Sarama Resources Announces Assay Resu Lts from Bamako 2 Drill Program IN South-WEST Burkina Faso
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January 30, 2020
SARAMA RESOURCES ANNOUNCES ASSAY RESU LTS FROM
BAMAKO 2 DRILL PROGRAM IN SOUTH-WEST BURKINA FASO
VANCOUVER, CANADA. Sarama Resources Ltd. (“ Sarama” or the “ Company”) (TSX-V:SWA) is pleased to announce
reconnaissance drilling has intersected a new zone of high-grade gold mineralisation at its Bamako 2 Property (“Bamako
2” or the “ Property”) in south-western Burkina Faso. The discovery was part of a 2,000m reverse ci rculation (“RC”)
reconnaissance drilling program targeting gold-in-soil anomalism and historical artisanal gold workings. The program is
the first drilling to be conducted on the Property in approximately 7½ years.
The 119km² Property is part of the Company’s 100%-owned(4) ThreeBee Project (refer Figure 1). Sarama believes it has
the potential to contribute high-grade feed to a possible central processing facility as part of an eventual regional project
development in the southern Houndé Belt involving the Company’s combined South Houndé and ThreeBee Projects.
Further field mapping and geological interpretation will be undertaken in Q1 2020 to support follow-up drilling in these
newly drilled areas as well as in areas with historical high-grade drill intersections.
Highlights
Sarama’s President and CEO, Andrew Dinning, commented:
“We are pleased to have resumed exploration at the Bamako 2 Property and are encouraged by the discovery of this
new zone of high-grade mineralisation. While the scout drill program was small, the results highlight the potential for
the Property to host mineralisation of significance, especially when considered with the results of historical exploration
by Sarama. The high-grade nature of the Property’s mineralisation provides Sarama with various potential exploitation
options as it is located within trucking distance of Sarama’s South Houndé Project and is also proximal to Teranga Gold
Corp’s Golden Hill Project, lowering the size threshold for an economic resource when it comes time to make a production
decision.”
• Reconnaissance drill program consisted of 21 RC holes, totalling 2,000m. Full results are listed in Appendix A
with significant intersections including:
o 18m @ 1.20g/t Au from 44m in BAR003, including 2m at 5.47g/t Au from 56m;
o 8m @ 18.40g/t Au from 42m in BAR004, including 1m at 139g/t Au from 45m; and
o 12m @ 0.99g/t Au from 32m in BAR007, including 1m at 6.94g/t Au from 39m.
• Strike length of surface-mapped mineralisation established at over 3km in strike length
• Mineralisation associated with a north to north -westerly striking quartz vein system associated with shearing
and significant wallrock alteration consisting of silica-sericite-pyrite
• The discovery of high- grade mineralisation further supports Sarama’s regional d evelopment plan for the
southern Houndé Belt which features a low capital intensity, high-return project configuration focussed initially
on oxide and free-milling material
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Bamako Property Exploration
The 119km2 Bamako 2 Property is part of the Company’s 100%-owned(4), 708km² ThreeBee Project (refer Figures 1 and
2), which is positioned on the eastern flank of the well -endowed Houndé Greenstone Belt in south-west Burkina Faso
that hosts Endeavour Mining Corp ’s Hounde Mine, Roxgold Inc’s Yaramoko Mine, as well as Semafo Inc’s (“Semafo”)
Mana and Siou Mines further to the north . The Property is also well positioned with respect to known gold deposits,
such as Semafo’s Bantou Project and Semafo and Sarama’s Karankasso JV Project, and is within trucking distance to
Sarama’s South Houndé Project and adjacent to Teranga Gold Corp’s Golden Hill Project.
Sarama first carried out init ial-stage exploration over the Property in 2011 -2012 and successfully identified several
clusters of anomalous gold-in-soil values. Peak values of 13.6g/t Au were encountered(6), prompting a reconnaissance
drill program of 3,740m RC in two phases. The drill program intersected high-grade mineralisation in several holes with
previously reported highlights of:
• 6m @ 1.78g/t Au from surface, and 15m @ 6.17g/t Au from 9m (including 2m @ 38.5g/t Au) in FRC384;
• 2m @ 2.65g/t Au from 58m and 3m @ 3.81g/t Au from 63m in FRC489;
• 4m @ 1.94g/t Au from 48m in FRC385; and
• 15m @ 0.54g/t Au from 86m in FRC386.
Recent field mapping and reconnaissance work at Bamako 2 revealed the establishment of a large artisanal mining
camp, which has now opened a block of current workings measuring approximately 3km-long x 2km-wide. The workings
have exposed numerous, subparallel gold-bearing quartz veins, extending for over 3km in strike length, trending to the
north and northwest (refer Figure 2). These quartz vein trends are coincident with previously identified anomalous
gold-in-soil zones.
The quartz veins are located within a wedge of Birimian-aged greenstone rocks which underlie part of the eastern side
of the Property and are mostly represented by weakly -foliated and massive mafic volcanic and gabbroic rocks. The
quartz veins appear to broadly follow the contacts of the gabbroic intrusion where an increase in foliation intensity is
noted. Recent rock-chip sampling of fresh and altered rocks over several campaigns have also been encouraging with
assay results including: 18.9g/t Au, 12.5g/t Au, 8.8g/t Au, and 4.5g/t Au from sample sites both within the gabbroic
intrusion and in the bounding mafic volcanic unit.
The new reconnaissance drilling, consisting of 21 RC holes (2,000m), primarily targeted 6 discrete locations within the
mapped quartz -vein system. In general terms, the drilling intersected quartz -vein material over trend length of
approximately 2.5km, confirming that the system is present to some depth below surface.
Of note is the northern -most drilled zone (Mebar Prospe ct) where drilling intersected 18m @ 1.20g/t Au from 44m
(including 2m @ 5.47g/t Au ) and 8m @ 18.40g/t Au from 42m (including 1m @ 139g/t Au ) in adjacent holes along
strike. The elevated grades and the persistence of anomalous grade in sheared rock chip samples within these zones is
a potential indicator of a favourable geological setting for mineralisation of significance.
The Company anticipates undertaking further drilling in the Mebar Prospect, as well as in other areas across the Property
where high-grade mineralisation has been previously intersected in scout drilling. Further mapping and interpretation
of geophysical survey data will be undertaken to fine tune target areas.
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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Figure 1 – Sarama’s Principal Property Interests(4) in the Southern Houndé Belt
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Figure 2 – Bamako 2 Property, New Drilling and Historical Exploration Highlights
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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 south-west Burkina Faso. Sarama is focused on maximising the value of its strategic assets and advancing its key
projects towards development.
Sarama’s South Houndé and ThreeBee Projects, in which the Company holds a 100% interest(4) , 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 of 2.1Moz gold(1) at the
South Houndé Project which is complemented by the ThreeBee Project’s Bondi Deposit(4) (historical estimate of mineral
resources of 0.3Moz Au measured and indicated and 0.1Moz Au inferred(2).
Together, the projects form a clu ster of advanced gold deposits, within trucking distance of one another, which
potentially offers a development option for a central processing facility fed from multiple sources in the southern
Houndé Belt region of Burkina Faso.
Sarama has built further optionality into its portfolio including a 600km² exploration position in the highly prospective
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 20% 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. Sem afo 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
strategy to surface and maximise the value of its property portfolio.
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 contains an oxide and transition compone nt 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, 2016. For further information regardi ng 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 (measu red 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 (“Orez one”)
which has an effective date of February 20, 2009. The historical estimate is contained in a technical report titled “Technical Report on
the Mineral Resource of the Bondigui Gold Project”, dated date of February 20, 2009 and prepared by Yves 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 recent
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. Fi eld 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.
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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 - 9.2Mt @ 2.3g/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 that is supported by a technical report is October 7, 2015. For further information regarding that mineral
resource estimate please refer to the technical report titled “Technical Report and Resource Estimate on the Karankasso Proje ct, 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 m ineral 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 t he mineral
resource estimate. Additional technical w ork 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 resource estimate referred to above.
4. The ThreeBee Project comprises the Djarkadougou, Botoro, Bamako 2(5) and Nakar (formerly Bouni)(5) Properties and Sarama has, or is entitled
to have, a 100% interest in each of the properties. The Djarkadougou Exploration Permit which was originally issued to Orezone in 2006,
subsequently renewed every three years thereafter and transferred to Sarama in 2016 without restriction or encumbrance, is going through
a process with the government of Burkina Faso where it is required to be re-issued as a new full -term exploration permit. The Company is in
on-going discussion with senior government officials regarding certain impediments to the re -issue of the Exploration Permit and anticipates
these discussions will 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 2 (formerly Bamako) and Nakar (formerly 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 Shepherd. 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. Gridded soil geochemistry program sampling on partial property conducted in 2012 over two phases – 1st phase consisted of sampling on
400m (N-S) x 100m (E -W) centres and a subsequent infill phase consisted of sampling on 100m (N-S) x 50m (E -W). A total of 3,536 s amples
were assayed, returning a peak value of 13,575ppb Au, a mean of 36ppb Au and a 98th percentile of 179ppb Au.
NOTES –DRILLING
Drilling results are quo ted as downhole intersections. The orientation of the mineralised units is not yet well understood and t rue widths of
mineralisation are unknown.
The reported composites for the drilling were determined using a cut -off grade of 0.30g/t Au to select significant and anomalous intersections, with a
maximum of 2m internal dilution being incorporated into t he composite where appropriate. No top- cuts were applied to assay grades. Isolated
mineralised intersections less than 2m in length have not been reported.
Gold assays for the drilling were undertaken by the ALS laboratory in Ouagadougou, Burkina Faso. Assays are determined by fire assay methods using
a 50 gram charge, lead collection and an AAS finish with lower detection limits of 0.01g /t Au.
The drilling was generally designed using a range of azimuths, according to program aims and mineralization ori entation, dipping at approximately -
50-55° and were 100m in length. Holes were spaced at various intervals according to targeting intent . RC h oles where sampled, were sampled at
using regular 1m downhole intervals .
All holes were drilled from oxide mater ial (heavily weathered and weathered material) through transition material and into fresh rock. Indicative
oxidation states are quoted for each significant intersection.
Sarama undertook geological sampling and assays in accordance with quality assurance/ quality control program which includes the use of certified
reference materials as well as field duplicates.
For further information regarding the Company’s QAQC protocols 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. The technical report is avai lable under the
Company’s profile on SEDAR at www.sedar.com.
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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 Bamako 2 Property to host mineralization of economic significance, any potenti al development of
a central processing facility as part of regional project development, the potential for the receipt of regulatory approvals , the potential of the projects
to host mineralization of significance to support regional development plans, the timing and prospects for the re-issuance of the Djarkadougou
Exploration Permit by the G overnment 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 e xisting estimated mineral resources at the South Houndé Project and the reliability of the
historical estimate of mineral resources at the Bondi Deposit. Forward-looking information regarding potential development plans in the southern
Houndé belt may be a dversely affected in terms of size, economics and timing for development and require reconfiguring should the Government of
Burkina Faso not re-issue the Djarkadougou Exploration Permit.
Actual results, performance or achievements of the Company may va ry from the results suggested by such forward- looking statements due 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 mines; geological factors; the actual results of current and future explorat ion; 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 mineralisation that is discovered will be proven to be economic, or that future required regulatory licensing or approvals will 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, 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 fi nancing 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 E xchange 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 conside ration and
activity which he is undertaking to qualify as a Qualified Person under National Instrument 43 -101. Guy Scherrer consen ts 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 indepe ndent 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 d rawn
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 is 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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APPENDIX A – BAMAKO 2 DRILLING
Location
(Property) Hole ID Hole
Type
Downhole Intersection
Intersection
Material
Type
Depth
From
(m)
Depth
To
(m)
Dip
(°)
Azimuth
(°)
Hole
Length
(m)
BAMAKO 2 BAR001 RC 2m @ 1.83 g/t Au 100% Fresh 20 22 -54 272 100
BAMAKO 2 BAR002 RC no significant intersections 0 100 -54 272 100
BAMAKO 2 BAR003 RC 3m @ 0.71 g/t Au 100% Fresh 37 40 -50 92 100
BAMAKO 2 BAR003 18m @ 1.20 g/t Au 100% Fresh 44 62
incl. 2m @ 5.47g/t Au from 56m
BAMAKO 2 BAR004 RC 2m @ 0.53 g/t Au 100% Fresh 35 37 -49 91 100
BAMAKO 2 BAR004 8m @ 18.40 g/t Au 100% Fresh 42 50
incl. 1m @ 139g/t Au from 45m
BAMAKO 2 BAR005 RC 2m @ 0.44 g/t Au 100% Fresh 72 74 -49 89 100
BAMAKO 2 BAR006 RC 2m @ 0.91 g/t Au 100% Fresh 66 68 -50 93 100
BAMAKO 2 BAR006 4m @ 0.82 g/t Au 100% Fresh 94 98
BAMAKO 2 BAR007 RC 12m @ 0.99 g/t Au 100% Fresh 32 44 -55 269 100
incl. 1m @ 6.94g/t Au from 39m
BAMAKO 2 BAR008 RC no significant intersections 0 100 -49 273 100
BAMAKO 2 BAR009 RC no significant intersections 0 100 -52 269 100
BAMAKO 2 BAR010 RC 6m @ 0.41 g/t Au 100% Trans 19 25 -48 270 100
BAMAKO 2 BAR011 RC no significant intersections 0 100 -50 272 100
BAMAKO 2 BAR012 RC no significant intersections 0 100 -51 270 100
BAMAKO 2 BAR013 RC 4m @ 0.34 g/t Au 100% Fresh 34 38 -52 269 100
BAMAKO 2 BAR014 RC no significant intersections 0 100 -49 271 100
BAMAKO 2 BAR015 RC no significant intersections 0 100 -52 231 100
BAMAKO 2 BAR016 RC 2m @ 1.33 g/t Au 100% Fresh 42 44 -47 230 100
BAMAKO 2 BAR017 RC no significant intersections 0 100 -49 270 100
BAMAKO 2 BAR018 RC no significant intersections 0 40 -49 225 40
BAMAKO 2 BAR019 RC no significant intersections 0 60 -55 226 60
BAMAKO 2 BAR020 RC 2m @ 0.42 g/t Au 100% Fresh 12 14 -55 90 100
BAMAKO 2 BAR021 RC no significant intersections 0 100 -54 92 100