Sarama Resources Announces Receipt of Consideration FOR Sale of Kandiole Sud Property IN WEST Mali
May 11, 2018
SARAMA RESOURCES ANNOUNCES
RECEIPT OF CONSIDERATION FOR SALE OF
KANDIOLE SUD PROPERTY IN WEST MALI
VANCOUVER, CANADA. Sarama Resources Ltd. (“Sarama” or the “Company”) (TSX-V:SWA) is pleased to announce the
satisfaction of all conditions precedent in relation to the binding agreement (the “Agreement”) for the sale of its non-
core Kandiole Sud Exploration Property, West Mali (the “Property”) to Oklo Resources Limited (“Oklo”, ASX:OKU).
Pursuant to the Agreement, Sarama has received a cash payment of A$200,000 and shares in Oklo of value A$500,000
(calculated using a fixed Oklo share price of A$0.379/share) , representing the Tranche 1 and Tranche 2 Consideration
payments respectively.
Sarama is further entitled to a Tranche 3 Consideration payment in Oklo shares of value A$300,000 (calculated using a
fixed Oklo share price of A$0.379/share) upon Oklo, or its nominee, being registered by the Mali Ministry of Mines as
the 100% owner of the Property.
Sarama’s President and CEO, Andrew Dinning, commented:
“We are pleased to have completed the transaction with Oklo and look forward to accreting potential further value from
Sarama’s indirect exposure to Oklo’s exploration projects.
Sarama’s focus is now firmly on advancing its ThreeBee and Koumandara Projects in Burkina Faso, both of which have
untested exploration potential.”
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 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 Gr eenstone Belt, Sarama’s exploration programs have built on significant early
success to deliver an inferred m ineral resource estimate of 2.1 Moz gold(2). Acacia Mining plc is earning up to a 70%
interest in the South Houndé Project by satisfying certain con ditions, 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 ounce s 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 30% 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(3) at the Karankasso Project JV.
Sarama has also acquired 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)(1).
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.
Sarama had recently established a new 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.
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. 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 (“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 considered to be 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. 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 reso urce.
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2. 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). The effective date of the Company’s inferred mineral resource estimate is February 4, 2016. 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 considered to be independent of Sarama. The technical report is avai lable under Sarama’s profile
on SEDAR at www.sedar.com.
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 K arankasso 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 considered to be 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. 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. 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 resource estimate referred to above.
4. The ThreeBee Project comprises the Dj arkadougou, Botoro, Bamako and Bouni Properties and Sarama has, or is entitled to have , a 100%
interest in each of the properties.
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 Shepherd. Adrian Shepherd is an employee of Cube C onsulting Pty Ltd and is considered independent of Sarama. The
technical report is available under Sarama’ 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 Company to receive the Tranche 3 Consideration payment in respect of the Kandiole Sud sale, the
value of the share-based consideration received by Sarama over time, the potential for further value creation through exposure to Oklo’s shares, plans
for exploration at the ThreeBee and Koumandara Projects, 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 mini mum reserve, 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 for ward-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 forwar d-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 recei pt 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 the Company’s exploration activities 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 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 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 Géo logues 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 e mployee 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, styl e 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.