Sarama Resources Reports Significant Increase IN Mineral Resources at the Sanutura Project
SEPTEMBER 8, 2020
SARAMA RESOURCES REPORTS SIGNIFICANT INCREASE IN
MINERAL RESOURCES AT THE SANUTURA PROJECT
VANCOUVER, CANADA. Sarama Resources Ltd. (“ Sarama” or the “ Company”) is pleased to announce a significant
increase and upgrade in mineral resources for the Tankoro Gold Deposit, which is the key component of its Sanutura
Project (the “Project”) in south-west Burkina Faso.
The Sanutura Project represents the consolidation of the Company’s South Houndé and ThreeBee Projects into a single,
100%-owned, advanced -stage exploration project covering approximately 1,500km² (refer Figure 1) that hosts a
significant, well-defined mineral resource base and a suite of exploration targets.
The updated mineral resource estimate at the Tankoro Gold Deposit now stands at:
• 9.4Mt @ 1.9g/t Au for 0.6Moz gold (indicated); plus
• 43.6Mt @ 1.4g/t Au for 1.9Moz gold (inferred)(1).
This represents a significant increase over the 2016 inferred mineral resource estimate of 43.0Mt @ 1.5g/t Au for
2.1Moz Au (2) (refer Appendix B) which was reported on an unconstrained/semi -global basis compared to the 2020
mineral resource estimate which is reported using open pit shell and underground mining shape constraints.
The mineral resource contains a significant higher-grade component of 6.3Mt @ 2.5g/t Au for 0.5Moz gold (indicated)
plus 24.7Mt @ 1.8g/t Au for 1.5Moz gold (inferred)(3) using a 1.0g/t Au cut-off. This highlights the presence of higher-
grade zones within the greater mineralised system which will be the focal point for development. Infill drilling in certain
higher-grade areas has increased geological confidence considerably, allowing for the maiden classification of parts of
the mineral resources as ‘indicated’.
The combined oxide and transition component of the mineral resource totals 0.2Moz gold (indicated) plus 0.7Moz gold
(inferred)(4), representing a significant increase to the previous estimate of 0.6Moz gold (inferred)(2) for corresponding
material types. This increase reflects the Company’s exploration focus on near-surface, oxide targets to provide early
plant feed to support a potential staged development of the Project.
Highlights
• Mineral resources of 0.6Moz gold (indicated) plus 1.9Moz gold (inferred)(1)
• Significant amount of higher-grade material of 6.3Mt @ 2.5g/t Au for 0.5Moz Au (indicated) plus 24.7Mt @
1.8g/t Au for 1.5Moz Au (inferred)(3) contained within the mineral resource
• Oxide and transition material increased to 33% of the mineral resource and now totals 0.2Moz Au (indicated)
and 0.7Moz Au (inferred)(4) which has the potential to provide early feed for a multi-stage mine development
• Approximately 25% of the mineral resou rce upgraded to ‘ indicated’ classification with drilling increas ing
geological confidence in high-grade zones
• 70% of the defined mineral resource is situated within 150m from surface
• Mineral resources extend approximately 16km along strike within a litholo gical and structural corridor
approximately 1.4km wide, illustrating the scale of the mineralised system
• Metallurgical testwork demonstrates gold recoveries of 93% for oxide and 91% for fresh rock
• Work programs to focus on exploration and planning to support feasibility work due to commence in late 2021
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Mineral Resource Estimate
The independent mineral resource estimate for the Tankoro Gold Deposit was undertaken by Cube Consulting Pty Ltd
(Perth, Western Australia) and incorporated the results of exploration activities undertaken at Sarama’s 100%-owned
Sanutura Project since the previous mineral resource estimate in January 2016.
The updated mineral resource for the Tankoro Gold Deposit of 9.4Mt @ 1.9g/t Au for 0.6Moz Au (indicated) and 43.6Mt
@ 1.4g/t Au for 1.9Moz (inferred)(1) (refer Table 1) is principally contained in an extensive package of mineralised lenses
interpreted to extend over a semi-continuous strike length of approximately 16km in a trend that spans approximately
1.4km across the strike (refer Figure 2) . A large portion of the mineral resource has only been drill -tested to
approximately 70m depth, however d rilling of certain higher -grade zones has shown the system to extend to 550m
depth where it remains open.
The mineralized corridor, as presently defined by drilling, lies within a 30km-long, gold-in-soil geochemical anomaly that
remains a key focus for ongoing exploration.
A second mineralised trend in the east of the Project area, a lso defined by a large gold-in-soil geochemical anomaly
extending for 30km, hosts mineralisation which contributes to the Project’s mineral resource base for the first time.
This demonstrates the potential of the Project to host mineralisation of significance outside the historically well-drilled
areas and remains an exploration target.
The mineral resource features a higher-grade component of 6.3Mt @ 2.5g/t Au for 0.5Moz Au (indicated) plus 24.7Mt
@ 1. 8g/t Au for 1.5Moz Au (inferred)(3) which reflects the presence of numerous higher -grade zones within the
mineralised system. These zones are typically located in areas of structural complexity with an associated increase in
the volume of the package of stacked lodes, which the Company would seek to leverage to provide early plant feed in
a potential mine development. Figure 2 illustrates the core areas of the MM and MC Prospects which feature higher -
grade mineralisation in structurally complex settings.
A significant increase in the oxide and transition components of the mineral resource to 3.2Mt @ 1.6g/t Au for 0.2Moz
Au (indicated) plus 20.1Mt @ 1.0g/t Au for 0.7Moz Au (inferred) has been delivered by the update (the previous mineral
resource estimate for these components in 2016 was 0.6Moz Au(2) (inferred)). Sarama has specifically targeted this type
of material in recent drilling programs to provide early plant feed for a potential staged mine development. Forward
exploration programs will continue to target this material.
The revised mineral resource estimate benefits from the addition of approximately 66, 000m air-core (1,176 holes),
12,000m reverse-circulation (117 holes) and 14,000m diamond drilling (49 holes) within the Project area since the 2016
estimate. This drilling has confirmed gold mineralis ation to be hosted predominantly within altered porphyr itic
intrusions and meta-sedimentary rocks along an anastomosing shear zone, with higher-grade mineralised zones located
at structural intersections. The mineralized structural corridors are located in a s equence of metasedimentary rocks
that include mudstone, sandstone, greywacke and conglomerate.
Sub-vertical felsic porphyry units of multiple intru sive phases are the dominant ho st unit for gold minerali sation,
however the sedimentary sequence also hosts gold minerali sation associated with quartz veining and disseminated
pyrite-arsenopyrite. Recent oxide-focussed drilling in the south of the Project has delineated several flat-lying lenses of
mineralisation, dipping in both easterly and westerly directions, which are considered highly amenable to mining by
open pit methods.
Various phases of alteration have been noted, with chlorite-carbonate-hematite alteration progressively overprinted by
sericite-albite assemblages. H igher-grade zones of minerali sation are associated with well -developed, structurally
controlled silica-albite proximal alteration zones and elevated sulphide (pyrite) content.
Structural interpretation within the immediate area of the inferred mineral resource is based on detailed core logging
and ground and airborne geophysical data . This work has resulted in the correlation of higher -grade zones of
mineralisation with apparent cross structures, a key relationship which will be used to generate near -fields and distal
targets in future exploration programs.
In addition to the stated mineral resources, an exploration target of a further 3.5-4.3Mt @ 1.2-1.4g/t Au for 135-190koz
Au(5) of modelled and estimated mineralisation is contained within the open pit shell and underground blockouts . A
secondary exploration target of 12.0- 14.7Mt @ 1.2- 1.4g/t for 0. 5-0.7Moz Au (6) has been modelled and estimated
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outside the constraining mining shapes. While t he potential quantity and grade of these exploration targets is
conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further
exploration will result in the target being delineated as a mineral resource, they present viable exploration targets for
the Company to pursue.
Table 1 summarise s the updated mineral resource for the Tankoro Deposit and Appendix A contains detailed
breakdowns as well as notes outlining the methodology used for interpretation, estimation and classification.
Table 1 - Mineral Resources(A,B) - All Prospects
Geological
Classification
Material Type
(C,D)
Reporting
Cut-off
Grade(E)
Tonnage
Above
Cut-off Grade
Average
Grade Above
Cut-off Grade
Contained
Gold Above
Cut-off Grade
Metal
Contribution
g/t Au Mt g/t Au koz Au %
Indicated Oxide (OP) 0.2 2.5 1.5 123 21%
Transition (OP) 0.3 0.7 1.7 38 6%
Fresh (OP) 0.5 6.1 2.1 409 70%
Sub-total (OP) 9.3 1.9 570 98%
Fresh (UG) 1.6 0.1 2.4 11 2%
Total Indicated 9.4 1.9 582 100%
Inferred Oxide (OP) 0.2 16.8 1.0 551 29%
Transition (OP) 0.3 3.3 1.1 115 6%
Fresh (OP) 0.3-0.5(F) 20.1 1.4 924 49%
Sub-total (OP) 40.2 1.2 1,589 84%
Fresh (UG) 1.6 3.4 2.8 305 16%
Total Inferred 43.6 1.4 1,894 100%
Table Notes
Mineral resources are not mineral reserves and do not demonstrate economic viability .
All tonnage, grade and ounces have been rounded and minor discrepancies in additive totals may occur.
Weathering classification is based on visual assessment of drill core and cuttings by geologists and does not represent a def initive geo-
metallurgical classification.
Mineral resources are reported as a mining shape-constrained subset of the modelled mineral inventory following assessment f or ‘reasonable
prospects for eventual economic extraction’ by the generation of open pit optimisation shells (“OP”) and underground mining blockouts (“UG”).
The assessment is not supported by a preliminary economic assessment or a feasibility study and the geological classification and reporting
categorisations do not imply that mineral resources demonstrate economic viabi lity. OP and UG constrained mineral resources are exclusive of
each other.
Cut-off grades were determined using a gold price of US$1 800/oz, metallurgical recoveries supported by testwork and based on oxide material
being processed by a CIL flowsheet and tr ansition and fresh material being processed by a flotation+BIOX®+CIL flowshee t and operating cost
assumptions for mining, processing and G&A activities considered appropriate for the anticipated configuration of a pot ential development at
the Project.
Fresh material at the Guy, Legbenege and Poggle Prospects is assumed to be free-milling and reported at a cut-off grade of 0.3g/t Au. All other
OP fresh mineral resources reported at a cut -off grade of 0.5g/t Au.
The Company will prepare and file a technica l report under National Instrument 43 -101 within 45 days of the date of
this news release.
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Sarama’s President and CEO, Andrew Dinning commented:
“We are very pleased to be able to present a combined picture of our 100% owned assets in our southern Houndé Belt
development area. The significant increase in the mineral resource has a material impact on the project development
picture, as does the material increase in oxide and transition material which now represents a third of the quoted mineral
resource.
Our next key step in advancing this project is to integrate the high-grade Bondi Deposit, which has a significant historical
resource, while also targeting near field resources which when combined, give us an exploration target in excess of 3
million ounces of gold and will facilitate the development of a long-life, multi-stage asset that can be built and paid for
well before we have exploited the oxide resource.
The project provides significant optionality and leverage to the gold price and remains key to the development of the
southern 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 – Sanutura Project Location
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Figure 2 – Tankoro Deposit - Western Corridor Mineralisation Plan
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Figure 3 – Higher-Grade Zones Within the Tankoro Deposit (Model Filtered >1.2g/t Au), Isometric View to NW from Above, MM & MC Prospects
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ABOUT SARAMA RESOURCES LTD
Sarama Resources Ltd (TSX-V: SWA) is a West African focused gold explorer and developer with substantial landholdings
in south-west Burkina Faso. Sarama is focused on maximising the value of its strategic assets and advancing its key
projects towards development.
Sarama’s Sanutura Project, in which the Company holds a 100% interest, is located within the prol ific Houndé and
Boromo Greenstone Belts in south-west Burkina Faso and is the exploration and development focus of the Company.
Its exploration programs have successfully discovered a mineral resource of 0.6Moz gold (indicated) and 1.9Moz gold
(inferred)(1) which is complemented by the Bondi Deposit (7,9) (historical estimate of mineral resources of 0.3Moz Au
measured and indicated and 0.1Moz Au inferred(7).
Together, the deposits present a potential development option for a central processing facility fed from multiple sources
and principally from the Company’s Sanutura Project.
Sarama has built further optionality into its portfolio including a 600km² exploration position in the highly prospective
Banfora Belt in south -western Burkina Faso. The Koumandara Project hosts several regional-scale structural features
and trends of gold-in-soil anomalism extending for over 40km along strike.
Sarama also holds approximately 2 0% participating interest in the Karankasso Project Joint Venture (“ JV”) which is
situated adjacent to the Company’s Sanutura Project in Burkina Faso and is a JV between Sarama and Endeavour Mining
Corp (“Endeavour”) in which Endeavour is the operator of the JV. In February 2020, an updated mineral resource
estimate of 709koz gold(8) was declared for the Karankasso Project JV.
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
strategy to surface and maximise the value of its property portfolio.
FOOTNOTES
1. Current mineral resource estimate - 9.4Mt @ 1.9g/t Au for 0.6Moz Au (indicated) plus 43.6Mt @ 1.4g/t Au for 1.9Moz (inferred) , reported at
cut-off grades ranging 0. 2-1.6g/t Au, reflecting the mining methods and processing flowsheets assumed to assess the liklihood of the mineral
resources to have reasonable prospects for eventual economic extraction . The effective date of the Company’s inferred mineral resource
estimate is September 8 , 2020. A technical report will be filed within 45 days o f the date of this news release and will be available under the
Company’s profile on SEDAR at www.sedar.com
2. Previous 2016 mineral resource estimate - 43.0Mt @ 1.5 g/t Au (reported above cut-off grades ranging 0.3 -2.2g/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). This mineral resource contains an oxide and transition component of 16.0Mt @ 1.2g/t Au for 611koz Au (reported at a
cut-off grade of 0.3g/t Au for oxide and 0.8g/t Au for transition material). The effective date of the Comp any’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 I oba Provinces, Burkina Faso”, dated March 31, 2016 and
prepared by Adrian Shepherd. Adrian Shepherd is an employee of Cube Consulting Pty Ltd and is considered to be independent o f Sarama. The
technical report is available under Sarama’s profile on SEDAR at www.sedar.com.
3. Higher grade component of the current mineral resou rce - 6.3Mt @ 2.5g/t Au for 0.5Moz Au (indicated) plus 24.7Mt @ 1.8g/t Au for 1.5Moz
(inferred) reported at a cut-off grade of 1.0g/t Au for all mater ial types.
4. Oxide & transition component of the current mineral resource - 3.2Mt @ 1.6g/t Au for 0.2Moz Au (indicated) plus 20.1Mt @ 1.0g/t Au for
0.7Moz Au (inferred), reported above cut-off grades of 0.2g/t Au and 0.3g/t Au for oxide and transition materi al respectively.
5. Exploration target expressed as a +/ -10% range of modelled and estimated mineralisation of 3.1Mt @ 1.1g/t Au for 113koz Au (open pit) and
0.8Mt @ 2.0g/t Au for 53koz Au (underground) reported at cut -off grades of 0.5g/t Au and 1.6g/t Au respectively. This material has low
geological, spatial and estimate conficence and cannot be considered as a mineral resource, but is contained within the open pit and undergound
mining shapes used to constrain the reported mineral resource.
6. Exploration target expressed as a +/-10% range of modelled and estimated mineralisation of 13.4Mt @ 1.3g/t for 0.6Moz Au reported at a cut-
off grade of 1.0g/t Au. This material encompasses all weathering types and all geologic al classifications and is located outside the constraining
open pit shells and underground blockouts used to categorise the modelled mineralisation as having reasonable prospects for eventual economic
extraction.
7. Bondi Deposit - 4.1Mt @ 2.1g/t Au for 282,000oz Au (measured and indicated) plus 2.5Mt @ 1.8g/t Au for 149,700oz 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”)
and has an effective date of February 20, 2009. The historical estimate is contained in a technical report titled “Technical Report on