Page 53 - pd307-Aug22-mag-web-Neat

“The first part of the programme has material,” Dinning says. “At current gold
been structured to increase the oxide prices, we think the oxides can provide
component of the already large resource a 12-18-month payback with the initial
at the Tankoro deposit. We are targeting years producing at significantly higher
near-surface material in extensions to the rates than the nominal 120,000 ozpa we
currently modelled deposits, as the best are targeting.”
place to look for gold is where there is Although substantial in its own right, the
already gold, in addition to this, we will be oxide component is only ever a fraction of
testing a number of regional targets,” Din- a wider gold deposit’s potential. Sa-
ning says. “We look forward to providing nutura’s two main orebodies Tankoro (2.5
updates as the programme concludes moz) and Bondi (0.5 moz) are no different
and assay results come to hand in the and the second half of the 50,000m drill-
coming weeks.” ing programme is designed to establish
Drilling success will lead to a resource just how extensive they are.
upgrade that would unlock the potential “These styles of deposit typically end
for a rapid, low-capex development of up with much longer lives than originally
Sanutura. contemplated,” Dinning says. “Whether
“The aim is to push the oxide resource in Western Australia or West Africa, you With Bantou and Tankoro so close, some
through solidly through 1 moz. We are see the same thing time and again. The sort of tie-up between Sarama and En-
of the view that with a small amount of key thing is to get into production, then deavour appears inevitable, what is less
growth to the existing oxide resource, it you have the power of incumbency, and clear is the form it will take.
will support a plus-120,000 ozpa opera- the geologists have more time and better “We believe the ultimate value play
tion where the formative years are based access to get their head around what’s for the area is to combine the various
on a high-grade oxide material and the driving the mineralisation.” deposits in and around our Sanutura
first seven to eight years are underwrit- Sarama has already started that process Project into one larger project which
ten by oxide feed,” Dinning says. “The with over 100 individual targets within would boast a plus-5 moz resource base
project is close to that point now and we 28 prospect areas that are slated to be and a lot of exploration runway. It is fair to
fully expect to get to a position where we tested in the current drilling programme. say that Endeavour clearly understands
have as a minimum, a nominal seven- Such blue-sky opportunity will inevitably the rationale of consolidating ownership
year mine life based on oxide ounces attract others and Sarama’s advanced under one owner, as is evidenced by
alone, which importantly means we can development and prime geological real their takeover of SEMAFO and Teranga
get the project established using a simple estate make it an obvious player in corpo- and the ongoing shedding of non-core
CIL processing circuit with low capital rate activity. assets,” Dinning says. “Endeavour is
intensity. Anyone who followed projects well aware of the opportunity but as they
like Perseus’s Sissingue Mine, which is Endeavour Mining controls the 1.5 moz have been very busy on the M&A front,
a cash machine and allowed them to Bantou Deposit which is situated just 6km they have a lot of new assets to get their
lever into bigger things, will understand from Sanutura’s 2.5 moz Tankoro De- head around and work through before
the importance of what Sarama has and posit, and also holds the majority stake in they start making long-term calls on their
where it plans to get to.” the adjoining 0.7 moz Karankasso JV in legacy assets. They are on record saying
Among the oxide material, Sarama is which Sarama holds 18%. Endeavour’s their development hurdle is now much
5 moz Houndé and 5 moz Mana mines
finding high-grade zones which could are 60km and 140km north of Sanutura higher – 250,000 ozpa over 10 years –
further boost upfront economics. while Fortuna Silver Inc has its high- and it remains to be seen how or whether
“Like a number of our West African grade Yaramoko mine 120km north. Bantou fits into their development criteria,
whether Sanutura becomes a swing as-
peers including Tietto and West African Endeavour’s development portfolio is set, or they choose to part with it.”
Resources, grade drives the early years bulging after the recent acquisitions of
of this project and fortunately for us, a lot SEMAFO and Teranga, so Sarama is After completion of the planned drilling
of high-grade material has already been staying patient as the larger Canadian on Sanutura, Sarama plans to undertake
delineated and the current exploration miner decides how to play its cards. a resource update and look to complete
programme is looking to add to that. We various study work to frame what the op-
have an opportunity to start with a low- “Now that they have reviewed the main portunity looks like.
capital intensity CIL plant targets, Endeavour have just started drill- “We want to see what we are working
to treat the oxides ing their Bantou property immediately to with, so we can plan the next steps be-
and then pro- the west of us and have a number of rigs fore committing funds on further studies
gressively operating,” Dinning says. “We’re following and resource conversion,” Dinning says.
upgrade their progress with interest, because the “The hardest part is always getting the
for the ground to the west of us forms a key part first mine up and running but as WAF
fresh of any regional consolidation picture.” and Perseus have shown, once you get
through that you have the ability to grow.”

saramaresources.com