VANCOUVER, March 25, 2015 /CNW/ - Sarama Resources Ltd ("Sarama" or the "Company") and Acacia Mining plc ("Acacia") entered in to an Earn-In Agreement ("Agreement") on Sarama's South Houndé Project ("Project") in south west Burkina Faso in November 2014 (see Sarama's news release dated November 27, 2014). Pursuant to this agreement, Sarama has commenced a multi-faceted exploration program with a budget funded by Acacia of US$3.5M (CAD$4.4M) for the first year, which includes drilling as well as various geochemical and geophysical surveys.
Results received to date are encouraging and continue to show potential to increase oxide mineral resources and further the understanding of high-grade zones encountered at the MM and MC Prospects. The results from the drill programs are currently being compiled and will be used to plan the next steps of the exploration program.
Highlights of the Initial and Planned 2015 Exploration Program
- USD$3.5M (CAD$4.4M) exploration program is budgeted for 2015 and includes geochemical and geophysical surveys and diamond, reverse circulation ("RC"), aircore ("AC") and auger drilling
- 11,100m, 3,600m and 4,600m of AC, RC and diamond drilling, respectively, have been completed in the initial program to test:
- high-grade shoot controls at the MM and MC Prospects where the best drilling results to date have been returned;
- strike extensions to the current mineral resource, including the Phantom Prospect, where initial drilling has returned positive results; and
- new targets to support growth of the Project's oxide mineral resource and to identify additional deeper drilling targets
- Induced polarization ("IP") geophysical surveys, which include both a gradient-array survey to extend previous IP survey to the north-north-east of the existing mineral resource and a pole-dipole survey to image deeper, sulphide-rich targets at the MM and MC Prospects
- A 9,200 line-km airborne magnetic-radiometric survey over the entire 760km2 Project
- A soil geochemical and regolith survey over the Tyikoro Property in the central part of the Project
South Houndé Project Exploration
Sarama has recently completed a multi-faceted drill program at its 100% owned1 South Houndé Project, which is the subject of an Agreement with Acacia where Sarama will be the operator until at least US$7M (CAD$8.8M) has been expended on exploration, funded by Acacia. The program will continue throughout 2015 and is budgeted to cost approximately US$3.5M (CAD$4.4M) 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, regolith and IP surveys (refer Figure 1).
The initial diamond drilling program is focused on the further delineation of high-grade shoot controls at the MM and MC Prospects where previous drilling has demonstrated continuity to a depth of at least 280m. The initial RC drill program has been designed to test previously identified near-surface targets at the MM, MC and Phantom Prospects and the AC drill program is designed to test oxide targets to the north and south of the MM and MC Prospects in order to expand the present oxide component of the current mineral resource.
An auger program has been planned to better define potential gold anomalism in the north-east of the project area where regolith complexity has presented challenges for conventional soil geochemistry surveys. The initial area to be investigated is where the controlling structure for mineralisation at Orezone Resources' Bondi Prospect (282,000 oz Au Measured and Indicated mineral resources at 2.1g/t Au and 149,700 oz Au Inferred mineral resource at 1.8g/t Au2) projects southward into the South Houndé Project area (refer Figure 1).
A previous 9km-long, gradient-array IP survey along the Tankoro Structural Corridor that produced numerous, coincident chargeability and resistive anomalies has been extended northward. Initial drill results in this extension area indicate the continuance of gold mineralization providing potential to add further oxide resources.
In addition to the gradient-array survey, eight pole-dipole fences have been completed across the MM and MC Prospects to better delineate the geometry of the high-grade shoots as they plunge to depth.
An airborne magnetic and radiometric survey is currently being undertaken to better understand the litho-structural setting of gold mineralization across the 760km2 Project. The results of this survey will be layered into existing datasets to improve the geological model for the Project and to generate new targets, particularly in areas of regolith complexity and deeper cover.
The Tyikoro Property in the central part of the Project will be the subject of initial prospecting activities consisting of soil geochemical and regolith surveys.
Sarama's President and CEO, Andrew Dinning, commented:
"Sarama is pleased to be working closely with a strong and experienced partner such as Acacia Mining. Under this partnership, we continue to add real value to the South Houndé Project with the discovery of additional oxide zones and increase our understanding of the regional geological setting which will support our aim to grow the existing resource base. Preliminary results to date are encouraging and once a sufficient amount of data is received and interpreted, we will update the market".
For further information on the Company's activities, please contact:
Andrew Dinning or Paul Schmiede
e: [email protected]
t: +61 (0) 8 9363 7600
1 The Project is the subject of an Earn-In Agreement with Acacia where Acacia can earn up to 70% of the Project upon making payments and funding exploration expenditures totalling US$15M(CAD$19M) and a further 5% upon the estimation of a 1.6Moz reserve.
2 4.2Mt @ 2.1g/t Au Measured & Indicated mineral resources, 2.5Mt @ 1.8 g/t Au Inferred mineral resource - Source Orezone Resources News Release, June 4, 2013.
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)
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 spend 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
For further information: on the Company's activities, please contact: Andrew Dinning or Paul Schmiede, e: [email protected], t: +61 (0) 8 9363 7600