Drill Tracker Weekly: Sarama Intersects Near-surface Oxide Gold at South Hounde

Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

Sarama Resources (TSXV:SWA)

Price: $0.07

Market cap: $6 million

Cash estimate: $2.5 million

Project: South Hounde

Country: Burkina Faso

Ownership: 100 percent; Acacia may earn 70 percent

Resources: Inferred: 29.13 MT @ 1.6 g/t Au

Project status: Resource definition — exploration

• Sarama announced the initial results from reverse circulation (RC) and air core (AC) drilling on the near-surface MC and MM prospects on the Companies South Hounde project in Burkina Faso. On November 27, 2014, the Company announced an earn in agreement with Acacia Mining (formerly African Barrick Gold) where Acacia may earn up to a 70% interest in the project by spending an aggregate of $14 million on exploration over a four year period. Acacia may earn an additional 5% interest by outlining a mineral reserve of greater than 1.6 million ounces of gold.

• Highlights from the current air core drilling in the MC zone returned 45.0 metres grading 3.88 g/t Au starting at a depth of 6 metres. The Air Core drilling is designed to collect chips while drilling though the oxide zone and giving a small piece of core when more competent bedrock is reached. Drilling in the RC zone intersected confirmed earlier oxide mineralization with 34 metres of 2.62 g/t Au from a depth of 32 metres.

• The MC and MM zone, along with the Phantom and Obi prospects, comprise a 7.3 kilometre long, north-northeast, mineralized trend. The mineralization is hosted in a series of west dipping veins in the favourable feldspar-porphyry intrusion. Higher grade and wider zones of mineralization are often focused on steeply plunging intersections where the north-northeast trend is intersected by east west structures.

• In September 2013, the Company announced the maiden inferred mineral resource estimate of 29.13 million tonnes grading 1.6 g/t Au using a 0.8 g/t Au cut-off grade. The resource includes 1.09 million ounces occurring as leachable oxide mineralization at an average grade of 2.1 g/t Au. Preliminary metallurgical work from the oxide zone indicates recoveries ranging from 75.4 to 93%. Fresh rock requires an oxidation stage prior to cyanidation to achieve 93% recoveries.

Discovery history (MM Zone — July 2011): 13.0 metres @ 3.9 g/t Au

Current drilling: 45 metres @ 3.88 g/t Au; 34 metres @ 2.62 g/t Au

Risks Analysis

Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results. 

Relevant Disclosures Applicable to: Drill Tracker Weekly 

1. The research analyst or a member of the analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release, Wayne Hewgill, owns no shares in any companies in this report. 

Analyst Certification

I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.