Sarama Resources Acquires the Bondi Gold Deposit in Burkina Faso From Orezone Gold

VANCOUVER, BC--(Marketwired - May 24, 2016) -  Sarama Resources Ltd. ("Sarama" or the "Company") (TSX VENTURE: SWA) is pleased to announce that it has signed a binding Heads of Agreement with Orezone Gold Corporation ("Orezone") for the Company to acquire the Bondi gold deposit ("Bondi"). Bondi is 100% owned by Orezone and is located immediately adjacent to Sarama's South Houndé Project in south-western Burkina Faso. The deposit has a historical estimate of Mineral Resources of 282,000oz Au (measured and indicated) and 150,000 Au (inferred)^1,2 and is within trucking distance of Sarama's South Houndé Project.

Completion of the acquisition will bolster Sarama's position in the region, consolidating ownership of advanced assets in the highly prospective Houndé Belt and providing significant optionality for the development of a mine in the region.

Highlights

• Historical estimate of Mineral Resources (published by Orezone in 2009, reported at 0.5g/t Au cut-off grade)²:
  • 4.1Mt @ 2.1g/t Au for 282,000 oz Au (measured and indicated); and
  • 2.5Mt @ 1.8g/t Au for 150,000 oz Au (inferred)
• The historical estimate includes a large component of higher-grade material (reported at 2.0g/t Au cut-off grade)²:
  • 1.4Mt @ 4.2g/t Au for 186,000 oz Au (measured and indicated)
• Bondi is located within trucking distance of both the 2.1Moz Au^3,4 South Houndé Project and the 0.7Moz Au^5,6 Karankasso Project and upon completion Sarama will have significant interests in three advanced projects in the southern Houndé Belt
• Opens up development options for the South Houndé Project and presents possible development routes where regional deposits are combined to feed a multi-source gold production centre
• Drill-defined mineralisation extends over a 4.1km strike length and extends to approximately 320m below surface
• Majority of Bondi's mineralisation is well defined by 25-40m x 25m spaced drilling
• Metallurgical testwork commissioned by Orezone concluded that mineralisation is amenable to processing by cyanidation at a conventional grind size of P₈₀ 75 micron, with composite samples of oxide and fresh material achieving gold extractions of 97% and 91% respectively⁷
• Historical expenditures of over US$9M on the property by Orezone and others
• Upon completion of the transaction and in consideration of the acquisition, Orezone will receive, from Sarama:
  • 9.6 million common shares in the capital of Sarama (valued at $1.44M at a share price of $0.15 per share);
  • 3 million warrants for common shares in Sarama, exercisable for 2 years at a price of $0.195 per share;
  • 2 million warrants for common shares in Sarama, exercisable for 3 years at a price of $0.240 per share; and
  • a production royalty of US$20/ounce sold on the first 200,000 ounces of gold sold from the Property, as defined hereafter.

Property Details