SEMAFO Inc.

TSX : SMF
OMX : SMF


SEMAFO Inc.

August 29, 2012 09:35 ET

SEMAFO Discovers High Grade Siou Zone at Mana

Including Values of Up to 12.56 g/t Au (20.08 g/t Au Uncut) Over 12 Meters

MONTREAL, QUEBEC--(Marketwire - Aug. 29, 2012) - SEMAFO (TSX:SMF)(OMX:SMF) today announced the discovery of the new high grade Siou zone, located approximately 15 kilometers east of the Mana Mill and 22 kilometers North-East of Fofina. To date, initial results have returned consistent high grade values over more than one kilometer along strike and the Siou zone remains open. Preliminary metallurgical tests are underway.

The Siou zone was discovered through a follow-up reverse-circulation ("RC") drilling program on an auger geochemical anomaly. To date, more than 12,000 meters of RC drilling (89 holes) and 756 meters of core drilling (three holes) were completed along a strike length of approximately two kilometers. We have received all the results from this first phase of drilling with section spacing at 200 to 400 meters.

Siou Zone Drill Results Highlights

DDH No. Section (N) From To AU* / Length**
MRC12-1987 1321100 123 125 15.96 g/t / 2.0 m
(21.11 g/t uncut)
MRC12-1342 1321500 133 136 16.53 g/t / 3.0 m
(21.00 g/t uncut)
MRC12-1343 1321500 94 97 5.60 g/t / 3.0 m
MRC12-1344 1321500 55 62 4.41 g/t / 7.0 m
MRC12-1345 1321500 21 30 2.77 g/t / 9.0 m
Including 1321500 21 25 5.03 g/t / 4.0 m
MRC12-1995 1321700 71 76 11.80 g/t / 5.0 m
(11.98 g/t uncut)
MRC12-2220 1321700 151 161 1.72 g/t / 10.0 m
including 1321700 151 154 3.13 g/t / 3.0 m
MRC12-1276 1321900 132 144 12.56 g/t / 12.0 m
(20.08 g/t uncut)
MRC12-1277 1321900 92 98 4.17 g/t / 6.0 m
Including 1321900 94 97 7.31 g/t / 3.0 m
MRC12-1278 1321900 53 57 11.71 g/t / 4.0 m
WDC511 1322000 144.5 147 17.18 g/t / 2.5 m
(21.62 g/t uncut)
WDC513 1322000 193 201 11.26 g/t / 8.0 m
(21.61 g/t uncut)
MRC12-2059 1322100 79 80 8.12 g/t / 1.0 m
MRC12-2060 1322100 127 131 7.43 g/t / 4.0 m
Including 1322100 127 129 13.35 g/t / 2.0 m
MRC12-2061 1322100 27 29 5.70 g/t / 2.0 m
* All individual samples are cut at 30 g/t as per Nyafé Deposit procedures.
**All lengths are measured along the hole axis; which is interpreted to be roughly equivalent to true widths.

The Siou zone is located along the Kokoi Trend, a north-northeast trending magnetic lineament, which can be traced over a distance of approximately 30 kilometers. Recent auger drilling results from along the trend showed a coincident gold geochemical anomaly, including the Siou anomaly that can be traced for a minimum of one kilometer. Follow-up drilling on the Siou anomaly included a total of ten sections covering two kilometer strike length (Figure 1). Sections are generally 200 meters apart. Three core holes were also drilled near the center of area in order to obtain geological information on the new discovery.

Drilling to date indicates that the Siou area is covered by a thin overburden cover followed by a saprolitic and transitional horizon measuring approximately 50 to 80 meters thick, before transforming to fresh bedrock (Figure 2). The mineralization occurs at the contact between a sedimentary unit (wackes and shales) to the west and a granodioritic intrusive unit to the east. The contact between the two units is characterized by shearing, quartz veining, and sericite alteration over thicknesses of 5 to 25 meters; the sheared contact dips approximately 45 to 60 degrees to the east. The shallower dip of the zone therefore remains within the oxidized horizon's approximate 100-meter down dip.

Gold mineralization is associated with abundant quartz veining and silicification principally within the intrusive side of the contact. Although sulphide mineralization appears relatively weak, gold values obtained have generally been high, particularly within the most silicified areas. One core hole (WDC-513) also shows traces of visible gold grains, indicative that coarser gold occurs within the vein.

The limited drilling completed to date shows a one-kilometer section of the shear zone containing abundant quartz veining and high gold values, albeit some pinching and swelling is to be expected with this type of mineralization style. Parallel zones have also been identified locally, while their continuity will require additional drilling to establish their significance. In addition, the Siou trend seems to correlate with the Kokoi zone where limited drilling completed in 2010 returned values of up to 2.57 g/t Au over seven meters. The Kokoi zone is located approximately four kilometers south of the Siou discovery. The four-kilometer strike length between the Siou and Kokoi areas remains untested.

"The Siou zone once again shows the geological potential at Mana with yet another mineralization style discovered on the property," said Michel Crevier, SEMAFO's Vice-President Exploration and Mine Geology, "Further diamond drilling is currently in progress between the Kokoi and Siou areas. Once completed, closer spaced drilling will be carried out along the more strongly mineralized areas."

Michel Crevier, P.Geo MScA, Vice-President Exploration and Mine Geology and SEMAFO's Qualified Person has reviewed this press release for accuracy and compliance with National Instrument 43-101.

All individual samples represent approximately one-meter in length of core, which was sawn in half. Half of the core is kept on site for reference and its counterpart is sent for preparation and gold assaying at the ALS Minerals Lab in Ouagadougou, Burkina Faso or at SEMAFO's Mana Mine Lab which uses separate sample preparation equipment exclusive to exploration samples. For RC and air core drilling, all individual samples represent approximately one-meter in length of rock chips homogenized and riffle-split to roughly a two-kilogram subsample, which is sent for preparation and gold assaying at the ALS Minerals Lab or at SEMAFO's Mana Mine Lab. Each sample (core, RC, and air core) is fire-assayed for gold content on a 50-gram subsample. In addition to ALS Mineral Division's own QA/QC (Quality Assurance/Quality Control) program and Mana Lab's own QA/QC program, an internal quality control and quality assurance program is in place throughout the sampling program, using blind duplicates, blanks and recognized industry standards at both ALS samples and Mana Lab samples.

About SEMAFO

SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa. The Corporation currently operates three gold mines: the Mana Mine in Burkina Faso, the Samira Hill Mine in Niger and the Kiniero Mine in Guinea. SEMAFO is committed to evolve in a conscientious manner to become a major player in its geographical area of interest. SEMAFO's strategic focus is to maximize shareholder value by effectively managing its existing assets as well as pursuing organic and strategic growth opportunities.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. Forward-looking statements include words or expressions such as "underway", "will", "potential", "in progress", "committed", "evolve", "become", "pursuing", "growth", "opportunities" and other similar words or expressions. Factors that could cause future results or events to differ materially from current expectations expressed or implied by the forward-looking statements include the ability to execute on our strategic focus, fluctuation in the price of currencies, gold or operating costs, mining industry risks, uncertainty as to calculation of mineral reserves and resources, delays, political and social stability in Africa (including our ability to maintain or renew licenses and permits) and other risks described in SEMAFO's documents filed with Canadian securities regulatory authorities. You can find further information with respect to these and other risks in SEMAFO's 2011 Annual MD&A and 2011 Annual Information Form, as updated in SEMAFO's 2012 First Quarter MD&A and 2012 Second Quarter MD&A, and other filings made with Canadian securities regulatory authorities and available at www.sedar.com. These documents are also available on our website at www.semafo.com. SEMAFO disclaims any obligation to update or revise these forward-looking statements, except as required by applicable law.

The above information has been made public in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act.

Two maps are available at the following link: http://media3.marketwire.com/docs/maps_smfa0829.pdf

Contact Information

  • SEMAFO
    Sofia St Laurent, Communications
    Tel. local & overseas: +1 (514) 744 4408
    North America Toll-Free: 1 (888) 744 4408
    sofia.stlaurent@semafo.com
    www.semafo.com

    Maria Bang
    Brunswick Group Stockholm
    +46 (8) 410 32 189
    mbang@brunswick