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Friday, August 18, 2017 Derek Macpherson

SWA Grows South Houndé at Depth & Along Strike


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Sarama Resources (TSXV:SWA) reported final results for the H1 2017 drill program at South Houndé. The program was designed to test the depth and strike extensions of the high-grade shoots within the orebody to expand the existing open-pit resource and test the potential for underground mining. Deeper holes were highlighted by 10.4m at 3.96 g/t gold and 4.1m at 3.89 g/t gold and extended the MC and MM deposits to a depth of 500m and 550m respectively. This depth extension suggests an underground mining scenario could be possible. As well, some near surface air core drilling was completed in an effort to expand resources at surface, which was highlighted by 8m at 2.46 g/t gold. Sarama currently trades at C$12/oz, a steep discount to peers at C$49/oz. We expect that the ongoing exploration at South Houndé (50% interest) and Karankasso (30.5% interest), along with work at its ThreeBee project (100% interest), may provide the necessary catalysts for the stock to close the valuation gap to peers.



 


Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate

Red Cloud Klondike Strike Inc.
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Sarama Resources Ltd. - TSXV:SWA - 2,3,4

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