Sarama Resources Establishes New 100% Owned 600KM2 Exploration Position at its Koumandara Project in Burkina Faso
Sarama Resources Establishes New 100% Owned 600KM2 Exploration Position at
its Koumandara Project in Burkina Faso
VANCOUVER, CANADA / TheNewswire / February 2, 2018 - Sarama Resources Ltd. (“ Sarama” or the “ Company”)
(TSX-V:SWA) is pleased to announce that it has established a new and significant exploration position at its 100%
owned(5) Koumandara Project (the “Project”) in south-west Burkina Faso (refer Figure 1).
The new 602km² land positon, located in the Banfora Greenstone Belt (refer Figure 2), was assembled by Sarama
entering into agreements to acquire 4 mineral properties which complement Sarama’s recently granted Nya-Nou
exploration permit.
Sarama considers the Banfora Belt to be highly prospective for gold, yet relatively underexplored. Reviews of historical
work conducted by Sarama and previous operators within the Project area indicate regionally extensive gold
occurrences. These kilometre-scale trends are marked by drilling, large-scale artisanal mining centres and extensive
gold-in-soil anomalism along corridors that coincide with a district-scale litho-structural ‘break’ interpreted as a
regional-scale shear zone. A number of the geological characteristics identified by Sarama are seen in the
neighbouring Houndé Belt and are considered important for the formation of economic gold deposits.
Highlights
- 602km2 semi-contiguous project area in the Banfora Belt in south-west Burkina Faso.
- Sarama’s interests will be 100%, upon the closing of transactions(5).
- Project area overlies a 45km-long section of a district-scale litho-structural break (“Banfora East Shear
Zone”) which Sarama considers significant in terms of gold emplacement.
- Gold-in-soil anomalism extending over 43km-long x 10km-wide corridor, with approximately 25km
untested by historical geochemical surveys.
- The Banfora Greenstone Belt extends from central Côte d’Ivoire where it hosts Perseus Mining’s large
Yaoure mine development project.
- Banfora East Shear Zone resembles the Boni Shear Zone of the Houndé Belt which is spatially associated
with several significant high-grade gold deposits/projects including Yaramoko, Siou, Bondi and Golden Hill.
- Exploration is targeting multiple styles of mineralisation, but predominantly large, free-milling, gold-
quartz systems that are known to be present in Burkina Faso.
- Historical reconnaissance reverse-circulation (“ RC”) and aircore (“ AC”) drilling returned significant
intersections including:
- 7m @ 6.86 g/t Au from 53m in BF_18 (RC, 100% Fresh);
- 13m @ 2.87 g/t Au from 10m in BF_08 (RC, 25% Trans / 75% Fresh);
- 4m @ 10.59 g/t Au from 30m in BF_08 (RC, 100% Oxide);
- 3m @ 8.94 g/t Au from 105m in FRC802 (RC, 100% Fresh); and
- 15m @ 1.80 g/t Au from 85m in FRC799 (RC, 100% Fresh).
- High tenor auger and gold-in-soil results have been returned in historical work programs.
- Sarama has commenced reconnaissance work and data compilation.
Sarama’s President and CEO, Andrew Dinning, commented:
“The project has taken some time to pull together and we look forward to applying our extensive knowledge of the
geology in Burkina Faso and what we have learned in the more established Hounde Belt where our team made a multi-
million ounce discovery in a purely greenfields area.
This is a large 100% (5) owned position situated in a prospective, yet underexplored gold belt. We are very encouraged
by regionally extensive gold-in-soil anomalism and also by the tenor of a number of the reconnaissance auger and RC
drilling results. We are looking forward to generating our first round of targets and rapidly moving the project
forward.”
GEOLOGICAL SETTING AND HISTORICAL WORK
The Project is located in the north of the Banfora Belt, a regionally extensive belt of Birimian-aged rocks which,
elsewhere, are known to host multi-million ounce gold deposits. The properties are generally positioned over the
central and eastern portions of the belt and overlie a package of lithologically diverse rocks including meta-
sedimentary, volcanic and intrusive rock units of varying composition.
A district-scale, north-east trending litho-structural feature (“Banfora East Shear Zone”) that lies close to the eastern
margin of the Banfora Belt transects several of the properties, giving the Project exposure to a structurally disrupted
corridor extending for approximately 45km along strike.
Historical soil geochemistry surveys on broad-spaced grids indicate elevated gold-in-soil anomalism along three main
trends(6) within the Project. Peak values of 10.0g/t Au (mean of 5.9ppb Au) and 2.6g/t Au (mean of 10.3ppb Au) were
returned for auger and manually collected soil surveys respectively.
The central trend extends for over 30km in strike and is coincident with fault-bounded sedimentary and mafic volcanic
rocks units. The spatially-associated Banfora East Shear Zone further enhances the geological environment and
increases the potential for large-scale fluid mobility and gold deposition.
The western anomalous trend extends for over 40km and is spatially associated with the contact zone of a
granodioritic intrusion with sedimentary rocks in the outboard Banfora Basin. Detailed auger sampling surveys have
delineated a third north-easterly-striking trend extending for approximately 30km along strike in the east.
Reconnaissance drilling by various operators to test anomalous gold-in-soil zones (refer Appendix A) has returned the
following significant results:
- Nya-Nou Property (significant Intersections ≥10gram.m/t(7) from 4400m RAB, 6600m AC, 4800m RC)
- 7m @ 6.86 g/t Au from 53m in BF_18 (RC, 100% Fresh)
- 13m @ 2.87 g/t Au from 10m in BF_08 (RC, 25% Trans / 75% Fresh);
- 4m @ 10.59 g/t Au from 30m in BF_08 (RC, 100% Oxide);
- 3m @ 8.94 g/t Au from 105m in FRC802 (RC, 100% Fresh);
- 15m @ 1.80 g/t Au from 85m in FRC799 (RC, 100% Fresh);
- 17m @ 1.18 g/t Au from 12m in BF_06 (RC, 6% Oxide / 94% Trans);
- 2m @ 8.94 g/t Au from 20m in AC1032 (AC, 100% Oxide);
- 4m @ 2.94 g/t Au from 90m in FRC801 (RC, 100% Fresh);
- 7m @ 1.66 g/t Au from 19m in FRC799 (RC, 100% Oxide);
- 20m @ 0.60 g/t Au from 12m in AC995 (AC, 100% Oxide); and
- 4m @ 2.86 g/t Au from 9m in BF_03 (RC, 100% Trans).
- Kapoguan, Kongoroba & Noumousso Properties (significant intersections ≥5gram.m/t (7) from 11600m RC,
200m DDH)
- 3m @ 4.37g/t Au from 39m in BRC15-042 (RC, material type unknown); and
- 3m @ 1.73g/t Au from 68m in BRC15-047 (RC, material type unknown).
Much of the Banfora East Shear Zone lacks coverage by base-level, detailed soil geochemistry surveys, and significant
areas of the anomalous gold-in-soil trends identified remain untested by reconnaissance drilling. Sarama believes the
Project contains several important geological features, the prospectivities of which are enhanced by encouraging
results from historical exploration activities. Fieldwork will focus on gaps in the base-level data, in conjunction with
ongoing compilation and verification of historical data and desktop targeting.
Sarama is encouraged that its new litho-structural interpretation for the eastern margin of the Banfora Belt, and the
recognition that the Banfora East Shear Zone is intimately associated with a corridor of gold-soil anomalism, will lead
to the discovery of a new gold belt and new gold discoveries. Sarama is well placed to consolidate its position and
build its geological understanding of the region.
COMMERCIAL TERMS OF TRANSACTIONS
A binding agreement in respect of the Dabokuy Property (“Dabokuy”) was entered into with Semafo Inc (“Semafo”) on
January 31, 2018 (the “ Dabokuy Agreement ”). The Dabokuy Agreement, subject to novation of a historical
agreement, permit transfers and payment of certain government fees and taxes by Sarama, provides for Sarama to
acquire a 100% interest in Dabokuy. Semafo will retain a net smelter return royalty of 1.5% in respect of gold
produced from Dabokuy in excess of 100koz Au and will have a one-off right to elect to purchase back an interest up to
a maximum of 20% in Dabokuy (the “ Back-In Right”). In the event Semafo elects to exercise its Back-In Right, Semafo
will make a cash payment to Sarama equal to 3 times the exploration expenditures incurred by Sarama on Dabokuy on
a pro-rata basis. Semafo’s Back-In Right will expire the earlier of: (i) 90 days following the filing of a technical report by
Sarama that details combined measured and indicated mineral resources on Dabokuy greater than 1Moz Au; and (ii)
45 days after the declaration by Sarama of its intention to commence commercial mining operations at Dabokuy. In
the event that Semafo elects to exercise its Back-In Right, Semafo’s right to a net smelter return royalty will be
extinguished.
Binding agreements in respect of the Noumousso, Kapoguan and Kongoroba Properties were entered into with two
Burkina Faso-based parties on December 15, 2018. The agreements are structured as option agreements and give
Sarama the right to acquire a 100% interest in each of the 3 properties subject to Sarama making certain cash
instalment payments at various time-based milestones. In the event that Sarama makes these instalments in full, the
respective underlying exploration permits will be transferred to Sarama and the respective vendors will receive a net
smelter return royalty of 1% in respect of gold production from the properties. Sarama has a right to buy out any or all
of the royalties in full by making cash payments of US$1M for each of the royalties.
For further information on the Company’s activities, please contact:
Andrew Dinning or Paul Schmiede
t: +61 (0) 8 9363 7600
Figure 1 – Koumandara Project Location
Figure 2 – Koumandara Project - Regional Geology Plan and Sarama’s Project Position
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 Belt, 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 gold(3) at the Karankasso Project JV.
Sarama also has 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.
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 282,000 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 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.
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 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.
4. Sarama has, or is entitled to have a 100% interest in the Djarkadougou, Botoro, Bamako and Bouni Properties which comprise the
ThreeBee Project.
5. Refer to Section of this News Release ‘Commercial Terms of Transactions’.
6. Western Trend broadly defined by +5ppb Au (66 th percentile of survey population) gold-in-soil anomalism – samples collected manually.
Central Trend broadly defined by a combination of +17ppb Au (90 th percentile of survey population) for manually collected samples and
+18ppb Au (95th percentile of survey population) for auger drilled samples. Eastern Trend broadly defined by a combination of +50ppb Au
for auger drilled samples and +12ppb Au for manually collected samples.
7. Measurement unit of gram.m/t refers to intersection grade in grams/tonne multiplied by intersection length.
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 further exploration at the Koumandara Project, the potential for mineralization of
significance to be discovered at the Koumandara Project, the ability of the Company to secure the issuance of the necessary exploration permits from
the Government of Burkina Faso, 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 and future exploration
plans. There has been insufficient exploration conducted to define a mineral resource on these properties and there can be no assurance that further
exploration will delineate a mineral resource.
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 Exchange) accepts
responsibility for the adequacy or accuracy of this release.
NOTES –DRILLING
Drilling results are quoted as downhole intersections. True widths and orientation of mineralisation intersected by the drilling are not yet well
understood.
The reported composites for the drilling were determined using a cut-off grade of 0.30g/t Au to select significant and anomalous intersections, with
a maximum of 2m internal dilution being incorporated into the composite where appropriate. No top-cuts were applied to assay grades. Isolated
mineralised intersections less than 2m in length have not been reported.
Gold assays for the drilling on the Nya-Nou Property were undertaken by the ALS and SGS laboratories in Ouagadougou, Burkina Faso and the SGS
laboratory in Morila, Mali. Assays are determined by fire assay methods using a 50 gram charge, lead collection and an AAS finish with lower
detection limits of 0.01g/t Au.
The drilling was generally designed according to program aims, expected mineralization orientation and was of variable length. Holes were spaced
at various intervals according to targeting intent.
Aircore and RC holes on the Nya-Nou Property were logged and sampled at regular 1m downhole intervals, with assays for AC holes conduced on 2m
composites. Logging interval information for RAB drilling on the Nya-Nou Property is not available, however assaying was conducted on 4m
downhole composites. RC drilling on the Noumousso, Kapoguan and Kongoroba Properties was logged and sampled at regular 1m downhole
intervals.
Intersection oxidation state classification is based on visual logging of the drillholes.
Drilling and geological sampling and assaying undertaken by Sarama on the Nya-Nou Property is conducted in accordance with its quality
assurance/quality control program which includes the use of certified reference materials as well as field duplicates. For further information
regarding the Company’s QAQC protocols 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 the Company’s profile on
SEDAR at www.sedar.com.
Quality assurance/quality control programs used by previous operators on the Nya-Nou, Noumousso, Kapoguan and Kongoroba Properties are not
known to Sarama and results have not been verified by Sarama.
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
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 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 Karnakasso Project using a Qualified Person because 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 compiled by Savary.