TSX-V Ticker: SWA
VANCOUVER, July 5, 2013 /CNW/ - Sarama Resources Limited ("Sarama" or the "Company") is pleased to report that recent drilling at its South Houndé Project in south-western Burkina Faso has encountered shallow, high-grade mineralisation over significant downhole intervals at the MM East Prospect, highlighting the exploration potential for near-surface mineralisation across the property.
- Shallow, high-grade mineralisation intersected over broad intervals in a trend parallel to the 3.8km-long MM Prospect, approximately 500m to the west.
- Results demonstrate the potential for exploration success along the entire footwall position of the MM Prospect.
- Mineralised zones exhibit down-dip continuity, with potential for extensions at depth.
- Downhole intersection highlights from diamond and reverse-circulation ("RC") drilling include:
|DDH059 (diamond)||36.0m @ 6.48 g/t Au||from 14.0m||including 5.0m @ 12.43 g/t Au|
|FRC845 (RC)||26.0m @ 6.90 g/t Au||from 22.0m|
|FRC847RE1 (diamond)||36.7m @ 2.15 g/t Au||from 80.6m||including 11.5m @ 3.06 g/t Au|
|including 10.4m @ 2.84 g/t Au|
|19.0m @ 5.39 g/t Au||from 153.0m||including 11.0m @ 7.39 g/t Au|
|DDH055 (diamond)||37.5m @ 2.59 g/t Au||from 27.0m|
|FRC708 (RC)||16.0m @ 3.84 g/t Au||from 20.0m|
|FRC705 (RC)||14.0m @ 3.88 g/t Au||from 12.0m|
|FRC774 (RC)||36.0m @ 2.26 g/t Au||from 4.0m||including 12.0m @ 2.86 g/t Au|
|including 3.0m @ 6.26 g/t Au|
- Maiden mineral resource estimate expected to be complete in Q3, 2013.
Sarama has received assay results from recent diamond and RC drilling programs at the MM East Prospect which is situated 500m east of the MM Prospect on the Tankoro exploration property within the Company's South Houndé Project. The programs commenced in Q1, 2013 and assay results for 1,700m of diamond drilling (14 holes), 6,700m of RC drilling (62 holes, including 7 pre-collars) are listed in Appendices A and B respectively.
The drill programs were designed to investigate encouraging results of regional scout drilling programs (refer News Release 23 January 2013) and an induced-polarisation ("IP") geophysical survey conducted over the target area by Sarama in late 2012.
The targets were tested over a strike length of approximately 1,400m, with initial RC drilling extending to a vertical depth of 100m. Following encouraging early results, the RC program was expanded in selected areas to a vertical depth of approximately 160m, with some diamond drilling targeting mineralisation in the central area to a vertical depth of 220m. The drilling was on east-west lines spaced approximately 110-160m along strike with several infill lines added in the central to close the spacing to approximately 60m (refer Figure 1).
The drilling intersected a series of sub-parallel zones of mineralisation, generally striking in a north-north-east direction over a distance of 800m with a moderate to steep westerly dip. The geometry and stacked nature of the lodes is similar to those defined at the MM Prospect, approximately 500m to the west.
Of note is the presence of several shallow, high-grade intersections over significant downhole intervals at the southern extent of the 800m strike length (refer Figure 2). Mineralisation in this region exhibits good continuity in a dip direction, however the controls on the wider zones are not well understood at this stage. The presence of structural features, observed in the drill core as well as interpreted from the IP survey, may influence the continuity of the mineralisation. Further to the north, the system passes into a narrower, but still high-grade, lode system (refer Figure 3).
Given the strength of the results, this area will become a high priority for future drilling, focussed on testing for extensions to the high-grade mineralisation encountered at depth and better defining the controls and strike extent of the broad zones encountered close to the surface.
The presence of this high-grade mineralisation, when added to the 3.8km-long mineralisation at the MM Prospect, demonstrates the potential for a mineralised system of significance and underscores the prospectivity of the 30km-long Tankoro Structural Corridor as defined by previous fieldwork.
With the completion of the programs at the MM East Prospect, Sarama is now focussing on the refinement of the interpretation of the mineralisation and structural features in the area, which the Company anticipates will contribute to the completion of a maiden resource estimate in Q3, 2013.
Sarama's President and CEO, Andrew Dinning commented:
"We are very pleased with the results of the drill programs which indicate the presence of near-surface high-grade mineralisation close to the 3.8km-long MM Prospect, but in a parallel trend 500m away. This provides further evidence of the size of the mineralised system and opens up exploration potential along the entire footwall position of the now well defined MM Prospect.
This new mineralisation is blind to soil-geochemistry surveys, creating opportunity for the generation of targets using other exploration tools.
We believe this satellite mineralisation will potentially provide significant early stage feed for any development scenario and we look forward to the planned release of the maiden mineral resource estimate in Q3, 2013.
Sarama is well funded with a cash balance of approximately US$11M (unaudited as at 31 March 2013)."
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 (>3,300 km²), Liberia (>880 km²) and Mali (>560 km²) and is aggressively exploring across the property portfolio in Burkina Faso and 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 and maiden resource estimate. 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.
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 diamond and RC 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 for diamond and RC drilling and duplicates in the case of RC drilling.
Gold assays for the RC and diamond drilling were undertaken by the SGS S.A. laboratories in Morila, Mali and 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, approximately 130-180m in length. Holes were spaced approximately 40-60m apart along the drill lines. RC drill cuttings were sampled over regular 1m intervals.
Diamond drilling was generally designed using west-east oriented holes, dipping at -50° to -55° to the east, of variable length. Holes were spaced approximately 40-60m apart along the drill lines. Diamond core was logged and sampled according to geological intervals. Samples submitted for assay were half core.
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