Sama Resources Reports on SRG's Maiden Mineral Resource Estimate for its Lola Graphite Deposit
MONTREAL, Dec. 22, 2017 (GLOBE NEWSWIRE) -- Sama Resources Inc. (“Sama” or the “Company”) (TSX-V:SME) is pleased to report that SRG Graphite Inc. (“SRG”) (TSX-V:SRG) announced today its initial resource estimate for its 100%-owned Lola Graphite Deposit located in the Republic of Guinea. The mineral resource estimate, prepared by Montréal-based Met-Chem, a division of DRA Americas Inc. (“Met-Chem/DRA”), includes a pit-constrained indicated resource of 4.0 million tonnes (“Mt”) grading 5.7% graphitic carbon (“Cg”) and an inferred resource of 4.6 Mt grading 6.5% Cg, using a cut-off grade of 3.0% Cg.
Mineral resources were based on 170 boreholes for 4,936 meters drilled prior to September 30, 2017. Since that time, an additional 100 diamond drill holes were completed, totaling approximately 7,200 meters. Assay results for these additional holes are pending.
The Company has planned an additional 6,000 meters of drilling, scheduled to take place in 2018.
SRG will file an NI 43-101 technical report supporting the mineral resource estimate to SEDAR within 45 days of the issuance of this press release.
“The Met-Chem/DRA resource estimate demonstrates the exceptional potential of the Lola project and marks yet another significant milestone for the Company,” said Marc-Antoine Audet, President and Chief Executive Officer of SRG. Based on the foregoing results, the Company has decided to review the scope of the ongoing preliminary economic assessment launched in September.
Resource Summary
The mineral resource for the Lola project incorporates assay results from 170 diamond drill holes representing 4,936 meters, as well as 1,326 meters of surface channel sampling. The maiden resource is established for the oxide profile of the deposit, from surface to a depth ranging between 20 and 50 meters with an average thickness of 32 meters. The mineralization continued at depth within the fresh rock material. The area for the maiden resources covers approximately 18% of the deposit’s 3.2-square-kilometer surface area.
The estimate was prepared using a block model constrained with 3D wireframes of the principal mineralized domains. Values for graphitic carbon were interpolated using Ordinary Kriging (OK) interpolation methodologies on 10 × 10 × 2m blocks. A preliminary open pit optimization algorithm was run on the estimated grade block model to constrain the resources and to support the Canadian Institute of Mining, Metallurgy and Petroleum’s (“CIM”) requirement that mineral resources have “reasonable prospects for eventual economic extraction.” Only mineralization contained within the preliminary pit shell has been included in the resource estimate.
The base case mineral resource estimate is summarized in the following table at a cut-off grade of 3.0% Cg per tonne (“t”) together with estimate sensitivities at 1.23% Cg/t and 5.0% Cg/t. The resource estimate and sensitivities scenarios are established with data from boreholes drilled by September 30, 2017.
| Table 1: Lola Graphite Project Maiden Mineral Resources at a cut-off grade of 3.0% Cg and sensitivities at 1.23%Cg and 5.0% Cg cut-off grades of CG. | |||||
| Base Case Mineral Resources | |||||
| Cut-off-grade | Classification | Tonnes | Cg | In situ Cg | |
| Cg % | t | % | t | ||
3% | Indicated | 3,961,417 | 5.66 | 224,118 | |
| Measured | |||||
| Total Ind. & Meas. | 3,961,417 | 5.66 | 224,118 | ||
| Inferred | 4,616,787 | 6.45 | 297,783 | ||
| Sensitivities | |||||
| Cut-off-grade | Classification | Tonnes | Cg | In situ Cg | |
| Cg % | t | % | t | ||
| 1.23% | Indicated | 6,825,820 | 4.19 | 285,802 | |
| Measured | |||||
| Total Ind. & Meas. | 6,825,820 | 4.19 | 285,802 | ||
| Inferred | 7,563,830 | 4.76 | 360,038 | ||
| Cut-off-grade | Classification | Tonnes | Cg | In situ Cg | |
| Cg % | t | % | t | ||
| 5% | Indicated | 1,860,404 | 7.70 | 143,168 | |
| Measured | |||||
| Total Ind. & Meas. | 1,860,404 | 7.70 | 143,168 | ||
| Inferred | 2,413,469 | 8.71 | 210,213 | ||
Notes:
1) CIM definitions (May 10, 2014) observed for classification of mineral resources.
2) Block bulk densities interpolated from specific gravity measurements taken from core samples.
3) Resources are constrained by a Lersch Grossman (LG) optimized pit shell using MineSight software.
4) Pit shell defined using 30-degree pit slope, $1,300/t of concentrate (94.6% Cg grade), $2.00/t mining costs, $8.54/t processing costs, and $3.50/t G&A and $175/t of concentrate for transportation costs.
5) Mineral resources are not mineral reserves and have no demonstrated economic viability. The estimate of mineral resources may be materially affected by mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors (“Modifying Factors”).
6) Numbers may not add due to rounding.
7) Effective Date of Resource estimate is September 30th, 2017.
About Met-Chem/DRA
Met-Chem, a division of DRA Americas Inc., was originally established in 1969 as a consulting engineering company, headquartered in Montréal, and provides a wide range of technical and engineering services. Met-Chem is well-recognized for its capabilities in mining, geology and mineral processing and has a talented team of engineering, technical and project management personnel with experience in North America, Latin America, Europe, West Africa and India. DRA is a multi-disciplinary global engineering group that originated in South Africa and delivers mining, mineral processing, energy, water treatment and infrastructure services from concept to commissioning, as well as comprehensive operations and maintenance services for the mineral resources, water, agriculture and energy sectors. DRA has offices in Africa, Australia, Canada, China, India and the United States.
Qualified Person
Met-Chem/DRA’s consultant, Ghislain Deschenes, P. Geo was responsible for estimating the mineral resources and has reviewed and approved the contents of this press release. Mr. Deschenes is a Qualified Person ("QP"), independent of SRG Graphite, within the meaning of NI 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.
The Lola Graphite Project is under the direct supervision of Marc-Antoine Audet, P.Geo., President and CEO, SRG, and a QP as defined by National Instrument 43-101. Mr. Audet has approved the scientific and technical content of this press release.
About Sama Resources Inc.
Sama is a Canadian-based mineral exploration and development company with projects in West Africa. On October 23, 2017, Sama announced that it had entered into a binding term sheet in view of forming a strategic partnership with HPX TechCo Inc., for the development of its Côte d’Ivoire Nickel-Copper and Cobalt project in Côte d’Ivoire, West-Africa. For more information about Sama, please visit Sama’s website at http://www.samaresources.com.
FOR FURTHER INFORMATION, PLEASE CONTACT:
SAMA RESOURCES INC./RESSOURCES SAMA INC.
Dr. Marc-Antoine Audet, President and CEO
Tel: (514) 726-4158
OR
Mr. Matt Johnston, Corporate Development Advisor
Tel: (604) 443-3835
Toll Free: 1 (877) 792-6688, Ext. 5
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS
Certain of the statements made and information contained herein are "forward-looking statements" or “forward-looking information” within the meaning of Canadian securities legislation. Forward-looking statements and forward-looking information are subject to a variety of risks and uncertainties, which could cause actual events or results to differ from those reflected in the forward-looking statements or forward-looking information, including, without limitation, the availability of financing for activities, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, metal price fluctuations, environmental and regulatory requirements, availability of permits, escalating costs of remediation and mitigation, risk of title loss, the effects of accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in exploration or development, the potential for delays in exploration or development activities, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, expectations and beliefs of management and other risks and uncertainties.
In addition, forward-looking statements and forward-looking information are based on various assumptions. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information or forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise.