VANCOUVER, BC--(Marketwired - May 05, 2017) - Sarama Resources Ltd. (the "Company" or "Sarama") advises that Savary Gold Corp. ("Savary"), the operator of the Karankasso Project Joint Venture4 between Sarama and Savary, provided an update on May 4, 2017 of the balance of drill results from the Q1, 2017 drill programs. The drilling was undertaken across multiple target zones within the Karankasso Project area.
Highlights
- 24 holes totalling approximately 2,380 metres of reverse-circulation ("RC") drilling were completed.
- Selected downhole intersections highlighted by Savary include:
| S-Nosa Zone | ||||
| HE-RC-17-084 | 15m @ 1.34 g/t Au from 70m | including 7m @ 2.43 g/t Au from 80m | ||
| HE-RC-17-085 | 4m @ 13.05 g/t Au from 95m | |||
| HE-RC-17-089 | 3m @ 4.32 g/t Au from 81m | |||
| Kueredougou West Trend Zone | ||||
| HE-RC-17-02 | 7m @ 2.96 g/t Au from 20m | including 3m @ 6.45 g/t Au from 21m | ||
- Approximately 125 RC and RAB drill holes totalling up to 8,000m are planned to test select gold-in-auger anomalies and potential resource extensions with drilling anticipated to commence in May 2017.
Note: mineralisation true widths are estimated at 65-80% of listed downhole intersection lengths
Further details of these drill results, including sampling and QA/QC procedures, are contained in Savary's news release dated May 4, 2017. Sarama has not specifically verified Savary's data using a Qualified Person as Savary is the operator of the Karankasso Project Joint Venture and Sarama is relying on their Qualified Person's assurance that procedures have been followed and data being provided is valid.
Sarama's President and CEO, Andrew Dinning, commented:
"Sarama has interests in a suite of projects in the southern part of the Houndé Belt which between them have the potential to form the basis of a future mine development. This year, over C$8M of exploration is budgeted across these projects and Sarama is very optimistic that with this exploration plus the addition of more properties, the company's share of regional resources will grow and further underwrite future development.
At the Karankasso Project we are pleased with the steady progress and work being undertaken and are looking forward to the recommencement of drilling."
ABOUT SARAMA RESOURCES LTD
Sarama Resources Ltd (TSX VENTURE: 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 Belt, Sarama's exploration programs have built on significant early success to deliver an inferred mineral resource estimate of 2.1 Moz gold1. 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 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 gold2 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)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.
- 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.
- 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.
- 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 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 resource. |
- Sarama has 31% and Savary Gold has 69% ownership interests.
