Sarama Resources Announces Updated Mineral Resource Estimate FOR the Karankasso Joint Venture Project, South-WEST Burkina Faso
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February 26, 2020
SARAMA RESOURCES ANNOUNCES UPDATED MINERAL
RESOURCE ESTIMATE FOR THE KARANKASSO JOINT VENTURE
PROJECT, SOUTH-WEST BURKINA FASO
VANCOUVER, CANADA. Sarama Resources Ltd. (“Sarama” or the “ Company”) (TSX-V:SWA) advises that an updated
mineral resource estimate has been compiled on the Karankasso Project (the “Project”), located in south-west Burkina
Faso (refer Figure 1). The Project is a joint venture between Sarama and Semafo Inc (“Semafo”), with the parties holding
approximate interests of 20% and 80% respectively.
The updated mineral resource estimate of 12.74Mt @ 1.73g/t for 709koz Au(4) (reported using a US$1,500/oz gold price
assumption) was fully compiled by, or under the supervision of, Semafo in its capacity as operator of the joint venture.
The previous mineral resource estimate of 12.3Mt @ 2.03g/t Au for 805koz Au (3) was compiled by Savary Gold Corp
(“Savary”) and published in November 2017 (reported using a US$1,250/oz gold price assumption). Savary was acquired
by Semafo in April 2019 and was the operator of the joint venture and fully compiled, or supervised, the compilation of
the November 2017 mineral resource estimate.
In the interests of clarity, Sarama notes that in conjunction with the updated mineral resource estimate for the
Karankasso Project, Semafo also reported(7) an update of the mineral resource estimate on its adjacent, 100%-owned
Bantou Property of 38.37Mt @ 1.24g/t Au for 1.535Moz Au.
In conjunction with the updates to the mineral resource estimates, Semafo reported(7) selected recent exploration
results from satellite prospects within the joint venture project area, including 21m @ 14.63g/t Au from 63m (KARC19-
0127) at the Tiébi Zone, situated at the northern extremities of the Karankasso Project. Sarama notes Semafo’s
commentary on the 2020 exploration program which indicates that the Tiébi Zone will be a key focus for the Project
exploration.
Sarama’s President and CEO, Andrew Dinning, commented:
“Sarama is pleased that the Karankasso Project’s mineral resource estimate has been reviewed and revised. The recent
high-grade drill results at the Tiébi Zone and other areas within the joint venture between Sarama and Semafo are
encouraging and we look forward to further exploration success. The higher grades being realised should result in feed
from the Karankasso Project being brought to account earlier in a potential regional development scenario.”
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(1,2,4,5) in the Southern Houndé Belt
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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(5) , 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(5) (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 advan ced 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 Inc
(“Semafo”) in which Semafo is the operator of the JV. In February 2020, Semafo declared an updated inferred mineral
resource estimate of 709koz gold(4) for 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 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 resourc e estimate is
February 4, 2016. For further information regarding the mineral resource estimate please refer to the technical report title d “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.sed ar.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 compil ed 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 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 88 6 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 deri ved 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.
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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 previous mineral resource estimates – the previous mineral resource estimate for the Karankasso Project of 12.3Mt @
2.03g/t Au for 805koz Au (effective date October 5, 2017) and was di sclosed on November 1, 2017 by Savary Gold Corp (“Savary” and since
acquired by Semafo Inc “Semafo”). For further information regarding that mineral resource estimate, refer to the news release “Savary Gold
Announces Updated Mineral Resource Estimate for K arankasso JV Project ”, dated November 1 , 2017. The news release is available under
Savary’s (now Semafo Inc’s) profile on SEDAR at www.sedar.com . The mineral resource estimate was prepared by Eugene Puritch, Yungang
Wu and Antoine Yassa. Eugene Puritch, Yungang Wu and Antoine Yassa are employees of P&E M ining Consultants Inc. and are independent
of Savary and Sarama. 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 t he 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.
The 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 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 M ining Consultants Inc. and are independe nt of Savary and Sarama. The technical
report is available under Savary ’s (now Semafo Inc’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 Pr oject since the effective d ate, 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. Karankasso Project current mineral resource estimate – the current mineral resource estimate for the Karankasso Project of 12.74Mt @
1.73g/t Au for 709koz Au (effective date of December 31, 2019) was disclosed on February 24, 2020 by Semafo Inc (“Semafo”). For further
information regarding that mineral resource estimate, refer to the news release “Semafo: Bantou Project Inferred Resources Increase to
2.2Moz” dated February 24, 2020. The news release is available under Semafo ’s profile on SED AR at www.sedar.com . The mineral resource
estimate was fully prepared by, or under the supervision of S emafo. Sarama has not independently verified S emafo’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 d ate but Sarama is not in a position to quantify the impact of this additional work on the mineral
resource estimate referred to above.
5. The ThreeBee Project comprises the Djarkadougou, Botoro, Bamako 2(6) and Nakar (formerly Bouni)(6) Properties and Sarama has, or is entitled
to have, a 100% interest in each of the properties. The Djarkadougou Exploration Permit is going through a process with the government of
Burkina Faso where it is required it be re-issued as a new full -term exploration permit. The Company is in discussion with senior government
officials regarding certain impediments to the re -issue of the Exploration Permit and anticipates th ese 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.
6. 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 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
7. Semafo Inc news release dated February 24, 2020.
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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 Karankassom South Houndé and ThreeBee Projects to host mineralization of economic significance,
any potential 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 Government of Burkina Faso , plans for exploration and development at the South Houndé , ThreeBee
and Karankasso Projects, the potential to expand the present oxide component of the existing estimated mineral resources at the South Houndé Project
and the reliability of the historical estimate of mineral resources at the Bondi Deposit.
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 M ineral Reserves through continued exploration; few 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 ob tained.
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 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 Exc hange) 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 Resour ces 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 Perso n 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 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 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 Ordr e 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 and exploration
activities 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 Schm iede 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 or Semafo’s mineral resource estimate s and take no responsibility for their accuracy.