Sarama Resources Intersects Shallow High-Grade Mineralisation at the MM East Prospect
TSX-V Ticker: SWA
VANCOUVER, July 5, 2013 /PRNewswire/ – 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 36.0m @ from 14.0m including (diamond) 6.48 g/t 5.0m @ Au 12.43 g/t Au FRC845 26.0m @ from 22.0m (RC) 6.90 g/t Au FRC847RE1 36.7m @ from 80.6m including (diamond) 2.15 g/t 11.5m @ Au 3.06 g/t Au including 10.4m @ 2.84 g/t Au 19.0m @ from 153.0m including 5.39 g/t 11.0m @ Au 7.39 g/t Au DDH055 37.5m @ from 27.0m (diamond) 2.59 g/t Au FRC708 16.0m @ from 20.0m (RC) 3.84 g/t Au FRC705 14.0m @ from 12.0m (RC) 3.88 g/t Au FRC774 36.0m @ from 4.0m including (RC) 2.26 g/t 12.0m @ Au 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
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
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
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
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
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