area of the historical estimate. Gold grade interpolation was undertaken using ID²
methodology based on input parameters derived from geostatistical and geological analyses assessments. Field measurements and
geological logging of drillholes were used to determine weathering boundaries and bulk densities for modelled blocks.
iv. The historical estimate uses the mineral resource reporting categories required under National Instrument 43 -101.
v. No more recent estimates of the mineral resource or other data are available.
vi. Sarama is currently undertaking the necessary verification work in the field and on the desktop that may support the future
reclassification of the historical estimate to a mineral resource.
vii. A qualified person engaged by Sarama has not undertaken sufficient work to verify the historical estimate as a current mineral resource
and Sarama is therefore not treating the historical estimate as a current mineral resource.
3. Karankasso Project – 12.3Mt @ 2.03g/t Au (at a 0.5g/t Au cut-off). The effective date (“Effective Date”) of the most recent Karankasso Project
JV mineral resource estimate is October 5, 2017, no Technical report was filed as the change in Mineral Resource was deemed immaterial. For
further information regarding that mineral resource estimate please refer to the technical report titled “Technical Report and Resource
Estimate on the Karankasso Project, Burkina Faso”, dated October 7, 2015 and prepared by Eugene Puritch and Antoine Yassa. Eugene Puritch
and Antoine Yassa are employees of P&E Mining Consultants Inc. and are independent of Savary and Sarama. The technical report is available
under Savary’s profile on SEDAR at www.sedar.com . Sarama has not independently verified Savary’s mineral resource estimate and takes no
responsibility for its accuracy. Semafo is the operator of the Karankasso Project JV and Sarama is relying on their Qualified Persons’ assurance
of the validity of the mineral resource estimate. Additional technical work has been undertaken on the Karankasso Project since the Effective
Date, including but not limited to, metallurgical testwork, exploration drilling and mineral resource estimation, but Sarama is not in a position
to quantify the impact of this additional work on the mineral reso urce estimate referred to above.
4. The ThreeBee Project comprises the Djarkadougou, Botoro, Bamako (5) and Bouni(5) Properties and Sarama has, or is entitled to have, a 100%
interest in each of the properties. The Djarkadougou, Bamako and Bouni Exploration Permits are going through a process with the government
of Burkina Faso where it is required t hey be reissued as a new full -term exploration permit. The Company anticipates this to be completed in
due course, though there can be no assurance that the process will be successfully completed on a timely basis, or at all.
5. For further information regarding the drilling on the Bamako and Bouni Properties, please refer to the technical report titled “NI 43 -101
Independent Technical Report South Houndé Project Update, Bougouriba and Ioba Provinces, Burkina Faso”, dated October 28, 2013 and
prepared by Adrian S hepherd. Adrian Shepherd is an employee of Cube Consulting Pty Ltd and is considered independent of Sarama. The
technical report is available under Sarama’ s profile on SEDAR at www.sedar.com .
6. Upon satisfaction by Acaci a of certain conditions precedent and completion of the Termination Agreement with Acacia, Sarama will have a
100% interest in the South Houndé Project and will be the operator of the Project. For further details see the Company’s new s release of May
14, 2019, a copy of which is available under the Company’s profile on SEDAR at www.sedar.com .
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information in this disclosure that is not a statement of historical fact constitutes forward -looking information. Such forward- looking information
includes statements regarding the potential for the receipt of regulatory approvals, the satisfaction of conditions precedent in relation to an the
completion of definitive agreements (including the Termination Agreement with Acacia) , the potential of the projects to host mineralization of
significance to support regional development plans, the timing and prospects for the reissuance of the Djarkadougou, Bamako and Bouni Exploration
Permits by the government of Burkina Faso , plans for exploration and development at the South Houndé and ThreeBee Projects, the potential to
expand the present oxide component of the exist ing estimated mineral res ources at the South Houndé Project and the reliability of the historical
estimate of mineral resources at the Bondi Deposit.
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Actual results, performance or achievements of the Company may vary from the results suggested by such forward- looking statements d ue to known
and unknown risks, uncertainties and other factors. Such factors include, among others, that the business of exploration for gold and other precious
minerals involves a high degree of risk and is highly speculative in nature; Mineral Resources are not Mineral Reserves, they do not have demonstrated
economic viability, and there is no certainty that they can be upgraded to Mineral Reserves through continued exploration; fe w properties that are
explored are ultimately developed into producing mine s; geological factors; the actual results of current and future exploration; changes in project
parameters as plans continue to be evaluated, as well as those factors disclosed in the Company’s publicly filed documents. There can be no assurance
that any m ineralisation that is discovered will be proven to be economic, or that future required regulatory licensing or approvals wil l be obtained.
However, the Company believes that the assumptions and expectations reflected in the forward- looking information are reasonable. Assumptions
have been made regarding, among other things, Acacia’s continued funding of exploration activities, the Company’s ability to carry on its exploration
activities, the sufficiency of funding, the timely receipt of required approvals, the price of gold and other precious metals, that the Company will not
be affected by adverse political events, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company
to obtain further financing as and when required and on reasonable terms. Readers should not place undue reliance on forward- looking information.
Sarama does not undertake to update any forward- looking information, except as required by applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
QUALIFIED PERSONS’ STATEMENT
Scientific or technical information in this disclosure that relates to exploration activities on the Company’s properties in Burkina Faso is based on
information compiled or approved by Guy Scherrer. Guy Scherrer is an employee of Sarama Resources Ltd and is a member in good standing of the
Ordre des Géologues du Québec and has sufficient experience which is relevant to the commodity, style of mineralisation under consideration and
activity which he is undertaking to qualify as a Qualified Person under National Instrument 43 -101. Guy Scherrer consents to the inclusion in this
disclosure of the information, in the form and context in which it appears.
Scientific or technical information in this disclosure that relates to the preparation of the South Houndé Project mineral resource estimate is based on
information compiled or approved by Adrian Shepherd. Adrian Shepherd is an employee of Cube Consulting Pty Ltd and is indepen dent of Sarama
Resources Ltd. Adrian Shepherd is a Chartered Professional Member in good standing of the Australasian Institute of Mining and Metallurgy and has
sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which he i s undertaking to qualify as
a Qualified Person under National Instrument 43 -101. Adrian Shepherd consents to the inclusion in this disclosure of the information, in the form and
context in which it appears.
Scientific or technical information in this disclosure , in respect of the Bondi D eposit relating to mineral resource and exploration information drawn
from the Technical Report prepared for Orezone on that deposit has been approved by Guy Scherrer. Guy Scherrer is an employee of Sarama Resources
Ltd and is a member in good standing of the Ordre des Géologues du Québec and has sufficient experience which is relevant to the commodity, style
of mineralisation under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43 -101. Guy
Scherrer consents to the inclusion in this disclosure of the information, in the form and context in which it appears.
Scientific or technical information in this disclosure that relates to the quotation of the Karankasso Project’s mineral resource estimate is based on
information compiled by Paul Schmiede. Paul Schmiede i s an employee of Sarama Resources Ltd and is a Fellow in good standing of the Australasian
Institute of Mining and Metallurgy . Paul Schmiede has sufficient experience which is relevant to the commodity, style of mineralisation under
consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43 -101. Paul Schmiede consents to the
inclusion in this disclosure of the information, in the form and context in which it appears. Paul Schmiede and Sarama have not independently verified
Savary’s mineral resource estimate and take no responsibility for its accuracy .
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