Sarama Resources Updates on Progress of Cosmo Gold Project Acquisition
Sarama Resources Ltd. (“Sarama” or the “Company”) (ASX:SRR, TSX- V:SWA) is pleased to advise that the Company’s acquisition of a majority interest(1) in the Cosmo Gold Project (the “Project”) in Western Australia is advancing towards completion with a majority of the key conditions precedent having been met.
The acquisition received strong support from shareholders at the Company’s recent Annual General Meeting and Sarama has received requisite approval and conditional approval from securities exchanges in Australia and Canada respectively. The Company anticipates the Transaction (defined below) will be completed in late October 2024.
The 580km² project(2) covers the entirety of the Cosmo-Newbery Greenstone Belt and is located approximately 85km north-east of Laverton in a region known for its prolific gold endowment (refer Figure 1). As one of the last effectively unexplored greenstone belts in Western Australia, the Project presents a unique and compelling opportunity for the Company.
Highlights
Sarama acquiring a majority interest in and control of Cosmo Gold Project in Western Australia Majority of key closing conditions satisfied and completion of transaction anticipated in late October 2024Sarama acquiring an initial 80% interest(1) with ability to increase to 100% in the majority of the Project(1)580km² landholding capturing +50km strike length in highly prospective gold producing region; 95km from both the world-class Gruyere Mine and Laverton gold districtProject captures one of the last effectively unexplored greenstone belts in Western Australia; virtually no effective exploration undertaken for several decades Soil geochemistry program to commence imminently to generate regional targets in unexplored areas
Sarama’s President, CEO & MD, Andrew Dinning commented:
“We are pleased to have made significant progress toward completing the acquisition of the Cosmo Gold Project which we view as a compelling opportunity for the Company. Sarama’s shareholders voted overwhelmingly in favour of the Transaction and we look forward to closing the deal and embarking on more extensive exploration programs which will follow on from field programs currently being mobilised.”
Cosmo Newbery Project
The Project is comprised of 7 contiguous exploration tenements covering 580km² in the Eastern Goldfields of Western Australia, approximately 85km north-east of Laverton and 95km west of the world-class Gruyere Gold Mine. The Project is readily accessible via the Great Central Road which services the Cosmo Newbery Community.
The Project captures one of the last unexplored greenstone belts in Western Australia and with a strike length of +50km, the Cosmo Newbery Belt represents a large and prospective system with gold first being discovered in the area in the 1890’s. Multiple historical gold workings are documented within the Project area and work undertaken to date, has identified multiple exploration targets for follow up.
Despite this significant prospectivity, the Project has seen virtually no modern exploration or drilling of merit due to a lack of land access persisting over a significant period. As a result, the Project has not benefited from the evolution of geochemical and geophysical techniques which now facilitate effective exploration in deeply weathered and complex regolith settings which is particularly pertinent given approximately 75% of the Project area is under cover.
Following the relatively recent securing of land access, the Project is now available for systematic and modern-day exploration programs to be conducted on a broad-scale. It is anticipated that future exploration programs will initially follow-up preliminary targets generated from regional soil sampling and limited reconnaissance drilling programs, a majority of which extended to approximately 5m below surface with a small percentage extending up to 30m below surface.
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