Sarama Resources Intersects High-Grade GOLD Mineralisation at the South Houndé Project IN Burkina Faso
JUNE 19, 2017
SARAMA RESOURCES INTERSECTS
HIGH-GRADE GOLD MINERALISATION
AT THE SOUTH HOUNDÉ PROJECT IN BURKINA FASO
VANCOUVER, CANADA. Sarama Resources Ltd. (“Sarama” or the “Company”) (TSX-V:SWA) is pleased to announce that
high-grade gold mineralisation has been intersected in an ongoing extensional diamond drilling progra m at the South
Houndé Project (the “Project”) in south-western Burkina Faso.
The program was designed to test depth and strike extensions to high -grade shoots within known mineral resources
and forms part of an ongoing, multi-faceted exploration program aimed at increasing the Project’s 2.1Moz gold1 inferred
mineral resource to support open pit mine development and investigate the potential for underground mining.
Highlights
• Diamond drilling intersected exceptionally high -grade mineralisation , including an interval assaying 0.5m @
112.3g/t Au, in the MC Deposit at the South Houndé Project.
• Drilling targeted several discrete and high- grade shoots within the mineral resource to test for strike and depth
extensions with a view to assessing underground mining potential.
• Results continue to demonstrate the significant scale of the mineralised system at the South Houndé Project,
with drill-defined mineralisation extending continuously from surface to a vertical depth of approximately 550m.
• Drilling at the MM Deposit is anticipated to result in the extension of the mineral resource of approximately
200m down-dip in the areas proximal to high-grade shoots.
• Drilling at the MC Deposit is anticipated to result in an approximate 150m strike extension of mineralisation
around higher-grade shoots.
• Program comprised of 11 holes for 1,300m reverse- circulation (“RC”) and 4,500m diamond drilling (or “ DDH”)
with highlighted downhole intersections including (see Appendices A & B for full details):
MC Deposit
FRC1076RE1 (DDH) 6.0m @ 12.15 g/t Au from 231.0m including 2.6m @ 27.03 g/t Au from 231.6m
with 0.5m @ 112.3 g/t Au from 232.2m
6.7m @ 3.85 g/t Au from 240.8m including 3.9m @ 6.22 g/t Au from 243.1m
FRC1075RE1 (DDH) 6.8m @ 6.83 g/t Au from 173.2m including 2.0m @ 18.76 g/t Au from 177.5m
MM Deposit (southern area extensions)
FRC1070RE1 (DDH) 11.3m @ 3.50 g/t Au from 397.5m including 6.5m @ 5.03 g/t Au from 397.5m
MM Deposit (northern area extensions)
FRC1071RE1 (DDH) 5.6m @ 2.65 g/t Au from 511.6m including 1.5m @ 8.70 g/t Au from 513.1m
FRC1072RE1 (DDH) 4.2m @ 2.82 g/t Au from 532.7m including 1.1m @ 7.83 g/t Au from 535.2m
3.4m @ 5.25 g/t Au from 603.3m
• USD$4.0M (CAD$5.4 M) explorat ion program, funded by Acacia Mining plc, is budgeted for 2017 including
geochemical and geophysical surveys and drill programs.
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MC Deposit
A 3-hole program, consisting o f 300m RC (pre -collars) and 1,000m diamond drilling was undertaken to test for strike
and depth extensions of the mineral resource , proximal to high -grade mineralisation hosted in several different lode
orientations. Of principal interest was a high-grade oblique lode represented by the intersection of mineralised, north-
north-east (“NNE”) trending porphyry dykes and associated bounding sedimentary rocks, with a mineralised, north-east
trending zone of cross faulting.
The drilling encountered several discrete mineralised lodes, assembled in a package of parallel lodes which is consistent
with existing interpretations. Mineralisation was observed to be hosted in both porphyry dykes and in zones of altered
sediments which are likely associated with NNE -trending structural features and generally featured high sulphide
content, auguring well for elevated gold grades.
Of note was the intersection of 0.5m @ 112.3g/t Au from 232.2m in FRC1076RE1. The intersection represents the
highest grade encountered in the Project to date and is interpreted to be intimately associated with the intersection of
secondary oblique structural features with the predominant NNE-trending mineralisation to create an enrichment zone.
The drilling supports the expansion of the interpreted lodes by approximately 150m along strike, with depth extensions
of up to 200m in several lodes also inferred.
Full results of the program are included in Appendix A, with highlighted intersections of:
• FRC1076RE1 (DDH) 6.0m @ 12.15 g/t Au from 231.0m, including 2.6m @ 27.03 g/t Au from 231.6m,
which includes 0.5m @ 112.3 g/t Au from 232.2m; and
6.7m @ 3.85 g/t Au from 240.8m, including 3.9m @ 6.22 g/t Au from 243.1m
• FRC1075RE1 (DDH) 6.8m @ 6.83 g/t Au from 173.2m, including 2.0m @ 18.76 g/t Au from 177.5m
Drilling in the area is ongoing, with planned holes building on observations from this recent drilling to better predict the
intersection zones of the two dominant orientations of structural features.
MM Deposit
The 4.3km-long MM Deposit hosts the bulk of the Project’s 2.1Moz gold1 inferred mineral resource and features several
near-surface, higher-grade shoots which extend to depth and have potential for exploitation by underground mining.
An 8-hole program, consisting of 1,000m RC (pre -collars) and 3,500m diamond drilling was undertaken to principally
test for strike and depth extensions in two of the high -grade shoots within the mineral resource. Several infill holes
were also drilled into the existing mineral resource to better understand the controls of the higher-grade mineralisation
to assist in targeting of the step-out holes.
Observations from the recent drilling support the hypothesis that two generalised periods of gold mineralisation are
present on the basis of alteration, structural orientation and sulphide content. The higher-grade shoots targeted by the
drilling are understood to be produced by the intersection of late-stage cross-cutting gold mineralisation, characterised
by a zonal distribution of albite -silica alteration and the pr esence of lenses and stringers of sulphide s, with the earlier
and more spatially extensive NNE -striking mineralised lodes that are generally hosted by porphyry dykes, but with
instances of sediment-hosted mineralisation associated with structural features aligned with this trend.
The recent drilling encountered various styles of mineralisation presenting as a series of parallel lodes, consistent with
expectations and yielded gold grades which have the potential for exploitation by underground mining. It is anticipated
that the step -out drilling will support extension of the mineral resource by approximately 200m down -dip in the two
high-grade shoot areas tested. A 250m extension to the strike of modelled mineralisation in one of the areas is also
indicated by the recent drilling.
These anticipated extensions to the mineral resource reinforce the scale of the mineralised system at the South Houndé
Project, which now is interpreted to extend to a vertical depth of 550m. When considered in the context of the 10.3km-
long drill-defined ‘footprint’ of the mineral resource, significant depth potential is clearly evident.
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Full results of the program are included in Appendix B, with highlighted intersections of:
• FRC1070RE1 (DDH) 11.3m @ 3.50 g/t Au from 397.5m, including 6.5m @ 5.03 g/t Au from 397.5m; and
17.3m @ 1.52g/t Au from 427.0m, including 5.1m @ 3.31g/t Au from 429.5m
• FRC1071RE1 (DDH) 5.6m @ 2.65 g/t Au from 511.6m, including 1.5m @ 8.70 g/t Au from 513.1m
• FRC1072RE1 (DDH) 4.2m @ 2.82 g/t Au from 532.7m, including 1.1m @ 7.83 g/t Au from 535.2m; and
3.4m @ 5.25 g/t Au from 603.3m
Drilling is ongoing and will continue to test for depth and strike extensions to other higher -grade shoots located along
the strike of the MM Deposit.
Sarama’s President and CEO, Andrew Dinning, commented:
“The shift in focus, for the near-resource portion of the exploration program, from extending near surface mineralisation
to improving our understanding of the fabric and vertical extent of the system has imme diately delivered results.
The deeper, high-grade intersections we are seeing broadens our development options to include underground mining.
Although drill testing is limited, it has shown that we have continuity and economically significant grades at depth.
These drill results reinforce our belief that the South Houndé Project has the potential to be an open pit and
underground mining complex, particularly when Sarama’s highly accretive Bondi Deposit and recently acquired Boto ro
Property are included in the equation. Sarama remains positioned to play a key role in the development of the southern
part of the Houndé Belt.”
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 – Drill Plan Showing Location of New Drilling
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Figure 2 – Detail Plan of Recent Drilling at MM and MC Deposits
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Figure 3 – Oblique View of MC Deposit Showing 2016 Mineral Resource and Potential for Extension by Recent Drilling
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Figure 4 – Oblique View of MM Deposit Showing 2016 Mineral Resource Interpretation and Potential for Extension by Recent Drilling
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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 pro lific Houndé Greenstone B elt, Sarama’s exploration programs have built on significant early
success to deliver an inferred mineral resource estimate of 2.1 Moz gold 1. Acacia Mining plc is earning up to a 70%
interest in the South Houndé Project by satisfyi ng 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 gold2 at the Karankasso Project JV.
Sarama has also agreed to acquire 4 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 o ffers 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.
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 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 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; 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 Exc hange 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.