VANCOUVER, April 27, 2015 /PRNewswire/ - Sarama Resources Ltd. ("Sarama" or the "Company") is pleased to report that it has re-commenced drilling at the South Houndé Project (the "Project") in south-west Burkina Faso.
Following the review of results from the three month exploration program completed in March 2015, the Company, in conjunction with its partner Acacia Mining plc, has designed a nominal 7,100m diamond, reverse circulation ("RC") and air core ("AC") drill program to follow up deeper high grade and shallow oxide targets at the Project.
The diamond drill component totals 1,100m and is planned to test the down dip extension of high-grade lenses in the MM Prospect and geophysical anomalies in the unexplored footwall of the MM Prospect and underneath the MC Prospect. The MM Prospect is situated within a 9.8km trend of semi-continuous mineralisation with significant intercepts down to a depth of 390m.
The RC drill component totals 3,000m and is planned to investigate potential down-dip extensions of known shallow mineralisation at the MC, Phantom, Obi and Dlarakoro Prospects while the AC drill program, also totaling 3,000m, is designed to extend and infill known oxide targets at the MM, MC and Phantom West Prospects.
In addition to the drill programs, Sarama recently completed a project-wide airborne magnetic and radiometric survey, the results of which will be combined with other geological data to refine the geological model and generate further targets.
The Project's 2015 exploration budget is US$3.5M (CAD$4.3M) and subject to results, nominally includes 15,000m of AC drilling, 6,000m of RC drilling, 5,500m of diamond drilling, 12,000m of auger drilling, a 9,200 line-km airborne geophysical survey and various geochemical, and ground-based geophysical surveys. Prior to commencement of this program, approximately 50% of the budgeted program expenditure had been expended.
Sarama's President and CEO, Andrew Dinning, commented:
"Following the completion and review of the encouraging results of the first phase of the 2015 exploration program, we are pleased to be moving in to the next phase of exploration to follow up on the high priority targets. We continue to work closely with our partner, Acacia Mining, to add value to the Project and we look forward to the results of this next program".
For further information on the Company's activities, please contact:
Andrew Dinning or Paul Schmiede
e: [email protected]
t: +61 (0) 8 9363 7600
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.
About Sarama Resources Ltd
Sarama Resources Ltd (TSX-V: SWA) is a West African focused gold explorer with substantial landholdings in Burkina Faso, Liberia and Mali.
Sarama's flagship property is the South Houndé Project in south-west Burkina Faso. Located within the prolific Houndé greenstone belt, Sarama's exploration programs have built on significant early success to deliver a maiden Inferred Mineral Resource estimate of 1.5 Moz gold1,2. In November 2014, Sarama entered in to an earn-in agreement with Acacia Mining plc where Acacia has the right to earn up to a 70% interest in the Company's South Houndé Project by meeting certain conditions, including spending US$14m on exploration and can earn a further 5% interest upon the estimation of a mineral reserve of 1.6Moz Au.
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 strong financial position and a sound exploration strategy across its property portfolio.
- 29.13 Mt @ 1.6 g/t Au (at a 0.8 g/t Au cut-off) inferred mineral resource
- The effective date of the Company's Mineral Resource estimate is September 16, 2013. For further information regarding the Mineral Resource estimate please refer to the technical report titled "NI 43-101 Independent Technical Report, South Houndé Project, Bougouriba and Ioba Provinces, Burkina Faso", dated October 28, 2013. The technical report is available under the Company's profile on SEDAR at www.sedar.com.
Caution Regarding Forward Looking Statements
Information in this news release that is not a statement of historical fact constitutes forward-looking information. Such forward-looking information includes statements regarding the Company's plans for drilling and geochemical and geophysical surveys at the South Houndé Project, the Earn-In Agreement with Acacia, including the amounts that may be spent on exploration and interests in the South Houndé Project that may be earned by Acacia upon making certain expenditures and estimating a minimum reserve, the potential to expand the present oxide component of the Company's existing estimated mineral resources, and future exploration plans. 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.
Qualified Person's Statement
Scientific or technical information in this news release that relates to the preparation of the Company's 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 considered to be 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 news release of the information, in the form and context in which it appears.
SOURCE Sarama Resources Limited