Sarama Resources Confirms Transfer of Djarkadougou Exploration Permit (Bondi GOLD Deposit) IN Burkina Faso
AUGUST 22, 2017
SARAMA RESOURCES CONFIRMS TRANSFER OF
DJARKADOUGOU EXPLORATION PERMIT (BONDI GOLD DEPOSIT) IN
BURKINA FASO
VANCOUVER, CANADA. Sarama Resources Ltd. (“Sarama” or the “Company”) (TSX-V:SWA) announces that it has received
advice from the Government of Burkina Faso confirming the transfer of the Djarkadougou Exploration Permit (the “Permit”)
into a 100%-owned subsidiary of Sarama.
The Djarkadougou Exploration Property (“Djarkadougou” or the “Property”) hosts the Bondi Deposit and was the subject
of a purchase agreement between Sarama and Orezone Gold Corporation (“ Orezone”) (refer news release May 24, 2016).
With the transfer of the Permit into Sarama’s subsidiary, the transaction is now considered closed and Sarama will remove
the escrow on Sarama common shares and warrants that were issued to Orezone as consideration for the purchase of the
Property by Sarama.
Sarama has already commenced exploration activity on Djarkadougou and has made progress in identifying and drill testing
new exploration targets, the results of which will be provided in future news releases. Djarkadougou is a highly-strategic
property that forms part of Sarama’s 100%-owned ThreeBee Project and is expected to play an important role in any future
development plans in the southern Houndé Belt (refer Figure 1).
Sarama’s President and CEO, Andrew Dinning, commented:
“Sarama is pleased to have the transaction closed and appreciates Orezone’s assistance in joint efforts to complete this final
stage with the Government of Burkina Faso.
We view the acquisition of the Bondi Deposit 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.
Sarama is also looking forward to exploring the potential of the greater Djarkadougou Property, outside the immediate area
of the Bondi Deposit which has been the focus of historical exploration activities.“
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 – Location Map of Djarkadougou Property and Other Significant Regional Projects in Southern Houndé Belt1,2,4
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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 2. Acacia Mining plc is earning up to 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 31% 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 gold3 at the Karankasso Project JV.
Sarama also holds a 100% interest in the Bondi Deposit which 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.
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 282,000 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 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 miner alised
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.
2. 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 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. The technical report is available under Sarama Resources Ltd.’s profile on SEDAR at
www.sedar.com.
3. 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 i s available under Savary Gold Corp’s
profile on SEDAR at www.sedar.com . Sarama has not independently verified the mineral resource estimate for the Karankasso Project using a
Qualified Person because Savary is the oper ator of the Karankasso Project JV and Sarama is relying on their Qualified Persons’ assurance of the
validity of the mineral resource estimate compiled by Savary.
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4. 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. The technical
report is available under Sarama Resources Ltd.’s profile on SEDAR at www.sedar.com.
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 Company’s plans for exploration at the Djarkadougou Property, plans for exploration 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 reserve, the potential for mine development and the potential for further property
consolidation..
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 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 Exc hange) 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 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 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 South Houndé Project’s 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 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 comm odity, 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 Yassa 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 member 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 the mineral resource estimate for the Karankasso Project using a Qualified Person
because Savary is the operator of the Karankasso Pr oject JV and Sarama is relying on their Qualified Persons’ assurance of the validity of the mineral
resource estimate compiled by Savary.