SEMAFO Inc.
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OMX : SMF

SEMAFO Inc.

June 20, 2016 07:00 ET

SEMAFO Reports Results of Delineation Drilling at Yama

Yama Zone returns values of up to 2.23 g/t across 28 meters, 22 kilometers south of Mana

MONTREAL, QUEBEC--(Marketwired - June 20, 2016) - SEMAFO (TSX:SMF)(OMX:SMF) today announced delineation drilling results from Yama, the recently discovered mineralized zone located 22 kilometers southwest of the Mana mill. Over 2,500 meters of in-fill drilling were completed in May at 25-meter by 50-meter grid spacing. Results of up to 2.23 g/t across 28 meters were obtained that will be incorporated in the Yama maiden reserves estimate now scheduled for completion by the end of the third quarter of 2016.

The May campaign comprised 16 reverse-circulation (RC) holes and 4 multipurpose (RC-core combination) holes that furthered our understanding of the mineralized zones and grades defined in the first quarter of 2016. The mineralization is hosted by quartz veining and silicified sediments flanked by mafic volcanic flows. The sedimentary unit is highly altered and sheared, dipping approximately 70 degrees to the west and trending generally north-south. The following results represent the highlights of the May 2016 delineation program, which is now complete:


Hole No.
From
meters
To
meters
Length1
meters

Au g/t2
MMP16-002 108.0 119.0 11.0 2.20
MMP16-004 162.2 171.0 8.8 2.97
MMP16-004 175.0 187.5 12.5 2.30
MRC16-4676 23.0 29.0 6.0 2.54
MRC16-4677 59.0 64.0 5.0 3.92
MRC16-4680 19.0 28.0 9.0 2.37
MRC16-4681 48.0 54.0 6.0 2.41
MRC16-4682 58.0 68.0 10.0 2.79
MRC16-4684 48.0 53.0 5.0 3.12
MRC16-4684 61.0 77.0 16.0 3.24
MRC16-4686 104.0 132.0 28.0 2.23
1 All lengths are measured along the hole axis, and true thickness should be approximately 80% of the given lengths.
2 Using uncut assays

As shown in Figure 1, the deformation zone is associated with three strong silica-sericite alteration and quartz veining zones presenting an en-echelon relationship with each other, moving west while progressing towards the north. The best mineralization appears where the three vein systems are present. Figure 2 presents a composite of all veining in a longitudinal section. The core of the mineralization presents significant quartz veining and only minor amounts (less than 2%) of pyrite. No other sulfides have been noted to date. Higher gold values are typically associated with the quartz veining, proximal silicified and sericitized volcanics and minor sediments. The mineralized zones vary in width, but can reach up to 25 meters. The mineralization can be traced over 200 meters along strike and up to 150 meters vertically, and remains open down dip.

Figure 1 - A map is available at the following address: http://media3.marketwire.com/docs/SEMAFO_figure__1.pdf

Figure 2 - A map is available at the following address: http://media3.marketwire.com/docs/SEMAFO_figure__2.pdf

Next Steps

Preliminary metallurgical work was previously completed on fresh bedrock mineralization and did not present any significant refractory components. Further detailed testing will now be carried out in order to establish the expected recoveries.

Quality Control and Qualified Person

For RC drilling and trench samples, all individual samples represent approximately one meter in length of rock chips homogenized and riffle-split to an approximately 2-kilogram subsample that was sent for preparation and gold assaying to the Mana Mine Assay laboratory. Each sample is fire-assayed for gold content on a 50-gram sub-sample. In addition to the lab's own QA/QC (Quality Assurance/Quality Control) program, an internal QA/QC program is in place throughout the sampling program, using blind duplicates, blanks and recognized industry standards.

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

The information in this release is subject to the disclosure requirements of SEMAFO under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was publicly communicated on June 20, 2016 at 7:00 a.m., Eastern Daylight Time.

About SEMAFO

SEMAFO is a Canadian-based mining company with gold production and exploration activities in West Africa. The Corporation operates the Mana Mine in Burkina Faso, which includes the high-grade satellite deposits of Siou and Fofina, and is developing the advanced gold deposit of Natougou. 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 "will", "scheduled", "in order to", "expected", "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 bring Yama into reserves by the end of the third quarter of 2016, 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 2015 Annual MD&A, as updated in SEMAFO's 2016 First 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.

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