Sarama Resources Extends Strike of Intersected Mineralisation by 25% to 1.4km at South Houndé Project in Burkina Faso

PERTH, WESTERN AUSTRALIA, May 7, 2012 /PRNewswire/ - Sarama Resources Limited ("Sarama" or the "Company") is pleased to provide an update on the Company's operations at its Tankoro Permit within the South Houndé Project in Burkina Faso, West Africa.

Highlights

• Results for 3,100m of reverse circulation ("RC") drilling at the MM Prospect indicate a 25% increase in strike length of intersected mineralisation to 1.4km
  
  
• Results for 2,100m of diamond core drilling at the MM Prospect confirm the presence of multiple near-surface gold lodes which are relatively wide and high-grade, and have excellent potential for extensions in both down-dip and up-dip directions.
  
  
• Significant intersections at the MM Prospect from the new drilling include:
  

* denotes scissor hole drilled at opposite orientation to remainder of program

• Reconnaissance RC drilling at the Guy Prospect, located approximately 6km north-north-east ("NNE") along trend from the MM Prospect, returned encouraging results including 10m @ 2.79g/t Au from 93m.
  
  
• An initial 10,000m rotary air blast ("RAB") drill program has commenced, focussing on gold-in-soil geochemistry targets proximal to the MM Prospect as well as regional testing along the 20km-long Tankoro Structural Corridor, including a follow-up program at the Guy Prospect.
  
  
  

MM Prospect RC & Diamond Drill Programs

Sarama has received assay results for a further 3,100m of RC drilling and 2,100m of diamond drilling at its MM Prospect (refer Figure 1).

The RC drill program was designed to follow-up the encouraging intersections returned from an initial step-out drill program at the MM Prospect commenced in January 2012 (refer to Sarama news release 2 February 2012).  In broad terms, the objectives of the follow-up program were to infill existing west-east oriented drilling to a line spacing of approximately 100m as well as to test for extensions of mineralisation to the north, south and east.

Significant intersections from the RC drilling include:

The RC drilling successfully extended the strike length of known mineralisation to approximately 1,400m, a 25% increase from the 1,100m extent defined by the previously reported drilling.  The extensions, to both the north and the south, are spatially consistent with the high level geological interpretation that proposed a dominant NNE trend for the mineralisation.  The extensional drilling also confirmed the presence of multiple mineralised lodes to the east of the principal mineralised body.  Potential exists for further extensions to the north and south.  The new results are broadly in line with expectations based on the previous drilling program.

The initial diamond drill program was primarily designed to allow assessment of the style and orientation of mineralisation and was focused on the central 600m portion of the MM Prospect.  The program was also designed to selectively test dip extensions to mineralisation with holes of up to 200m length.

Significant intersections from the diamond drilling include:

* denotes scissor hole drilled at opposite orientation to remainder of program

The results of the diamond drilling correlated well with previous drilling in terms of mineralisation width and tenors. Gold mineralisation is associated with disseminated and hairline-fracture related pyrite and siliceous alteration haloes.  Mineralised lodes are hosted along a dominant NNE trend with several secondary structural orientations also hosting mineralisation.  Most importantly, the drilling demonstrated the potential for extensions to the mineralisation system at depth and also to the east.

Given the strength of the results to date, and the increased geological understanding gained from the initial results of the diamond drill program, Sarama has expanded the diamond drilling currently underway to test for extensional potential, and to further examine mineralised intercepts thought to be aligned with the secondary orientations.

Figure 1: Location Plan of the Drill Programs on the Tankoro Permit within Sarama's South Houndé Project

Regional RC and RAB Drilling Programs

Sarama has completed preliminary rounds of RC drilling at the Guy and Diassara Prospects (4,600m and 1,400m of drilling respectively), approximately 10km NNE along trend from the MM Prospect (refer Figure 1).  The RC drill programs were designed to follow-up gold-in-soil anomalies defined by the Company's geochemistry surveys during 2011.  Significant intersections include:

In addition to these intercepts, multiple lower grade intersections were returned at both prospects.

To further investigate other gold-in-soil anomalies on the Tankoro Permit, Sarama has commenced a 10,000m RAB drill program, guided by the results of the gold-in-soil geochemistry survey that was completed in 2011.  The intent of the program is to define areas of in-situ bedrock mineralisation within the gold-in-soil anomaly trends.  Areas of anomalous mineralisation will then be followed up with RC drilling.

The initial focus will be on several target areas within a distance of 5km of the MM Prospect, however some reconnaissance drilling will also be undertaken on areas of anomalous soil geochemistry identified within the rest of the 20km-long Tankoro Structural Corridor, as well as targets situated in other areas within the South Houndé Project.

Sarama's President and CEO, Andrew Dinning commented:

"We are very pleased with the 25% increase in strike length of the mineralisation intersected at the MM Prospect and the reinforcement of the grades seen in the initial round of RC drilling. The diamond drill program provides us with a better understanding of the styles of mineralisation and structural setting and this will help to guide our future drill programs.  Based on the results returned in the recent programs, we have now expanded the RC and diamond drill programs at the MM Prospect.

The reconnaissance drilling that has been undertaken at the Guy and Diassara Prospects, situated 6km and 10km NNE of the MM Prospect, has delivered encouraging results with a number of good intersections requiring follow-up drilling.

The drill results achieved to date support our positive view of the prospectivity of the 20km-long Tankoro Structural Corridor and of the greater the South Houndé Project, and we look forward to continuing encouragement as our exploration activities advance."  

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

ABOUT SARAMA RESOURCES LTD
Sarama Resources Ltd is a Canadian company with a focus on the exploration and development of gold deposits in West Africa.  The board of directors and management team, a majority of whom are founders of the Company, are seasoned resource industry professionals with extensive experience in the exploration and development of world-class gold projects in Africa.

The South Houndé Project in south-west Burkina Faso is the Company's flagship property and is currently the focus of a drilling program to further test gold-in-soil anomalies located in a 20km structural corridor.  The Company has built substantial early stage exploration landholdings in prospective and underexplored areas of Burkina Faso (>2,700 km²), Liberia (>2,400 km²) and Mali (>1,350 km²) and is aggressively exploring across the property portfolio.

NOTES
Drilling results are quoted as downhole intersections.  Due to the preliminary stage of the drilling, the nature of the mineralisation is not fully understood and it is therefore not appropriate to provide guidance on the relationship of the downhole intersection length to the true width of mineralisation.  The reported composites were determined using a cut-off grade of 0.3g/t Au to select significant and anomalous intersections, with a maximum of 2m internal dilution being incorporated into the composite where appropriate.  No top-cuts were applied to assay grades.  Isolated mineralised intersections less than 2m in length have not been reported.

Sarama undertakes geological sampling and assay in accordance with its QA/QC program which includes the use of certified reference materials and duplicates.  Gold assay work was undertaken by SGS Burkina Faso SA ("SGS") in Ouagadougou, Burkina Faso - a member of the SGS Group (Société Générale de Surveillance).  Assays are determined by fire assay methods using a 50 gram charge, and an AAS finish with a 0.01g/t Au detection limit.

MM Prospect RC Drilling - drilling was designed using west-east oriented holes, dipping at -55° to the east and approximately 100m in length.  Holes were spaced approximately 50m apart along the lines.  RC drill chips were sampled at regular 1m intervals.

MM Prospect Diamond Drilling - program design incorporated holes inclined at -55° to the east, drilled on the west-east sections.  Several 'scissor' holes, inclined at -55° to the west were also drilled to investigate the orientation of mineralised intercepts.  The program produced oriented core which was sampled to geological boundaries to a maximum sample length of 1m.

Guy and Diassara Prospect RC Drilling - drill holes were oriented west-east, inclined at -55° to the east and were designed to a length of 100m, with selected holes being extended during drilling based on visual results.

CAUTION REGARDING FORWARD LOOKING STATEMENT
Information in this news release that is not a statement of historical fact constitutes forward-looking information.  Such forward-looking information includes statements regarding the Company's planned exploration programs, including when results may be available.  Actual results, performance or achievements of the Company may vary from the results suggested by such forward-looking statements due to known and unknown risks, uncertainties and other factors. Such factors include, among others, that the business of exploration for gold and other precious minerals involves a high degree of risk and is highly speculative in nature; few properties that are explored are ultimately developed into producing mines; geological factors; the actual results of current and future exploration; changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents.

There can be no assurance that any mineralisation that is discovered will be proven to be economic, or that future required regulatory licensing or approvals will be obtained. However, the Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company's ability to carry on its exploration activities, the sufficiency of funding, the timely receipt of required approvals, the price of gold and other precious metals, unpredictable or adverse political events, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain further financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information.

Sarama does not undertake to update any forward-looking information, except as required by applicable laws.

QUALIFIED PERSON'S STATEMENT
Scientific or technical information in this news release that relates to the Company's exploration activities in Burkina Faso is based on information compiled or approved by Michel Mercier.  Michel Mercier is an employee of Sarama Resources Ltd and is a member in good standing of the Ordre des Géologues du Québec and has sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43-101.  Michel Mercier consents to the inclusion in this report of the information, in the form and context in which it appears.

APPENDIX A - HOLE ASSAY SUMMARY - MM PROSPECT

* denotes scissor hole drilled at opposite orientation to remainder of program

APPENDIX B - HOLE ASSAY SUMMARY - GUY PROSPECT

APPENDIX C - HOLE ASSAY SUMMARY - DIASSARA PROSPECT

SOURCE Sarama Resources Limited

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