Mr. Marc-Antoine Audet reports
SAMA RESOURCES REPORTS ON SRGA S MAIDEN MINERAL RESOURCE ESTIMATE FOR ITS LOLA GRAPHITE DEPOSIT
Sama Resources Inc.'s spinout company SRG Graphite Inc. has released its initial resource estimate for its 100-per-cent-owned Lola graphite deposit located in the Republic of Guinea. The mineral resource estimate, prepared by Montreal-based Met-Chem, a division of DRA Americas Inc., includes a pit-constrained indicated resource of four million tonnes grading 5.7 per cent graphitic carbon and an inferred resource of 4.6 million tonnes grading 6.5 per cent Cg, using a cut-off grade of 3 per cent Cg.
Mineral resources were based on 170 boreholes for 4,936 metres drilled prior to Sept. 30, 2017. Since that time, an additional 100 diamond drill holes were completed, totalling approximately 7,200 metres. Assay results for these additional holes are pending.
The company has planned an additional 6,000 metres of drilling, scheduled to take place in 2018.
SRG will file a National Instrument 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 metres, as well as 1,326 metres 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 metres with an average thickness of 32 metres. The mineralization continued at depth within the fresh rock material. The area for the maiden resources covers approximately 18 per cent of the deposit's 3.2-square-kilometre surface area.
The estimate was prepared using a block model constrained with 3-D wireframes of the principal mineralized domains. Values for graphitic carbon were interpolated using ordinary kriging (OK) interpolation methodologies on 10 m by 10 m by two m 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 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 per cent Cg per tonne together with estimate sensitivities at 1.23 per cent Cg/t and 5 per cent Cg/t. The resource estimate and sensitivities scenarios are established with data from boreholes drilled by Sept. 30, 2017.
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. and 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. and 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. and 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 per cent Cg grade), $2/t mining costs, $8.54/t processing costs, and $3.50/t general and administrative 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;
6) Numbers may not add due to rounding;
7) Effective date of resource estimate is Sept. 30, 2017.
Qualified person
Met-Chem/DRA's consultant, Ghislain Deschenes, PGeo, was responsible for estimating the mineral resources and has reviewed and approved the contents of this press release. Mr. Deschenes is a qualified person, 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 Mr. Audet, PGeo, 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 Oct. 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 Cote d'Ivoire nickel-copper and cobalt project in Ivory Coast, West Africa. For more information about Sama, please visit Sama's website.
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