TSX-V Ticker: SWA
VANCOUVER, May 15, 2013 /PRNewswire/ - Sarama Resources Limited ("Sarama" or the "Company") is pleased to report that it has been granted three new exploration permits in Burkina Faso, including one adjacent to the Company's flagship South Houndé Project, which brings the Company's exploration landholding in this prospective region to 1,014km².
- Three new exploration permits totalling 240km² granted, expanding Sarama's total exploration land package in Burkina Faso to 3,339km².
- The grant of a 127km² exploration permit adjacent to Sarama's Tankoro exploration property, provides Sarama a commanding presence in the geologically prospective Houndé Belt, with a total landholding of 1,014km².
- The grant of the Youngou Est and Nianie exploration permits complements Sarama's existing Youngou exploration property, which borders the Youga mine of Endeavour Mining Corp in the central south of Burkina Faso, bringing the Company's total landholding in the project area to 363km².
- Reconnaissance exploration programs to commence in second half of 2013.
Grant of Bini Exploration Permit
Sarama has been granted new exploration permits for the Bini, Youngou Est and Nianie properties by the Ministry of Mines and Energy, bringing the Company's total exploration property interests in Burkina Faso to 3,339km² (refer Figure 1).
The 127km² Bini exploration property ("Bini") further consolidates Sarama's position in the highly prospective Houndé Belt, which hosts the 7.8Moz, 170koz per annum Mana gold mine of Semafo Inc and the 2.2Moz Houndé gold project of Endeavour Mining Corp. Bini is located centrally within the belt and is adjacent to Sarama's Tankoro exploration property where the Company has intersected significant gold mineralisation over a 1.9km strike length at the MM Prospect (refer Figure 2).
The property is underlain by a sequence of meta-sedimentary and volcanic rocks and is interpreted to contain north-north-east trending structures, which are thought to be one of the controls on the mineralisation encountered at the Company's MM Prospect. Sarama anticipates commencing first-pass reconnaissance exploration activities on the property in the second half of 2013.
The exploration permit gives Sarama the exclusive right to explore for gold and associated minerals during an initial term of 3 years. Subject to certain statutory obligations being met, the permit is renewable for a further two 3-year terms, after which time, the permit will be eligible for conversion to an exploitation permit.
Grant of Youngou Est and Nianie Exploration Permits
The Youngou Est and Nianie exploration properties, covering areas of 95km² and 18km² respectively, lie in the extreme south of central Burkina Faso (Figure 3). Being proximal to Sarama's existing Youngou exploration property, the permit grants bring Sarama's landholding in the project area to 363km².
The properties are underlain by volcano-sedimentary and gneissic rocks with the prospective sequence arranged along a north-east striking trend bounded by granite. The 90,000oz per annum Youga gold mine of Endeavour Mining Corp is located immediately adjacent to Sarama's property group and within the same lithological sequence, illustrating the prospectivity of the region.
Sarama anticipates commencing reconnaissance exploration activities on the recently granted properties in the second half of 2013.
The exploration permits give Sarama the exclusive right to explore for gold and associated minerals during an initial term of 3 years. Subject to certain statutory obligations being met, the permit is renewable for a further two 3-year terms, after which time, the permit will be eligible for conversion to an exploitation permit.
Sarama's President and CEO, Andrew Dinning commented:
"We are pleased to have been granted these new permits in two of our existing project areas. Our position at the South Houndé Project continues to strengthen with the addition of the Bini property and we look forward to commencing our reconnaissance exploration programs in the upcoming exploration season.
Sarama is well funded with a cash balance of approximately US$11M at the end of March 2013 and is currently finalising regional exploration programs in the south of the MM Prospect which are expected to contribute to the maiden resource estimate planned for Q3 2013."
For further information on the Company's activities, please contact:
Andrew Dinning or Paul Schmiede
email: [email protected]
telephone: +61 8 9363 7600
About Sarama Resources Ltd
Sarama Resources Ltd is a Canadian company with a focus on the exploration and development of gold deposits in West Africa. The board of directors and management team, a majority of whom are founders of the Company, are seasoned resource industry professionals with extensive experience in the exploration and development of world-class gold projects in Africa.
The South Houndé Project in south-west Burkina Faso is the Company's flagship property and is currently the focus of an aggressive exploration program to increase the size of its maiden discovery and to test gold-in-soil anomalies located in a 30km-long structural corridor. Recent drilling programs at the South Houndé Project have intersected significant mineralisation in several prospect areas which the Company is actively following up. The Company has built substantial early-stage exploration landholdings in prospective and underexplored areas of Burkina Faso (>3,300 km²), Liberia (>880 km²) and Mali (>560 km²) and is aggressively exploring across the property portfolio.
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 planned exploration programs. 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; 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, 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 Company's exploration activities in Burkina Faso is based on information compiled or approved by Michel Mercier. Michel Mercier 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. Michel Mercier consents to the inclusion in this report of the information, in the form and context in which it appears.
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.
SOURCE Sarama Resources Limited