Sarama Resources Reports Q4 2016 Drill Results FOR Karankasso Project IN Burkina Faso
JANUARY 17, 2017
SARAMA RESOURCES REPORTS Q4 2016 DRILL RESULTS FOR
KARANKASSO PROJECT IN BURKINA FASO
VANCOUVER, CANADA. Sarama Resources Ltd. (the “Company” or “Sarama”) is pleased to advise that Savary Gold
Corp. (“ Savary”), the operator of the Karankasso Project Joint Venture 7 between Sarama and Sa vary, provided an
update on January 17, 201 7 of initial drill results from the Q 4, 201 6 drilling campaign. The drilling was undertaken
across multiple target zones within the Karankasso Project area.
Highlights
Sarama’s President and CEO, Andrew Dinning, commented:
“The combin ation of infill and extensional drilling completed at the Karankasso Project in Q4 2016 will enhance
understanding of the mineralised system. Sarama looks fo rward to the integration of recently collected geophysical,
geochemical and prospecting data into the forward exploration program that may generate new targets outside the
known mineralised system.”
• 22 holes totalling approximately 3,000 metres of diamond core (" DD") and reverse -circulation (" RC") were
completed prior to year-end.
• Downhole intersections highlighted by Savary include:
HE-RC-16-41 7m @ 1.54 g/t Au from 10m
HE-RC-16-44 15m @ 0.51 g/t Au from 129m
HE-RC-16-46 2m @ 5.64 g/t Au from 10m
HE-RC-16-47 12m @ 0.62 g/t Au from 30m
HE-RC-16-48 6m @ 1.84 g/t Au from 62m
HE-RC-16-51 1m @ 14.95 g/t Au from 36m
HE-RCD-16-53A 10.4m @ 1.13 g/t Au from 158.5m
HE-RCD-16-54 8m @ 1.87 g/t Au from 20m
HE-RCD-16-55 7.2m @ 3.75 g/t Au from 142.0m
7.5m @ 4.2 g/t Au from 173.1m
8.0m @ 2.3 g/t Au from 192.0m
HE-RCD-16-56 7.0m @ 6.73 g/t Au from 181.6m
5.5m @ 3.45 g/t Au from 197.3m
(mineralisation true widths are estimated at 65-80% of listed downhole intersection lengths)
• Follow-up drilling on selected targets is planned to commence in January 2017.
For further information on the Company’s activities, please contact:
Andrew Dinning or Paul Schmiede
t: +61 (0) 8 9363 7600
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. Loca ted 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 1,2. 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.
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 gold3,4 at the Karankasso Project JV.
Sarama has also agreed to acquire 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)5,6.
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.
1. 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)
2. The effe ctive 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 Reso urces
Ltd.’s profile on SEDAR at www.sedar.com.
3. 9.2 Mt @ 2.3 g/t Au (at a 0.5 g/t Au cut-off)
4. The effective date of the Karankasso Project JV mineral resource estimate is October 7, 2015. For further information regardi ng the
mineral resource estimate please refer to the technical report titled “Technical Report and Resource Estimate on the Karan kasso 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.
5. 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
6. The effective date of the hi storical estimate of the Bondi D eposit mineral resource estimate is February 20, 2009. For further information
regarding the mineral resource estimate please refer to the technical report titled “Technical Report on the Mineral Resource of the
Bondigui Gold Project”, dated February 20, 200 9. The technical report is available under Orezone Gold Corporation’s profile on SEDAR at
www.sedar.com.
7. Sarama has 31% and Savary Gold has 69% ownership interests
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 use of proceeds from the private placement, 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 esti mating a minimum reserve, the potential to expand the present
oxide component of the Company’s existing estimated mineral resources, , future exploration plans and the potential development of the Bondi,
Karankasso and South Houndé Projects on a combined basis. 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 m ines; geological
factors; the actual results of current and future exploration; changes in project parameters as plans cont inue 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 discov ered will be proven to
be economic, or that future required regulatory licensing or approval s 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 e vents, 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.
QUALIFIED PERSONS’ STATEMENT
Scientific or technical information in this news release that relates to the preparation of the Company’s mineral resource es timate 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 act ivity 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 that relates to the preparation of the Karankasso Project’s mineral resource estimate is based
on inform ation 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. Eugen e Puritch and
Antoine Yassa have sufficient experience which is relevant to the commodity, style of mineralisation und er 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 a nd context in which it appears. Sarama has not independently verified Savary’s mineral resource
estimate and takes no responsibility for its accuracy.
Scientific or technical information in this news release, in respect of the Bondi Deposit relating to mineral resource and e xploration 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 ha s 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.