Sarama Resources Intersects Broad Oxide Mineralisation Near Its Bondi Deposit IN Burkina Faso
SEPTEMBER 12, 2017
SARAMA RESOURCES INTERSECTS
BROAD OXIDE MINERALISATION
NEAR ITS BONDI DEPOSIT IN BURKINA FASO
VANCOUVER, CANADA. Sarama Resources Ltd . (“Sarama” or the “ Company”) (TSX-V:SWA) announces that
reconnaissance aircore drilling has intersected shallow, oxide gold mineralisation over broad intervals approximately
4km north -east of its 100% -owned Bondi Deposit in south -western Burkina Faso. The Bondi Deposit is of high
strategic value, making it the key component of the Company’s 100%-owned(4) ThreeBee Project (the “Project”).
The drill results demonstrate the potential to add mineral resources to the Project, building on the existing historical
estimate of mineral resou rces for the Bondi Deposit . The results underscore the value of the property in the
development of the southern Houndé Belt with new gold discoveries potentially being highly accretive to various
development scenarios being contemplated.
Highlights
Sarama’s President and CEO, Andrew Dinning, commented:
“We are extremely pleased that the first drill program on the property following its recent acquisition by Sarama has
delivered immediate results. The intersection of broad oxide mineralisation in areas away from the Bondi Deposit
provides substantial encouragement that further exploration will add to the historical estimate mineral resources of
the deposit and we look forward to conducting more extensive follow -up programs next exploration season. We are
pleased to own 100% of the property, particularly given that the Bondi Deposit has the potential to deliver high margin
ounces and our first drill program has demonstrated that exploration opportunity remains.”
• Sarama’s first drill program since acquiring the property has delivered immediate results, highlighting the
potential for new discoveries.
• Broad intervals of shallow, oxide gold mineralisation intersected in reconnaissance drilling approximately 4km
from the Company’s 100%-owned Bondi Deposit.
• Several holes ended in mineralisation, indicating potential for further mineralisation below drilled horizon.
• Mineralised intersections are proximal to contact zones between intrusive and mafic volcanic units,
demonstrating potential for gold mineralisation in similar target areas elsewhere on the property.
• Results are reported for 82 holes totalling 2,800m of aircore drilling with h ighlighted downhole intersections
including (see Appendix A for full details):
o 8m @ 1.50g/t Au from surface in DJA0061 (100% oxide);
o 27m @ 1.07g/t Au (EOH) from surface in DJA0060 (100% oxide);
o 20m @ 0.71g/t Au from 4-24m in DJA0076 (100% oxide); and
10m @ 1.47g/t Au from 28-38m in DJA0076 (100% oxide);
o 10m @ 1.10g/t Au (EOH) from 10-20m in DJA0058 (90% oxide/10% transition); and
o 14m @ 0.73g/t Au from 2-16m in DJA0059 (86% oxide/14% transition).
• The p roperty is part of Sarama’s 100 %-owned(4) ThreeBee Project and is core to the development of the
southern Houndé Belt given its highly strategic location and mineralisation well suited to open pit mining.
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Reconnaissance Aircore Drilling
Prior to formalising its 100% ownership of the p roperty in August 2017, Sarama fo cussed on low -cost desktop
evaluation, field checking of historical data and prospecting activi ties outside of the main Bondi Deposit area, which
was the primary focus of previous owners.
The re-interpretation of the geological setti ng of the rocks underlying the p roperty and 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, demonstrates an active geological environment with good potential to host gold
mineralisation in addition to that previously outlined at the Bondi Deposit (refer Figure 2).
Sarama undertook a program of targeted, infill soil geochemical survey grids over areas of the p roperty that were
deemed to have untapped exploration potential on the basis of historical soil survey data and Sarama’s re -
interpretation of airborne magnetic data. The infill soil geochemical grids identified several anomalous zones that are
coincident with interpreted structural features and lithological contact zones.
The reported results are final for a small reconnaissance drilling p rogram conducted in late Q2 2017 that targeted
anomalous gold-in-soil zones outside of the area hosting the Bondi Deposit. In total 82 aircore holes were drilled for a
total of 2,800m. Full results are included in Appendix A with highlights as follows:
• 8m @ 1.50g/t Au from surface in DJA0061 (100% oxide);
• 27m @ 1.07g/t Au (EOH) from surface in DJA0060 (100% oxide);
• 20m @ 0.71g/t Au from 4-24m in DJA0076 (100% oxide); and
10m @ 1.47g/t Au from 28-38m in DJA0076 (100% oxide);
• 10m @ 1.10g/t Au (EOH) from 10-20m in DJA0058 (90% oxide/10% transition); and
• 14m @ 0.73g/t Au from 2-16m in DJA0059 (86% oxide/14% transition).
Of principal interest is the shallow, oxide mineralisation intersected in broad intervals approximately 4km to the
north-east of the main Bondi Deposit (refer Figure 2). The mineralisation is interpreted to be proximal to the contact
zone of an intrusive unit that cuts a regionally extensive band of mafic volcanic rocks. While drill density is limited and
doesn’t facilitate interpretation o f mineralised lodes, the preponderance of broad mineralisation in successive holes
within a drill fence (refer Figure 3) and a geologically diverse environment indicates exploration potential and
warrants immediate follow-up.
Looking forward, Sarama will c ontinue 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)
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Figure 3 – 1209900mN Cross Section of Recent Drilling (View to North)
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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 ex ploration 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 D eposit 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 Deposi t - 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 (“Orez one”)
which has an effective date of February 20, 2009. The historical estimate is contained in a technical report titled “Technic al 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 res ource.
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 prospec ts 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 Indepe ndent Technical Report 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 - 9.2 Mt @ 2.3 g/t Au (at a 0.5 g/t Au cut -off). The effective date of the Karankasso Project JV mineral resou rce estimate
is October 7, 2015. For further information regarding the mineral resource estimate please refer to the techni cal report titled “Technical
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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 . S arama 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.
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, 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 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 and fut ure 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; few
properties that are explored are ultimately developed into producing mines; geological factors; the actual results of current and future exploration;
changes in project parame ters 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 regulat ory lic ensing 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 e xploration 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 politic al 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) acc epts
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 t he 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 Techni cal
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.
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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 Scherr er. 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 M ining
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 re levant 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 Yass a 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 standi ng 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 Karnak asso 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.