Sarama Resources

Financials:

Primary ticker: TSXV:SWA, ASX:SRR
Stage of development: Exploration, Development
Primary minerals: Copper, Gold, Zinc
Project to promote: Sanutura Project
Project location: SW Burkina Faso
Website: saramaresources.com

Sarama is a West African gold developer focused on establishing a new mining district in southwest Burkina Faso. The company is transitioning to a gold producer and is playing a key role in consolidating Burkina Faso’s southern Houndé Gold Belt which is dominated by Sarama and Endeavour Mining.

Sarama’s 100% owned Sanutura Project covers approximately 1,420km² of highly prospective ground and is the company’s primary focus to bring into production. The Project currently hosts just under 3.0 Moz Au in resource of which a third is oxide and two thirds is over 2g/t Au .

The company has just completed a dual listing on the ASX and proceeds from the IPO will be used to undertake an aggressive exploration program primarily focused on growing the oxide resource to a size that will support a large, multi-stage, long life mine development where the first 6-7 years of feed is oxide material.


Cash: CAD$8M
Debt: NIL

Major Shareholders:
Sun Valley Gold – 10.8%
Silver Lake Resources – 7.2%
High Net – Private – 9%
Gold2000 – 7%
Gold Fund – 5%
Management Ownership – 8%

Management Profile

Andrew Dinning – CEO
30+ years in international mining arena including the DRC, West Africa, UK, Russia and Australia. Extensive mine management, operations and capital markets experience. Prior to founding Sarama was President of DRC based Moto Goldmines taking the 20Moz Kibali Gold Project (Moto Gold) from exploration to pre-development prior to Randgold’s $700 million takeover.

Paul Schmiede – VP Corporate Development
Mining engineer, 20+ years experience. Formerly VP Operations and Development at Moto Goldmines and managed pre-feasibility, bankable and definitive feasibility studies for the +20Moz Project. Has held senior operational and management positions with Gold Fields and WMC Resources.

What is your rationale for taking part 121 Mining Investment?

We are looking to increase awareness of Sarama and let the market know that the company is back after a prolonged hiatus due to covid and other external factors outside management control. We want investors to understand the true depth and breadth of the value proposition, the significant amount of work planned, what the dual listing on the ASX means for shareholders and the outstanding value that the company represents.

What recent news would you like to highlight to investors attending?

– The company published an updated resource of just under 3Moz Au in December 2021 with approximately a third of the resource being oxides and two thirds being over 2g/t Au.
– The company completed a dual listing on the ASX in March 2022.
– The Company commenced a +50,000m drill program in April 2022 which is expected to be completed during the 2022/23 field season.

What are your key goals in 3 months, 6 months, 12 months?

3 Months:

Consolidate the ASX dual listing and commence a +50,000m exploration drill program

6 Months:

Get as much drilling in before rains set in June/July in Burkina Faso and publish several rounds of exploration drill results.

12 Months:

Complete planned +50,000m drill program, commence work on an updated mineral resource for the Sanutura Project, and complete a 5,000m scout drill program on Sarama’s 100% owned Koumandara Project.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Key challenges involve timely reissue of exploration permits and completion of exploration programs as planned. Securing good quality drill rigs and lab availability is a further challenge. Mitigating/managing usual operating risks experienced when operating in Africa.

What do you think makes your company such a compelling investment?

– The company has a large and highly strategic land holding in the heart of two prolific west African gold belts
– The Sanutura Project hosts close to a 3Moz gold resource which underpins the value of the company
– Abundant exploration targets remain to drive high margin resource growth
– Compelling valuation on all metrics
– High impact exploration program underway

What do you think makes your company such a compelling investment?

– Sarama is the most undervalued gold stock on the ASX/TSX/AIM markets and has significant upside potential with scope to be valued at multiples of the current levels.

– The company has just completed a dual listing on the ASX and is funded to undertake a significant amount of exploration drilling which will provide more clarity to the ultimate project size and generate ample news flow.

– The Sanutura Project mineral resource hosts a significant high-grade oxide component that will underwrite project development and reduce up front development risk.

– There is significant regional consolidation opportunity with Sarama’s Sanutura Project positioned to play a pivotal role in the consolidation and development of the Southern Hounde’ belt which is dominated by Sarama and Endeavour.