Sarama Resources Identifies GOLD-IN-Soil Anomalism over 10KM-LONG Trend at Its 100%-OWNED Botoro Property IN Burkina Faso
JULY 5, 2017
SARAMA RESOURCES IDENTIFIES
GOLD-IN-SOIL ANOMALISM OVER 10KM-LONG TREND
AT ITS 100%-OWNED BOTORO PROPERTY IN BURKINA FASO
VANCOUVER, CANADA. Sarama Resources Ltd. (“ Sarama” or the “ Company”) (TSX-V:SWA) is pleased to report that
the first phase of exploration on the C ompany’s recently- acquired1 Botoro Property (“Botoro” or the “ Property”) in
south-west Burkina Faso has identified several gold-bearing quartz vein systems associated with regional shear zones
and a preliminary soil geochemistry survey has returned gold- in-soil anomalism associated with structural features
over a distance of approximately 10km.
The Botoro Property is part of the Company’ s 100% -owned, 660km² ThreeBee Project 2 in the highly prospective
southern Houndé Belt.
Highlights
Sarama’s President and CEO, Andrew Dinning, commented:
“We are encouraged by the initial stages of exploration at the newly -acquired Botoro Property that is part of Sarama’s
100%-owned ThreeBee Project. T he identification of several, regional -scale shear zones and associated gold
mineralisation indicates that the Property has good exploration potential. The highest soil sample assay of 4.4g/t Au is
unusually high for this area of the southern Houndé Belt and may indicate the potential for the presence of a high-
grade mineralised system. We hope to advance the P roperty by conducting further exploration activities in the coming
exploration season to delineate targets for prioritisation.”
• Wide-spaced geochemical survey identified several km -scale anomalous zones coincident with regional scale
structural features, including three 2-3km-long zones within a 10km-long structural corridor
• Geochemical survey returned several single -point +250ppb Au gold -in-soil assay results outside these main
trends, including a high-grade sample of 4,420ppb Au (4.4g/t Au) in an area not disturbed by artisanal mining
• 10 artisanal mining sites identified by surface prospecting, all of which are exploiting in -situ mineralisation ,
including a gold-quartz system in the north which extends for over 500m along strike
• Several gold -bearing quartz vein systems identified and noted to be closely associated with regional shear
zones
• Geology noted to feature a d iverse assembly of volcano -sedimentary and volcanic rocks, complemented by
granitic intrusive units and structural features of multiple orientations to produce a fertile enviro nment for gold
mineralisation
• 20km-long north-trending regional shear noted to extend the length of the Property and link zones of artisanal
mining activity
• Follow-up work programs planned, including a targeted soil-infill program and mapping of artisanal workings
• Targeting high-grade mineralisation to support either a stand -alone operation or as satellite feed to Sarama’s
other interests in the ThreeBee Project, which includes the Bondi Deposit1
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Botoro Property Exploration
Location and Work History
The 224km2 Botoro Property is located on the eastern flank of the well -endowed southern Houndé Greenstone Belt
and is part of the Company’s 100% -owned, 660km² ThreeBee Project (refer Figure 1). The Property is well positioned
with respect to known gold occurrences, being approximately 20km from Sarama’s Bondi Deposit 1 and adjacent to the
South Houndé Project (2.1Moz inferred mineral resource)4.
A desktop review by Sarama on the Botoro Property concluded that historical work was very limited in scope and
specifically targeted discrete areas hosting artisanal activity . Despite t his narrow focus, the reconnaissance -type
drilling programs yielded encouraging results with high -grade mineralisation intersected directly under the artisanal
workings.
The high-grade nature of the known mineralised systems, presence of structural features, lithological diversity and the
lack of systematic exploration over most of the Property augers well for future exploration success.
Mineralisation Occurrence Mapping and Soil Geochemical Survey by Sarama
Sarama undertook a soil geochemical survey over all the greenstone rocks within the permit area using a n initial,
wide-spaced grid of 800m x 200m to identify mechanical gold dispersion beneath the aeolian and thin colluvial
horizons.
The first-pass survey was successful in identifying several areas of km-scale gold-in-soil anomalism that are proximal to
contrasting lithological and structural features (refer Figure 2) , illustrating the potential for the Property to host gold
mineralisation.
Of principal interest are three zo nes of gold -in-soil anomalism, each extending over a distance of 2 -3km and defined
by +8ppb Au and +20ppb Au contours (90th and 98th population percentiles respectively) , within a 10km -long corridor
that is proximal to a north -trending regional -scale fault . Each of these thre e areas is proximal to cross -orientation
trends of minor soil anomalism, potentially suggesting a favourable structural environment for gold deposition.
In addition to these main areas, several other anomalous zones, trending north -east and east -west, were delineated
by +8ppb Au and +20ppb contours. These are also proximal to interpreted structural features , indicating potential for
in-situ gold mineralisation.
Outside of these trends, several single- point anomalies (+250ppb Au) punctuat ed the survey area , with the highest
result being 4,420ppb Au (4.4g/t Au) from an area far removed from artisanal activity. The results are significant in
that several areas of gold anomalism are found in undisturbed areas and along interpreted shear projections . A
number of areas have been prioritised for follow-up by infill soil sampling at a grid spacing of 100m x 100m.
Mapping and prospecting by Sarama has delineated 10 present and former artisanal working sites that range from
large areas of surficial panning over a 1km 2 area in the south -east quadrant of the Property to scattered and smaller
areas characterised by pitting at shallow to moderate depths. All the artisanal areas are noted to be focused on in -
situ quartz-gold vein systems or sur ficial enrichment via erosional deflation , which reinforces the pro spectivity of the
Property.
The large artisanal working site in the north of the Property has some of the deepest artisanal shafts, some which are
concrete lined and extending 40m deep , where a series of north -trending, gold-quartz veins ha ve been exploited by
artisanal miners over a strike length of 500m.
Faults, shear zones and lithologic contact areas are observed to be the main host environments with gold
mineralisation being associated with quartz veins of various orientations.
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Geological Mapping
Reconnaissance-level geological mapping by Sarama ( refer Figure 2) concludes that the P roperty is underlain by
abundant Birimian greenstone units (65%), with the rest of the area underlain by various granitoid bodies (35%).
The more prevalent volcano-sedimentary, andesitic -to-basaltic volcanic rocks and minor volcanic breccias or
pyroclastic flows are s imilar rocks to those which host gold deposits of significance within the Houndé Greenstone
Belt, such as the Mana, Yaramoko and Houndé mines.
A north-trending tonalite-granodiorite intrusion is mapped along the eastern side of the Property and is part of a large
batholith that sepa rates the Boromo and Houndé G reenstone Belts. The contact is marked by shearing and contact
metamorphism. A syn-to-late granite intrusion, similar to the granite associated with Roxgold Inc’s Yaramoko deposit,
lies along the northern perimeter of the P roperty and is part of the larger Bondigui Stock that stretches further to the
north. Small east-trending felsic dykes have also been noted in the mapping program.
Several orientations of permit - and regional -scale faults and shears have been interpreted th roughout the P roperty
including a significant east-trending fault recognised within a large artisanal mining site in the centre -east of the
Property where intense foliation and aligned gold- quartz veins are found. A 20km -long north-tending fault is
interpreted through the central part of the P roperty linking artisanal workings in the north to the high -grade, single-
point gold -in-soil anomaly (4,420ppb Au, 4.4g/t Au) in the southern extremit y of the Property. A dding to the
structural setting is a north-north-east-trending, banded and silicified zone in the central basalt domain, interpreted
as a mylonite and marking a possible, regional-scale shear zone.
The lithological diversity, presence of multiple regionally extensive structural features of varying or ientations and
presence intrusive units demonstrates an active geological environment with good potential to host gold
mineralisation of significance.
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 – ThreeBee Project Location Map1,2,3,4,6
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Figure 2 – Botoro Property Geology Map with Highlighted Exploration Results
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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 res ource estimate of 2.1 Moz gold 4. 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 3 1% 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 gold5 at the Karankasso Project JV.
Sarama has also agreed to acquire 1 a 100% interest in the Bondi Deposit from Orezone Gold Corporation (refer news
release May 24, 2016). Bondi has a historical estimate of mineral resources of 0.3Moz Au (measured and indicated)
and 0.1Moz Au (inferred)3.
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. Upon closing of the respective purchase agr eements, Sarama will hold a 100% interest in the Botoro Property and the Djarkadougou
Property, which hosts the Bondi Deposit.
2. The ThreeBee Project comprises the Djarkadougou, Botoro, Bamako and Bouni Properties.
3. 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 go ld 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.
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4. 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.
5. 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.
6. 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 ThreeBee Project and the potentia l for the Botoro Property to host gold
mineralization of significance, drilling and geochemical and geophysical surveys 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 to expand the present oxide component of the Company’s existing estimated
mineral resources, 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 ex ploration 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 upgr aded 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 go ld 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.
NOTES – EXPLORATION ACTIVITIES
The soil geochemistry survey at Botoro was conducted on 800m x 200m (E-W x N-S) grid over the greenstone portion of the Property, with hand-dug
samples being taken in the appropriate level in the soil horizon. Termitaria sampling was conducted in conjunction with the soil geochemistry survey
where termite mounds were present and warranted sampling. Termitatia sampling was conducted using sieved material from quarter cone
sampling of each mound.
Analytical work for the Botoro soil geochemistry and termitaria survey was undertaken by the SGS A.A. laboratory in Ouagadougou, Burkina Faso.
Assays are determined by ‘bulk leach extractable gold’ method on approximately 2kg of sample material, with an atomic absorption spectroscopy
(“AAS”) finish. Lower and upper detection limits are 1ppb Au and 10,000ppb Au respectively.
The reported assay values are as received for the specific samples and no grade cutting has been applied.
Sarama undertakes geological sampling and assays in accordance with its quality assurance/quality control program which includes the us e of
reference materials prepared in-house for soil geochemistry surveys.
A total of 842 samples were taken for the survey, with 65 % returning Au values over the lower analytical detection limit. The survey returned
minimum and maximum Au values of 2ppb A u and 4,424 ppb Au respectively with the mean and median Au values of the data set being 11ppb Au
and 2ppb Au respectively. The 25 th and 75th percentiles for the survey were 0.5ppb Au (equivalent to half detection limit) and 4ppb Au respectively
with standard deviation being 158ppb Au.
Gold anomalism trends were identified by visual examination of interpolated Au value maps produced using inverse distance weighti ng (squared)
methodology over an equi-directional search distance of 800m and a cell size of 200m. Identified trends generally corresponded to the 9 0th and 98th
percentiles of the Au value population (+8 ppb au and +20 ppb Au respectively). Identified trends were validated by assessment with sample logging
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and regolith data.
For further information regarding the Company’s general sampling and 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.
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 considera tion and activity
which he is undertaking to qualify as a Qualified Person under National Instrum ent 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 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 D eposit 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 e mployee 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 in formation 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 membe r 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 Savary’s mineral resource
estimate and takes no responsibility for its accuracy.