Sarama Resources announced that it has re -started exploration activities at South Houndé Project in south-west Burkina Faso.


Image: A gold mineral. Photo: courtesy of carlos aguilar/

The announcement follows the recent agreement to terminate its earn-in agreement with Acacia Mining plc (“Acacia”) in respect of the South Houndé Project (the “Project”), the Company has re -started exploration activities with a focus on oxide drill targets.

This program marks the recommencement of active exploration and development activities on the Project following a hiatus of approximately 1½ years and also marks the resumption of works managed and controlled by Sarama on the Project, in which the Company is set to regain a 100% interest.

Sarama’s exploration program has been designed to increase the Project’s oxide and free-milling mineral resource base that currently  totals  approximately 600koz  Au  (oxide  and  transition  components)  out  of  a  total  2.1Moz  Au  mineral resource.    The program consists  of  approximately 7,000m  of  air-core  drilling targeting oxide  mineralisation  in  the  southern part of the Project along strike from the current mineral resource.

Sarama’s objective is to grow the mineral resource base at the South Houndé and ThreeBee Projects to support  the  advancement of  a  low  capital  intensity,  high  return  development  project,  exploiting the  oxide  and  free-milling components of the mineral resources at both projects.

Drilling will primarily focus on the southern portion of the main mineralised corridor at the Obi, Kenobi and Djimbake Prospects where historical reconnaissance drilling returned promising intersections in oxide material, which are yet to be followed-up.  These previously unreported intersections include

– 8m @ 4.25g/t Au from 34m in AC3628 (Obi Prospect)

– 6m @ 4.49g/t Au from 36m in AC3665 (Obi Prospect)

– 12m @ 1.80g/t Au from 10m in AC3627 (Obi Prospect)

– 10m @ 1.73g/t Au from 20m in AC3657 (Kenobi Prospect)

– 10m @ 1.46g/t Au from 28m in AC2665 (Djimbake Prospec

In  addition,  reconnaissance  drilling  will  be  undertaken  at  the  new  Ben  Prospect,  located  approximately  500m  to  the  west  of  the  Project’s  main  MM  Deposit.    This  prospect  is  a  new  early-stage  target  that  has  been  generated by geophysical and geochemical surveys and is yet to be drill tested.  The prospect area has the potential to open  a  new  horizon  of  mineralisation  to  the  west  of  the  main  mineralised  corridor  and  presents  an  exploration opportunity which may deliver further additions to the oxide and free-milling inventory of the Project.

Sarama’s President and CEO, Andrew Dinning, commented: “We look  forward  to resuming  our  work  programs  and  moving the  South  Houndé  Project  forward after such a  long hiatus.  We remain optimistic that the southern part of the mineralised corridor has the potential to add materially to the existing 600koz Au oxide and transitional component of the Project’s mineral resource and enhance the Company’s plans for development.  In parallel to the exploration activities, we will continue with internal project-framing work that will be used to guide exploration efforts and focus on scoping out a low capital intensity and high return development opportunity.”

Source: Company Press Release