Sarama Resources Ltd. press release
Sarama Resources Reports Significant Increase in Mineral Resources at The Sanutura Project
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VANCOUVER, BC / ACCESSWIRE / September 8, 2020 / Sarama Resources Ltd. ("Sarama" or the "Company") is pleased to announce a significant increase and upgrade in mineral resources for the Tankoro Gold Deposit, which is the key component of its Sanutura Project (the "Project") in south-west Burkina Faso.
The Sanutura Project represents the consolidation of the Company's South Houndé and ThreeBee Projects into a single, 100%-owned, advanced-stage exploration project covering approximately 1,500km² (refer Figure 1) that hosts a significant, well-defined mineral resource base and a suite of exploration targets.
The updated mineral resource estimate at the Tankoro Gold Deposit now stands at:
9.4Mt @ 1.9g/t Au for 0.6Mozgold (indicated); plus 43.6Mt @ 1.4g/t Au for 1.9Mozgold (inferred)(1).
This represents a significant increase over the 2016 inferred mineral resource estimate of 43.0Mt @ 1.5g/t Au for 2.1Moz Au(2)(refer Appendix B) which was reported on an unconstrained/semi-global basis compared to the 2020 mineral resource estimate which is reported using open pit shell and underground mining shape constraints.
The mineral resource contains a significant higher-grade component of 6.3Mt @ 2.5g/t Aufor 0.5Mozgold(indicated) plus 24.7Mt @ 1.8g/t Au for 1.5Mozgold(inferred)(3)using a 1.0g/t Au cut-off. This highlights the presence of higher-grade zones within the greater mineralised system which will be the focal point for development. Infill drilling in certain higher-grade areas has increased geological confidence considerably, allowing for the maiden classification of parts of the mineral resources as ‘indicated'.
The combined oxide and transition component of the mineral resource totals 0.2Moz gold(indicated) plus 0.7Moz gold (inferred)(4), representing a significant increase to the previous estimate of 0.6Moz gold(inferred)(2)for corresponding material types. This increase reflects the Company's exploration focus on near-surface, oxide targets to provide early plant feed to support a potential staged development of the Project.
Highlights
Mineral resources of 0.6Moz gold (indicated) plus1.9Moz gold(inferred)(1) Significant amount of higher-gradematerial of 6.3Mt @ 2.5g/t Au for 0.5Moz Au(indicated) plus 24.7Mt @ 1.8g/t Au for 1.5Moz Au(inferred)(3)contained within the mineral resource Oxide and transitionmaterial increased to 33%of the mineral resource and now totals 0.2Moz Au(indicated) and 0.7Moz Au(inferred)(4)which has the potential to provide early feed for a multi-stage mine development Approximately 25%of the mineral resource upgraded to ‘indicated' classification with drilling increasing geological confidence in high-grade zones 70% of the defined mineral resource is situated within 150m from surface Mineral resources extend approximately 16km along strikewithin a lithological and structural corridor approximately 1.4km wide, illustrating the scale of the mineralised system Metallurgical testwork demonstrates gold recoveriesof 93% for oxide and 91% for fresh rock Work programs to focus on exploration and planning to support feasibility work due to commence in late 2021
Mineral Resource Estimate
The independent mineral resource estimate for the Tankoro Gold Deposit was undertaken by Cube Consulting Pty Ltd (Perth, Western Australia) and incorporated the results of exploration activities undertaken at Sarama's 100%-owned Sanutura Project since the previous mineral resource estimate in January 2016.
The updated mineral resource for the Tankoro Gold Deposit of 9.4Mt @ 1.9g/t Au for 0.6Moz Au(indicated) and 43.6Mt @ 1.4g/t Au for 1.9Moz(inferred)(1)(refer Table 1) is principally contained in an extensive package of mineralised lenses interpreted to extend over a semi-continuous strike length of approximately 16km in a trend that spans approximately 1.4km across the strike (refer Figure 2). A large portion of the mineral resource has only been drill-tested to approximately 70m depth, however drilling of certain higher-grade zones has shown the system to extend to 550m depth where it remains open.
The mineralized corridor, as presently defined by drilling, lies within a 30km-long, gold-in-soil geochemical anomaly that remains a key focus for ongoing exploration.
A second mineralised trend in the east of the Project area, also defined by a large gold-in-soil geochemical anomaly extending for 30km, hosts mineralisation which contributes to the Project's mineral resource base for the first time. This demonstrates the potential of the Project to host mineralisation of significance outside the historically well-drilled areas and remains an exploration target.
The mineral resource features a higher-grade component of 6.3Mt @ 2.5g/t Au for 0.5Moz Au(indicated) plus 24.7Mt @ 1.8g/t Au for 1.5Moz Au(inferred)(3) which reflects the presence of numerous higher-grade zones within the mineralised system. These zones are typically located in areas of structural complexity with an associated increase in the volume of the package of stacked lodes, which the Company would seek to leverage to provide early plant feed in a potential mine development. Figure 2 illustrates the core areas of the MM and MC Prospects which feature higher-grade mineralisation in structurally complex settings.
A significant increase in the oxide and transition components of the mineral resource to 3.2Mt @ 1.6g/t Au for 0.2Moz Au(indicated) plus 20.1Mt @ 1.0g/t Au for 0.7Moz Au(inferred) has been delivered by the update (the previous mineral resource estimate for these components in 2016 was 0.6Moz Au(2)(inferred)). Sarama has specifically targeted this type of material in recent drilling programs to provide early plant feed for a potential staged mine development. Forward exploration programs will continue to target this material.
The revised mineral resource estimate benefits from the addition of approximately 66,000m air-core (1,176 holes), 12,000m reverse-circulation (117 holes) and 14,000m diamond drilling (49 holes) within the Project area since the 2016 estimate. This drilling has confirmed gold mineralisation to be hosted predominantly within altered porphyritic intrusions and meta-sedimentary rocks along an anastomosing shear zone, with higher-grade mineralised zones located at structural intersections. The mineralized structural corridors are located in a sequence of metasedimentary rocks that include mudstone, sandstone, greywacke and conglomerate.
Sub-vertical felsic porphyry units of multiple intrusive phases are the dominant host unit for gold mineralisation, however the sedimentary sequence also hosts gold mineralisation associated with quartz veining and disseminated pyrite-arsenopyrite. Recent oxide-focussed drilling in the south of the Project has delineated several flat-lying lenses of mineralisation, dipping in both easterly and westerly directions, which are considered highly amenable to mining by open pit methods.
Various phases of alteration have been noted, with chlorite-carbonate-hematite alteration progressively overprinted by sericite-albite assemblages. Higher-grade zones of mineralisation are associated with well-developed, structurally controlled silica-albite proximal alteration zones and elevated sulphide (pyrite) content.
Structural interpretation within the immediate area of the inferred mineral resource is based on detailed core logging and ground and airborne geophysical data. This work has resulted in the correlation of higher-grade zones of mineralisation with apparent cross structures, a key relationship which will be used to generate near-fields and distal targets in future exploration programs.
In addition to the stated mineral resources, an exploration target of a further 3.5-4.3Mt @ 1.2-1.4g/t Au for 135-190koz Au(5)of modelled and estimated mineralisation is contained within the open pit shell and underground blockouts. A secondary exploration target of 12.0-14.7Mt @ 1.2-1.4g/t for 0.5-0.7Moz Au(6) has been modelled and estimated outside the constraining mining shapes. While the potential quantity and grade of these exploration targets is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource, they present viable exploration targets for the Company to pursue.
Table 1 summarises the updated mineral resource for the Tankoro Deposit and Appendix A contains detailed breakdowns as well as notes outlining the methodology used for interpretation, estimation and classification.
Table 1 - Mineral Resources(A,B)- All Prospects
| | | | | | | | | Geological Classification | Material Type
(C,D) | Reporting Cut-off Grade(E) | Tonnage Above
Cut-off Grade | Average Grade Above Cut-off Grade | Contained Gold Above Cut-off Grade | Metal Contribution | | | | | | | | | | | | | | | | | | | | g/t Au | Mt | g/t Au | koz Au | % | | | | | | | | | | | | | | | | | | Indicated | Oxide (OP) | 0.2 | 2.5 | 1.5 | 123 | 21% | | | Transition (OP) | 0.3 | 0.7 | 1.7 | 38 | 6% | | | Fresh (OP) | 0.5 | 6.1 | 2.1 | 409 | 70% | | | | | | | | | | | Sub-total (OP) | | 9.3 | 1.9 | 570 | 98% | | | | | | | | | | | | | | | | | | | Fresh (UG) | 1.6 | 0.1 | 2.4 | 11 | 2% | | | | | | | | | | | | | | | | | | | Total Indicated | | 9.4 | 1.9 | 582 | 100% | | | | | | | | | | | | | | | | | | | | | | | | | | Inferred | Oxide (OP) | 0.2 | 16.8 | 1.0 | 551 | 29% | | | Transition (OP) | 0.3 | 3.3 | 1.1 | 115 | 6% | | | Fresh (OP) | 0.3-0.5(F) | 20.1 | 1.4 | 924 | 49% | | | | | | | | | | | Sub-total (OP) | | 40.2 | 1.2 | 1,589 | 84% | | | | | | | | | | | | | | | | | | | Fresh (UG) | 1.6 | 3.4 | 2.8 | 305 | 16% | | | | | | | | | | | | | | | | | | | Total Inferred | | 43.6 | 1.4 | 1,894 | 100% | | | | | | | | |
Table Notes
A. Mineral resources are not mineral reserves and do not demonstrate economic viability.
B. All tonnage, grade and ounces have been rounded and minor discrepancies in additive totals may occur.
C. Weathering classification is based on visual assessment of drill core and cuttings by geologists and does not represent a definitive geo-metallurgical classification.
D. Mineral resources are reported as a mining shape-constrained subset of the modelled mineral inventory following assessment for ‘reasonable prospects for eventual economic extraction' by the generation of open pit optimisation shells ("OP") and underground mining blockouts ("UG"). The assessment is not supported by a preliminary economic assessment or a feasibility study and the geological classification and reporting categorisations do not imply that mineral resources demonstrate economic viability. OP and UG constrained mineral resources are exclusive of each other.
E. Cut-off grades were determined using a gold price of US$1800/oz, metallurgical recoveries supported by testwork and based on oxide material being processed by a CIL flowsheet and transition and fresh material being processed by a flotation+BIOX®+CIL flowsheet and operating cost assumptions for mining, processing and G&A activities considered appropriate for the anticipated configuration of a potential development at the Project.
F. Fresh material at the Guy, Legbenege and Poggle Prospects is assumed to be free-milling and reported at a cut-off grade of 0.3g/t Au. All other OP fresh mineral resources reported at a cut-off grade of 0.5g/t Au.
The Company will prepare and file a technical report under National Instrument 43-101 within 45 days of the date of this news release.
Sarama's President and CEO, Andrew Dinning commented:
"We are very pleased to be able to present a combined picture of our 100% owned assets in our southern Houndé Belt development area. The significant increase in the mineral resource has a material impact on the project development picture, as does the material increase in oxide and transition material which now represents a third of the quoted mineral resource.
Our next key step in advancing this project is to integrate the high-grade Bondi Deposit, which has a significant historical resource, while also targeting near field resources which when combined, give us an exploration target in excess of 3 million ounces of gold and will facilitate the development of a long-life, multi-stage asset that can be built and paid for well before we have exploited the oxide resource.
The project provides significant optionality and leverage to the gold price and remains key to the development of the southern Houndé Belt."
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
Figure 1 - Sanutura Project Location
Figure 2 - Tankoro Deposit - Western Corridor Mineralisation Plan
Figure 3 - Higher-Grade Zones Within the Tankoro Deposit (Model Filtered >1.2g/t Au), Isometric View to NW from Above, MM & MC Prospects
ABOUT SARAMA RESOURCES LTD
Sarama Resources Ltd (TSX-V: SWA) is a West African focused gold explorer and developer with substantial landholdings in south-west Burkina Faso. Sarama is focused on maximising the value of its strategic assets and advancing its key projects towards development.
Sarama's Sanutura Project, in which the Company holds a 100% interest, is located within the prolific Houndé and Boromo Greenstone Belts in south-west Burkina Faso and is the exploration and development focus of the Company. Its exploration programs have successfully discovered a mineral resource of 0.6Moz gold (indicated)and 1.9Moz gold (inferred)(1)which is complemented by the Bondi Deposit(7,9)(historical estimate of mineral resources of 0.3Moz Au measured and indicated and 0.1Moz Au inferred(7).
Together, the deposits present a potential development option for a central processing facility fed from multiple sources and principally from the Company's Sanutura Project.
Sarama has built further optionality into its portfolio including a 600km² exploration position in the highly prospective Banfora Belt in south-western Burkina Faso. The Koumandara Project hosts several regional-scale structural features and trends of gold-in-soil anomalism extending for over 40km along strike.
Sarama also holds approximately 20% participating interest in the Karankasso Project Joint Venture ("JV") which is situated adjacent to the Company's Sanutura Project in Burkina Faso and is a JV between Sarama and Endeavour Mining Corp ("Endeavour") in which Endeavour is the operator of the JV. In February 2020, an updated mineral resource estimate of 709koz gold(8)was declared for the Karankasso Project JV.
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 sound strategy to surface and maximise the value of its property portfolio.
FOOTNOTES
1. Current mineral resource estimate - 9.4Mt @ 1.9g/t Au for 0.6Moz Au (indicated) plus 43.6Mt @ 1.4g/t Au for 1.9Moz (inferred), reported at cut-off grades ranging 0.2-1.6g/t Au, reflecting the mining methods and processing flowsheets assumed to assess the liklihood of the mineral resources to have reasonable prospects for eventual economic extraction. The effective date of the Company's inferred mineral resource estimate is September 8, 2020. A technical report will be filed within 45 days of the date of this news release and will be available under the Company's profile on SEDAR at www.sedar.com
2. Previous 2016 mineral resource estimate - 43.0Mt @ 1.5g/t Au (reported above cut-off grades ranging 0.3-2.2g/t Au, reflecting the mining methods and processing flowsheets assumed to assess the likelihood of the inferred mineral resources having reasonable prospects for eventual economic extraction). This mineral resource contains an oxide and transition component of 16.0Mt @ 1.2g/t Au for 611koz Au (reported at a cut-off grade of 0.3g/t Au for oxide and 0.8g/t Au for transition material). The effective date of the Company's inferred mineral resource estimate is February 4, 2016. For further information regarding the mineral resource estimate please refer to the technical report titled "NI 43-101 Independent Technical Report South Houndé Project Update, Bougouriba and Ioba Provinces, Burkina Faso", dated March 31, 2016 and prepared by Adrian Shepherd. Adrian Shepherd is an employee of Cube Consulting Pty Ltd and is considered to be independent of Sarama. The technical report is available under Sarama's profile on SEDAR at www.sedar.com.
3. Higher grade component of the current mineral resource - 6.3Mt @ 2.5g/t Au for 0.5Moz Au (indicated) plus 24.7Mt @ 1.8g/t Au for 1.5Moz (inferred) reported at a cut-off grade of 1.0g/t Au for all material types.
4. Oxide & transition component of the current mineral resource - 3.2Mt @ 1.6g/t Au for 0.2Moz Au (indicated) plus 20.1Mt @ 1.0g/t Au for 0.7Moz Au (inferred), reported above cut-off grades of 0.2g/t Au and 0.3g/t Au for oxide and transition material respectively.
5. Exploration target expressed as a +/-10% range of modelled and estimated mineralisation of 3.1Mt @ 1.1g/t Au for 113koz Au (open pit) and 0.8Mt @ 2.0g/t Au for 53koz Au (underground) reported at cut-off grades of 0.5g/t Au and 1.6g/t Au respectively. This material has low geological, spatial and estimate conficence and cannot be considered as a mineral resource, but is contained within the open pit and undergound mining shapes used to constrain the reported mineral resource.
6. Exploration target expressed as a +/-10% range of modelled and estimated mineralisation of 13.4Mt @ 1.3g/t for 0.6Moz Au reported at a cut-off grade of 1.0g/t Au. This material encompasses all weathering types and all geological classifications and is located outside the constraining open pit shells and underground blockouts used to categorise the modelled mineralisation as having reasonable prospects for eventual economic extraction.
7. Bondi Deposit - 4.1Mt @ 2.1g/t Au for 282,000oz Au (measured and indicated) plus 2.5Mt @ 1.8g/t Au for 149,700oz Au (inferred), reported at a 0.5 g/t Au cut-off.
i. The historical estimate of the Bondi Deposit reflects a mineral resource estimate compiled by Orezone Gold Corporation ("Orezone") and has an effective date of February 20, 2009. The historical estimate is contained in a technical report titled "Technical Report on the Mineral Resource of the Bondigui Gold Project", dated date of February 20, 2009 and prepared by Yves Buro (the "Bondi Technical Report"). Yves Buro is an employee of Met-Chem Canada Inc and is independent of Orezone and Sarama. The technical report is available under Orezone's profile on SEDAR at www.sedar.com
ii. Sarama believes that the historical estimate is relevant to investors' understanding of the property, as it reflects the most recent and substantive technical work undertaken in respect of the Bondi Deposit.
iii. The historical estimate was informed by 886 drillholes, assayed for gold by cyanidation methods, which were used to interpret mineralised envelopes and geological zones over the area of the historical estimate. Gold grade interpolation was undertaken using ID² methodology based on input parameters derived from geostatistical and geological analyses assessments. Field measurements and geological logging of drillholes were used to determine weathering boundaries and bulk densities for modelled blocks.
iv. The historical estimate uses the mineral resource reporting categories required under National Instrument 43-101.
v. No more recent estimates of the mineral resource or other data are available.
vi. Sarama is currently undertaking the necessary verification work in the field and on the desktop that may support the future reclassification of the historical estimate to a mineral resource.
vii. A qualified person engaged by Sarama has not undertaken sufficient work to verify the historical estimate as a current mineral resource and Sarama is therefore not treating the historical estimate as a current mineral resource.