SARAMA RESOURCES EXTENDS HIGH-GRADE GOLD MINERALISATION First Drill Program After ASX Listing Extends High-Grade Gold Mineralisation in Oxide Material
NEWS RELEASE
8 AUGUST, 2022
SARAMA RESOURCES EXTENDS HIGH-GRADE
GOLD MINERALISATION
First Drill Program After ASX Listing Extends High-Grade Gold Mineralisation in Oxide Material
PERTH, AUSTRALIA. Sarama Resources Ltd. (“Sarama” or the “Company”) (ASX:SRR, TSX-V:SWA) is pleased to announce
that assays returned from an initial 1,700m drilling of the ongoing +50,000m program at its 100%-owned(4), multi-million
ounce Sanutura Project (the “Project”) have extended gold mineralisation in several directions at the Obi Prospect (refer
Figure 1) and discovered a new trend for exploration.
The drilling has delineated an extensive zone of flat -lying mineralisation in shallow, oxide material which extends
approximately 950m along strike and up to 300m down -dip with mineralisation remaining open down -dip. Th ese
results deliver one of the Company’s near -term objectives of growing the oxide component of the Project’s already
large Mineral Resource of 0.6Moz Au (Indicated) plus 2.3Moz Au (Inferred)(1).
Exploration potential in the area has also been enhanced with the emergence of a new target area immediately along
strike to the north -east, which is untested for approximately 1.8k m. The Company anticipates drilling its highest
priority targets and commencing regional greenfields exploration early in the next field season commencing Q4 2022.
Highlights
• Multiple high-grade intersections returned in oxide material at the Obi Prospect within the Sanutura Project
• Highlighted downhole intersections (approximating true width) in oxide material from recently returned assays
include:
o 12m @ 2.86g/t Au from 39m in TAR022;
o 10m @ 2.78g/t Au from 38m in TAR003 (including 1m @ 14.80g/t Au);
o 10m @ 2.07g/t Au from 41m in TAR058;
o 14m @ 1.53g/t Au from 11m in TAA153;
o 11m @ 1.80g/t Au from 23m in TAR004 (including 1m @ 11.15g/t Au);
o 3m @ 4.57g/t Au (ending in mineralisation) from 39m in TAA152; and
o 4m @ 3.54g/t Au from 65m in TAR006.
• Flat-lying mineralisation extended in all directions with a footprint measuring 950m along strike and up to 300m
down-dip
• New target areas for future near -surface exploration identified, including an untested trend extending 1.8km
along strike to the north-east
• A number of drill holes contain multiple mineralised intersections, indicating potential for additional lodes to
occur within the mineralised package
• Oxide profile extends to 80m vertical depth in local drilled area
• Results are expected to add to the current oxide and transition component of the Mineral Resource which stands
at 0.2Moz (Indicated) plus 0.8Moz Au (Inferred)(2)
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Sarama’s President, CEO & MD, Andrew Dinning commented:
“We are very excited by these first drill results at the Obi Prospect which have defined extensive and shallow, oxide-
hosted gold mineralisation in single and multiple higher-grade zones.
This drilling has e xtended a previously minor zone to approximately 950m in length with a further 1.8km of strike
potential yet to be tested. The tenor and flat -lying nature of this mineralisation suggests a different mineralising event
to the sub-vertical, lower-tenor gold lodes seen in this local area and it has led us to a new target model reminiscent of
Endeavour Mining’s flat-lying Kari Pump and Boungou Deposits in Burkina Faso.
With further drill results to come, we look forward to providing a series of updates over the coming months.
Sarama’s approximate market capitalization of A$20M (6) presents a deeply discounted valuation for the Project’s
Mineral Resource base of 0.6Moz Au (Indicated) plus 2.3Moz Au (Inferred)(1), even more so considering that the current
drill program is anticipated to yield a significant increase.”
Webinar:
For more context, please join CEO Andrew Dinning in a live event on August 10th at 9am EST / 9 pm AWST. Q&A will
follow the brief presentation. Click here to register: https://my.6ix.com/INN0fY27
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Growth-Oriented Drill Program in Oxide Material
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 Min eral Resource of 0.6Moz
Au (Indicated) plus 2.3Moz Au (Inferred)(1), covers an area of 1,420km2 and occupies a commanding position along 70km
of strike in the prolific Houndé Belt (refer Figure 1).
The Project lies 60km south of Endeavour Mining’s Houndé Mine (5Moz Au); 120km south of Fortuna Silver’s high-grade
Yaramoko Mine (1Moz Au), and 140km south of Endeavour Mining’s Mana Mine (5Moz Au), highlighting the significant
gold endowment of the Houndé Belt (refer App endix B) . Endeavour Mining’s Bantou Project (1.5Moz Au Inferred
Mineral Resource(5)) is located only 6km from the bulk of the Sanutura Project’s main deposit, which illustrates the gold
camp scale of endowment in the immediate area.
The Project has significant growth potential available and the primary objective of the current +50,000m drill program
is to add to the existing 0.2Moz Au (Indicated) plus 0.8Moz Au (Inferred)(2) oxide and transition component of the
Project’s Mineral Resource to enhance the economics of mine development.
The recently commenced drill program has initially focused on the Obi Prospect, located in the southern part of the
Project where drilling is sparse and potential exists to expand the Mineral Resource at shallow depths in oxide material.
Figure 1 –Sanutura Project Location Plan
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Drilling Delivers Extensions to Mineral Resource at Obi Prospect
Results are being reported (refer Appendix A) for approximately 700m of aircore (“AC”) drilling (15 holes) and 1,000m
of reverse-circulation (“RC”) drilling (13 holes) which commenced in May 2022 in the south -western part of the Obi
Prospect. This area hosts gold mineralisation in multiple flat -dipping lenses which now extend for a strike length of
approximately 950m (refer Figure 2) . The lenses occur near-surface and the area is considered a prime target for
exploration to add to the existing 0.2Moz (Indicated) plus 0.8Moz Au (Inferred)(2) oxide and transition component of
the Project’s Mineral Resource.
Figure 2 – Obi Prospect – Drilling & Mineralisation Plan
Mineralisation in the area presents as gold-quartz veins, which is significantly different to the more densely drilled areas
of the deposit, illustrating diversity in both the geometry and composition of the gold-bearing lodes. The recent drilling
follows-up on previously reported (refer Appendix B) , high-tenor downhole intersections occurring in oxide material
which include:
• 7m @ 11.52g/t Au (ending in mineralisation) from 31m in TAA070 (including 3m @ 25.36g/t Au);
• 8m @ 4.72g/t Au from 34m in TAA077;
• 5m @ 7.26g/t Au from 16m in TAA068;
• 8m @ 4.21g/t Au from 34m in AC3628;
• 5m @ 5.02g/t Au from 22m in TAA071 (including 2m @ 11.68g/t Au);
• 6m @ 4.01g/t Au from 36m in AC3665;
• 17m @ 1.59g/t Au from 34m in TAA080 (including 5m @ 3.45g/t Au); and
• 12m @ 1.80g/t Au from 10m in AC3627.
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Recently returned assay results support the interpreted geometry of the flat, easterly -dipping mineralised lodes and
have delivered down-dip and up-dip extensions to mineralisation of up to 100m and 40m respectively (refer Figures 2
and 3). Several new strong downhole intersections in the lower extremity, all occurring in oxide material, include:
• 12m @ 2.86g/t Au from 39m in TAR022;
• 10m @ 2.78g/t Au from 38m in TAR003 (including 1m @ 14.8g/t Au);
• 10m @ 2.07g/t Au from 41m in TAR058;
• 3m @ 4.57g/t Au (ending in mineralisation) from 39m in TAA152;
• 4m @ 3.54g/t Au from 65m in TAR006; and
• 6m @ 2.52g/t Au from 36m in TAR056.
Figure 3 –Southern Obi Prospect – Drilling Cross Section A-A’ (View to North-East)
Given the shallow position of the mineralisation, these intersections present a compelling target for further down-dip
extensions to be tested in future drilling. This is of particular interest as the flat-dipping mineralisation can be projected
to intersect a series of steeply dipping lodes to the east; the confluence of which potentially hosts a localised enrichment
zone caused by multiple overprinting phases of gold emplacement.
Of note is the significant increase in the vertical depth of the highly weathered oxide zone intersected by drilling to
approximately 80m, which is anomalous to that observed in the broader deposit (50m). This increased depth is
expected to enhance economics for any contemplated mine development.
The shallow up-dip extent of the mineralisation also remains open, offering a viable exploration target to follow-up of
the recently returned downhole intersections of:
• 14m @ 1.53g/t Au from 11m in TAA153;
• 11m @ 1.80g/t Au from 23m in TAR004 (including 1m @ 11.15g/t Au);
• 5m @ 1.48g/t Au from 26m in TAA156; and
• 4m @ 1.94g/t Au from 5m in TAA145.
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Adding to the attraction o f the area for further exploration is the presence of multiple separate intersections within
individual holes and significantly broader intersections than expected in certain areas (refer Figures 2 and 3 ). These
intersections suggest potential for additional mineralised lodes to occur in close proximity to the main, flat -dipping
mineralisation.
A New Exploration Horizon in the North-East
The recently returned results have validated and given substance to the Company’s interpretation of the mineralised
system in the south-west of the Obi Prospect, which has been developed over an extended period . In addition to
yielding meaningful extensions to the existing mineralisation in the dip direction, the drillin g has extended the
mineralised lodes a further 100m along strike in a north-easterly direction, giving a total strike length of 950m.
Of note is the abundance of high -tenor intersections in the north -eastern extremity of this strike length, which are
commonly associated with a thickening of the lode(s) and the suggested presence of additional mineralised lodes from
multiple intersections in single drillholes. Together, these features suggest a strengthening of the mineralised system
in the north, which bodes well for future exploration given the absence of drilling for approximately 1.8km along strike
(refer Figure 4).
This new target area broadly sits within the main mineralised corridor of the Project proximal to the well-defined, north-
north-east striking lodes of the Mineral Resource. The area has been covered by a conventional soil geochemical survey
grid and several zones of elevated gold-in-soil values have been returned within a generally mottled signature resulting
from a variable and disrupted regolith. This environment can produce ambiguous surface geochemistry results, giving
potential for blind and semi-blind mineralisation to be present.
The Company plans to conduct detailed surface prospecting and other target generation work in the area to better
define targets which are anticipated to be tested by reconnaissance drilling in Q4 2022.
Figure 4 – Untested Trend Extents for 1.8km to North-East (Oblique View)
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Appendices
To access the appendices referred to in this announcement please click on the links below
Appendix A: Summary of Recently Drilled Results
https://saramaresources.com/wp-content/uploads/2022/08/220809-extension-of-high-grade-gold-mineralisation-
appendix-a.pdf
Appendix B: References to Previous ASX Disclosure
https://saramaresources.com/wp-content/uploads/2022/08/220809-extension-of-high-grade-gold-mineralisation-
appendix-b.pdf
Appendix C: JORC Code (2012 Edition) – Table 1 Information
https://saramaresources.com/wp-content/uploads/2022/08/220809-extension-of-high-grade-gold-mineralisation-
appendix-c.pdf
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
ABOUT SARAMA RESOURCES LTD
Sarama Resources Ltd ( ASX: SRR , TSX-V: SWA ) is a West African focused gold explorer /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 100%-owned(4) Sanutura Project is principally located within the prolific H oundé 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).
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 25km 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 likelihood of
the Mineral Resources to have reasonable prospects for eventual economic extraction. The effective date of the Company’s Mineral Resource
estimate is 16 November 2021. For further information 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 pr ofile 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 regardi ng 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 NI43 -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 Resource 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 Qualif ied 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 Company
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.
5. Endeavour Mining’s Bantou Project Mineral Resource – 38.4Mt @ 1.2g/t Au for 1.5Moz Au (Inferred). This is the aggregate of the Mineral
Resource listing for the Bantou and Bantou Nord Deposits which are located within the Bantou Project. Data is sourced fr om Semafo: Bantou
Project NI43-101 Technical Report – Mineral Resource Estimate” dated 3 April 2020. The technical report are available under Endeavour’s
profile on SEDAR at www.sedar.com.
6. Market capitalisation computed using Sarama’s closing price on the ASX on 5 August 2022 of A$0.15/CDI (1 CDI : 1 share) and shares on issue
of 137.9M (as at 5 August 2022).