VANCOUVER, Jan. 13, 2014 /PRNewswire/ - Sarama Resources Ltd. ("Sarama" or the "Company") is pleased to announce that reconnaissance soil geochemistry surveys at its Cape Mount East exploration property in Liberia have successfully extended the anomalous gold-in-soil zone previously encountered at the Cape Mount exploration property to a total 15km along trend.  Follow-up trenching programs on the Cape Mount property, approximately 10km north of Aureus Mining Inc's New Liberty Gold Project, have returned several intervals of significant mineralisation, confirming the presence of in-situ gold mineralisation and reinforcing previously reported soil geochemistry results.

Highlights

  • Wide-spaced soil geochemistry survey on Sarama's Cape Mount East exploration property has extended the existing 9km-long anomalous gold-in-soil zone delineated on the Cape Mount exploration property (Sarama 80% interest, earning to 90%) by another 6km, bringing the total length of the trend to approximately 15km.
  • Trenching across the 9km-long anomalous gold-in-soil zone on the Cape Mount exploration property returned numerous wide, low-grade intervals with narrower higher-grade internal sections including:
    • 16m @ 1.74g/t Au, including 10m @ 2.55 g/t Au in CMTR037
    • 42m @ 0.63g/t Au, including 10m @ 1.44g/t Au in CMTR025
    • 47m @ 0.54g/t Au, including 4m @ 1.14 g/t Au in CMTR024
    • 17m @ 0.63g/t Au, including 6m @ 1.13 g/t Au in CMTR026
    • 6m @ 2.30g/t Au in CMPT003 (trench ended in mineralisation)
  • Trenching program confirms the presence of gold within oxidised in-situ bedrock along the full 9km-long anomalous gold-in-soil zone on the Cape Mount exploration property, highlighting the exploration potential.
  • Reconnaissance drill program planned for several target areas on Cape Mount exploration property.
  • Anomalous gold-in-soil trend is situated approximately 10km north of Aureus Mining Inc's New Liberty Gold Project which is currently being constructed.
  • Trenching at Sarama's Gbarpolu exploration property returned high grade intersections including:
    • 7m @ 13.11g/t Au, including 1m @ 58.7g/t Au and 1m @ 30.4g/t Au in BPTR003
    • 4m @ 4.63g/t Au in BPPT2 (trench ended in mineralisation)

Cape Mount Project Exploration

Sarama's exploration efforts in Liberia have largely focused on the western part of the country at the Cape Mount Project (the "Project"), comprised of the Cape Mount (Sarama 80% interest, earning to 90%), Cape Mount East and Cape Mount West (both Sarama 100% interest) exploration properties (refer Figures 1 and 2).

The Project is immediately adjacent to Aureus Mining Inc's ("Aureus") New Liberty Gold Project, which is currently under mine development on a mineral resource base of 1.1 Moz measured and indicated and 1.2 Moz inferred (refer Aureus news releases, July 4 & November 11, 2013).

Figure 1 - Sarama's Exploration Properties in Liberia

Trenching Identifies In-situ Gold Mineralisation at Cape Mount Exploration Property

The Company had previously identified a 9km-long, anomalous gold-in-soil zone in the southern portion of the Cape Mount exploration property, co-incident with active artisanal gold mining sites and several geologically prospective features identified by an airborne geophysical survey conducted by the Company in 2012.

To further investigate the potential for in-situ gold mineralisation, the Company undertook a program consisting of 37 trenches excavated to a depth of 2-3m in north-south orientations along the length of the anomalous zone.  The walls of the trenches were sampled at uniform 1m intervals over their length.  Results indicate the presence of wide, low-grade zones of gold mineralisation, often with narrower high-grade intervals internally, along the full length of the 9km-long soil anomaly.

The western area of Liberia is characterized by deeply weathered and oxidized Archean-age rocks with variable topographic relief.  Rainfall is considerable and has led to the disaggregation of the upper part of the regolith profile and in this environment, it is probable that near-surface geochemical and physical dispersion of in-situ gold has occurred at the level of trench sampling (2-3m depth).  The Company believes that this has led to the development of wide and relatively low-grade zones of gold mineralization that has typically been encountered in the trenching program.  The presence of high-grade sections within the lower grade halos is greatly encouraging.

The trenching program's confirmation of gold within in-situ oxidized bedrock over the full 9km strike length of the anomalous gold-in-soil zone augers well for future exploration activities that will include drill testing of selected targets.

The eastern part of the trenching program (refer Figure 2) returned the best results with highlights of:

16m @ 1.74g/t Au, including 10m @ 2.55g/t Au in CMTR037; and
11m @ 0.74g/t Au, including 5m @ 1.06g/t Au in CMTR035.

The central part of the program (refer Figure 3) returned very broad intervals of mineralisation including:

72m @ 0.23g/t Au, including 11m @ 0.46g/t Au in CMTR031;
24m @ 0.41g/t Au, including 6m @ 0.89g/t Au in CMTR004;
47m @ 0.54g/t Au, including 4m @ 1.14g/t Au in CMTR024;
17m @ 0.63g/t Au, including 6m @ 1.13g/t Au in CMTR026; and
31m @ 0.45g/t Au, including 18m @ 0.51g/t Au in CMTR011.

In addition, sampling across a wall within a small-scale mining excavation at approximately 4m into the regolith returned 6m @ 2.30g/t Au in CMPT003 (trench ended in mineralisation).

The western part of the program returned:

15m @ 0.38g/t Au, including 6m @ 0.52g/t Au in CMTR029;
7m @ 0.69g/t Au in CMTR006;
71m @ 0.40g/t Au in CMTR007; and
42m @ 0.63g/t Au, including 10m @ 1.44g/t Au in CMTR025.

Figure 2 - Cape Mount Trenching - Eastern Area

Figure 3 - Cape Mount Trenching - Central Area

Extension of Anomalous Gold-in-Soil Trend to 15km

The Cape Mount East exploration property contains the northern and southern limbs of an interpreted regional-scale fold defined by the trace of the east-west trending Bea Mountain iron formation.  Results of a wide-spaced soil geochemistry survey completed on the northern limb have confirmed the eastward extension of the 9km-long gold-in-soil anomaly present on the Cape Mount property for another 6km, bringing the strike length of the trend hosting the anomalous zones over the two properties to 15km (refer Figure 4).

The Company plans to conduct infill soil geochemistry surveys in this area as well as expanding the coverage of the reconnaissance geochemistry program to include the southern interpreted limb structure of the formation.

Figure 4 - 15km Anomalous Gold-in-Soil Trend at Cape Mount Project Area

Gbarpolu Project Exploration

The Company had previously identified parallel 11km-long and 3.5km long anomalous gold-in-soil zones in the southern portion of the Gbarpolu exploration property, co-incident with active artisanal gold mining sites and several geologically prospective features identified by an airborne geophysical survey conducted by the Company in 2012.

A trenching program consisting of 14 excavations in north-south orientations along the length of the anomalous zone was commenced in Q2/Q3 2013. The walls of the trenches were sampled at uniform 1m intervals over their length at a depth of approximately 2-3m below surface.

Results indicate the presence of high-grade zones of gold mineralization situated on the 3.5km-long southern anomalous zone as well as a broad low-grade zone in the northern 11km-long anomalous zone.

The weathering environment is similar to that at the Cape Mount Project, with high rainfall influencing the upper part of the regolith profile, leading to varying levels of in-situ gold dispersion.  It is encouraging to note the presence of the very high grade intersection in BPTR003 of 7m @ 13.11g/t Au which is supported by the nearby intersection of 4m @ 4.63g/t Au in BPPT2.

Figure 5 - Gbarpolu Trenching

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

"The extension of the anomalous gold-in-soil trend to 15km in length is highly encouraging, especially considering the confirmation of the presence of in-situ gold mineralisation by the trenching program on the central Cape Mount property and the proximity to Aureus' high quality New Liberty Gold Project.  We look forward to conducting further exploration on this promising project, including testing of drill targets generated from our work to date.

We are also encouraged by the intersection of very high grades in the Gbarpolu property's trenching program which we will investigate further with additional trenching."

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 properties are situated within the Company's South Houndé Project area in south-west Burkina Faso. Located within the prolific Houndé greenstone belt, exploration programs have built on significant early success to deliver a maiden Inferred Mineral Resource estimate of 1.5 Moz gold1. Outside of Burkina Faso, Sarama is focused on consolidating a number of under-explored landholdings in other emerging and established mining jurisdictions.

Incorporated in 2010, 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)

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 future exploration exploration at its Cape Mount, Cape Mount East and Gbarpolu properties and the maiden Mineral Resource estimate for its flagship South Houndé Project.  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, 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 - Soil Geochemistry

Soil geochemistry results are reported as processed data for a population of raw assay results.  The effects of mechanical and chemical concentration, weathering, and the topographical and vegetative settings have not been presented and therefore results reflect a first-pass exploration phase.  No top-cuts were applied to assay grades.

Sarama undertakes geological sampling and assaying in accordance with its QA/QC program which includes the use of certified standard reference materials, uncertified blank reference materials and field duplicates.  Gold assay work was undertaken by the SGS S.A. laboratories in Monrovia, Liberia and Tarkwa, Ghana.  Assays are determined by aqua regia digest of a 50g charge, followed by solvent extraction and an AAS finish with a 2ppb Au lower detection limit.

Soil samples were collected from holes with a nominal diameter of 200mm which were manually excavated to a depth of approximately 400-500mm. Holes were spaced on a regular grid measuring 1.6km (east-west) x 50m north-south).  Field samples of 2-3kg were collected from each hole, after which a sub-sample was produced by sieving for assaying.

The gold-in-soil anomaly represented for the Cape Mount property was delineated using the 95th percentile of the samples' Au grade population (Au >37ppb).

Notes -Trenching

Trenching results are quoted as lineal intervals.  Given the early stage of the exploration programs, the nature of the mineralisation is not well understood and as a consequence, true mineralisation width is not able to be determined.

The reported composites for trenching were determined using a cut-off grade of 0.20g/t Au to select significant and anomalous intersections, with a maximum of 4m internal dilution being incorporated into the composite where appropriate.  No top-cuts were applied to assay grades.  Isolated mineralised intervals 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 and uncertified reference materials and field duplicates for trenching.

Gold assays for the trenching were undertaken by the SGS S.A. laboratory in Monrovia, Liberia.  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.

The trenches were generally designed on a north-south orientation and were excavated to follow the topography of the area. The trenches were approximately 2-3m deep and were wall sampled on uniform 1m intervals, approximately 750mm from the floor of the trench.  Individual samples weighted approximately 3kg and were collected by hand.

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 Liberia is based on information compiled or approved by John Mpambije.  John Mpambije is an employee of Sarama Resources Ltd and 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.  John Mpambije consents to the inclusion in this news release of the information, in the form and context in which it appears.

Appendix A - Trench Results Listing

SOURCE Sarama Resources Limited

Copyright 2014 PR Newswire

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