Sarama reports higher mineral resource at Burkina Faso project

JOHANNESBURG (miningweekly.com) – An independent mineral resource estimate has led to a 40% improvement in the inferred mineral resource at Sarama Resources' South Houndé project, in Burkina Faso, to 2.1-million ounces

The oxide component of the inferred mineral resource increased 87% to 500 000 oz.

The study, which was undertaken by Perth-based Cube Consulting, focused solely on exploration activities conducted at Sarama’s 100%-owned Tankoro property, the key permit in the South Houndé project area.

CEO Andrew Dinning noted that the updated estimate put the project within striking distance of the critical mass required to establish a viable heap leach operation.

“We see this increase in the oxide resource as important in underpinning the project economics, providing a smaller Sarama-sized option, while we pursue a significantly larger resource that will meet [earn-in partner] Acacia Mining’s development criteria,” he added.

Sarama would spend $3.5-million on exploration this year, with a focus on new regional targets and extensional targets to move the South Houndé project to development.