Sarama Resources Commences Oxide-Focussed Drilling at the South Houndé Project, South-West Burkina Faso
TSX VENTURE: SWA
VANCOUVER, BC / ACCESSWIRE / June 12, 2019 / Sarama Resources Ltd. ("Sarama" or the "Company") (TSX-V: SWA) is pleased to announce that following the recent agreement to terminate the Company's earn-in agreement(7) with Acacia Mining plc ("Acacia") in respect of the South Houndé Project (the "Project"), the Company has re-started exploration activities with a focus on oxide drill targets.
This program marks the recommencement of active exploration and development activities on the Project following a hiatus of approximately 1½ years and also marks the resumption of works managed and controlled by Sarama on the Project, in which the Company is set to regain a 100% interest(7).
Sarama's exploration program has been designed to increase the Project's oxide and free-milling mineral resource base that currently totals approximately 600koz Au (oxide and transition components) out of a total 2.1Moz Au mineral resource(1). The program consists of approximately 7,000m of air-core drilling targeting oxide mineralisation in the southern part of the Project along strike from the current mineral resource.
Sarama's objective is to grow the mineral resource base at the South Houndé and ThreeBee Projects (refer Figure 1) to support the advancement of a low capital intensity, high return development project, exploiting the oxide and free-milling components of the mineral resources at both projects.
Drilling will primarily focus on the southern portion of the main mineralised corridor at the Obi, Kenobi and Djimbake Prospects (refer Figure 2) where historical reconnaissance drilling returned promising intersections in oxide material, which are yet to be followed-up. These previously unreported intersections include(6):
- 8m @ 4.25g/t Au from 34m in AC3628 (Obi Prospect)
- 6m @ 4.49g/t Au from 36m in AC3665 (Obi Prospect)
- 12m @ 1.80g/t Au from 10m in AC3627 (Obi Prospect)
- 10m @ 1.73g/t Au from 20m in AC3657 (Kenobi Prospect)
- 10m @ 1.46g/t Au from 28m in AC2665 (Djimbake Prospect)
In addition, reconnaissance drilling will be undertaken at the new Ben Prospect, located approximately 500m to the west of the Project's main MM Deposit (refer Figure 2). This prospect is a new early-stage target that has been generated by geophysical and geochemical surveys and is yet to be drill tested. The prospect area has the potential to open a new horizon of mineralisation to the west of the main mineralised corridor and presents an exploration opportunity which may deliver further additions to the oxide and free-milling inventory of the Project.
Sarama's President and CEO, Andrew Dinning, commented:
"We look forward to resuming our work programs and moving the South Houndé Project forward after such a long hiatus. We remain optimistic that the southern part of the mineralised corridor has the potential to add materially to the existing 600koz Au oxide and transitional component of the Project's mineral resource and enhance the Company's plans for development. In parallel to the exploration activities, we will continue with internal project-framing work that will be used to guide exploration efforts and focus on scoping out a low capital intensity and high return development opportunity."
For further information on the Company's activities, please contact:
Andrew Dinning or Paul Schmiede
t: +61 (0) 8 9363 7600
Figure 1 - Sarama's Principal Property Interests(4,7) in the Southern Houndé Belt
Figure 2 - Drill Target Areas in the Southern Portion of the South Houndé Project (Magnetic Interpretation Base Layer)
ABOUT SARAMA RESOURCES LTD
Sarama Resources Ltd (TSX-V: SWA) is a West African focused gold explorer and developer with substantial landholdings in Burkina Faso. Sarama is focused on consolidating under-explored landholdings in Burkina Faso and advancing its key projects towards development.
Sarama's South Houndé and ThreeBee Projects, in which the Company has the ability to hold a 100% interest(4,7), are located within the prolific Houndé Greenstone Belt in south-west Burkina Faso and are the exploration and development focus of the company. Its exploration programs have successfully discovered an inferred mineral resource estimate of 2.1Moz gold(1) at the South Houndé Project which is complemented by the ThreeBee Project's Bondi Deposit (historical estimate of mineral resources of 0.3Moz Au measured and indicated and 0.1Moz Au inferred(2)).
Together, the projects 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.
Sarama has also built a growth pipeline which features a new 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 holds approximately 25% 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 Semafo Inc. ("Semafo"). Semafo is the operator of the JV, having acquired the previous operator, Savary Gold Corp. ("Savary"). In October 2015, Savary declared a maiden inferred mineral resource estimate of 671,000 ounces of contained gold(3) at 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 exploration strategy across its property portfolio.
1. South Houndé Project - 43.0Mt @ 1.5g/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 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 and prepared by Adrian Shepherd. Adrian Shepherd is an employee of Cube Consulting Pty Ltd and is independent of Sarama. The technical report is available under Sarama's profile on SEDAR at www.sedar.com.
2. Bondi Deposit - 4.1Mt @ 2.1g/t Au for 282,000oz Au (measured and indicated) and 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 ("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 and prepared by Yves Buro (the "Bondi Technical Report"). Yves Buro is an employee of Met-Chem Canada Inc and is independent of Orezone and Sarama. The technical report is available under Orezone's profile 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.
3. Karankasso Project - 9.2Mt @ 2.3g/t Au (at a 0.5g/t Au cut-off). The effective date ("Effective Date") of the most recent Karankasso Project JV mineral resource estimate that is supported by a technical report is October 7, 2015. For further information regarding that 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 and prepared by Eugene Puritch and Antoine Yassa. Eugene Puritch and Antoine Yassa are employees of P&E Mining Consultants Inc. and are independent of Savary and Sarama. The technical report is available under Savary'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. Semafo 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. Additional technical work has been undertaken on the Karankasso Project since the Effective Date, including but not limited to, metallurgical testwork, exploration drilling and mineral resource estimation, but Sarama is not in a position to quantify the impact of this additional work on the mineral resource estimate referred to above.
4. The ThreeBee Project comprises the Djarkadougou, Botoro, Bamako(5) and Bouni(5) Properties and Sarama has, or is entitled to have, a 100% interest in each of the properties. The Djarkadougou, Bamako and Bouni Exploration Permits are going through a process with the government of Burkina Faso where it is required they be reissued as a new full-term exploration permit. The Company anticipates this to be completed in due course, though there can be no assurance that the process will be successfully completed on a timely basis, or at all.
5. For further information regarding the drilling on the Bamako and Bouni Properties, please refer to the technical report titled "NI 43-101 Independent Technical Report South Houndé Project Update, Bougouriba and Ioba Provinces, Burkina Faso", dated October 28, 2013 and prepared by Adrian Shepherd. Adrian Shepherd is an employee of Cube Consulting Pty Ltd and is considered independent of Sarama. The technical report is available under Sarama's profile on SEDAR at www.sedar.com.
6. Drilling was conducted over several phases from November 2016 to April 2018 at the South Houndé Project, including at the Obi, Kenobi and Djimbake Prospects. Drilling at these prospect areas during this period totalled 3,700m (72 holes) by Sarama and 11,400m (189 holes) by Acacia. Full results are included in Appendix A.
7. Upon satisfaction by Acacia of certain conditions precedent and completion of the Termination Agreement with Acacia, Sarama will have a 100% interest in the South Houndé Project and will be the operator of the Project. For further details see the Company's news release of May 14, 2019, a copy of which is available under the Company's profile on SEDAR at www.sedar.com.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information in this disclosure that is not a statement of historical fact constitutes forward-looking information. Such forward-looking information includes statements regarding the potential for the receipt of regulatory approvals, the satisfaction of conditions precedent in relation to an the completion of definitive agreements (including the Termination Agreement with Acacia), the potential of the projects to host mineralization of significance to support regional development plans, the timing and prospects for the reissuance of the Djarkadougou, Bamako and Bouni Exploration Permits by the government of Burkina Faso, plans for exploration at the South Houndé and ThreeBee Projects, the potential to expand the present oxide component of the existing estimated mineral resources at the South Houndé Project and the reliability of the historical estimate of mineral resources at the Bondi Deposit.
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 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 Exchange 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.
Drilling results are quoted as downhole intersections. True widths of mineralisation are unknown, but are anticipated to be approximately 70% to 80% of reported downhole intersection lengths, except as otherwise noted. The orientation of the mineralised units is 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 laboratory 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.
The drilling was generally designed using a range of azimuths, according to program aims and mineralization orientation, dipping at approximately -55-60° and were of variable length. Holes were spaced at various intervals according to targeting intent. AC holes where sampled, were sampled at using a combination of regular 1m and 2m downhole intervals.
All holes were drilled in oxide material (heavily weathered and weathered material).
Sarama and Acacia undertook geological sampling and assays in accordance with 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 Technical Report, South Houndé Project Update, Bougouriba and Ioba Provinces, Burkina Faso", dated March 31, 2016. The technical report is available under the Company's profile on SEDAR at www.sedar.com.
QUALIFIED PERSONS' STATEMENT
Scientific or technical information in this disclosure that relates to exploration activities on the Company's properties in Burkina Faso is based on information compiled or approved by Guy Scherrer. 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 disclosure of the information, in the form and context in which it appears.
Scientific or technical information in this disclosure that relates to the preparation of the South Houndé Project 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 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 activity which he is undertaking to qualify as a Qualified Person under National Instrument 43-101. Adrian Shepherd consents to the inclusion in this disclosure of the information, in the form and context in which it appears.
Scientific or technical information in this disclosure, in respect of the Bondi Deposit 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 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 disclosure of the information, in the form and context in which it appears.
Scientific or technical information in this disclosure that relates to the quotation of the Karankasso Project's mineral resource estimate is based on information compiled by Paul Schmiede. Paul Schmiede is an employee of Sarama Resources Ltd and is a Fellow in good standing of the Australasian Institute of Mining and Metallurgy. Paul Schmiede 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. Paul Schmiede consents to the inclusion in this disclosure of the information, in the form and context in which it appears. Paul Schmiede and Sarama have not independently verified Savary's mineral resource estimate and take no responsibility for its accuracy.
APPENDIX A - OBI, KENOBI & DJIMBAKE PROSPECTS DRILLING
Please use the following link to view the Appendix: Click Here
SOURCE: Sarama Resources Ltd