Sarama Resources Extends Strike Length of New Discovery ON the Djarkadougou Property
SEPTEMBER 20, 2018
SARAMA RESOURCES EXTENDS STRIKE LENGTH OF NEW
DISCOVERY ON THE DJARKADOUGOU PROPERTY
VANCOUVER, CANADA. Sarama Resources Ltd. (“Sarama” or the “Company”) (TSX-V:SWA) announces that a combined
reverse circulation (“RC”) and aircore (“AC”) drilling program has extended the strike length of shallow zones of gold
mineralisation at the Zanawa Prospect, 4km north-east of the Bondi Deposit (or “Bondi”) on Sarama’s Djarkadougou(4)
Property (“Djarkadougou” or the “Property”) in south-western Burkina Faso.
The drill results demonstrate the potential to add to the existing historical estimate of mineral resources at the Bondi
Deposit(1) and strengthens Sarama’s regional development options for the ThreeBee Project and the C ompany’s
adjoining South Houndé Project.
Highlights
Sarama’s President and CEO, Andrew Dinning, commented:
“We are extremely pleased with the results of this drill program, which has demonstrated the potential to add additional
free-milling and high-grade gold ounces to the historical resource base on the Djarkadougou Property. The intersection
of broad zones of high- grade oxide mineralisation in areas separate to the Bondi Deposit provides substantial
encouragement as does the drilling completed in the southern extents of the known resource area. ”
• 200m of RC and 1,500 m of AC drilling was completed at the Zanawa Prospect (“Zanawa”), building on
results from earlier reconnaissance drilling and extending the strike length of mineralisation to 1km.
• Zanawa remains open-ended to the north, south and to depth.
• Drilling at Zanawa intercepted intervals of shallow mineralisation, several of which contain significant gold
grades. Highlighted downhole intersections include (refer to Appendices A and B for full results) :
o 22m @ 3.85g/t Au from 5m in hole DJR0029;
o 29m @ 1.44g/t Au from 1m and 10m @ 1.24g/t Au from 67m in hole DJR0030;
o 5m @ 4.54g/t Au from 15m in hole DJA0141; and
o 15m @ 0.74g/t Au from 7m and 11m @ 0.98g/t Au from 27m in hole DJA0159.
• Drilling at Zanawa confirms that mineralisation is associated with a mafic volcanic - intermediate intrusion
contact that extends for at least 3km across the north-eastern part of the Djarkadougou Property.
• 1,300m of RC drilling on the southern limits of the Bondi Deposit extends the SE Splay Prospect (“SE Splay”)
to the south -east and identifies several high- grade zones which remain open at depth. Highlighted
downhole intersections include (refer to Appendix A for full results):
o 3m @ 4.71g/t Au from 51m and 3m @ 19.86g/t Au (EOH) from 69m in hole DJR0013;
o 7m @ 2.43g/t Au from 62m in hole DJR0015; and
o 6m @ 3.46g/t Au from 44m in hole DJR0016.
• 700m of RC drilling in t he southern extension of the main Bondi Deposit has extended this zone to depth.
Highlighted downhole intersections include (refer to Appendix A for full results) :
o 13m @ 1.50g/t Au from 86m in hole DJR0004; and
o 6m @ 1.93g/t Au from 134m in hole DJR0006.
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Reverse Circulation and Aircore Drilling
Sarama’s recent focus has been o n developing drill targets along strike and also away from the Bondi Deposit on
Djarkadougou. Djarkadougou is one of four properties constituting the ThreeBee Project which is situated within the
southern part of the prospective Houndé Belt in south-west Burkina Faso (refer to Figure 1).
The re-interpretation of the geolog y underlying the Property includes the recognition of multiple regional shear zones
with secondary fault splays within a mixed volcanic and volcano-sedimentary package cut by late intermediate to felsic
intrusions. These geologic features highlight a number of exploration targets with good potential to host gold
mineralisation in addition to that previously outlined at the Bondi Deposit (refer to Figure 2).
The reported results are from a drilling program conducted in H1 2018 that targeted: 1) the Zanawa Prospect, a new
discovery lying 4km to the north-east of the main Bondi Deposit; 2) the southern strike extent of the Bondi Deposit; and
3) a south -east zone representing a distinct splay from the main north- south trending Bondi Deposit. A total of 46
aircore holes, for a total of 1 ,500m, and 2 8 RC holes, for a total of 2 ,200m, were drilled. Full results are included in
Appendices A and B.
Zanawa Prospect
Of principal interest was shallow, oxide mineralisation that was first intersected in an earlier, reconnaissance AC drill
program approximately 4km to the north -east of the main, northerly -trending Bondi Deposit (refer to Figure 2 and
Sarama news release dated September 12, 2017). The mineralisation is interpreted to be proximal to the contact zone
of an intermediate intrusive unit that cuts a regionally extensive band of mafic volcanic rocks. Gold mineralisation is
associated with quartz veins and veinlets within wider zones of silica -pyrite-sericite-albite alteration similar in many
respects to mineralisation within the Bondi Deposit to the south -west.
Gold mineralisation at Zanawa strikes north and can be traced across several east-west oriented drill fences. It is parallel
to an intrusive contact highlighted by gold -in-soil anomalism. Gold mineralisation of significance has been found on
almost all drill fences that were spaced out over 1km and the zone is open along strike and to depth.
Highlighted drill results for Zanawa include:
o 22m @ 3.85g/t Au from 5m in hole DJR0029;
o 29m @ 1.44g/t Au from 1m and 10m @ 1.24g/t Au from 67m in hole DJR0030;
o 5m @ 4.54g/t Au from 15m in hole DJA0141; and
o 15m @ 0.74g/t Au from 7m and 11m @ 0.98g/t Au from 27m in hole DJA0159.
Whilst drill density is limited and does not yet allow detailed interpretation of mineralised lode geometry, the presence
of wide drill intervals of mineralisation in successive holes on several drill fence s (refer to Figure 3) h ighlights the
exploration potential at Zanawa and warrants further drilling.
Of further interest is a target zone to the north -north-east of current drilling that is defined by a gold- in-soil anomaly
and a strong coincident resistivity -chargeability induced polarisation anomaly proximal to an interpreted regionally -
extensive structure (refer to Figure 2). A ‘data gap’ exists between the Zanawa Prospect and the target area to the
north-north-east that will require further investigation to see if the two prospects might be part of a larger, continuous
mineralised system.
South-East Splay Zone
The SE Splay is a previously -identified southeast-striking mineralised structure that trends away from the main north -
striking Bondi Deposit in the southern part of the deposit area (refer to Figure 2). This structure was targeted for drilling
due to historic drill information and evidence of significant grade along the splay structure.
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Sarama has extended this mineralised structure to moderate depth and further to the south-east and intersected high-
grade gold mineralisation in several holes drilled beneath historic drill holes, including the following results:
o 3m @ 4.71g/t Au from 51m and 3m @ 19.86g/t Au (EOH) from 69m in hole DJR0013;
o 7m @ 2.43g/t Au from 62m in hole DJR0015; and
o 6m @ 3.46g/t Au from 44m in hole DJR0016.
The high-grade intercepts in hole DJR0013 are within, and proximal to, a granitoid dyke that cuts mafic volcanic host
rocks. Further drilling will be carried out in order to follow-up on these encouraging results received to date.
Southern Extension of the Bondi Deposit
The southern extension of the north- south-striking Bondi Deposit (refer to Figure 2) was tested by RC drilling that
confirms the continuation of mineralisation along strike and to depth. Significant intercepts include:
o 13m @ 1.50g/t Au from 86m in hole DJR0004; and
o 6m @ 1.93g/t Au from 134m in hole DJR0006.
Mineralisation is spatially associated with a north -striking, mafic volcanic – volcano-sedimentary contact and proximal
to a north-striking fault. This zone will be further investigated as it is open along strike and to depth.
Looking forward, Sarama will continue its two-pronged strategy of systematic regional exploration for discovery of new
mineralisation and secondly, validation of the large amount of historical data concentrated in the Bondi Deposit area
with a view to generating extensional targets.
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 – Regional Project Plan (ThreeBee Project in Red)
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Figure 2 – Geology Plan of Djarkadougou Property (Recent Drill Hole Collars in Blue)
Northeast Prospect
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Figure 3 – 1209900mN drill fence (view to north) showing location of AC (DJA prefix) and RC (DJR prefix) drill holes, geology and interpreted mineralised zones (red).
Orientation of gold mineralised zones with respect to the east-west oriented drill fence is not precisely known.
Fresh
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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 explo ration 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 e arn-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 satisf ied certain
milestones and currently holds a 50% interest in the South Houndé Project and is continuing to sole fund exploration
activities.
Sarama holds a 27 % 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(4) 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, wer e 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. 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. Sarama is currently undertaking the
necessary verification work in the field and on the desktop that may support the future reclassification of the historical es timate to a
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 informa tion regarding
the mineral resource estimate please refer to the technical report titled “NI 43 -101 Independent Technical Repor t South Houndé Project
Update, Bougouriba and Ioba Provinces, Burkina Faso”, dated March 31, 2016. The technical report is available under Sarama Re sources
Ltd.’s profile on SEDAR at www.sedar.com.
3. Karankasso Project - 9.2Mt @ 2.3g/t Au (at a 0.5g/t Au cut-off). The effective date (“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 mine ral
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resource estimate please refer to the technical report titled “Technical Report and Resource Estimate on the Karankasso Proje ct, Burkina
Faso”, dated October 7, 2015 and prepared 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 and Sarama. The technical report is available under Savary’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. 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.
4. The Djarkadougou Exploration Permit is going through a process with the government of Burkina Faso where it is required to be reissued as
a new full-term exploration permit. The Company anticipates this to 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.
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 Djarkadougou Property and its other prospects, the potential for
mineralization of significance to be discovered at Djarkadougou, the significance and contribution of the Djarkadougou and ThreeBee Project in
regional development plans, drilling and geochemical and geophysical surv eys at the South Houndé Project, the timing and prospects for the re -
issuance of the Djarkadougou Exploration Permit, 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.
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; fe w properties that are
explored are ultimately developed into producing mines; geo logical 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 o btained.
However, the Company believes that the assumptions and expectations reflected in the forward- looking information are reaso nable. 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 Re gulation 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 were undertaken by the Bigs Global laborator ies in Ouagadougou, Burkina Faso. Assays are determined by fire assay
methods using a 50 gram charge, lead collection and an AAS finish with lower detection limits of 0.005g/t Au (Bigs Global).
The drilling was generally designed using west -east azimuths, according to program aims and expected mineralization orientation, dipping at
approximately -55-60° and were of variable length. Holes were spaced at various intervals according to targeting intent. All aircore holes were
sampled at regular 2m downhole intervals.
Intersection oxidation state classification is based on visual logging of the drillholes.
Sarama undertakes geological sampling and assays 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 P rovinces, Burkina Faso”, dated March 31 , 2016. The technical report is available under the
Company’s profile on SEDAR at www.sedar.com.