Sarama Resources Commences +50,000M Drill Program at Sanutura Project
NEWS RELEASE
12 MAY 2022
SARAMA RESOURCES COMMENCES +50,000M DRILL
PROGRAM AT SANUTURA PROJECT
PERTH, AUSTRALIA / VANCOUVER, CANADA. Sarama Resources Ltd. (“ Sarama” or the “ Company”) (ASX:SRR, TSX-
V:SWA) is pleased to announce that it has commenced a +50,000m drill program at its 100%-owned(4), multi-million
ounce Sanutura Project (the “Project”). This follows a successful listing on the Australian Securities Exchange (“ASX”)
and a strongly supported A$8M public offering.
The drill program will focus on near-surface, extensional targets designed to grow the oxide component of the already
large Mineral Resource of 0.6Moz Au (Indicated) plus 2.3Moz Au (Inferred)(1) as well as regional greenfields targets.
Highlights
Sarama’s President, CEO & MD, Andrew Dinning commented:
“Sarama is delighted to have commenced drilling at the Sanutura Project following its recent successful A$8M equity
raising and ASX listing. The +50,000m drill program is the first exploration program to be conducted on the Project after
a significant hiatus and we look forward to drilling a suite of targets that offer an immediate opportunity to increase the
early-stage value of any development scenario contemplated.
The program has been structured to increase the oxide component of the already large Mineral Resource by targeting
near-surface material in extensions to the currently modelled Tankoro Deposit as well as testing a number of regional
targets. We look forward to providing updates as the program continue and assay results come to hand.”
• Sarama commences drilling at its 100%-owned Sanutura Project – the first material drilling program in 5 years
• +50,000m drill program targets an increase to the Mineral Resource from highly accretive , predominantly
shallow, oxide targets at the Tankoro Deposit as well as regional greenfield targets
• Approximately 220 individual targets within 28 prospect areas will be tested by AC and RC drilling during the
program
• Mineral Resource update anticipated in 2023, incorporating extensional and regional exploration drilling
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Commencement of Drilling at the Sanutura Project
An Already Large Mineral Resource with Potential to Grow
The Company’s primary focus is its 100%-owned(4) Sanutura Project, which hosts a large Mineral Resource and covers
an area of 1,420km 2. The Project lies 60km south of Endeavo ur Mining’s Houndé Mine (5Moz Au); 120km south of
Fortuna Silver’s high -grade Yaramoko Mine (1Moz), and 140km south of Endeavour Mining’s M ana Mine (5Moz),
highlighting the significant gold endowment of the Houndé Belt.
The Company’s flagship Sanutura Project has an existing multi-million ounce Mineral Resource of 0.6Moz Au (Indicated)
plus 2.3Moz Au (Inferred)(1) with significant growth potential available from its commanding position along 70km of
strike in the prolific Houndé Belt (refer Figure 1).
Figure 1 –Sanutura Project Location Plan
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Tankoro Deposit – Further Opportunity within a Current 16km of Strike Length
The key contributor to the Sanutura Project’s large Mineral Resource is the Tankoro Deposit; extend ing for a semi -
continuous, drill-defined strike length of 16km for which the bulk has only been tested to 70m depth. Drilling of certain
higher-grade zones has shown the system extend s 550m de ep where it remains open, illustrating the size of the
mineralised system and the potential for additions.
The Mineral Resource is principally contained in an extensive package of mineralised lenses, presenting as gold-quartz-
sulphide veinlets and disseminated gold-pyrite within quartz-feldspar-porphyry dykes and bounding sedimentary rocks.
The package is interpreted to sit in a trend that spans approximately 1.4km across the strike (refer Figure 2) . The
mineralized corridor, as presently defined by drilling, lies within a greater 30km-long, gold-in-soil geochemical anomaly
that remains a focus for ongoing regional exploration.
Figure 2 – Tankoro Deposit - Western Corridor Mineralisation & Geology Plan
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Oxide-Focussed Drill Program
It is anticipated that this program will deliver a meaningful increase to the oxide and transition component of the
Mineral Resource (currently 0.2Moz (Inferred) plus 0.8Moz Au (Indicated)(2)), which will assist in positioning the Project
as a multi-stage, long-life, carbon-in-leach (“CIL”) mine development utilising th is shallow, high-margin, material for
early feed.
Significant brownfields and greenfields potential remain within the Mineral Resource at th e Tankoro Deposit .
Approximately 220 individual targets have been presently identified within 28 prospect areas; all to be tested by the
current +50,000m program that will be undertaken using air -core (“AC”) and reverse- circulation (“RC”) drilling. The
near-surface drill targets are principally located in the Western Trend of the Tankoro Deposit and comprise 4 categories:
1. testing for up-dip, down-dip and strike extensions to mineralised lodes that comprise the Mineral Resource;
2. additional targets involving follow-up drill intercepts of interest in historical reconnaissance and other early -
phase drilling that are not modelled as part of the Mineral Resource;
3. infill drilling to improve geological confidence in certain areas; seeking to upgrade geological classification, to a
minimum level of ‘Inferred’, of material that is currently modelled but not reported as Mineral Resource; and
4. early-stage reconnaissance drill testing of numerous gold-in-soil geochemical anomalies located within the
defined mineralised trends.
The individual targets are distributed throughout the footprint of the Mineral Resource and the greater mineralised
corridors with certain areas being the main focus and consuming the majority of the initial drilling (refer Table 1 and as
located in Figure 2 ). Initial drilling will be conducted in the higher -priority targets to facilitate timely geological
interpretation of the results prior to commissioning of any follow-up drilling.
Table 1 - Focus Areas of Drilling Program
Prospect Area Planned Drilling (Approx.) Portion of Program
MM 9,000m 16%
MC 9,000m 16%
Obi & Ben 6,000m 10%
Kenobi 5,000m 9%
Djimbake 4,000m 8%
Further Drilling Planned at Bondi Deposit
In addition to the current drill program at the Tankoro Deposit, the Company is planning several drill programs for the
Bondi Deposit, which has potential to provide high -grade early feed for mine development. The programs will test
targets of an extensional nature within the area of the current Mineral Resource and will progress regional targets
identified in reconnaissance drilling which produced downhole intersections of 22m @ 3.85g/t Au from 5m, 5m @
4.54g/t Au from 15m and 29m @ 1.44g/t Au from 1m; all of which are yet to be followed-up. Further details of these
compelling targets will be communicated as planning is finalised.
For further information on the Company’s activities, please contact:
Andrew Dinning or Paul Schmiede
t: +61 8 9363 7600
For media enquiries, please contact:
Angela East
Media & Capital Partners
t: +61 428 432 025
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This announcement has been authorised by the Board of Sarama Resources . 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.
ABOUT SARAMA RESOURCES LTD
Sarama Resources Ltd ( ASX: SRR, TSX-V: SWA) is a West African focused gold explorer /developer with substa ntial
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 100%-owned(4) Sanutura Project is principally located within the prolific Houndé Greenstone Belt in south-
west Burkina Faso and is the exploration and development focus of the Company. The project hosts the Tankoro and
Bondi Deposits which have a combined Mineral Resource of 0.6Moz gold (Indicated) plus 2.3Moz gold (Inferred)(1,2).
Together, the deposits present a potential mine development opportunity featuring an initial, long-life CIL project which
may be established and paid for by the significant oxide Mineral Resource base.
Sarama has built further optionality into its portfolio including an approximate 470km² 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 also holds an approximate 18% participating interest in the Karankasso Project Joint Venture (“ JV”) which is
situated adjacent to the Company’s Sanutura Project in Burkina Faso and is a JV between Sarama and Endeavour Mining
Corp (“Endeavour”) in which Endeavour is the operator of the JV. In February 2020, an updated Mineral Resource
estimate of 709koz gold(3) was declared 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.
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FOOTNOTES
1. Mineral Resource estimate for Sanutura Project - 9.4Mt @ 1.9g/t Au for 0.6Moz Au (Indicated) plus 52.7Mt @ 1.4g/t Au for 2.3Moz (Inferred),
reported at cut-off grades ranging 0.2-1.6g/t Au, reflecting the mining methods and processing flowsheets assumed to assess the lik elihood of
the Mineral Resources to have reasonable prospects for eventual economic extraction. The effective date of the Company’s M ineral Resource
estimate is 16 November 2021. For further infor mation regarding the Mineral Resource estimate refer to the technical report titled “NI 43 -101
Independent Technical Report Sanutura Project, South- West Burkina Faso”, dated 7 February 2022 and prepared by Paul Schmiede, Rindra Le
Grange and Fred Kock, and the Company’s ASX Prospectus dated 11 March 2022. Paul Schmiede is an employee of Sarama. Ms Le Grange and
Mr Kock are employees of Cube Consulting Pty Ltd and Orway Mineral Consultants Pty Ltd respectivley and are considered to be independent
of Sarama. The technical report is available under Sarama’s profile on SEDAR at www.sedar.com and the ASX Prospectus is available under
Sarama’s profile on ASX at www.asx.com.au.
2. Oxide & transition component of the Mineral Resource for Sanutura Project - 3.2Mt @ 1.6g/t Au for 0.2Moz Au (Indicated) plus 23.4Mt @ 1.1g/t
Au for 0.8Moz Au (Inferred), reported above cut -off grades of 0.2g/t Au and 0.3g/t Au for oxide and transition material respectively.
3. Mineral Resource estimate for Karankasso Project – 12.74Mt @ 1.73g/t Au for 709koz Au (effective date of December 31, 2019) , disclosed on
24 February 2020 by Semafo Inc (“Semafo”, since acquired by Endeavour Mining Corp. “Endeavour”). For further information regarding that
Mineral Resource estimate, refer to the news release “Semafo: Bantou Project Inferred Resources Increase to 2.2Moz” dated 24 February 2020
and Semafo: Bantou Project N I43-101 Technical Report – Mineral Resource Estimate” dated 3 April 2020 and the Company’s ASX Prospectus
dated 11 March 2022. The news release and technical report are available under Semafo’s and Endeavour’s profile on SEDAR at www.sedar.com
and the ASX Prospectus is available under Sarama’s profile on ASX at www.asx.com.au . The Mineral Resource estimate was fully prepared by,
or under the supervision of Semafo. Sarama has not independently verified Semafo’s mineral R esource Estimate and takes no responsibility for
its accuracy. Semafo, and now Endeavour, is the operator of the Karankasso Project JV and Sarama is relying on their Qualifie d Persons’
assurance of the validity of the Mineral Resource estimate. Additional technical work has been undertaken on the Karankasso Project since the
effective date 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 Government of Burkina Faso has processed the requisite documents to facilitate the grant of the new, full-term Tankoro 2 and Djarkadougou
2 Exploration Permits (the "Permits") and subsequently issued the invitation to pay the permit issuance fees (the "Fees") and the Fees were paid
within the requisite 10-day timeline. Following the payment of the Fee, the issuance of the Permit's arrêté and related paperwork becomes an
administrative process during which time the Company may undertake work on the Tankoro 2 and Djarkadougou 2 Properties. The C ompany
expects the arrêtés and related paperwork to be issued in due course. The properties, hosting the Tankoro and Bondi Deposits respectively, were
formerly known as Tankoro and Djarkadougou, but have been renamed as part of the process of re -issuing the respective Permits.
CAUTION REGARDING FORWARD LOOKING INFORMATION
Information in this news release that is not a statement of historical fact constitutes forward -looking information. Such forward- looking information
includes, but is not limited to, statements regarding the Company’s future exploration and development plans and the use of proceeds from the offering
of CDIs, the potential for the Sanutura and Karankasso Projects to host economic mineralisation, the potential to expand the present oxide component
of the existing estimated Mineral Resources at the Sanutura Project, the potential for the receipt of regulatory approvals and the timing and prospects
for the issuance of the arrêtés for the Tankoro 2 and Djarkadougou 2 Exploration Permits by the Gover nment of Burkina Faso. 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; few properties that are explored are ultimately
developed into producing mines; geological factors; the actual results of current and future exploration; changes in project param eters 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 r egulatory li censing 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
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 f orward-looking information, except as required by applicable laws.
COMPETENT PERSONS’ & QUALIFIED PERSONS’ STATEMENT
Scientific or technical information in this disclosure that relates to the preparation of the Mineral Resource estimate for the Sanutura P roject is based
on information compiled or approved by Paul Schmiede. Paul Schmiede is an employee of Sarama Resources Ltd and is a Fellow i n 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 Instr ument 43 -101. Paul
Schmiede consents to the inclusion in this news release of the infor mation, in the form and context in which it appears.
Scientific or technical information in this disclosure that relates to exploration activities at the Sanutura Project is base d 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 acti vity which he is
undertaking to qualif y 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.
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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 Instit ute 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 Instr ument 43 -101. Pa ul
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 Semafo’s (now Endeavour’s) Mineral Resource estimate and take no responsibil ity for its accuracy.
The exploration results and Mineral Resource estimates referred to in this announcement were first disclosed in accordance with ASX Listing Rules 5.7
and 5.8 in the Company’s ASX Prospectus dated 11 March 2022. The Company confirms that it is not aware of any new information or data that
materially affects the information included in the ASX P rospectus and, in the case of estimates of Mineral Resource s, that all material assumptions
and technical parameters underpinning the estimates in the prospectus continue to apply and have not materially changed .