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Tuesday, June 20, 2017 Derek Macpherson

SWA Intersects High Grades at South Houndé

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Sarama Resources (TSXV:SWA) reported high-grade results from its ongoing drill program at its South Houndé Project in Burkina Faso. 1,300m of RC drilling and 4,500m of diamond drilling (11 holes) have been completed between both the MC deposit and MM deposit (Figure 1) to expand resources and to examine the potential for underground mine development in addition to open pit. Results from the MC deposit were highlighted by 112.3 g/t Au over 0.5m (Hole FR1076RE1) within a wider interval, the highest grade to be intersected at the project (Figure 2). Drilling in the MM deposits highlighted the potential for underground mining with future step-out drilling expected to expand resources by ~200m down-dip (Figure 3). The company continues to drill at the project, with drilling to date supporting mineralization to a depth of 550m. We note, recent acquisitions completed by Sarama in the area, which includes the Bondi deposit and the Botoro property, positions it as a key player in the consolidation of the South Houndé belt. Sarama currently trades at C$9/oz, a steep discount to peers at C$40/oz. We expect that the ongoing exploration at South Houndé (50% interest) and Karankasso (30.5% interest), along with likely work at its ThreeBee project (100% interest), may provide the necessary catalysts for the stock to close the valuation gap to peers. read more


Tuesday, May 16, 2017 Derek Macpherson

SWA Adds More Land in Burkina Faso

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Sarama Resources (TSXV:SWA) announced it will acquire 100% of the Botoro exploration property in southwest Burkina Faso, increasing the size of its ThreeBee project to ~660km2. The ThreeBee project comprises of Sarama’s three wholly owned properties, Bamako, Djarkadougou and Bouni properties, of which the Djarkadougou hosts the Bondi deposit (Figure 1). We view the acquisition positively, as it adds to the company’s regional land package in South Houndé belt and solidifies Sarama’s position as being the key piece for a larger player to consolidate the region. Sarama currently trades at C$13/oz, a steep discount to peers at C$40/oz. We expect that the ongoing exploration at South Houndé (50% interest) and Karankasso (30.5% interest), along with likely work at its ThreeBee project (100% interest), may provide the necessary catalysts for the stock to close the valuation gap to peers. read more


Thursday, May 04, 2017 Derek Macpherson

SCA Continues to Grow Karankasso

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Savary Gold Corp (TSXV:SCA) released final drill results which extended the S-Nosa area and the Kueredougou West Deposit at its Karankasso JV Project (69.5% SCA/30.5% SWA), in Burkina Faso. The S-Nosa area results intersected strong mineralization for the first time ~425m east of the north end of the Keuredougou resource estimate. In addition, the company intersected a 100m step out hole of 2.96 g/t Au over 7m, along strike and to the north end of the Kueredougou West Zone, which has been extended by ~50% to a strike length of ~2,700m. The results were part of a ~9,500m Phase 2 drill program completed at the end of March, which will be followed up by a 8,000m (125 holes) drill program in mid-May. The objective is to pursue new discoveries, grow the current resource and test the gold-in-auger anomalies identified during Phase 2. We believe the results of the upcoming Phase 3 program should further demonstrate Karankasso’s resource growth potential. Savary currently trades at a discount to peers (C$23/oz vs. peers at C$42/oz), we expect continued exploration success along with a resource update planned for H2 2017, should benefit the company’s share price. read more


Monday, April 10, 2017 Derek Macpherson

SCA's Phase 2 Results Support Growth; More Pending

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Savary Gold Corp (TSXV:SCA) announced additional results from its completed ~9,500m drill program at the Karankasso JV project (69.5% SCA/30.5% SWA) in Burkina Faso. The second batch of results comprised of 41 holes over 4,489m which focused on resource expansion at the Diosso South, Karangosso and West Trend areas. The company plans to begin an 8,000m (80 holes) phase 3 drill program in early May to follow-up on phase 2 results as well as test additional targets identified by auger drilling. We believe continued success from the drill programs at Karankasso along with the resource update expected in H2 2017 should benefit the company’s share price, as results continue to demonstrate resource growth potential. Savary currently trades at a discount to peers (C$23/oz vs. peers at C$44/oz).  read more


Tuesday, March 07, 2017 Derek Macpherson

SCA Confirms Karankasso's Strike Potential

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Savary Gold Corp (TSXV:SCA) announced results from the first 24 holes from the ongoing 10km Phase 2 drill program at the Karankasso JV project (69.5% SCA/30.5% SWA) in Burkina Faso. Results identified new mineralized zones south of the existing resource. This first set of results returned a weighted average grade of 1.59 g/t Au, which is below the current resource grade, over a relatively narrow average width of 2.6m. The results were highlighted by 14.66 g/t Au over 6.0m (HE-RC-17-019) intersected in the southern part of the Serakoro 1 Main Area. In our view, these results confirm the strike potential at Karankasso and imply that the resource is likely to grow beyond the current 671k oz (9.2M tonnes at 2.28 g/t Au - inferred) with the pending update (H2 2017). Prior to that, further results from the ongoing 10km drill program is likely to benefit Savary’s share price, which at C$23/oz trades at a discount to peers (C$37/oz). read more


Sunday, February 26, 2017 Derek Macpherson

RCKS Pre-PDAC Mining Showcase Presenter Preview

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On Friday March 3th, 2017, Red Cloud Klondike Strike Inc. will be hosting its 5th Annual Pre-PDAC Mining Showcase. The event features presentations from 21 companies, including a themed lunch presentation by leading corporations in the gold mining sector. Visit the event page for more details on the day’s schedule. In this post, we provide a brief preview on the 21 presenting companies and 13 banner sponsors that will also be in attendance.  read more


Monday, February 20, 2017 Derek Macpherson

SWA's Warrant Incentive Program to Strengthen Balance Sheet

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Sarama Resources (TSXV:SWA) announced it has initiated an incentive program to encourage the early exercise of ~10 million warrants in order to fund working capital and exploration activities. At an exercise price of C$0.20 per warrant, the exercise of all of the eligible warrants would result in total proceeds of ~C$2.1 million. For each full warrant exercised, holders will receive a new half warrant. Each new full warrant is exercisable at a price of $0.35 until March 10, 2019. We expect the majority of warrants to be exercised with this incentive program and highlight that management, insiders and a significant shareholder have committed to exercise ~36% for proceeds of ~C$750k. Combined with Sarama’s cash position at the end of Q3 2016 (C$2.1 million), we believe that the proceeds from the early exercise would suffice to cover Sarama’s share (~C$1.0 million) of the announced exploration expenses at Karankasso (total C$3.4 million) and working capital needs in 2017. We expect that the ongoing exploration at South Houndé (50% interest) and Karankasso (30.5% interest), along with likely work at Bondi (100% interest), may provide the necessary catalysts for the stock to begin closing the valuation gap to peers. read more


Friday, February 17, 2017 Derek Macpherson

SCA Advancing Karankasso; Drill Results Coming

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Savary Gold Corp (TSXV:SCA) provided an update on the ongoing exploration activities at the Karankasso JV project (69.5% SCA / 30.5% SWA) in Burkina Faso. Savary has collected 5,231 soil samples and completed auger drilling of 1,381 holes and 275 line km of IP gradient geophysical surveys since the current exploration program was initiated in October 2016. Of note, the program has delineated a 3.9 km long untested target that links the Diosso South, West Trend, Kueredougou West and Kueredougou Main. In addition, geophysical surveying at the Serakoro 1 Main area appears to have extended the control shear/alteration structure an additional 13 km to the south to a total traceable distance of ~43 km. In our view, these initial results are promising and suggest that further resource growth is possible outside the existing resources. The current 10 km, 90 hole Phase 2 drill program that commenced in January 2017 has been focused on exploration drilling in the southern part of the property. In our view, pending drill results from the drill campaign that is ~27% complete with 28 holes drilled, and the resource update expected in H2 2017, are likely to benefit Savary’s share price. Savary currently trades at a discount to peers (C$27/oz vs. peers at C$43/oz), suggesting that Karankasso’s potential resource growth is not yet priced into the stock. read more


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