Sarama Resources Completes Strategic Mt Venn Acquisition

Strategic Consolidation in a Gold-Rich Region

Sarama Resources Ltd (ASX:SRR, TSXV:SWA) has successfully completed its acquisition of a majority interest in the Mt Venn Gold Project, expanding its footprint in one of Australia's most productive gold regions. This strategic move follows the Company's December 2024 acquisition of the nearby Cosmo Gold Project, creating a combined landholding of 1,000km² across two underexplored greenstone belts in the Laverton Gold District.

The Mt Venn Project is strategically positioned just 35km from the producing Gruyere Gold Mine and less than 20km from Gold Road's Golden Highway Deposit. The proximity to these established operations underscores the region's gold-producing credentials and infrastructure advantages.

"We are very pleased to have completed the acquisition of a majority interest in the Mt Venn Project, significantly expanding our footprint in the Laverton Gold District and consolidating a 1,000km² landholding with strong discovery potential," said Sarama's Executive Chairman, Andrew Dinning.

Mt Venn: Prime Geological Setting with Historical Gold Presence

The Mt Venn Project encompasses most of the underexplored Jutson Rocks Greenstone Belt over a 50km strike length. The geological setting is particularly favourable, featuring:

• A regional shear zone spanning 1-3km in width extending the entire length of the belt
• Diverse volcanic lithologies with pyroclastics and metasediments
• Multiple intrusive units associated with local structural features
• Gold mineralisation first discovered in the 1920s, with small-scale mining operations

Despite the identification of several kilometre-scale gold-in-soil anomalies through geochemistry and auger drilling, many targets remain untested. Previous drilling at the Three Bears Prospect by Cazaly Resources Limited intersected broad gold mineralisation over several fences in both weathered and fresh rock, presenting a priority target for Sarama's exploration efforts.

Understanding Greenstone Belts: Key to Laverton's Gold Potential

What are Greenstone Belts?

Greenstone belts are ancient volcanic-sedimentary rock formations that host some of the world's richest gold deposits. These geological features formed 2.5-3.8 billion years ago and are characterised by their distinctive green-hued rocks resulting from metamorphism.

For investors, exploring gold-rich greenstone belts represents prime exploration territory because:

1. They host world-class gold deposits with exceptional grades and tonnage
2. Their structural complexity creates numerous "traps" where gold can concentrate
3. The Laverton district's greenstone belts have repeatedly yielded multi-million-ounce discoveries

Sarama's 1,000km² landholding covers extensive portions of these highly prospective geological formations, significantly enhancing discovery potential.

Transaction Details and Joint Venture Structure

Sarama Resources completes Mt Venn acquisition by acquiring Orbminco's 80% interest in the Mt Venn Project, with Cazaly Resources retaining the remaining 20%. The consideration for the transaction included:

• Issuance of 12,000,000 Chess Depository Instruments (CDIs) to Orbminco
• Cash payment of A$20,000 for exclusivity fee
• Cash payments of approximately A$39,900 for annual exploration license government rental fees

Under the joint venture structure, Sarama will be responsible for all costs until the completion of a Pre-Feasibility Study. At that point, Cazaly may elect to start contributing its pro-rata share to maintain its 20% interest or withdraw from the JV. If Cazaly withdraws, its interest will be transferred to Sarama and converted to a 2% net smelter return royalty.

Exploration Upside and Future Catalysts

Now that Sarama Resources completes Mt Venn acquisition, the company's dual-project portfolio in Laverton presents compelling exploration upside:

• Mt Venn Project: 420km² with a 50km strike length regional shear zone and advanced gold targets
• Cosmo Project: Located just 40km from Mt Venn, hosting approximately 45km of mineralised gold trends up to 1.8km wide

The Company is well-positioned to advance exploration with its recent A$2.7 million equity raise, allowing for systematic testing of priority targets across both projects.

"Mt Venn lies just 40km from our Cosmo Gold Project, with both showing strong gold anomalism. Cosmo hosts approximately 45km of mineralised gold trends up to 1.8km wide, while Mt Venn's soil sampling, historic workings, early drilling, and polymetallic nature highlight potential for a large-scale mineralised system. We see considerable exploration upside across both projects and with compelling targets already identified, we look forward to unlocking their value through focused and systematic exploration," commented Dinning.

Why Investors Should Watch Sarama Resources

Sarama Resources completes Mt Venn acquisition in a strategic consolidation move that represents a compelling investment opportunity for several reasons:

1. Scale Advantage: The 1,000km² landholding provides exceptional discovery potential across two underexplored greenstone belts

2. Proven Gold District: The Laverton region hosts multiple world-class gold operations, including the nearby Gruyere Gold Mine (7.8Moz gold resource)

3. Infrastructure Benefits: Proximity to established mining operations and transport infrastructure reduces development hurdles for any discoveries

4. Target-Rich Environment: Both projects feature extensive gold anomalies and favourable structural settings, with multiple drill-ready targets

5. Funded for Near-Term Exploration: The recent A$2.7 million capital raise provides resources to advance exploration programs

With two belt-scale projects now under its control and situated in one of Australia's premier gold districts, Sarama Resources is strategically positioned to potentially deliver significant value through systematic exploration of its expanded landholding. Furthermore, this acquisition comes at a time when gold production figures are soaring for many operators in the region, and numerous projects are showing exceptional heap leach recoveries – factors that enhance the potential value of new gold discoveries in Western Australia.

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