VANCOUVER, May 15, 2014 /CNW/ - Sarama Resources Ltd. ("Sarama" or the "Company") is pleased to announce that it is close to finalizing a joint venture agreement with Savary Gold Corp. ("Savary") which follows a Heads of Agreement signed between the parties on March 10, 2014 (see Sarama news release dated March 11, 2014). The joint venture will unify the operatorship of Sarama's 250 square kilometre Sérakoro 1 property (held under option) and Savary's 500 square kilometre Houndé South property ("Houndé South") in Burkina Faso. The resultant joint venture company will be 65% owned by Savary and 35% owned by Sarama with Savary the operator as long as it controls a majority interest in the joint venture project. Savary has previously reported that the combined properties host 50 kilometre and 24 kilometre, mining camp scale, gold-in-soil anomalies, which when tested, have returned numerous gold-bearing intercepts that will require follow-up.
On May 14, 2014, Savary announced that it had completed a drill program designed to complete the earn-in requirements for its interest in Houndé South. This program was successful in extending the known gold zones on Houndé South and resulted in the discovery of a series of exciting, new, closely spaced gold zones. Savary announced the following summary of significant results on the Karangosso, Kien and Kueredougou prospects which form part of Houndé South:
SAVARY'S SUMMARY DRILL RESULTS*
- 2.90 g/t gold over 27.0 metres at Karangosso
- 2.92 g/t gold over 5.60 metres at Karangosso
- 1.51 g/t gold over 15.0 metres at Kien
- 1.52 g/t gold over 15.7 metres at Kien
- 0.87 g/t gold over 19.5 metres at Kien
- 8.90 g/t gold over 3.8 metres at Kien
- 2.34 g/t gold over 7.0 metres at Kien
- 0.89 g/t gold over 28.0 metres at Kien
- 0.89 g/t gold over 30.0 metres at Kien
- 1.36 g/t gold over 15 metres at Kien
- 1.87 g/t gold over 9.0 metres at Kien
- 7.26 g/t gold over 3.0 metres at Kueredougou
* true widths are not estimated at this time due to insufficient information, however, a reasonable guide is that true width is approximately 70% of the drilled length.
Sarama's President and CEO, Andrew Dinning commented:
"We are pleased to be nearing the conclusion of negotiations with Savary on the joint venture agreement covering Sérakoro 1 and Houndé South. We continue to believe in the South Houndé Gold Belt and are excited by the recent discoveries by our friends at Savary. We look forward to formalizing our relationship with them and combining the potential of Sérakoro 1 and Houndé South."
For further information on Savary's drilling campaign on the Houndé South property please see Savary's news release dated May 14, 2014.
For further information on the Company's activities, please contact:
Andrew Dinning or Paul Schmiede
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 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 a maiden Inferred Mineral Resource estimate of 1.5 Moz gold1,2. Outside of Burkina Faso, Sarama is focused on consolidating a number of under-explored landholdings in other emerging and established mining jurisdictions.
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 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)
- 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 entering into of the joint venture agreement with Savary, the operation of the joint venture by Savary on property which includes Sérakoro 1 and Houndé South and future follow-up exploration on number of gold bearing intercepts on the land to be covered by the joint venture. 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 completion of the joint venture agreement depends on, among other things, the satisfaction of conditions precedent that are usual in a transaction of this nature, including the receipt of regulatory approvals, 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, 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
For further information: For further information on the Company's activities, please contact: Andrew Dinning or Paul Schmiede, e: firstname.lastname@example.org; t: +61 (0) 8 9363 7600