SARAMA RESOURCES COMPLETES SUCCESSFUL INITIAL SCOUT DRILL PROGRAM IN WESTERN LIBERIA
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1 NEWS RELEASE SEPTEMBER 8, 2014 SARAMA RESOURCES COMPLETES SUCCESSFUL INITIAL SCOUT DRILL PROGRAM IN WESTERN LIBERIA VANCOUVER, CANADA. Sarama Resurces Ltd. ( Sarama r the Cmpany ) is pleased t annunce the successful cmpletin f its initial drill prgram at the Cmpany s Cape Munt Prject in western Liberia. The recnnaissance drill prgram featured widely spaced drill fences alng an 8km prtin f a previusly delineated 15km-lng sil anmaly (see press release January 13, 2014). The drill prgram has cnfirmed the presence f shallw, in-situ gld mineralisatin within altered and lcally defrmed mafic and ultramafic vlcanic rcks. The 1,600m drill prgram was designed t test 3 distinct target areas marked by strng gld-in-sil anmalism and trench results utlining brad znes f anmalus gld values. Gld mineralisatin was intersected in all but ne f the drill hles with a number f intercepts cntaining ccurrences f visible gld. The Cmpany is als pleased t advise that it has increased its wnership interest in Pedsam Mining Ltd t 100% in accrdance with an earn in agreement between Sarama and Pedra Mining AS (Nrway) ( Pedra ). Pedra will retain a net smelter return ryalty f 1% shuld any f the prperties achieve prductin. PedSam is a Liberian entity which has title t the Cape Munt, Gbarplu and Grand Bassa permits. Highlights Shallw, in-situ gld mineralisatin cnfirmed ver an 8km sectin f a 15km-lng gld-in-sil anmaly Gld mineralisatin was intersected in all but ne hle with ccurrences f visible gld in a number f hles Gld mineralisatin is hsted in ultramafic rcks, a similar setting t the New Liberty Gld Depsit lcated 10km suth Highlighted intersectins include: CMDD g/t Au frm 33m CMDD g/t Au frm 9.3m CMDD g/t Au frm 7.8m CMDD g/t Au frm 28m CMDD g/t Au frm 26m 1.14g/t Au frm 48m 1.21g/t Au frm 59m CMDD009 Au frm 24.1m CMDD011 Au frm 36m Based n the results f this successful scut drill prgram, further wrk including drilling and trenching has been planned t further define the existing targets and test the 15km-lng trend Cmpany increases wnership in Liberian permits t 100%
2 Cape Munt Prject Explratin The Cape Munt Prject (the Prject ) encmpasses an area f 281 km 2 (refer Figure 1) and is wned 100% by Sarama. The Prject is lcated immediately adjacent t Aureus Mining Inc s New Liberty Gld Prject and is currently under develpment. The Cmpany s explratin prperties are underlain by an assemblage f Archean gneissic rcks cntaining relatively thin (10s t 100s f meters, rarely >5km wide), but laterally cntinuus (up t 30km-lng), steeply-dipping units f metamrphsed greenstne. The greenstne layers cnsist f mafic-t-ultramafic vlcanic and vlcaniclastic rcks with interbeds f siliceus magnetic irn frmatin, quartzite and clastic sedimentary rcks. The metamrphic grade f the greenstne ranges frm greenschist t lwer-t-middle amphiblite facies and increases twards greenstne-gneiss cntacts, pssibly indicating the greenstne units were structurally emplaced alng thrust faults that later fcussed gld re-frming hydrthermal activity and clsely assciated granitic and albitite intrusins. The abundant artisanal wrkings and bedrck gld depsits in western Liberia are typically assciated with lwer-grade greenstne rcks. These gld depsits are aligned alng majr structural znes, as is typical f greenstne-type gld depsits wrld-wide. Initial explratin targeting cmmenced with a permit-wide airbrne magnetic survey ver the main Cape Munt prperty. A strng magnetic anmaly alng trend frm the Bea Muntain irn frmatin became the bject f detailed fllw-up sil survey grids. The sil surveys utlined a 15km-lng gld-in-sil anmaly, and subsequent trenching prduced the fllwing in-situ interval highlights: 1.74g/t Au including 2.55 g/t Au in CMTR037; 0.63g/t Au including 1.44g/t Au in CMTR025; 0.54g/t Au including 1.14 g/t Au in CMTR024; 0.63g/t Au including 1.13 g/t Au in CMTR026; and 2.30g/t Au in CMPT003 (trench ended in mineralisatin) Cape Munt Gld Prject Drill Prgram The drill prgram cnsisted f 1,600m f diamnd cre drilling in 15 hles. The hles were inclined at -50 t the nrth and extended t dwnhle depths varying between 75 and 195m. The hles were drilled t test 3 distinct target areas marked by strng sil anmalism and anmalus trench results, with each target being apprximately 2km lng. The prgram tested an apprximate 8km strike length alng the larger 15km-lng gld anmaly and was fcused entirely within the Cape Munt explratin licence (refer Figure 1). Bangma Prspect Seven hles were drilled n the Bangma Prspect with 6 riented t the nrth and 1 t the suth. The deepest hle cmpleted was 195m in depth (CMDD001). Five hles tested the eastern end f a large pit assciated with a small scale mechanised mining site (CMDD and CMDD ), whereas 2 hles tested the western end f the mining site (CMD008 and CMDD015). The drilling utlined a lcal stratigraphy at Bangma with a dark-green siltstne unit t the suth bunded by a thick fine-t-medium grained dirite unit t the nrth. All seven hles terminated in the diritic unit. All but ne f the drill hles returned intervals cntaining anmalus gld mineralisatin, cmmnly with multiple mineralised hrizns. The best intersectin came frm belw the large mechanised mining pen pit in CMDD002 which returned 2.54g/t Au frm 33m. Other significant intersectins include: 1.47g/t Au frm 74m and 1.21g/t Au frm 147m in CMDD001; 0.74g/t Au frm 26m, 1.14g/t Au frm 48m, 1,21g/t Au frm 59m, and 1.17g/t Au frm 77m in CMDD008; and 0.81g/t Au frm 17m and 1.63g/t Au frm 41m in CMDD015. 2
3 Figure 1. 15km-lng anmalus gld-in-sil trend at the Cape Munt Prject shwing the 3 drill targets. Saanr Prspect The Saanr Prspect lies apprximately 4km west f the Bangma Prspect. Fur hles tested the target (CMDD ). Tw hles were drilled t the nrth n a fence t test the eastern side f an artisanal site, and tw hles were drilled t the nrth n a fence t test the western side f the artisanal site. The fences are 100m apart. Frm suth t nrth the lithlgic units in the Saanr area are interleaved siltstne and dirite fllwed by a thick diritic intrusin and ending with a thick, dark green basaltic-t-ultramafic unit. 3
4 Every drill hle returned gld values, cmmnly ver several hrizns, with the best intersectins being: 3.87g/t Au frm 9.3m in CMDD004; 1.24g/t Au frm 7.8m in CMDD006; and 2.25g/t Au frm 28.0m in CMDD007. Bmafa Prspect The Bmafa Prspect lies apprximately 4km east f the Bangma Prspect alng the same magnetic anmaly trend. Fur hles tested the Bmafa Target (CMDD ). Tw hles were drilled t the nrth n a fence under the best previus trench results (i.e., 2.55g/t Au) and 2 hles were drilled t the nrth n a fence 100m t the west. The main lithlgy encuntered was a thick basalt-ultramafic unit fllwed by anther thick sequence f interleaved basalt-ultramafic rcks intruded by narrw, fine-t-medium grained dirite dykes. The best intersectins btained are: 1.66g/t Au frm 24m in CMDD009; and 2.04g/t Au frm 36m in CMDD011. Gelgical Observatins Ultramafic-basaltic units were encuntered in the drilling at the Bmafa and Saanr Prspects n the nrthern side f a zne f diritic intrusins. At Bangma, drilling terminated within a thick diritic intrusin and the bunding unit t the nrth is presently unknwn but assumed t be the ultramafic-basaltic unit. A dark green siltstne unit appears t lie suth f the dirite intrusin. All these units are metamrphsed t greenschist grade in cntrast t the surrunding gneissic rcks. The ultramafic-basalt unit is strngly magnetic and appears t be the surce f the reginal magnetic anmaly in this area. An intrusive diritic unit has been intersected at all 3 drill target areas and may represent a lng but narrw intrusin f reginal significance that has been injected int a zne f structural weakness. Alteratin is bth clearly recgnisable and cryptic. It is mainly bserved as minr t pervasive silicificatin in assciatin with hematite, calcite, chlrite, muscvite and sulphides (mainly pyrite, minr chalcpyrite). Pyrite cntent varies frm trace, in least altered rck, t 5% in mst altered rck. Visible gld has been identified in drill cre. It ccurs as small islated grains in assciatin with silica-hematite-calcitepyrite altered znes. The gld ccurs in bth the altered diritic unit and within the ultramafic unit. Sarama s President and CEO, Andrew Dinning, cmmented: We are very encuraged by the results f this initial drill prgram, particularly given nearly every hle intersected gld mineralisatin and there were ccurrences f visible, carse gld in cre. We are further encuraged by the identificatin f gld mineralizatin in ultramafic rcks just 10km nrth f the high-grade New Liberty Depsit which is als assciated with ultramafic rcks. We believe these results highlight the ptential f the 15 kilmetre-lng anmalus crridr t hst a new gld discvery. Fr further infrmatin n the Cmpany s activities, please cntact: Andrew Dinning r Paul Schmiede e: inf@saramaresurces.cm t: +61 (0) Neither TSX Venture Exchange nr its Regulatin Services Prvider (as that term is defined in plicies f the TSX Venture Exchange) accepts respnsibility fr the adequacy r accuracy f this release. 4
5 ABOUT SARAMA RESOURCES LTD Sarama Resurces Ltd (TSX-V: SWA) is a West African fcused gld explrer with substantial landhldings in Burkina Fas, Liberia and Mali. Sarama s flagship prperties are situated within the Cmpany s Suth Hundé Prject area in suth-west Burkina Fas. Lcated within the prlific Hundé greenstne belt, Sarama s explratin prgrams have built n significant early success t deliver a maiden Inferred Mineral Resurce estimate f 1.5 Mz gld 1,2. Outside f Burkina Fas, Sarama is fcused n cnslidating a number f under-explred landhldings in ther emerging and established mining jurisdictins. Incrprated in 2010, the Cmpany s Bard and management team have a prven track recrd in Africa and a strng histry in the discvery and develpment f large-scale gld depsits. Sarama is well psitined t build n its current success with a strng financial psitin and a sund explratin strategy acrss its prperty prtfli g/t Au (at a 0.8 g/t Au cut-ff) 2. The effective date f the Cmpany s Mineral Resurce estimate is September 16, Fr further infrmatin regarding the Mineral Resurce estimate please refer t the technical reprt titled NI Independent Technical Reprt, Suth Hundé Prject, Buguriba and Iba Prvinces, Burkina Fas, dated Octber 28, The technical reprt is available under the Cmpany s prfile n SEDAR at CAUTION REGARDING FORWARD LOOKING STATEMENTS Infrmatin in this news release that is nt a statement f histrical fact cnstitutes frward-lking infrmatin. Such frward-lking infrmatin includes statements regarding the bjectives and scpe f the Cape Munt Gld Prject drill prgram. Actual results, perfrmance r achievements f the Cmpany may vary frm the results suggested by such frward-lking statements due t knwn and unknwn risks, uncertainties and ther factrs. Such factrs include, amng thers, that the business f explratin fr gld and ther precius minerals invlves a high degree f risk and is highly speculative in nature; Mineral Resurces are nt Mineral Reserves, they d nt have demnstrated ecnmic viability, and there is n certainty that they can be upgraded t Mineral Reserves thrugh cntinued explratin; few prperties that are explred are ultimately develped int prducing mines; gelgical factrs; the actual results f current and future explratin; changes in prject parameters as plans cntinue t be evaluated, as well as thse factrs disclsed in the Cmpany s publicly filed dcuments.there can be n assurance that any mineralisatin that is discvered will be prven t be ecnmic, r that future required regulatry licensing r apprvals will be btained. Hwever, the Cmpany believes that the assumptins and expectatins reflected in the frward-lking infrmatin are reasnable. Assumptins have been made regarding, amng ther things, the Cmpany s ability t carry n its explratin activities, the sufficiency f funding, the timely receipt f required apprvals, the price f gld and ther precius metals, that the Cmpany will nt be affected by adverse plitical events, the ability f the Cmpany t perate in a safe, efficient and effective manner and the ability f the Cmpany t btain further financing as and when required and n reasnable terms. Readers shuld nt place undue reliance n frward-lking infrmatin. Sarama des nt undertake t update any frward-lking infrmatin, except as required by applicable laws. QUALIFIED PERSON S STATEMENT Scientific r technical infrmatin in this news release that relates t the preparatin f the Cmpany s mineral resurce estimate is based n infrmatin cmpiled r apprved by Adrian Shepherd. Adrian Shepherd is an emplyee f Cube Cnsulting Pty Ltd and is cnsidered t be independent f Sarama Resurces Ltd. Adrian Shepherd is a chartered prfessinal member in gd standing f the Australasian Institute f Mining and Metallurgy and has sufficient experience which is relevant t the cmmdity, style f mineralisatin under cnsideratin and activity which he is undertaking t qualify as a Qualified Persn under Natinal Instrument Adrian Shepherd cnsents t the inclusin in this news release f the infrmatin, in the frm and cntext in which it appears. 5
6 Scientific r technical infrmatin in this news release that relates t the Cmpany s explratin activities in Liberia is based n infrmatin cmpiled r apprved by Jhn Mpambije. Jhn Mpambije is an emplyee f Sarama Resurces Ltd and is a Chartered Prfessinal member in gd standing f the Australasian Institute f Mining and Metallurgy and has sufficient experience which is relevant t the cmmdity, style f mineralisatin under cnsideratin and activity which he is undertaking t qualify as a Qualified Persn under Natinal Instrument Jhn Mpambije cnsents t the inclusin in this news release f the infrmatin, in the frm and cntext in which it appears. NOTES CONCERNING DIAMOND DRILL CORE PROCESSING Drill cre samples fr assay were taken at a minimum f 0.5m t a maximum f 1.0m based n alteratin and lithlgical changes. Cre was cut with a diamnd saw cllecting ne half f the cre sample that was then placed int a sealed plastic sample bag by a Sarama gelgist, sent under gelgist supervisin t the SGS Labratry in Mnrvia Liberia, where cre samples were weighed, dried and crushed dwn t minus 2mm with ne half f the samples pulverized dwn t 85% passing 75 micrns. Assays were determined by fire assay methd using a 50g charge; lead cllectin and an AAS finish with a 0.01g/t Au lwer detectin limit. Internatinally recgnized standard and blanks were inserted as part f the cmpany s internal quality assurance/quality cntrl analytical prcedure. 6
7 APPENDIX A DIAMOND DRILL INTERCEPTS, CAPE MOUNT PROJECT, LIBERIA Lcatin (Prspect) Hle ID Dwnhle Intersectin Depth Frm (m) Depth T (m) Dip Azimuth ( TN) Hle Length BANGOMA CMDD g/t Au g/t Au g/t Au g/t Au g/t Au g/t Au g/t Au g/t Au CMDD g/t Au g/t Au CMDD g/t Au g/t Au g/t Au g/t Au g/t Au CMDD g/t Au g/t Au g/t Au g/t Au g/t Au g/t Au g/t Au g/t Au CMDD g/t Au g/t Au CMDD g/t Au g/t Au g/t Au CMDD g/t Au g/t Au g/t Au SAANOR CMDD g/t Au g/t Au CMDD g/t Au g/t Au g/t Au CMDD g/t Au CMDD g/t Au g/t Au g/t Au g/t Au BOMAFA CMDD g/t Au CMDD g/t Au CMDD g/t Au
8 Drilling results are quted as dwnhle intersectins. Due t the preliminary stage f the drilling, the nature f the mineralisatin is nt fully understd and it is therefre nt apprpriate t prvide guidance n the relatinship f the dwnhle intersectin length t the true width f mineralisatin. The reprted cmpsites were determined using a cutff grade f 0.3g/t Au t select significant and anmalus intersectins, with a maximum f 2m internal dilutin being incrprated int the cmpsite where apprpriate. N tp-cuts were applied t assay grades. Islated mineralised intersectins less than 2m in length have nt been reprted. 8
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