Sarama Resources Announces Government Approval to Transfer Bondi GOLD Deposit
JULY 19, 2017
SARAMA RESOURCES ANNOUNCES GOVERNMENT APPROVAL TO
TRANSFER BONDI GOLD DEPOSIT
VANCOUVER, CANADA. Sarama Resources Ltd. (“Sarama” or the “ Company”) (TSX-V:SWA) is pleased to advise that
the Ministry of Mines and Quarries in Burkina Faso has issued, and Sarama has paid, the invoice for the transfer of the
Djarkadougou Exploration Permit (“Djarkadougou”), which hosts the Bondi Gold Deposit (“Bondi Deposit”). This was
acquired from Orezone Gold Corporation (“Orezone”), pursuant to the sale agreement between Sarama and Orezone
(the “Agreement”) (refer Sarama news release May 24, 2016).
This is the final step of the approval process before the official transfer b ecomes effective upon the Ministry of Mines
delivering the new Djarkadougou Order (the “Arrêté”) in Sarama’s name, at which point common shares and warrants
issued by Sarama to Orezone as part of the Agreement will be released from escrow. The issuance of the Arrêté is a
matter of process and it is anticipated that this will occur during Q3 2017.
With Orezone’s consent, Sarama commenced exploration activity on the property in Q2 2017 and has made progress in
identifying and drill testing new exploration targets, the results of which will be provided in future news releases.
The Djarkadougou Property forms part of Sarama’s 100%-owned(1) ThreeBee Project(2) (refer Sarama news release May
16, 2017) and will play an important role in any future development plans.
Sarama’s President and CEO, Andrew Dinning, commented:
“Sarama is pleased to have received this government approval and we look forward to progressing and extracting further
value from the Bondi Project.
We view this acquisition as an important step in the consolidation of the highly prospective southern Houndé Belt which
is an area where Sarama has had significant exploration success and controls a large land position with significant
interests in three advanced gold exploration projects.”
For further information on the Company’s activities, please contact:
Andrew Dinning or Paul Schmiede
t: +61 8 9363 7600
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ABOUT SARAMA RESOURCES LTD
Sarama Resources Ltd (TSX -V: SWA) is a West African focused gold explorer with substantial landholdings in Burkina
Faso. Sarama is focused on consolidating under -explored landholdings in Burkina Faso and other established mining
jurisdictions.
Sarama’s flagship properties are situated within the Company’s South Houndé Project area in south-west Burkina Faso.
Located within the prolific Houndé Greenstone B elt, Sarama’s exploration programs have built on significant early
success to deliver an inferred mineral resource estimate of 2.1 Moz gold (4). Acacia Mining plc is earning up t o a 70%
interest in the South Houndé Project by satisfying certain conditions, including funding earn- in expenditures of up to
US$14 million, over a 4-year earn-in period and may acquire an additional 5% interest, for an aggregate 75% interest in
the Project, upon declaration of a minimum mineral reserve of 1.6 million ounces of gold. Acacia has satisfied certain
milestones and currently holds a 50% interest in the South Houndé Project and is continuing to sole fund exploration
activities.
Sarama holds a 3 1% 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 Savary Gold Corp. (“ Savary”).
Savary is the operator of the JV and in October 2015, declared a maiden inferred mineral resource estimate of 671,000
ounces of contained gold(5) at the Karankasso Project JV.
Sarama has also agreed to acquire (1) a 100% interest in the Bondi Deposit from Orezone Gold Corporation (refer news
release May 24, 2016). Bondi has a historical estimate of mineral resources of 0.3Moz Au (measured and indicated) and
0.1Moz Au (inferred)(3).
Together, the South Houndé Project, Bondi Deposit and the Karankasso Project form a cluster of advanced gold deposits,
within trucking distance of one another, which potentially offers a development option for a multi -source fed central
processing facility in the southern Houndé Belt region of Burkina Faso.
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 property portfolio.
FOOTNOTES
1. Upon closing of the respective purchase agreements, Sarama will hold a 100% interest in the Botoro Property and the Djarkadougou Property,
which hosts the Bondi Deposit.
2. The ThreeBee Project comprises the Djarkadougou, Botoro, Bamako and Bouni Properties.
3. Bondi Deposit - 4.1Mt @ 2.1g/t Au for 282,000 oz Au (measured and indicated) and 2.5Mt @ 1.8g/t Au for 149,700 oz 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 “Technical Report on
the Mineral Resource of the Bondigui Gold Project”, dated date of February 20, 2009 (the “Bondi Technical Report”) and is available
under the profile of Orezone on SEDAR at www.sedar.com.
ii. Sarama believes th at 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. 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.
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4. South Houndé Project - 43.0 Mt @ 1.5 g/t Au (reported above cut- off grades ranging 0.3 -2.2 g/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). The effective date of the Company’s inferred mineral resource estimate is February 4, 2016. For further informa tion 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. The technical report is available under Sarama Re sources
Ltd.’s profile on SEDAR at www.sedar.com.
5. Karankasso Project - 9.2 Mt @ 2.3 g/t Au (at a 0.5 g/t Au cut-off). The effective date of the Karankasso Project JV mineral resource estimate
is October 7, 2015. For further information regarding the 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. The technical report is available under Savary
Gold Corp’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. Savary 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.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information in this news release that is not a statement of historical fact constitutes forward- looking information. Such forward-looking information
includes statements regarding the transfer of the Djarkadougou Arrêté , Company’s plans for exploration at the Djarkadougou Property and the
potential for the Djarkadougou Property and ThreeBee Project to host gold mineralization of significance, drilling and geochemical and geophysical
surveys at the South Houndé Project, the Earn-In Agreement with Acacia, including the amounts that may be spent on exploration and interests in the
South Houndé Project that may be earned by Acacia upon making certain expenditures and estimating a minimum re serve, the potential to expand
the present oxide component of the Company’s existing estimated mineral resources, and future exploration plans.
Actual results, performance or achievements of the Company may vary 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 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 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, 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 news release 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 Consulti ng Pty Ltd and is considered to be
independent 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 is
undertaking to qualify as a Qualified Person under National Instrument 43-101. Adrian Shepherd consents to the inclusion in this news release of the
information, in the form and context in which it appears.
Scientific or technical information in this news release, in respect of the Bondi Deposit 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 report of the information, in the form and context in which it appears.
Scientific or technical information in this news release that relates to the preparation of the Karankasso Project’s mineral resource estimate is based
on information compiled or approved by Eugene Puritch and Antoine Yassa. Eugene Puritch and Antoine Yass a are employees of P&E Mining
Consultants Inc. and are considered to be independent of Savary Gold Corp. and Sarama Resources Ltd. Antoine Yassa is a membe r in good standing
of the Ordre des Géologues du Québec and Eugene Puritch is a member in good standing of Professional Engineers Ontario. Eugene Puritch and Antoine
Yassa have sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which they are
undertaking to qualify as a Qualified Person under National Instrument 43-101. Eugene Puritch and Antoine Yassa consent to the inclusion in this news
release of the information, in the form and context in which it appears. Sarama has not independently verified Savary’s mineral resource estimate
and takes no responsibility for its accuracy.