Our Development Strategy

Sarama's principal areas of focus are the prospective and underexplored areas of Burkina Faso, where it has built substantial exploration landholdings in the Houndé and Banfora belts in the south-west of the country. Sarama’s flagship property - the South Houndé Project, is advancing towards development and currently hosts an Inferred Mineral Resource of 2.1 Moz Au, including 0.5 Moz Au of Oxide Resource.

Sarama initially undertook a multi-jurisdictional approach to exploration to provide optionality on its portfolio and assist in the management of social and geopolitical risk. As the Company has developed, it has narrowed its focus to Burkina Faso where it has built a substantial geological knowledge and portfolio of assets.

Sarama introduced joint venture partner Acacia Mining who is funding exploration to earn an interest in the South Houndé Project, which the Company sees as an efficient way to add value and an opportunity to advance the Project closer to mining. Management are currently considering three different development concepts, one based on the current Resource, another on future potential of the Project and a third on Acacia's needs and ongoing involvement. The three variants include:

  • A small scale, low-cost oxide heap leach
  • A large scale, "Acacia sized" deposit and project
  • An intermediate sized project based on oxide and hard-rock mine production

The current exploration strategy is looking to upgrade the size and quality of the existing Mineral Resource to a size that meets Acacia's development criteria. There is a possible opportunity for regional consolidation with approximately 3.2 Moz Au of resources defined in projects within trucking distance of the South Houndé Project.

Sarama is continually working on consolidating its ground holdings and assessing exploration and corporate opportunities that align with the company's portfolio.

Exploration Strategy

Sarama's experienced geological team takes a disciplined, systematic approach to tenement consolidation and exploration and typically adopts the following strategy to achieve the Company’s exploration objectives:

  1. Regional targeting for permit selection

  2. Mapping

  3. Broad-based and in-fill soil sampling

  4. Geological and structural modelling

  5. Follow up auger, aircore (“AC”), and rotary air blast (“RAB”) drilling

  6. Reverse circulation (“RC”) drilling and diamond drilling on identified targets.

Concurrent with the above steps, the Company may undertake ground-based and airborne geophysics including induced polarisation ("IP"), magnetic, gravity and radiometric methods. 

Project Planning

During exploration and following the definition of a mineral resource, management assesses potential development routes taking into account existing and potential resources, technical, mining and operating considerations.

Assessment is typically based on conservative gold prices, along with sensitivities to higher and lower price environments. The Company typically assesses possible development routes based on, but not limited to, the following areas:

  1. Mineralogical assessment, metallurgical test work and potential flowsheet design/options

  2. Resource and geological influences

  3. Heap leach vs. CIL development scenarios

  4. Conceptual pit shell and mine development options

  5. Trade-off studies

  6. Infrastructure consideration

  7. Local community and Government needs

  8. Cost of financing 

  9. Cash costs, AISC, payback profile