Sarama Resources Ltd. (“Sarama” or the “Company”) (ASX:SRR, TSX- V:SWA) has recently finalized a binding agreement to acquire a majority interest(1) in the Cosmo Newbery Gold Project (the “Project”) in Western Australia. This strategic move marks a significant milestone for Sarama as it expands its foothold in a region known for its substantial gold resources.
The Cosmo Newbery Gold Project
Spanning an area of 580km², the Project encompasses the entirety of the Cosmo-Newbery Greenstone Belt, situated about 85km northeast of Laverton. This location is renowned for its historically rich gold endowment, making it a prime target for exploration and development. The Project stands out as one of the few remaining unexplored greenstone belts in Western Australia, offering Sarama a promising opportunity for significant discoveries.
Exploration Potential
The Cosmo Newbery Belt boasts a striking 50km of strike length, indicating a substantial and highly prospective geological system. The presence of historical gold workings dating back to the 1890s underscores the region’s mineral-rich nature. Despite this, modern exploration efforts have been minimal, primarily due to restricted land access over the years.
With the recent acquisition of land access rights, Sarama plans to implement comprehensive exploration programs to unlock the Project’s full potential. These programs will focus on leveraging advanced geochemical and geophysical techniques to explore the covered regions effectively. The Company aims to capitalize on the historical data and identified exploration targets to drive targeted drilling programs and generate valuable insights.
Strategic Positioning
Strategically located in the Eastern Goldfields of Western Australia, the Cosmo Newbery Project sits in close proximity to the notable Gruyere Gold Mine, which boasts a substantial resource base of approximately 7 million ounces. This favorable positioning not only offers logistical advantages but also underscores the Project’s prospectivity in a highly prolific gold-producing region.
The acquisition of an 80% interest in the Project initially, with an option to increase ownership to 100% within two years post-completion, positions Sarama to capitalize on the untapped potential of the Cosmo Newbery Gold Project. By leveraging its technical expertise and strategic partnerships, the Company is poised to unlock significant value from this underexplored region.
Sarama’s President, CEO & MD, Andrew Dinning shared,
“The Cosmo Newbery Gold Project represents a compelling opportunity for Sarama, given its unique geological setting and underexplored status. We are enthusiastic about advancing exploration efforts within this promising region and are committed to realizing the Project’s full potential.”
Conclusion
The acquisition of a majority interest in the Cosmo Newbery Gold Project marks a significant step forward for Sarama Resources Ltd. as it expands its presence in Western Australia’s renowned gold sector. With a strategic focus on leveraging modern exploration techniques and historical data, the Company is well-positioned to unearth value and drive exciting discoveries in this prospective greenstone belt.
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