Drilling Confirms Near-Surface, High-Grade Zones Within Tankoro Deposit

PERTH, AUSTRALIA / VANCOUVER, BC / ACCESSWIRE / February 27, 2023 / Sarama Resources Ltd. ("Sarama" or the "Company") (ASX:SRR)(TSX-V:SWA) is pleased to announce that exploration drilling at its 100%-owned⁽⁴⁾, multi-million-ounce Sanutura Project (the "Project") has confirmed the presence of high-grade mineralisation within the central area of the Tankoro Deposit, with new downhole intersections from recent drilling including 23m @ 4.26g/t Au, 18m @ 3.63g/t Au and 11m @ 4.33g/t Au being returned.

Notably, the new results confirm the presence of a high-grade mineralised zone extending for 700m along strike and high-grade oblique mineralisation within the central area of the Tankoro Deposit. This area accounts for approximately 80% of the Mineral Resource for the deposit and is currently the economic focal point of the Project.

The reported drilling totals approximately 5,400m and reflects the balance of unreported assays of a multi-purpose drill program completed in H2 2022 which was primarily focussed on testing for new, near-surface mineralisation within the Tankoro Deposit. The successful program has delivered numerous high-grade discoveries which are anticipated to grow the oxide component of the Project's 0.6Moz Au (Indicated) plus 2.3Moz Au (Inferred)⁽¹⁾ mining shape constrained Mineral Resource.

Highlights

• Extensive zones of high-grade mineralisation continue to be intersected within the Tankoro Deposit
• Highlighted downhole intersections from new assays include:
  • 23m @ 4.26g/t Au from 30m in TAR044;
  • 18m @ 3.63g/t Au from 24m in TAR043;
  • 11m @ 4.33g/t Au from 30m in TAA320;
  • 26m @ 2.09g/t Au from 2m in TAA318;
  • 15m @ 2.37g/t Au from 7m in TAA321;
  • 18m @ 2.02g/t Au from 21m in TAA362; and
  • 22m @ 1.74g/t Au from 25m in TAA413.
• Significant zone of high-grade mineralisation delineated over a strike length of 700m
• Oblique lodes continue to demonstrate enriched grade, highlighting value potential
• Drill results support strike extensions for several mineralised lodes
• Intersections are in near-surface oxide material with potential to provide early feed in any mine development
• Intersections enhance confidence level of the near-surface oxide and transition component of the Mineral Resource, currently standing at a substantial 0.2Moz Au (Indicated) plus 0.8Moz Au (Inferred)⁽²⁾
• 2023 exploration to focus on the Bondi Deposit, located in the north of the Sanutura Project

Sarama's President, CEO & MD, Andrew Dinning commented:

"We are excited that we continue to make new, near-surface discoveries and extend areas outside of the modelled mineralization. The central area of the Tankoro Deposit hosts almost 80% of its contained metal and remains the economic focus of the Project and the drill results received from the 20,000m of drilling completed in the current campaign support management's view that abundant exploration potential remains. We have made multiple new high-grade discoveries proximal to but outside of the Mineral Resource and also developed a new exploration target model reminiscent of Endeavour Mining's flat, high-grade Kari Pump Deposit which lies 80km away. The recent discoveries are expected to add to the current Mineral Resource which we plan to update after the completion and follow up of the current +50,000m program, a majority of which is shallow, cost-effective aircore drilling."

Figure 1 - Tankoro Deposit Location Plan - Continual Success in CY2022 Drilling Program

Drilling Delineates High-Grade Zones in Material within the Central Area of Tankoro Deposit

Results are reported (refer Appendix A) for approximately 1,200m (20 holes) of aircore ("AC") and reverse-circulation ("RC") drilling undertaken in Q2/Q3 2022 within the central area of the Tankoro Deposit at the MC and MM Prospects which targeted high-grade zones of mineralisation close to surface. These prospects are the economic focal points of the deposit and the targeted areas would provide early feed for a potential oxide open pit mine development.

Drilling at the MC Prospect (refer Figure 2) targeted a geometrically complex area of mineralisation that makes a significant contribution to the Mineral Resource. The mineralisation is interpreted to be a package of north-north-east striking quartz-feldspar-porphyry dykes which is interleaved with several later-stage north-east trending mineralised lodes, hypothesised to be associated with structural deformation/displacement events. The resulting mineralisation presents as a dense package of discrete lodes, which are typically high grade and of significant width. The recent drilling sought to better-define certain areas of the interpretation in order to reduce estimation risk in this high contained metal area of the Mineral Resource. Highlighted downhole intersections from this recent series of drilling include:

• 23m @ 4.26g/t Au from 30m in TAR044;
• 18m @ 3.63g/t Au from 24m in TAR043;
• 18m @ 2.02g/t Au from 21m in TAA362;
• 13m @ 1.25g/t Au from 49m in TAR043;
• 6m @ 1.74g/t Au from 18m in TAA374;
• 7m @ 2.20g/t Au from 47m in TAR067; and
• 5m @ 2.10g/t Au from 31m in TAR028.

These results add to previously reported shallow, high-grade drilling in the area featuring downhole intersections of:

• 36m @ 6.48g/t Au from 14m in DDH059;
• 26m @ 6.90g/t Au from 22m in FRC845;
• 32m @ 4.82g/t Au from 14m in AC988;
• 45m @ 3.88g/t Au from 6m in AC1891;
• 35m @ 3.29g/t Au from 6m in TAA130; and
• 34m @ 2.62g/t Au from 32m in FRC873.

Figure 2 - High-Grade Zone at MC Prospect Associated with Oblique Lode Geometry (Intersections >3g/t Au)

As with the higher-grade areas of the MM Prospect, the recent drilling confirmed the interpretation of mineralisation and the Company anticipates it will assist in the upgrading certain local areas of the Mineral Resource to Indicated and potentially Measured, classification.

Drilling at the MM Prospect (refer Figure 3) successfully intersected high-grade mineralisation along a strike distance of approximately 700m and included new downhole intersections of:

• 11m @ 4.33g/t Au from 30m in TAA320;
• 26m @ 2.09g/t Au from 2m in TAA318;
• 15m @ 2.37g/t Au from 7m in TAA321;
• 22m @ 1.74g/t Au from 25m in TAA413;
• 5m @ 3.47g/t Au from 39m in TAA414; and
• 12m @ 1.50g/t Au from 12m in TAA412.

Figure 3 - Central Tankoro Deposit Area with 700m Long High-Grade Zone Delineated at MM Prospect

These results are consistent with previously reported drilling in the area which included downhole intersections of:

• 14m @ 4.99g/t Au from 34m in FRC631;
• 21m @ 2.50g/t Au from 93m in FRC630;
• 22m @ 1.89g/t Au from 39m in FRC668;
• 17m @ 1.98g/t Au from 16m in FRC665; and
• 26m @ 1.84g/t Au from 28m in FRC662.

The Tankoro Deposit features numerous zones of elevated gold grades and it is encouraging that the zone targeted by the drilling demonstrates grade continuity over this significant distance. The broad widths of mineralisation intersected and the presence of multiple parallel mineralised lodes enhance the economics of potential open pit mining and the Company is pleased with the results which reduce the technical risk of the local Mineral Resource estimate.

Testing for Strike Extensions to Minor Lodes - MM, MC, Obi & Kenobi Prospects

Approximately 1,900m (34 holes) of AC and RC drilling targeted modest strike extensions to various minor lodes throughout the MM, MC (refer Figure 4), Obi and Kenobi Prospects. The targets were typically singular lodes for which interpretations had terminated on drill fences of economic significance.

Figure 4 - 300m Information Gap with Potential for Additions to Mineral Resource at MC Prospect

The results of the step-out/close-out holes generally provided terminations for the mineralised lodes and have improved knowledge of the lode architecture, particularly in one area at the MC Prospect. This area is outside the Mineral Resource and features an information gap extending for approximately 300m along strike in between two segments of the Mineral Resource (apart from a single fence of reconnaissance rotary-air-blast drilling which is considered to be of low accuracy).

The drilling suggests that a northern extension to the southern segment of the Mineral Resource is likely and further drilling in the information gap is warranted. Full results for this series of drilling are listed in Appendix A and highlighted downhole intersections include:

• 5m @ 1.72g/t Au from 34m in TAA377;
• 4m @ 1.82g/t Au from 19m in TAA199;
• 5m @ 1.13g/t Au from 20m in TAR027;
• 4m @ 1.23g/t Au from 19m in TAA205;
• 3m @ 1.04g/t Au from 26m in TAA205; and
• 6m @ 0.95g/t Au from 49m in TAA205.

Testing for Cross-Linking Mineralisation Potential - MM Prospect

Approximately 800m (16 holes) of reconnaissance AC drilling was conducted at the MM Prospect to investigate potential for cross-linking mineralisation in the near-resource field. Sarama's historical exploration activities have demonstrated that this orientation of mineralisation is an important feature of the Tankoro Deposit and often is associated with local increases in grade and lode volume. Previous drilling in the target area returned near-surface downhole intersections of 8m @ 0.97g/t Au, 10m @ 0.41g/t Au and 2m @ 2.74g/t Au which are considered promising for an early-stage target. Of interest was a previously reported downhole intersection of 4.7m @ 1.36g/t Au at a vertical depth of approximately 200m which can be extrapolated to near-surface drill intersections. New near-surface downhole intersections of 7m @ 1.00g/t Au and 2m @ 2.45g/t Au, in TAR030 and TAR037 respectively, will assist the Company in understanding the lode geometry and determining the potential for attractive exploration targets. Full results for this series of drilling are listed in Appendix A.

Improved Definition of Grade Distribution in Mineral Resource - Obi & Kenobi Prospects

Approximately 800m (15 holes) of AC and RC drilling was conducted at the Obi and Kenobi Prospect to improve the definition of grade distribution and investigate the potential for elevated gold grades in certain segments of the Mineral Resource. In general, the drilling confirmed the interpretation of the lodes comprising the Mineral Resource, with the majority of holes returning broad downhole intersections in the order of 15-20m length. The intersected grades were generally low to moderate and consistent with the grades estimated for the Mineral Resource in the area. Some instances of elevated grades are present, illustrated by new downhole intersections of 12m @ 1.26g/t Au (TAA160), 15m @ 1.06g/t Au (TAA419) and 16m @ 0.87g/t Au (TAA309), all of which were returned within oxide material approximately 25m from surface. Of note were a number of holes ending in mineralisation, which provides some scope for expansion of the Mineral Resource interpretations.

It is pleasing that the additional drilling information has confirmed the interpretation and estimate of gold grades, providing additional confidence in the Mineral Resource estimate. Further work in the target areas will likely be limited to infill drilling for classification upgrades to the Mineral Resource as the Project advances. Some potential exists for structural/deformation features to be present in-between existing drill fences which may be associated with grade enrichment in localised zones. Full results for this series of drilling are listed in Appendix A.

Early-Stage Targets with Working Interpretations - MC & Obi Prospects

Approximately 800m (17 holes) of AC drilling targeted selected areas of the MC and Obi Prospects where broad spaced drilling had supported preliminary working interpretations of mineralisation to be compiled. These areas are outside of the Mineral Resource and generally have low data density and multiple permissive interpretations. The recent drilling generally returned downhole intersections of modest grade and width, which is broadly consistent with exiting results in these areas. Full results for this series of drilling are listed in Appendix A. The recent results will be incorporated into the mineralisation interpretations which will further the Company's understanding of lode geometry and geologic model in the near-surface area.

Exploration Set to Continue in 2023 at Bondi Deposit

The Company is pleased by the numerous discoveries made throughout the 2022 drill program which it anticipates will add to the oxide and transition component of the already large, multi-million Mineral Resource of 0.6Moz Au (Indicated) plus 2.3Moz Au (Inferred)⁽¹⁾. The program illustrates good potential remains for growth within the fertile Tankoro Mineralised Corridor and planning is underway for follow-up exploration.

In the near term, the Company will turn its exploration focus to the Bondi Deposit, located in the north of the Sanutura Project. The deposit is an important part of the project, with potential to provide early open pit oxide feed in any mine development. There are numerous high priority exploration targets proximal to the Mineral Resource, a majority of which lie within 80m of surface.

Appendices

To access the appendices referred to in this announcement please click on the links below

Appendix A: Summary of Recently Drilled Results

Appendix B: References to Previous ASX Disclosure

Appendix C: JORC Code (2012 Edition) - Table 1 Information

For further information, please contact:

ABOUT SARAMA RESOURCES LTD

Sarama Resources Ltd (ASX: SRR, TSX-V: SWA) is a West African focused gold explorer/developer with substantial landholdings in south-west Burkina Faso. Sarama is focused on maximising the value of its strategic assets and advancing its key projects towards development.

Sarama's 100%-owned⁽⁴⁾ Sanutura Project is principally located within the prolific Houndé Greenstone Belt in south-west Burkina Faso and is the exploration and development focus of the Company. The Project hosts the Tankoro and Bondi Deposits which have a combined Mineral Resource of 0.6Moz gold (Indicated) plus 2.3Moz gold (Inferred)⁽¹⁾.

Together, the deposits present a potential mine development opportunity featuring an initial, long-life CIL project which may be established and paid for by the significant oxide Mineral Resource base.

Sarama has built further optionality into its portfolio including an approximate 470km2 exploration position in the highly prospective Banfora Belt in south-western Burkina Faso. The Koumandara Project hosts several regional-scale structural features and trends of gold-in-soil anomalism extending for over 25km along strike.

Sarama also holds an approximate 18% participating interest in the Karankasso Project Joint Venture ("JV") which is situated adjacent to the Company's Sanutura Project in Burkina Faso and is a JV between Sarama and Endeavour Mining Corp ("Endeavour") in which Endeavour is the operator of the JV. In February 2020, an updated Mineral Resource estimate of 709koz gold⁽³⁾ was declared for the Karankasso Project JV.

The Company's Board and management team have a proven track record in Africa and a strong history in the discovery and development of large-scale gold deposits. Sarama is well positioned to build on its current success with a sound strategy to surface and maximise the value of its property portfolio.

Sanutura Project - An Already Large Mineral Resource with Potential to Grow

The Company's primary focus is its 100%-owned⁽⁴⁾ Sanutura Project, which hosts a large Mineral Resource of 0.6Moz Au (Indicated) plus 2.3Moz Au (Inferred)⁽¹⁾ and covers an area of 1,420km². The Project occupies a commanding position along 70km of strike in the prolific Houndé Belt (refer Figure 6), Burkina Faso's pre-eminent gold belt.

The Project lies 60km south of Endeavour Mining's Houndé Mine (5Moz Au); 120km south of Fortuna Silver's high-grade Yaramoko Mine (1Moz Au), and 140km south of Endeavour Mining's Mana Mine (5Moz Au), highlighting the significant gold endowment of the Houndé Belt (refer Appendix B). Endeavour Mining's Bantou Project (1.5Moz Au Inferred Mineral Resource⁽⁵⁾) is located only 6km from the bulk of the Sanutura Project's main deposit, which illustrates the gold camp scale of endowment of the immediate area.

The Project has significant growth potential and the primary objective of the current +50,000m drill program is to increase the existing 0.2Moz Au (Indicated) plus 0.8Moz Au (Inferred)⁽²⁾ pit shell constrained oxide and transition component of the Project's Mineral Resource to further underwrite and enhance the economics of mine development.

The recent drill program has generally focused on shallow additional and extensional targets throughout the well-mineralised western corridor of the Tankoro Deposit, where mineralisation has been drill-defined for a semi-continuous strike length of 16km and potential exists to expand the Mineral Resource at shallow depths in oxide material.

Figure 5 - Sanutura Project Location Plan

FOOTNOTES

1. Mineral Resource estimate for Sanutura Project - 9.4Mt @ 1.9g/t Au for 0.6Moz Au (Indicated) plus 52.7Mt @ 1.4g/t Au for 2.3Moz (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 Mineral Resource estimate is 16 November 2021. For further information regarding the Mineral Resource estimate refer to the technical report titled "NI 43-101 Independent Technical Report Sanutura Project, South-West Burkina Faso", dated 7 February 2022 and prepared by Paul Schmiede, Rindra Le Grange and Fred Kock, and the Company's ASX Prospectus dated 11 March 2022. Paul Schmiede is an employee of Sarama. Ms Le Grange and Mr Kock are employees of Cube Consulting Pty Ltd and Orway Mineral Consultants Pty Ltd respectivley and are considered to be independent of Sarama. The technical report is available under Sarama's profile on SEDAR at and the ASX Prospectus is available under Sarama's profile on ASX at .
2. Oxide & transition component of the Mineral Resource for Sanutura Project - 3.2Mt @ 1.6g/t Au for 0.2Moz Au (Indicated) plus 23.4Mt @ 1.1g/t Au for 0.8Moz Au (Inferred), reported above cut-off grades of 0.2g/t Au and 0.3g/t Au for oxide and transition material respectively.
3. Mineral Resource estimate for Karankasso Project - 12.74Mt @ 1.73g/t Au for 709koz Au (effective date of December 31, 2019), disclosed on 24 February 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 24 February 2020 and Semafo: Bantou Project NI43-101 Technical Report - Mineral Resource Estimate" dated 3 April 2020 and the Company's ASX Prospectus dated 11 March 2022. The news release and technical report are available under Semafo's and Endeavour's profile on SEDAR at and the ASX Prospectus is available under Sarama's profile on ASX at . 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. Semafo, and now Endeavour, is the operator of the Karankasso Project JV and Sarama is relying on their Qualified Persons' assurance of the validity of the Mineral Resource estimate. Additional technical work has been undertaken on the Karankasso Project since the effective date but Sarama is not in a position to quantify the impact of this additional work on the Mineral Resource estimate referred to above.
4. The Government of Burkina Faso has processed the requisite documents to facilitate the grant of the new, full-term Tankoro 2 and Djarkadougou 2 Exploration Permits (the "Permits") and subsequently issued the invitation to pay the permit issuance fees (the "Fees") and the Fees were paid within the requisite 10-day timeline. Following the payment of the Fee, the issuance of the Permit's arrêté and related paperwork becomes an administrative process during which time the Company may undertake work on the Tankoro 2 and Djarkadougou 2 Properties. The Company has received the arrêté for the Djarkadougou 2 Exploration Permit and anticipates the issuance of the same for the Tankoro 2 Exploration Permit in due course. The properties, hosting the Tankoro and Bondi Deposits respectively, were formerly known as Tankoro and Djarkadougou, but have been renamed as part of the process of re-issuing the respective Permits.
5. Endeavour Mining's Bantou Project Mineral Resource - 38.4Mt @ 1.2g/t Au for 1.5Moz Au (Inferred). This is the aggregate of the Mineral Resource listing for the Bantou and Bantou Nord Deposits which are located within the Bantou Project. Data is sourced from Semafo: Bantou Project NI43-101 Technical Report - Mineral Resource Estimate" dated 3 April 2020. The technical report are available under Endeavour's profile on SEDAR at .

CAUTION REGARDING FORWARD LOOKING INFORMATION

Information in this news release that is not a statement of historical fact constitutes forward-looking information. Such forward-looking information includes, but is not limited to, statements regarding the Company's future exploration and development plans, the potential for the Sanutura and Karankasso Projects to host economic mineralisation, the potential to expand the existing estimated Mineral Resources at the Sanutura Project (including the present oxide and transition component), the accuracy of the Mineral Resource estimate for the Sanutura Project in localized areas with the addition of new drilling and assay information, the potential to extend and add to existing mineralisation at the MM, MC, Obi and Kenobi Prospects, the potential for development of a mine at the Sanutura Project, the potential for the receipt of regulatory approvals and the timing and prospects for the issuance of the arrêté for the Tankoro 2 Exploration Permit by the Government of Burkina Faso. The Company's full suite of exploration permits are at varying stages in their life cycles and at any one time, the Company has exploration permits either in renewal or re-issue phase and although the Company follows due government process and anticipates new exploration permits will be granted in due course, it cannot guarantee this will be done in a timely manner or at all. 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; Mineral Resources are not mineral reserves, they do not have demonstrated economic viability, and there is no certainty that they can be upgraded to mineral reserves through continued exploration; 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 and security-related 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.

QUALIFIED PERSONS' STATEMENT

Scientific or technical information in this disclosure that relates to the preparation of the Mineral Resource estimate for the Sanutura Project is based on information compiled or approved by Paul Schmiede. Paul Schmiede is an employee of Sarama Resources Ltd and is a Fellow in good standing of the Australasian Institute of Mining and Metallurgy. Paul Schmiede 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. Paul Schmiede consents to the inclusion in this news release of the information, in the form and context in which it appears.

Scientific or technical information in this disclosure that relates to exploration activities at the Sanutura Project is based on information compiled or approved by Guy Scherrer. Guy Scherrer 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. Guy Scherrer consents to the inclusion in this disclosure of the information, in the form and context in which it appears.

Scientific or technical information in this disclosure that relates to the quotation of the Karankasso Project's Mineral Resource estimate and exploration activities is based on information compiled by Paul Schmiede. Paul Schmiede is an employee of Sarama Resources Ltd and is a Fellow in good standing of the Australasian Institute of Mining and Metallurgy. Paul Schmiede 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. Paul Schmiede consents to the inclusion in this disclosure of the information, in the form and context in which it appears. Paul Schmiede and Sarama have not independently verified Semafo's (now Endeavour's) Mineral Resource estimate and take no responsibility for its accuracy.

COMPETENT PERSONS' STATEMENT

The Mineral Resource estimates referred to in this disclosure were first disclosed in accordance with ASX Listing Rule 5.8 in the Company's ASX Prospectus dated 11 March 2022. The Company confirms that it is not aware of any new information or data that materially affects the information included in the ASX Prospectus and that all material assumptions and technical parameters underpinning the estimates in the ASX Prospectus continue to apply and have not materially changed.

The new Exploration Results reported in this disclosure are based on, and fairly represent, information and supporting documentation prepared by Guy Scherrer. Guy Scherrer is an employee of Sarama Resources and a member of the Ordre des Géologues du Québec. Guy Scherrer has provided his prior written consent as to the form and context in which the new Exploration Results and the supporting information are presented in this disclosure.

The previously reported Exploration Results referred to in this disclosure were first disclosed in accordance with ASX Listing Rule 5.7 in the Company's ASX disclosure listed in Appendix B. The Company confirms that it is not aware of any new information or data that materially affects the information included in those previous items of disclosure.

This announcement has been authorised by the Board of Sarama Resources.

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.

SOURCE: Sarama Resources Ltd.