Page 65 - pd289-Dec20-mag-web_Neat

resource update out.”
In parallel, the company will also begin
metallurgical work on transitional material in
anticipation of starting a feasibility study in
the latter part of 2021.
Sarama’s plan is to focus its project
economics on oxide ounces, allowing it to
simplify mining and processing and also
target a quick payback.
“With a 1 moz oxide starter resource, we
should be able to build and payback the
Adrian Byass and Steve Zaninovich have
joined the Sarama board this year. Both are mine with just the oxides which are free
Perth-based and well-versed in West Afri- digging and easy processing with high
can gold developments, experience which recoveries,” Dinning says. “It is a similar
Sanutura will benefit from. approach to what Perseus Mining has done
at its Sissingué gold mine in the Ivory Coast.
Sanutura – which means gold bull in the “We already have a good idea of what the
local Douala language – is the new name flowsheet would look like; it comes down
of Sarama’s combined projects in the highly to right-sizing it. It is always a trade-off North American investors have been
prospective southern Houndé Belt (formerly between throughput, capex and grade reluctant to back junior gold plays in West
the South Houndé and ThreeBee projects). and where you find the greatest value per Africa in recent years. Meanwhile the
Collectively they now boast a mining con- tonne.” ASX has displayed strong support for the
strained resource of 2.5 moz gold, up from region with established producers such as
the 2016 global resource of 2.1 moz gold. Once payback is achieved there will be a Perseus Mining Ltd and Resolute Mining
The upgrade also included an increase in natural transition point where it will make Ltd performing well, new arrivals such as
oxide and transitional material to 0.9 moz sense for Sarama to introduce the sulphide West African Resources Ltd posting big
gold. In addition to this, the Bondi Deposit is ore into the processing stream, however gains and a growing gang of junior explor-
waiting in the wings which has a historical depending on throughput settled on, the ers enjoying strong market support.
resource of over 0.4 moz gold. company does not see this transition hap-
With a further $C1.6 million raised in recent pening for at least 6-7 years. Dinning is already seeing signs of this senti-
ment.
months, Sarama is intent on lifting that “If you can get something paid off inside two
figure still further. years, it begins to open up your options for “The appetite for the IPO is good, the story
“The ultimate aim is to reach a combined 3 when you put sulphides through the circuit has been well received and we are sup-
ported by Euroz-Hartleys,” he says.
because you are no longer considering
moz gold resource in the next update, with payback, etc.
the aim to push well through 1 moz of ox- The company had planned to finalise the
ides and transitional which would easily be “The aim is to get at least six years of oxide IPO process by November but with the
enough to justify a CIL plant,” Dinning says. production before we have to upgrade the Christmas period looming, it has chosen
“From there we will do a feasibility study circuit.” to push the listing back to early in the new
with the first phase of production focussing Given the recent success of ASX-listed year. Dinning is confident the Australian
on the oxides and transitional.” West African gold plays, Dinning expects capital raising will provide Sarama with
further impetus.
The company has several options to realise the Australian market to quickly warm to the
that goal, all of which will focus on easy-to- Sarama story. “We are looking to raise $8-10 million which
win oxide ounces. “Our value, as a TSX-listed company, is will be put to work straight away on the
Sarama also has regional targets on its miles off that of our peers on the ASX,” he oxide targets as well as Bondi,” he says.
1,500sq km land package at Sanutura, says. “We have a lot of ounces with plenty A bulging bank balance, growing resource
including the Bamako 2 Property – where a of upside and line-of-sight on development. and the start of feasibility work; Sarama
hit of 8m @ 18 g/t gold is yet to be followed They’re the things Australian investors like could look a very different company at the
up – and the Bondi Deposit which contains to see in a gold company.” beginning of 2022.
a historical resource in excess of 0.4 moz
gold that Dinning is eager to formalise and
also grow.
“2021 is all about pulling in the high prob-
ability, high value ounces, upgrading the
resource and doing the technical work so
we can roll into a feasibility study,” he says.
While the company is yet to set a date for
the start of feasibility work, Dinning believes
the current exploration season will be long
enough to give the company the drilling data
it needs.
“We expect to materially grow the total
resource and to convert a lot of the inferred saramaresources.com
material into indicated which will enable us
to get moving on feasibility work. So, it will
probably be Q3 2021 before we get the