Sarama Resources Delineates Additional Oxide Mineralisation over Strike Length of 1.3km at the South Houndé Project in Burkina Faso

VANCOUVER, April 28, 2015 /CNW/ - Sarama Resources Ltd. (the "Company" or "Sarama") is pleased to report that regional drilling at the Phantom West Prospect has delineated additional oxide mineralisation over a strike length of 1.3km, bringing the total semi-continuous strike length of drill-defined mineralisation at the South Houndé Project (the "Project") to 9.8km.  The results represent the initial portion of a USD$3.5M, multi-faceted exploration program (approximately 50% complete) at the South Houndé Project (the "Project") which is subject to an earn-in agreement between Sarama and Acacia Mining plc. 

Highlights

  • Delineation of additional oxide mineralisation over a 1.3km strike length at the Phantom West Prospect, bringing the total strike length of drill defined mineralisation to a semi-continuous distance of 9.8km.
  • Deeper drilling at the Phantom West Prospect indicates potential for mineralisation to continue at depth, possibly with the presence of higher-grade shoots.
  • Scout drilling at the Phantom Prospect indicates potential for the main lodes at the MM Prospect to continue north.
  • Highlighted drill intersections from the Phantom West Prospect include:






AC1834  

9.0m @ 4.18g/t Au 

from 36.0m





AC1828   

9.0m @ 2.52g/t Au 

from 39.0m





AC1832   

12.0m @ 1.87g/t Au 

from 37.0m





AC1990   

10.0m @ 2.09g/t  Au 

from 6.0m





AC1837  

12.0m @ 1.44g/t Au 

from 11.0m





AC1840   

12.0m @ 1.39g/t  Au 

from 42.0m





FRC890   

13.0m @ 1.83g/t  Au  

from 95.0m





FRC887  

7.0m @ 1.24g/t Au 

from 141.0m





FRC892  

5.0m @ 1.58g/t Au 

from 83.0m









  • Highlighted drill intersections from the Phantom Prospect include:




AC1973

6.0m @ 3.33g/t Au

from 30.0m





AC1985   

6.0m @ 3.85g/t Au  

from 12.0m

  • USD$3.5M (CAD$4.4M) exploration program is budgeted for 2015 including geochemical and geophysical surveys and drill programs.

 

Phantom West and Phantom Prospects Drill Programs

The Project's mineral resource currently stands at 1.5 Moz1,2 of contained gold, a majority of which is delineated within the MM and MC Prospects.  The Phantom West and Phantom Prospects are situated directly north of the MM Prospect and lie within a regional-scale structural-magmatic zone known as the Tankoro Structural Corridor.  The Phantom West and Phantom Prospects have only been lightly explored and remain attractive exploration targets.

The reverse-circulation ("RC") and air-core ("AC") drill programs commenced in December 2014 and were designed to test shallow targets generated by soil geochemistry and ground-based geophysical surveys and also targeted structural extensions to mineralised zones previously identified by shallow drilling.

Phantom West Prospect

The Phantom West Prospect lies along a mineralised horizon situated approximately 100m into the hanging wall of the main mineralised lodes of the MM Prospect.  The drill program targeted anomalous zones identified ground-based geophysical surveys which followed encouraging soil geochemistry survey to the south (refer Figure 1).

A total of 1,100m RC and 3,300m AC drilling along a coincident resistivity-chargeability anomaly encountered significant gold mineralisation over a strike distance of approximately 1.3km.  Highlighted AC drill intersections include 9.0m @ 4.18g/t Au from 36.0m in AC1834, 9.0m @ 2.52g/t Au from 39.0m in AC1828, 12m @ 1.87g/t Au from 37.0m in AC1832, 10.0m @ 2.09g/t Au from 6.0m in AC1990, 12.0m @ 1.44g/t Au from 11.0m in AC1837 and 12.0m @ 1.39g/t Au from 42.0m in AC 1840.

RC drill holes were drilled to the west of anomalous AC drill results on selected fences to test continuity at slightly deeper levels.  The more significant results include 13.0m @ 1.83g/t Au from 95.0m in FRC890, 7.0m @ 1.24g/t from 141.0m in FRC887 and 5.0m @ 1.58g/t Au from 83.0m in FRC892.

The results of the shallow drilling indicate the continuation of lenses hosting oxide mineralisation in the hanging wall of the main MM Prospect, extend over a strike length of 1.3km as it trends north into the Phantom Prospect.  This effectively increases the strike extent of drill defined mineralisation along the Tankoro Structural corridor to a semi-continuous distance of 9.8km.

The deeper RC drilling intersected porphyry dykes and sericite alteration which is consistent with mineralisation at the MM Prospect.  Highlighted RC intersections show potential for the mineralisation to continue to depth, with possible shoot controls present, which is also consistent with observations at the MM Prospect.

Significant results from the RC and AC drill programs are listed in Appendices A and B and selected cross-sections are presented as Figures 2 to 4.

Phantom Prospect

Four AC fences, for a total of 900m of drilling, were placed along the central area of the Phantom Prospect over a strike length of approximately 900m.  These fences were initiated to test a subtle chargeability anomaly trend that appears to represent the possible extension of the main lodes of the MM Prospect as it passes into the Phantom Prospect.

The shallow drilling encountered two significant intersections of 6.0m @ 3.33g/t Au from 30.0m in AC1973 and 6.0m @ 3.85g/t Au from 12.0m in AC1985.

These results indicate that there is some potential for the main lodes of the MM Prospect to continue north.  Follow-up drilling and interpretative work is required to investigate this geological model.

Significant results from the RC and AC drill programs are listed in Appendices A and B respectively.


Figure 1 – Phantom West and Phantom Prospects Plan Showing New Drilling and Additional Mineralisation

Figure 2 – Phantom West Prospect Section 1179700mN

Figure 3 – Phantom West Prospect Section 1179850mN

Figure 4 – Phantom West Prospect Section 1180170mN

Sarama's President and CEO, Andrew Dinning, commented:

"The delineation of a further 1.3km of oxide mineralisation at the Phantom West Prospect brings us to almost 10kms of drill-defined mineralisation and further demonstrates the size of the mineralising system and potential to further grow the size of the oxide resource and ultimately the fresh mineral resource as well.

The success of this and our on-going exploration programs at the South Houndé Project once again demonstrates the benefits of working with our partner, Acacia Mining, allowing us to add value and move the project forward without suffering unacceptable levels of shareholder dilution. "

For further information on the Company's activities, please contact:

Andrew Dinning or Paul Schmiede
e: info@saramaresources.com
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.

  1. 29.13 Mt @ 1.6 g/t Au (at a 0.8 g/t Au cut-off) Inferred Mineral Resource
  2. 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.

Notes –Drilling

Drilling results are quoted as downhole intersections.  True mineralisation width is expected to be approximately 70% to 80% of intersection length for holes drilled on east-west sections, dipping at -50° to -75° and intersecting the north-north-east striking lenses, however the nature of some mineralised units  is not well understood.

The reported composites for RC and AC drilling were determined using a cut-off grade of 0.30g/t Au to select significant and anomalous intersections, with a maximum of 2m internal dilution being incorporated into the composite where appropriate.  No top-cuts were applied to assay grades.  Isolated mineralised intersections less than 2m in length have not been reported.

Sarama undertakes geological sampling and assays in accordance with its quality assurance/quality control program which includes the use of certified reference materials and duplicates for RC and AC drilling.

Gold assays for the RC and AC drilling were undertaken by the SGS S.A. laboratory in Ouagadougou, Burkina Faso.  Assays are determined by fire assay methods using a 50 gram charge, lead collection and an AAS finish with a 0.01g/t Au lower detection limit.

RC drilling was generally designed using west-east oriented holes, dipping at -50° to -55° to the east, of variable length.  Holes were spaced at varying intervals depending on specific targets and program objectives.  RC drill cuttings were sampled over regular 1m intervals.

AC drilling was generally designed using west-east oriented holes, dipping at -55° to the east, of variable length.  Holes were spaced at 25m intervals along drill lines.  AC drill cuttings were sampled over regular 1m or 2m intervals, depending on the purpose of the hole.

For further information regarding the Company's QAQC protocols 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.

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 ShepherdAdrian 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.

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 Guy Scherrer. Guy Scherrer 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.  Guy Scherrer consents to the inclusion in this report of the information, in the form and context in which it appears.


APPENDIX A – SIGNIFICANT RC DRILL RESULTS

APPENDIX B – SIGNIFICANT AC DRILL RESULTS

SOURCE Sarama Resources Limited

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