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Sarama Resources Ltd
Symbol C : SWA
Shares Issued 250,659,987
Close 2019-06-11 C$ 0.10
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Sarama Resources restarts exploration at South Hounde

2019-06-12 09:17 ET - News Release

Mr. Andrew Dinning reports

SARAMA RESOURCES COMMENCES OXIDE-FOCUSSED DRILLING AT THE SOUTH HOUNDE PROJECT, SOUTH-WEST BURKINA FASO

Following the recent agreement to terminate its earn-in agreement with Acacia Mining PLC in respect of the South Hounde project, Sarama Resources Ltd. has restarted 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 1-1/2 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-per-cent interest.

Sarama's exploration program has been designed to increase the project's oxide and free-milling mineral resource base that currently totals approximately 600,000 ounces gold (oxide and transition components) out of a mineral resource of a total 2.1 million ounces gold. The program consists of approximately 7,000 metres of air-core drilling targeting oxide mineralization 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 Hounde and ThreeBee projects 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 mineralized corridor at the Obi, Kenobi and Djimbake prospects, where historical reconnaissance drilling returned promising intersections in oxide material, which are yet to be followed up. These previously unreported intersections include:

  • Eight metres of 4.25 grams per tonne gold from 34 metres in AC3628 (Obi prospect);
  • Six metres of 4.49 grams per tonne gold from 36 metres in AC3665 (Obi prospect);
  • 12 metres of 1.80 grams per tonne gold from 10 metres in AC3627 (Obi prospect);
  • 10 metres of 1.73 grams per tonne gold from 20 metres in AC3657 (Kenobi prospect);
  • 10 metres of 1.46 grams per tonne gold from 28 metres in AC2665 (Djimbake prospect).

In addition, reconnaissance drilling will be undertaken at the new Ben prospect, located approximately 500 metres to the west of the project's main MM deposit. 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 mineralization to the west of the main mineralized corridor and presents an exploration opportunity which may deliver further additions to the oxide and free-milling inventory of the project.

Andrew Dinning, Sarama's president and chief executive officer, commented: "We look forward to resuming our work programs and moving the South Hounde project forward after such a long hiatus. We remain optimistic that the southern part of the mineralized corridor has the potential to add materially to the existing 600,000-ounce-gold 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."

About Sarama Resources Ltd.

Sarama Resources is a West African-focused gold explorer and developer with substantial landholdings in Burkina Faso. Sarama is focused on consolidating underexplored landholdings in Burkina Faso and advancing its key projects toward development.

Sarama's South Hounde and ThreeBee projects, in which the company has the ability to hold a 100-per-cent interest, are located within the prolific Hounde greenstone belt in southwest Burkina Faso and are the exploration and development focus of the company. Its exploration programs have successfully discovered an inferred mineral resource estimate of 2.1 million ounces gold at the South Hounde project, which is complemented by the ThreeBee project's Bondi deposit (historical estimate of mineral resources of 300,000 ounces gold measured and indicated and 100,000 ounces gold inferred).

Qualified person 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. Mr. Scherrer is an employee of Sarama Resources; is a member in good standing of the Ordre des Geologues du Quebec; and has sufficient experience that is relevant to the commodity, style of mineralization under consideration and activity that he is undertaking to qualify as a qualified person under National Instrument 43-101. Mr. Scherrer consents to the inclusion in this disclosure of the information in the form and context in which it appears.

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