TSX-V Ticker: SWA
VANCOUVER, May 2, 2013 /CNW/ - Sarama Resources Limited ("Sarama" or the "Company") is pleased to report that it has been granted a new Mineral
Reconnaissance Licence, covering ground immediately along strike from a
9km-long, high-tenor gold-in-soil anomaly at its existing Cape Mount
exploration property in Liberia. The Company has also been successful
in having the terms for two of its other Liberian Mineral Exploration
New Mineral Reconnaissance Licence granted in the Grand Cape Mount
County, expanding Sarama's contiguous land package in this highly
prospective area to 384km².
The new Mineral Reconnaissance Licence area (the "Cape Mount East"
licence) covers the eastern strike extension of a 9km-long, high-tenor
gold-in-soil anomaly delineated at Sarama's adjacent Cape Mount
Sarama's reconnaissance exploration programs on this new licence to
Sarama's Gbarpolu Mineral Exploration Licence has been granted an
extension of 2 years.
Sarama's Grand Bassa Mineral Exploration Licence has been granted an
extension of 2 years.
Grant of New Mineral Reconnaissance Licence
Sarama has been granted a new licence, referred to as the Cape Mount
East Mineral Reconnaissance Licence, by the Ministry of Lands, Mines
and Energy of Liberia. The licence covers an area of approximately
68km² and is located in the Grand Cape Mount County, adjacent to the
Company's Cape Mount Exploration Licence. This addition increases
Sarama's contiguous landholding in the region to approximately 384km²
(refer Figure 1).
The new licence gives Sarama the exclusive right to explore for gold,
base metals and diamonds during an initial term of six months. Subject
to certain statutory obligations being met, the licence is renewable
for a further six months, after which time, the Mineral Reconnaissance
Licence will be eligible for conversion to a Mineral Exploration
The addition of the licence significantly strengthens the Company's
position in this highly prospective region which hosts Aureus Mining
Inc's ("Aureus") high-grade 'New Liberty' development project (Mineral Resources of
1.7Moz @ 3.5g/t Au - refer Aureus' corporate presentation, March 2013).
Sarama's exploration work to date has delineated a 9km-long, high-tenor
gold-in-soil anomaly on its Cape Mount exploration property and given
the anomalous zone's coincidence with a regionally extensive east-west
striking iron formation and associated rocks, the Company believes
there is significant potential to extend the defined gold-in-soil
anomaly to the east across the new Cape Mount East exploration
property. Of note is the location of Aureus' high-grade Weaju gold
prospect on this geological unit, along strike from Sarama's new Cape
Mount East property (refer Figure 1). The Company plans to commence
reconnaissance field work at the new property immediately.
Extension of Gbarpolu and Grand Bassa Mineral Exploration Licences
Following application by the Company, the Ministry of Lands, Mines and
Energy of Liberia has extended the terms of the Gbarpolu and Grand
Bassa Mineral Exploration Licences.
Along with the Cape Mount Mineral Exploration Licence, the Gbarpolu and
Grand Bassa Mineral Exploration Licences are the subject of an earn-in
agreement whereby Sarama can earn up to a 90% equity in the PedSam
Mining Limited ("PedSam"), the Liberian holding company for the licences. This can be
increased to 100% if the holder of the residual 10% interest opts for a
net smelter return.
The initial three-year terms of the Gbarpolu and Grand Bassa Mineral
Exploration Licences expired on the 31st March 2013 and under Liberia's Minerals and Mining Law (2000) (the "Mining Law"), having satisfied statutory exploration expenditure and environmental
requirements, PedSam was eligible to apply for a term extension to the
licences to continue exploration activities.
The extended Mineral Exploration Licences contain the same conditions as
their predecessors, are valid for a period of two years and give PedSam
the exclusive right to explore for gold and base metals. The Gbarpolu
Mineral Exploration Licence also provides for PedSam to explore for
diamonds. Pursuant to the Mining Law, the surface areas covered by the
original licences were required to be reduced by a minimum of 50% for
the extension term, and as such, the Gbarpolu and Grand Bassa
exploration properties to which PedSam holds title, now cover areas of
approximately 200km² and 299km² respectively. Sarama's first-pass
exploration programs concluded that the relinquished areas were of low
Sarama's initial exploration work on the properties has yielded
encouraging results, including the delineation of several
kilometre-scale gold-in-soil anomalies within the retained areas at
both properties which the Company intends to progress towards drill
Relinquishment of Voinjama Mineral Reconnaissance Licence
In line with Sarama's property assessment process and following the
completion of preliminary exploration work on the Voinjama exploration
property, the Company has decided not to renew its Mineral
Reconnaissance Licence and has initiated a relinquishment process with
the Ministry of Lands, Mines and Energy.
With the above addition, extensions and relinquishment, Sarama's
exploration landholdings in Liberia now total approximately 883km²
(refer Figure 2).
Sarama's President and CEO, Andrew Dinning commented:
"We are pleased to have acquired the Cape Mount East licence which,
based on our exploration work at the adjacent Cape Mount property,
hosts several areas with high exploration potential for immediate
investigation. Sarama is well funded with a cash balance of
approximately US$11M and now that the licence extensions have been
granted at Gbarpolu and Grand Bassa, we look forward to continuing our
exploration programs which to date, have yielded encouraging results
across all our current properties in Liberia."
For further information on the Company's activities, please contact:
Andrew Dinning or Paul Schmiede
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 (3,100 km²), Liberia (>880 km²) and
Mali (>560 km²) and is aggressively exploring across the property
Figure 1: Sarama's Exploration Properties in Cape Mount Region
Figure 2: Sarama's Exploration Properties in Liberia
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 Liberia is based on information
compiled or approved by John Mpambije. John Mpambije is an employee of
Sarama Resources Ltd and 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.
John Mpambije 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