Sarama Resources Stocks Jump on Liberia Exploration Results
Written by Deborah BacalA - ProactiveInvestors
Sarama Resources (CVE:SWA) stock surged 25% on Monday after the company said geochemistry surveys at its Cape Mountain East property in Liberia extended the anomalous gold-in-soil zone to 15km along trend.
It told investors that follow-up trenching programs at the property, which sits about 10km north of Aureus Mining's New Liberty gold project, returned "several intervals of significant mineralization."
The soil geochemistry work extended the existing 9km zone by another 6km, with Sarama currently able to own up to 90% of the project.
Notable results of the trenching included 16 metres of 1.74 grams per tonne (g/t) gold, including 10 metres at 2.55 g/t gold.
The company said a reconnaissance drill program is planned for several target areas on Cape Mount. Sarama's exploration efforts in Liberia have mainly focused on the western part of the country.
The project is next to Aureus' New Liberty mine, which is currently under development and holds a mineral resource base of 1.1 million ounces in the measured and indicated category and 1.2 million ounces in the inferred category.
Sarama's stock climbed 25% to 20 Canadian cents on Monday, more than doubling since the start of the new year.