Sarama Resources Ltd. ("Sarama" or the "Company") is pleased to advise that Savary Gold Corp. ("Savary"), the operator of the Karankasso Project Joint Venture between Sarama (31% interest) and Savary (69% interest), has announced the commencement of drilling on the Karankasso Project in south-western Burkina Faso.
The drill program is aiming to increase data density in existing zone interpretations to improve confidence in the current mineral resource and to extend known zones and test new gold-mineralised systems. In addition to the proposed drill program, further IP geophysical and soil sampling surveys are planned. Under the Joint Venture agreement with Savary, Sarama is responsible for 31% of expenditure with expenditure in excess of US$2,000,000 being subject to approval by both partners.
Further details of the planned program are contained in Savary Gold's news release dated November 21, 2016.
Sarama's President and CEO, Andrew Dinning commented:
"Sarama's interests in the 0.7Moz3,4 Karankasso Project, the adjacent 2.1Moz1,2 South Houndé Project and the 0.4Moz5,6 Bondi Deposit, places the Company in an enviable position to participate in the next stage of development in the prolific Houndé Belt where Roxgold Inc. has successfully commissioned the Yaramoko Mines and Endeavour Mining Corporation is currently constructing the Houndé Mine."
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 gold1,2. 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 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 gold3,4 at the Karankasso Project JV.
Sarama has also agreed to acquire a 100% interest in the Bondi gold 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.
- 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 liklihood 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 "South Houndé Project Update, Bougouriba and Ioba Provinces, Burkina Faso", dated March 31, 2016. The technical report is available under the Sarama Resources Ltd.'s profile on SEDAR at www.sedar.com
- 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 the Savary Gold Corp's profile on SEDAR at www.sedar.com
- 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
- The effective date of the historical estimate of the Bondi deposit 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, 2009. The technical report is available under Orezone Gold Corporation's profile on SEDAR at www.sedar.com.