SWA Sarama Resources Ltd

VANCOUVER, Sept. 9, 2014 /PRNewswire/ - Sarama Resources Ltd. ("Sarama" or the "Company") is pleased to announce that a shallow, wide-spaced 8,100m air-core ("AC") drill program conducted at its South Houndé Project (the "Project") in south-western Burkina Faso has delineated another 1.8km of gold mineralisation at the Obi Prospect, bringing the total strike length of semi-continuous mineralisation to 7.3km. 

The mineralisation at the Project remains open along strike, at depth and parallel to the main structure, and contains multiple high-grade zones that have not yet been fully delineated. No extensional drilling was undertaken to the north-west of the existing mineral resource, and this area remains a high priority target. These extensional areas have the potential to add to the maiden inferred mineral resource of 1.5Moz gold^1,2 which was reported in September 2013.

The length of semi-continuous mineralisation highlights the potential of the gold system and the opportunity to delineate a mineral resource of sufficient size to support future project development. The Company plans to recommence drilling at the end of the rainy season to both infill the results from this recent drill program and test extensions to known areas of mineralization.

Highlights

• Air-core drilling at the Obi Prospect extends the strike length of semi-continuous mineralisation to 7.3km and further demonstrates the size potential of the gold system at the South Houndé Project.
  
• Highlighted intersections are oxide in nature (located in oxidized, weathered bedrock) and include:

• Numerous oxide targets remain to be drill tested, including strike extensions north of the MM Prospect, footwall zones 500m east of the MM Prospect and a mineralised corridor situated approximately 10km east
  
• Areas containing drill holes with elevated grades will be the subject of future exploration drilling

South Houndé Project Exploration

The program covered selected oxide targets within the 3km-long by 2km-wide Obi Prospect that lies immediately south of the existing mineral resources at the MM Prospect (refer to Figure 1). The objective of the shallow AC drill program was to identify mineralised, near-surface oxide material that could be added at low cost to the existing oxide portion of the mineral resource base.

The drill program consisted of 8,100m of air core drilling in 170 inclined holes targeted to a maximum vertical depth of 50m, or blade refusal, and drilled at -55° to the east along 29 drill fences.  The holes were drilled to test 14 distinct target areas marked by soil, induced-polarisation and gravity anomalism, as well as anomalous historical scout drilling results.

Continuity of gold mineralisation was established from intersections on fence lines spaced approximately 100m apart.  Significant intersections in this area include:

These intersections are consistent with and compliment previous scout drilling undertaken by Sarama in this area with previously reported drill intersections including:

Gold mineralisation was also encountered in a footwall position similar to that identified at the MC Prospect situated further to the north and included intersections of: 6.0m @ 2.16g/t Au in AC1686; and 4.0m @ 2.17g/t Au in AC1616.

Infill drilling will be required to fully delineate the mineralisation and outline zones of elevated grade evidenced by the results from this program.  Deeper reverse-circulation and diamond drilling will also be required to ascertain the deeper portions of the Obi Prospect.

Numerous oxide targets lie within trucking distance of the central MM Prospect and have yet to be fully drill tested. The Company is optimistic that with further drilling it can delineate sufficient oxide and higher-grade sulphide mineral resources to support future project development.

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

"Sarama's recently completed air-core drill program continues to demonstrate the robust nature of the mineralised system at the South Houndé Project.  The mineralisation's total semi-continuous strike length of 7.3km underscores the potential size of the system, and it is believed that the shallow mineralisation encountered at the Obi Prospect will, with further drilling, comprise an important addition to the current oxide mineral resource. It is important to note that the footprint of mineralisation continues to grow with each drill program which bodes well for future resource growth."

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, Sarama's exploration programs have built on significant early success to deliver a maiden Inferred Mineral Resource estimate of 1.5 Moz gold^1,2. Outside of Burkina Faso, Sarama is focused on exploring and 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 sound exploration strategy across its prospective property portfolio.

Figure 1.  Drill Area of the Obi Prospect Showing Extension of Mineralisation to 7.3km in Strike Length.

Figure 2. Section 1172050mN Looking North

Figure 3. Section 1172700mN Looking North

Figure 4. Section 1173250mN Looking North

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 potential to add inferred mineral resources to the Company's existing estimated mineral resources, future project development and future plans for drilling. 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 –Drilling

Drilling results are quoted as downhole intersections.  Due to the preliminary stage of the drilling, the nature of the mineralisation is not fully understood and it is therefore not appropriate to provide guidance on the relationship of the downhole intersection length to the true width of mineralisation.

AC drilling was generally designed using west-east oriented holes, dipping at -55° to the east, approximately 50m in length.  AC drilling proceeded to design or cutting head refusal.  Holes were spaced approximately 40-60m apart along the drill lines.  AC drill cuttings were sampled over regular 1m intervals in areas where drilling was expected to inform mineral resource estimation, and were sampled over 2m composited intervals in areas where targets were more conceptual in nature.

The reported composites for AC 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.

AC drill samples were assayed for gold by the Activation Laboratories ("ActLabs") laboratory in 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.

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.

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 report of the information, in the form and context in which it appears.

Appendix A – Significant Drill Intersections

SOURCE Sarama Resources Limited