Sarama boosts Burkina resource

SARAMA Resources has increased the resource for its Tankoro gold deposit, part of the Sanutura project in southwest Burkina Faso.
Sarama boosts Burkina resource Sarama boosts Burkina resource Sarama boosts Burkina resource Sarama boosts Burkina resource Sarama boosts Burkina resource

Sarama exploring in Burkina Faso

The resource has increased from an inferred 2.1 million ounces in 2016 to an indicated and inferred 2.5Moz.

The updated resource comprises an indicated component of 9.4 million tonnes at 1.9 grams per tonne gold for 600,000 ounces of gold, and an inferred 43.6Mt at 1.4gpt gold for 1.9Moz, using cut-off grades of 0.3-0.5gpt gold.

The resource contains a higher-grade component of 6.3Mt at 2.5gpt gold for 500,000oz gold (indicated) and 24.7Mt at 1.8gpt for 1.5Moz gold (inferred), using a 1gpt cut-off.

The oxide and transition resource has increased from 600,000oz to 900,000oz, which the company said reflected its focus on near-surface targets to potentially support a staged development.

About 70% of the resource is within 150m of surface and extends for 16km along strike.

Sarama has an exploration target of a further 3.5-4.5Mt at 1.2-1.4gpt gold for 135,000-190,000oz within the open pit shell and underground blockouts, as well as a secondary exploration target of 12.0-14.7Mt at 1.2-1.4gpt for 500,000-700,000oz.

The Sanutura project represents the consolidation of the South Hounde and ThreeBee projects into a 100%-owned, 1500sq.km project.

"We are very pleased to be able to present a combined picture of our 100% owned assets in our southern Hounde Belt development area," Sarama president and CEO Andrew Dinning said.

"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 [of 400,000oz], while also targeting near-field resources which when combined, give us an exploration target in excess of 3Moz 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."

Metallurgical test work has demonstrated gold recoveries of 93% for the oxide ore and 91% for the fresh rock.

Further exploration is planned ahead of feasibility work to begin late next year.

Sarama recently raised just over C$2 million at 11c per share.

The company is listed in Toronto, but based in Perth and is also considering an Australian listing.

ASX 200 producer Silver Lake Resources is a major shareholder with 11.9%.

Shares in Sarama rose 4% overnight to 13c, valuing the company at $35.1 million.