• Overview
• Historical Results
• Value Drivers
• Exploration Potential
• Strategic Positioning and Regional Consolidation
• Footnotes

Overview

Located approximately 350km southwest of Ouagadougou, Sarama’s 100% owned Sanutura Project is situated in the prolific Houndé Belt, which is home to three operating gold mines including Endeavour Mining’s Mana and Houndé Gold Mines and Fortuna Silver’s Yaramoko Gold Mine.

The belt is highly prospective and remains relatively underexplored, which is demonstrated by recent discoveries at Endeavour Mining’s Golden Hill Project, Kari Deposit, and 1.5Moz Au Bantou Deposit which is 5km from Sarama’s multi-million ounce Tankoro Deposit – the key deposit within the Sanutura Project.

The Sanutura Project is the company’s lead project and it is being positioned as a multi-stage, long-life, CIL mine development that would initially exploit the oxide and transition component of the mineral resource. The large mineral resource base and suite of exploration targets provide significant optionality and leverage to the gold price and the Project remains key to the development of the southern Houndé Belt. The company anticipates being in a position to properly scope out its development options following the completion of planned 2022 exploration programs.

The Project hosts the Tankoro and Bondi Deposits and has a total mining-shape constrained Mineral Resource⁽¹⁾ of 0.6Moz @ 1.9g/t Au (Ind) plus 2.3Moz @ 1.4g/t Au (Inf), reported at cut-off grades ranging 0.2-1.6g/t Au.

The Project resource also contains a significant higher-grade component of 0.5Moz @ 2.5g/t Au (Ind) plus 1.8Moz @ 1.9g/t Au (Inf) using a 1.0g/t Au cut-off.

The combined oxide and transition component of the pit shell-constrained mineral resource totals 0.2Moz Au (Ind) plus 0.8Moz Au (Inf)^(1). 

Key elements of Tankoro Deposit

• Mineral resources extend approximately 16km along strike within a lithological and structural corridor approximately 1.4km wide and a gold geochem corridor 30km long.
• Mining-shape constrained Mineral Resource of 6Moz @ 1.9g/t Au (Ind) plus 1.9Moz @ 1.4g/t Au (Inf)
• 70% of the defined mineral resource is situated within 150m of surface.
• The deposit is drill tested to 550m depth however a bulk of the strike tested to only 70m.
• Metallurgical testwork demonstrates gold recoveries of 93% for oxide and 91% for fresh rock.

Key elements of Bondi Deposit

• The Bondi Deposit is well drilled and has a Mining-shape constrained resource of 0.5Moz @ 1.5g/t Au (Inf).
• Bondi will provide free-milling, high-margin ore feed with anticipated ROM grades of 2-3g/t Au.
• Historical metallurgical test work indicates recoveries of over 90% in both oxide and fresh material.
• The Bondi Deposit remains open in several directions and the company has developed multiple new targets including strike and depth extensions to significant and under-drilled high-grade shoots within the deposit.
• Initial drill testing has already yielded encouraging results, including depth and strike extensions to the southern portion of resource zone plus high-grade intercepts.

The company’s exploration efforts are focusing on extensional targets at the Tankoro and Bondi Deposits and additional exploration targets within the wider Sanutura Project area where there are a number of exciting opportunities including:

• The Bamako 2 Property which hosts a stacked, high-grade quartz vein system over 3km in length with significant artisanal workings. Exploration on this property has repeatedly returned high grades including gold in soils up to 13g/t Au and drilling intercepts of 15m @ 6.17g/t Au from 9m and 8m @ 18.4 g/t from 42m.
• The Zanawa Prospect is a new discovery 4km northeast of the Bondi Deposit and scout drilling has returned 22m @ 3.85 g/t Au from 5m, 29m @ 1.44 g/t Au from 1m and 5m @ 4.54 g/t Au from 15m. Mineralisation extends over 1km of strike and is proximal to a volcanic-intrusive contact, and silica-pyrite-sericite-albite alteration is present.
• The Botoro Property hosts km-scale anomalies and multiple drill targets and has had limited work, but initial scout drilling returned encouraging results including 4m @ 2.1 g/t Au, 4m @ 1.8g/t Au and 4m @ 0.57 g/t Au.

More than 50 compelling exploration targets have been identified within the larger Sanutura Project area from multiple layers of data and these targets will be further explored with a view to establishing additional satellite feed deposits. In the shorter term, it is anticipated that additional ounces will most likely fall into the oxide and transitional material category. Our improved geological understanding and active exploration pipeline gives renewed confidence in continuing to grow Sarama’s assets into the future where even partial success will push the Sanutura Project pit-shell constrained oxide resource base solidly through 1.0Moz Au and total resource base well in excess of 3Moz Au.

A 60,000m program of AC, RC and diamond drilling has been planned and is scheduled to be completed 2022 and importantly for Sarama, given the company already has a solid foundation upon which to develop a mine, further resource additions are highly accretive and the grade threshold for inclusion low.

The company published an updated resource in November 2021, For further detail, read the November 2021 News Release.

Historical Results

Value Drivers

Overview

Sarama Resources has a top-tier Board and Management team with a solid African and industry pedigree that spans all facets of the business from exploration and discovery through to finance, development, and operations and includes companies such as Moto Goldmines and Redback Mining. The company’s assets offer compelling value across multiple areas and provide substantial gold price optionality through the multi-million-ounce gold resource, near-term development potential, exploration portfolio and highly strategic landholding.

The Company is in the formative stages of transitioning from successful explorer to successful gold producer and it intends to play a key role in the consolidation of Burkina Faso’s prolific southern Houndé Gold Belt, an area which continues to yield major new multi-million-ounce gold discoveries.

Sarama’s development plans are underpinned by the Sanutura Project’s multi-million-ounce mineral resource which includes a substantial amount of oxide and high-grade material. The Project’s resource base has the capacity to support a multi-stage CIL development where the oxide and free-milling material underwrites development and provides a substantial return with the balance of the resource and regional exploration success providing significant upside leverage.

Gold Price Leverage

Our large resource base provides significant leverage to a rising gold price, not only providing scope for increased operating margins but also a step change in the Resource to Reserve conversion rates. The Company’s 100% owned Sanutura Project hosts the Tankoro and Bondi Deposits which have a Mineral Resource⁽¹⁾ of 9.4Mt @ 1.9g/t Au for 0.6Moz Au (Ind) plus 52.76Mt @ 1.4g/t Au for 2.3Moz Au (Inf).

Near-Term Development Potential

Sarama’s Sanutura Project provides a near-term pathway to mine development which will utilise the significant oxide and free milling gold resource to underwrite and establish the project. The balance of the resource plus brownfields and greenfields exploration provide additional size, scale and life potential for the project as does scope for possible regional M&A opportunities. Pending work programs will determine optimal flowsheet, development phases and project size.

Exploration Potential

Sarama’s 100% owned Sanutura and Koumandara Projects cover approximately 2,000km² of highly prospective and geologically proven greenstone terrane. The southern Sanutura Project area covers 1,454km² of highly prospective greenstone terrane. This part of the belt continues to yield major new plus-million-ounce gold discoveries including Endeavour Mining’s Golden Hill, Kari Pump and Bantou Nord deposits. The Koumandara Project (100% Sarama) covers 600km², is situated in the neighbouring Banfora belt and is analogous to the southern Houndé Gold belt situated 40km to the east. Three gold corridors up to 40km in length have been identified and reconnaissance work has delivered high grade gold-in-soil results plus high-grade auger, air-core and RC drilling results over wide intervals.

Strategic Positioning and Regional Consolidation

Footnotes

⁽¹⁾ Current mineral resource estimate for Sanutura Project – 9.4Mt @ 1.9g/t Au for 0.6Moz Au (Indicated) plus 52.8Mt @ 1.4g/t Au for 2.3Moz (Inferred), reported at cut-off grades ranging 0.2-1.6g/t Au, reflecting the mining methods and processing flowsheets assumed to assess the likelihood of the mineral resources to have reasonable prospects for eventual economic extraction.  The effective date of the Company’s mineral resource estimate is November 16, 2021. For further information regarding the mineral resource estimate refer to the technical report titled “NI 43-101 Independent Technical Report Sanutura Project, South-West Burkina Faso”, dated January 2022 and prepared by Paul Schmiede, Adrian Shepherd and Fred Kock. Paul Schmiede is an employee of Sarama and Messers Shepherd and Kock are employees of Cube Consulting Pty Ltd and Orway Mineral Consultants Pty Ltd respectivley and are considered to be independent of Sarama. The technical report is available under Sarama’s profile on SEDAR at www.sedar.com

⁽²⁾ The current mineral resource estimate for the Karankasso Project of 12.74Mt @ 1.73g/t Au for 709koz Au (effective date of December 31, 2019) was disclosed on February 24, 2020 by Semafo Inc (“Semafo”, since acquired by Endeavour Mining Corp. “Endeavour”). For further information regarding that mineral resource estimate, refer to the news release “Semafo: Bantou Project Inferred Resources Increase to 2.2Moz” dated February 24, 2020 and Semafo: Bantou Project NI43-101 Technical Report – Mineral Resource Estimate” dated April 3, 2020. The news release and technical report are available under Semafo’s and Endeavour’s profile on SEDAR at www.sedar.com. The mineral resource estimate was fully prepared by, or under the supervision of Semafo. Sarama has not independently verified Semafo’s mineral resource estimate and takes no responsibility for its accuracy.