Sarama Resources (TSXV:SWA) reported high-grade results from its ongoing drill program at its South Houndé Project in Burkina Faso. 1,300m of RC drilling
and 4,500m of diamond drilling (11 holes) have been completed between both the MC deposit and MM deposit (Figure 1) to expand resources and to examine
the potential for underground mine development in addition to open pit. Results from the MC deposit were highlighted by 112.3 g/t Au over 0.5m (Hole
FR1076RE1) within a wider interval, the highest grade to be intersected at the project (Figure 2). Drilling in the MM deposits highlighted the potential
for underground mining with future step-out drilling expected to expand resources by ~200m down-dip (Figure 3). The company continues to drill at the
project, with drilling to date supporting mineralization to a depth of 550m. We note, recent acquisitions completed by Sarama in the area, which includes
the Bondi deposit and the Botoro property, positions it as a key player in the consolidation of the South Houndé belt. Sarama currently trades at C$9/oz,
a steep discount to peers at C$40/oz. We expect that the ongoing exploration at South Houndé (50% interest) and Karankasso (30.5% interest), along
with likely 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
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Company Specific Disclosure Details
Sarama Resource Ltd. - TSXV:SWA - 2,3,4
Acacia Mining Plc. - LSE:ACA - None
Savary Gold Corp. - TSXV:SCA - 3,4,5,7
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