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Sarama Resources Confirms 1.8km Long Mineralised Trend North of the MM Prospect in Burkina Faso

TSX-V Ticker: SWA

VANCOUVER, Jan. 23, 2013 /PRNewswire/ - Sarama Resources Limited ("Sarama" or the "Company") is pleased to report that recent reverse-circulation ("RC") and air-core ("AC") drilling at the Tankoro Prospect at its South Houndé Project in south-western Burkina Faso has returned encouraging intersections across all target areas and has notably confirmed the presence of a 1.8km-long mineralised trend at the Phantom Prospect, immediately along trend from the Company's 1.9km-long MM Prospect.


  • 1.8km-long mineralised trend confirmed at the Phantom Prospect, immediately north of the MM Prospect.
  • Further zones containing multiple significant intersections identified within the Phantom Prospect and in close proximity to the MM Prospect.
  • Strong mineralisation encountered in scout drilling approximately 1.2km along strike from the main MM mineralised system.
  • Downhole intersection highlights listed by prospect include:
                    Phantom   FRC643   8.0m @ 3.39 g/t Au   from 48.0m   RC   including 2.0m @ 10.24 g/t Au
                    Phantom   FRC564   14.0m @ 6.22 g/t Au   from surface   RC   including 10.0m @ 8.52 g/t Au
                    Phantom   FRC562   10.0m @ 5.50 g/t Au   from 82.0m   RC    
                    Phantom   AC385   10.0m @ 5.25 g/t Au   from 10.0m   AC   including 2.0m @ 18.35 g/t Au
                    Phantom   FRC563   8.0m @ 5.68 g/t Au   from 42.0m   RC    
                    Phantom   AC379   12.0m @ 2.25 g/t Au   from 16.0m   AC   including 2.0m @ 9.92 g/t Au
                    MM   FRC630   21.0m @ 2.50 g/t Au   from 93.0m   RC    
                    MM   FRC631   14.0m @ 4.99 g/t Au   from 34.0m   RC    
                    MM-East   FRC513   13.0m @ 1.99 g/t Au   from 43.0m   RC    
                    MM-East   FRC579   7.0m @ 4.12 g/t Au   from 44.0m   RC    
  • Potential remains for further extensions in all target areas.

Sarama has received assay results from recent RC and scout AC drilling programs commenced in October 2012 on the Tankoro exploration property within the Company's South Houndé Project.  The programs are part of the regional exploration strategy for the 30km-long Tankoro Structural Corridor that have been undertaken in parallel with its work at the more advanced MM Prospect (refer news release 14th January 2013).

The recent drill programs focused on the Phantom, MM-East, Obi and Dlarakoro prospects, all of which are situated along trend from Sarama's gold discovery at the MM Prospect (refer Figure 1).  In addition to these prospect areas, drilling targeted zones within the MM Prospect that are interpreted to be parallel to the main mineralisation system.

Results for approximately 11,500m RC (113 holes) and 9,700m (262 holes) AC drilling are listed in Appendices A and B respectively.  Figure 2 shows highlighted results.

The programs were designed to follow-up significant intersections from previous scout drilling, further test gold-in-soil anomalies and test targets generated from ground-based geophysical surveys recently completed by Sarama.

Successful target generation and recent drilling has returned significant intersections across six regional areas:

  • Area A - multiple RC and AC intersections in the central zone of the Phantom Prospect, contained in 12 drill lines covering an interpreted strike length of 1.8km, including 7.0m @ 3.27 g/t Au, 4.0m @ 3.28 g/t Au, 6.0m @ 2.40 g/t Au and 7.0m @ 2.26 g/t Au (refer Figure 3), with mineralisation being of a similar grade and geometry to that encountered at the MM Prospect, but predominantly presenting as a single lode;
  • Area B - three adjacent RC intersections of 10.0m @ 5.50 g/t Au, 8.0m @ 5.68 g/t Au and 14.0m @ 6.22 g/t Au drilled on a single scout line located in the east of the Phantom Prospect, approximately 750m from the MM mineralisation (refer Figures 3 and 4);
  • Area C - multiple AC intersections in the west of the Phantom Prospect, from a group of four drill lines spanning an interpreted strike length of approximately 500m, including 10.0m @ 5.25 g/t Au, 12.0m @ 2.25 g/t Au, 2.0m @ 7.75 g/t Au (hole ended in mineralisation), 2.0m @ 3.89 g/t Au (hole ended in mineralisation) and 2.0m @ 3.39 g/t Au (hole ended in mineralisation) (refer Figure 3);
  • Area D - two adjacent RC intersections of 14.0m @ 4.99 g/t Au and 21.0m @ 2.50 g/t Au drilled on a single scout line located in the far south of the MM Prospect, approximately 1.2km south-west and along trend from the defined MM mineralisation (refer Figure 3 and 5);
  • Area E - multiple RC intersections over four drill lines striking 1.6km at the MM-East Prospect, including 7.0m @ 4.12 g/t Au, 13.0m @ 1.99 g/t Au, 8.0m @ 1.92 g/t Au and 10.0m @ 1.81 g/t Au (refer Figure 3); and
  • Area F - multiple RC and AC intersections in scout lines in two distinct areas within the Dlarakoro Prospect including 7.0m @ 3.89 g/t Au, 10.0m @ 2.11 g/t Au and 4.0m @ 2.72 g/t Au (refer Figure 3).

The results clearly demonstrate the presence of multiple parallel mineralised 'limbs' of significant strike length within the Tankoro Structural Corridor with similar grade characteristics and potentially similar geometry to the mineralisation already defined at the MM Prospect.  Drilling to date has returned significant intersections along 11.5km of the trend and has identified a mineralised trend approximately 800m in width.

Sarama is continuing the drill programs at key regional targets, focusing initially on areas proximal to the MM Prospect and which are likely to deliver extensions to the mineralised zones.

Sarama's President and CEO, Andrew Dinning commented:

"We are very pleased with these results which continue to demonstrate the potential for the Tankoro Structural Corridor to host multiple zones of economic mineralisation.  The confirmation of the 1.8km-long mineralised trend at the Phantom Prospect, along with the intersection of other zones to the south and proximal to the MM mineralisation, is of significant value from a project development perspective and these areas will be a key focus in Sarama's future exploration activities."

For further information on the Company's activities, please contact:

Andrew Dinning or Paul Schmiede
telephone: +61 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 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 (3,100 km²), Liberia (>2,400 km²) and Mali (>560 km²) and is aggressively exploring across the property portfolio.

Figure 1:    Tankoro Prospect Locations

Figure 2:    Recent Regional Drilling Across Tankoro Permit

Figure 3:    MM and Phantom Prospects with Highlighted Results and Mineralised Extents

Figure 4:   Cross Section @ 1171800mN - Eastern Side of Phantom Prospect Looking North

Figure 5:   Cross Section @ 1175150mN - Single Scout Drill Line - Southern MM Prospect 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 Company's planned exploration programs.  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.

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.

RC drilling was generally designed using west-east oriented holes, dipping at -55° to the east, approximately 100m in length.  Drilling on the 'Obi' Prospect was oriented on north-west to south-east lines.  Holes were spaced approximately 40-60m apart along the drill lines.  RC drill cuttings were sampled over regular 1m composited intervals.

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 2m composited intervals.

The reported composites for 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.

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.

For RC drilling Sarama undertakes geological sampling and assay in accordance with its QA/QC program which includes the use of certified reference materials and field duplicates.  No certified reference materials or field duplicate based QA/QC regimes were adopted for the AC drilling due to the preliminary nature of the program.

RC drill samples were assayed for gold by the SGS S.A. ("SGS") laboratory in Morila, Mali and the ALS Group laboratory in Ouagadougou, Burkina Faso.  AC drill samples were assayed for gold by the ALS Group 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 MercierMichel 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.






SOURCE Sarama Resources Limited

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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