Sanutura Project

Sanutura Project

Developing Burkina Faso’s next gold district.

Located approximately 350km southwest of Ouagadougou, Sarama’s 100% owned Sanutura Project is situated in the prolific Houndé Belt, which is home to three operating gold mines including Endeavour Mining’s Mana and Houndé Gold Mines and Roxgold’s Yaramoko Gold Mine.

The belt is highly prospective and remains relatively underexplored, which is demonstrated by recent discoveries at Teranga Gold’s Golden Hill Project, Endeavour Mining’s Kari Deposit and also their 1.5Moz (Inf) Bantou Deposit, which is 5km from Sarama’s Tankoro Deposit – the key deposit within the Sanutura Project.

The Sanutura Project is the company’s lead project and provides visibility to a multi-stage, long-life CIL mine development with low capital intensity. The company anticipates being in a position to commence feasibility work following the integration of the Bondi Deposit into the Sanutura Mineral Resource and completion of planned exploration programs.

The Sanutura Project’s Tankoro Deposit has a Mineral Resource(1) of 9.4Mt @ 1.9g/t Au for 0.6Moz Au (Ind) plus 43.6Mt @ 1.4g/t Au for 1.9Moz Au (Inf), reported at cut-off grades ranging 0.2-1.6g/t Au.

The Tankoro Deposit also contains a significant higher-grade component of 6.3Mt @ 2.5g/t Au for 0.5Moz gold (Ind) plus 24.7Mt @ 1.8g/t Au for 1.5Moz gold (Inf) using a 1.0g/t Au cut-off.

Key elements of Tankoro Deposit:

  • Mineral resources extend approximately 16km along strike within a lithological and structural corridor approximately 1.4km wide and a gold geochem corridor 30km long
  • 70% of the defined mineral resource is situated within 150m of surface
  • The deposit is drill tested to 550m depth however a bulk of the strike tested to only 70m
  • Metallurgical testwork demonstrates gold recoveries of 93% for oxide and 91% for fresh rock
  • The combined oxide and transition component of the mineral resource totals 0.2Moz gold (Ind) plus 0.7Moz gold (Inf)(1)

The Sanutura Project also hosts the Bondi Deposit which is well drilled and has a historical estimate of resources of 0.28Moz (M&I) + 0.15Moz (Inf) Au(2). The company intends to validate the historical data, complete a mineral resource estimate at Bondi and test for strike and depth extensions at the deposit. Bondi will provide free-milling, high-margin ore feed with anticipated ROM grades of 2.5-3.0g/t Au and historical metallurgical test work indicates recoveries of over 90% in both oxide and fresh material.

The Bondi Deposit remains open in several directions and the company has been re-logging core and developing new targets with initial drill testing yielding encouraging results, including depth and strike extensions to the southern portion of resource zone and high-grade intercepts including 3m @ 19.9g/t Au (end of hole).

The company’s exploration efforts are focusing on extensional targets at the Tankoro and Bondi Deposits and additional targets within the wider Sanutura Project area where there remains a number of exciting prospects including:

  • The Bamako 2 Property which hosts a stacked, high-grade quartz vein system over 3km in length with significant artisanal workings. Exploration on this property has repeatedly returned high grades including gold in soils up to 13g/t Au and drilling intercepts of 15m @ 6.17g/t Au from 9m and 8m @ 18.4 g/t from 42m.
  • The Zanawa Prospect is a new discovery 4km northeast of the Bondi Deposit and scout drilling has returned 22m @ 3.85 g/t Au from 5m, 29m @ 1.44 g/t Au from 1m and 5m @ 4.54 g/t Au from 15m. Mineralisation extends over 1km of strike and is proximal to a volcanic-intrusive contact, and silica-pyrite-sericite-albite alteration is present.
  • The Botoro Property hosts km-scale anomalies and multiple drill targets and has had limited work, but initial scout drilling returned encouraging results including 4m @ 2.1 g/t Au, 4m @ 1.8g/t Au and 4m @ 0.57 g/t Au.

Importantly for Sarama, given the company already has a solid foundation upon which to develop a mine, further resources additions are highly accretive and the grade threshold for inclusion low.

The company published an updated resource in September 2020 and is targeting further resource growth through infill, extensional and regional drilling and the validation of historical data and completion of a resource covering the Bondi Deposit(2).

For further detail, read the September 2020 News Release

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Footnotes

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 likelihood 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. Scientific or technical information relating to the preparation of the Company’s mineral resource estimate for the Tankoro Deposit within the Sanutura Project is based on information compiled or approved by Adrian Shepherd. A technical report will be available under the Company’s profile on SEDAR at www.sedar.com

(2) Bondi Deposit – 4.1Mt @ 2.1g/t Au for 282,000oz Au (measured and indicated) and 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”) which 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 considered to be 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 technical work undertaken in respect of the Bondi Deposit.

iii. The historical estimate was informed by 886 drillholes, assayed for gold by cyanidation methods, 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.

(3) The current mineral resource estimate for the Karankasso Project of 12.74Mt @ 1.73g/t Au for 709koz Au (effective date of December 31, 2019) was disclosed on February 24, 2020 by Semafo Inc (“Semafo”, since acquired by Endeavour Mining Corp. “Endeavour”). For further information regarding that mineral resource estimate, refer to the news release “Semafo: Bantou Project Inferred Resources Increase to 2.2Moz” dated February 24, 2020 and Semafo: Bantou Project NI43-101 Technical Report – Mineral Resource Estimate” dated April 3, 2020. The news release and technical report are available under Semafo’s and Endeavour’s profile on SEDAR at www.sedar.com. The mineral resource estimate was fully prepared by, or under the supervision of Semafo. Sarama has not independently verified Semafo’s mineral resource estimate and takes no responsibility for its accuracy.

(4) The Djarkadougou Exploration Permit, which hosts the Bondi Deposit, is going through a process with the government of Burkina Faso where it is required it be re-issued as a new full-term exploration permit. The Company is in discussion with senior government officials regarding certain impediments to the re-issue of the Exploration Permit and anticipates these discussions will be completed in due course, though there can be no assurance that the process will be successfully completed on a timely basis, or at all.