Sama Resources Inc.
TSX VENTURE : SME

Sama Resources Inc.

May 09, 2016 07:00 ET

Sama Resources: Tests Return 70% Super Jumbo, Jumbo and Large Natural Flakes With Up to 95.5% Graphitic Carbon and Announces Concurrent Private Placement

MONTREAL, QUEBEC--(Marketwired - May 9, 2016) - Sama Resources Inc./Ressources Sama Inc. (TSX VENTURE:SME) ("Sama" or the "Company") today announced that the high potential of the Lola Graphite Project in Guinea, West Africa has once again been corroborated by a third series of laboratory scale metallurgical testing. Results from the flotation test indicate that 70% of the concentrate is made of super-jumbo, jumbo and large flakes sizes. Super-jumbo flake size accounts for 24% of the concentrate with purities of 92.7% and 95.5% graphitic carbon (''Cg").

  • Highlights 70% of the concentrate was in the super-jumbo, jumbo and large flake categories
  • Over 94% graphite recovery in the batch flotation tests
  • Deposit measures 8.7 kilometers ("km") in length

"This is our third simple flotation test and we are seeing big improvements in both flake size and purity," stated Dr. Marc-Antoine Audet, P.Geo, President and Chief Executive Officer, Sama Resources. "These impressive results validate the quality of the asset and we are confident that further testing using a simple flotation process will provide even better results," added Dr. Audet.

The Lola Graphite deposit covers an area of over 8.7 km long by 300 meters ("m") wide at surface, and with a potential width of up to 1,000 m. Graphite flakes are free within the weathered gangue for the first 20 m or so (also called the oxide zone) of the deposit, thereby allowing for easy grinding and optimal recovery of all super-jumbo, jumbo and large flakes.

The current and the two previous metallurgical test results (reference Sama's press release dated July 8, 2014 and January 13, 2015), indicate very high recovery of super-jumbo, jumbo and large flake sizes, at 60%, 78% and 70% respectively (reference: Table 1).

Table 1
Third Test (April 2016) Second Test (November 2014) Maiden Test (July 2014)
Head Grade 15.6% Cg Head Grade 12.2% Cg Head Grade 11.5 % Cg
Recovery 94.30% Recovery 94% Recovery 96%
Grinding Typical Flotation Grinding Flash Flotation Grinding 100% - 35 Mesh
Flake size mm % % Cg Flake size % % Cg Flake size % % Cg
+ 28 Mesh (Super Jumbo) > 0.61 9.0 95.4
+ 35 Mesh (Super Jumbo) > 0.50 15.0 92.7
+ 48 Mesh (Jumbo) > 0.31 23.0 90.1 + 48 Mesh 54.2 89.0 + 48 Mesh 29.2 92.9
+ 80 Mesh (Large) > 0.18 23.0 87.1 + 80 Mesh 23.8 83.0 + 80 Mesh 30.8 90.0
+ 150 Mesh > 0.10 20.0 88.2 + 150 Mesh 7.7 78.7 + 150 Mesh 17.9 80.4
- 150 Mesh < 0.10 9.0 85.2 - 150 Mesh 14.3 67.9 - 150 Mesh 22.2 71.0

Metallurgical tests were performed by Activation Laboratories Ltd. of Ontario, Canada on surface oxide material from the Lola graphite deposit. Metallurgical testing included optimization flotation tests to simplify the process and eliminate previous flash flotation and gravity steps. A conventional flotation and concentrate regrind flow sheet was used.

The Lola Graphite Project is 100% owned by Sama Resources Guinea SARL, a fully owned subsidiary of Sama Resources Inc. The Lola Graphite Project is located near the town of Lola in eastern Guinea and within 50 km of the border of Côte d'Ivoire.

Private Placement

The Company is also pleased to announce a non-brokered private placement (the "Private Placement") of up to 5,000,000 units ("Units") at a price of CAN$0.10 per Unit, for total gross proceeds of up to CAN$500,000. Each Unit will be comprised of one common share of the Company (a "Share") and one share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder thereto to purchase, for a period of five (5) years, one additional Share (a "Warrant Share") at an exercise price per Warrant Share of CAN$0.15.

The Company may pay finders' fees in cash and issue finder's warrants. All securities issued under the Private Placement will be subject to a hold period of four months and one day from the closing date. The Private Placement and finders' fees are subject to regulatory approval.

Net proceeds from the Private Placement will be used for the advancement of the Company's exploration and development programs and for general working capital purposes related thereto.

Additional information regarding the Lola Graphite Project is available in Sama's updated presentation available on the corporate website at www.samaresources.com or via the following link: http://www.samaresources.com/i/pdf/Sama_Corporate_Presentation.pdf

The technical information in this release has been reviewed and approved by Dr. Marc-Antoine Audet, P.Geo and President and CEO, Sama Resources acting as Qualified Person as defined by NI 43-101 Standards of Disclosure for Mineral Projects.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements Certain of the statements made and information contained herein are "forward-looking statements" within the meaning of Canadian securities legislation or "forward-looking information" within the meaning of the Ontario Securities Act and the Securities Act (British Columbia). This includes statements concerning the Company's plans at its mineral properties, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to vary or be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or forward-looking information. Information regarding drilling results may also be deemed to be forward-looking statements or forward-looking information in that they reflect a prediction of what may be found to be present when and if a project is actually developed.

Forward-looking statements and forward-looking information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or forward-looking information, including, without limitation, the availability of financing for activities, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, metal price fluctuations, environmental and regulatory requirements, availability of permits, escalating costs of remediation and mitigation, risk of title loss, the effects of accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in exploration or development, the potential for delays in exploration or development activities, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, expectations and beliefs of management and other risks and uncertainties.

This release contains forward-looking statements concerning the anticipated Private Placement. Although Sama believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Sama can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the Private Placement could be delayed if Sama is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Private Placement will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the Private Placement will not be completely sold, completed within the anticipated time or at all. Additional information on these and other factors that could affect Sama's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).

In addition, forward-looking statements and forward-looking information are based on various assumptions. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information or forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise.

Contact Information

  • Sama Resources Inc./Ressources Sama Inc.
    Dr. Marc-Antoine Audet
    President and CEO
    (514) 726-4158

    Sama Resources Inc./Ressources Sama Inc.
    Mr. Matt Johnston
    (604) 443-3835
    Toll Free: 1 (877) 792-6688, Ext. 4
    www.samaresources.com