SARAMA RESOURCES DISCOVERS NEW MINERALISED TREND AT SANUTURA PROJECT

0:07 With Andrew joining us on the call today, we're going to get started. So again, as a reminder, and thank you for all waiting, but Welcome to Ceramics Resources Live Investment Summit, hosted by 6. I am joined today by Andrew Dinning, their managing director and CEO, who's gonna be walking through a company presentation with us, and after we're going to be going to a live Q&A session. So again, for those of you who've been with us from the beginning, If you do have any questions, feel free to submit them in the Q&A chat on the right hand side of your screen at any time. As always, the summit is being recorded and will be available

0:38 at watch on six.com in the coming days. So look out for that. Andrew, I want to pass things over to you to get things started. Hello, everybody. Hi, Cam. Sorry about the delay there. I had a few IT issues, but we'll get straight into it in the interest of time. I'm very pleased to be able to give you an update today on our most recent exploration results and I think provide a bit more context to the background of the work we've been doing over the last 6 months. So without further ado, I'll get straight into it.

1:11 The requisite forward-looking statements, that's on the website, so I'll let you look at it at your leisure. Just for those of you who aren't super familiar with Cerama, just a quick overview of the company. We operate in the south-west of Burkina Faso in the Hyundai Gold Belt. It's probably the most prolific gold belt in Burkina Faso. It's where Endeavour's Manor and Hyundai mines are and Fortuna Silver's Yaramoko Mine. Our main project there is called Sanitura. It's 100% owned and it's part of a very large gold camp-sized mineralising system, which we'll see further in a minute, but the value of the projects underpin by a multimillion ounce resource, a third of which is in oxide and two thirds is over 2 grams.

1:57 Last year we listed on the ASX, we're a dual listed ASX, TSX company. The funds from that let us get into our first major drill program in 5 years, which is a bit of history there. But an important thing is looking ahead, we're 20,000 metres into that program. It's really focused on shallow high value mineralisation. We're looking to get the oxide resource solidly through 1 million ounces to give us a 7 or 8 year start up just on oxide feed. We'd hope to get to that point at the end of this drilling now. The drilling has delivered quite a few good results for us and the, you know, we're pretty excited by what we're seeing. There's quite a bit to follow up and we think it'll have a decent impact on the resource to date.

2:50 So looking at the project itself a little closer, you can see in this image here, the red is the Sanitura project. The, I guess the red and purple that you see running up and down the ground position is primarily gold in soil. So you can see there, particularly when you look at the scale bar at the bottom, that's a 20 kilometre scale bar. When we say it's a big system, it really is. The project, if you look at where Tankoro sits, that's around 2.5 million ounce resources it stands now. We have Bantu's, which is an Endeavor project immediately to the West and between Tankoro and Bantu, there's around 4 million ounces at this point in time. So there is a lot of gold in the area. That's about 6 kilometres away. So you're looking at 4 million ounces, a lot of that within 150 metres of surface. So we think at some point in the future, really this area should come together.

3:47 But I think the other important thing to note here is that within the Tankoro resource is a significant high-grade component. So at a 1 gram cutoff, we have 500,000 ounces at 2 grams in the indicated resource, and 1.8 million ounces at 1.9 grams in the inferred resource. And as mentioned, the oxide hosted gold accounts for about a third of the resource, and really that's our focus now. Recent drilling, which we'll go through in a sec, has intersected a lot of near surface high grade mineralisation and that's all outside the current resource. So most of the work we've been doing is extensional or looking for nearby deposits and really the main focus is to significantly lift the pit constrained oxide resource, looking really at shallow high value material and identifying new greenfield targets.

4:41 Looking a bit more closely at the tanker deposit, you see a couple of the resource pit shells here. A lot of the ounces sit within these 2 shelves. It's just under 80%. So the prospect in its own right is 1.4 million ounces. So the drilling has just really been focusing the surface extensional areas of these. The drilling is adding new material and also identifying new high-grade lenses in between previously drilled areas. I think one of the main takeaways from this slide is, apart from the scale, is obviously some of the historical drilling into both the and MC, where you can see some pretty significant hits historically because there are high-grade shoots within that which basically when you look at the pit shells they get pulled down in those areas where the pits bell out you typically end up with a lot more high-grade material So the average run of mine grade on this in the fresh is going to run about 2.5 grams. So when we get into that, that'll obviously be pretty accretive.

5:44 So We look forward to that down the track. So getting more into the, I guess, the geological side of things, as mentioned, it's a very large system. So on Surama's ground, to the east of where Endeavour is working, We've got around 16 kilometres of contiguous mineral, semi-contiguous mineralisation and 12 kilometres of contiguous mineralisation. The Tankoro Corridor, which you can see highlighted in kind of pinky purple there, that's quite significant. So that's about 1 to 1.5 kilometres wide. And then within that we have a number of prospect areas of which I've talked about, and MC. But we do have a number of other prospects which I'll talk about. We have Phantom which is the subject of our most recent release but also the OB prospect where we have an exciting new exploration target model developed down in that area. We have a new zone between OB and MC that sits off the mineralised trends.

6:49 That's a whole new area as well. So really the upside that we see in this area is further extensions to the current resource, adding oxides in the OB zone. We've extended oxides to 80 metres. So we think there's a lot of room in this corridor to add more ounces in between where we drilled in recent times and really the latest drilling supports this theory. So looking at the subject of the most recent release, the Phantom prospect, we've discovered a new mineralised trend. This is just to the north of the If you're looking at the previous slide, You will see in the north there. In this area here, it's just in the north there.

7:38 We've drilled what looks like an oblique crosslinking structure. It's delineated for about 700 metres now. It looks like it could run for about 1200 metres. All the drilling in here is oxide and you can see in the intercepts there that they're pretty decent hits. We have 20 metres close enough to 1.7 but importantly that ended in mineralisation and started at 16 metres. We've also got 13 at the best part of 1.8 from 7 metres. If you have a closer look and it's in the news release, to the south west of that zone you'll see it's hitting areas where you've got 7 or 8 gram intercepts at pretty good thickness. So this is an area that we're pretty excited by because what we see where we get these geological complexity and these cross-linking structures, where they intersect the North, Northeast trends, we tend to get pretty significant blowouts, like you see at and MC. So, I would say at the moment the strike length of this is about 700 metres, so that by itself is quite respectable.

8:41 But we think it can probably run out to 1200 metres and importantly all the inner sectors are in shallow oxide material. So this is just another area we expect to grow the resource.

8:54 So we're pretty happy with these results. This release is the seventh release of drill results we've put out of the 20,000 metres of drilling that we did in the middle of last year. This is the seventh successive area of where we've hit new mineralisation that's outside the resource. So I think it bodes well, once we've followed this up, to adding a decent wedge of ounces to the oxide resource. And ideally we'd like to get to the point of having 1 million ounces of oxide in reserve. I think the other thing with this project that the average grades on the oxide are quite respectable. I think the run of mine guide is going to run around 1.4 grams, 1.5 so, and start from surface. So we're very pleased with the results we've been getting. If you look at the OB prospect which I mentioned before, which is in the southern part of the south-western part of the permit area, This is a new exploration model that this is also an area we're pretty excited about.

9:52 We've drilled an extensive zone of flat-line mineralisation. It's in shallow oxide materials. We haven't chased this into the fresh yet, but it's quite extensive. We've got around 900 metres of strike and about 300 metres down deep, but it's open pretty much in all directions. There's multiple mineralised intersections, so we think there'll be stacked load. Oxides are pushed to 80 metres in this area for some reason, So that's also good for us from a mining point of view, because as I mentioned, our target here really is to grow the oxides out. And then when you look at the intercepts, it's much higher grade than what we've seen historically in this area. So, you know, The best intercept there is 7 at 11.5. So these are all in oxide material and the tanner, as I said, is much higher than what we see in the area.

10:41 If you look at a cross section through Obie, I think this kind of says a fair bit. So it's a different part of the mineralising event. It's got a post mineralising of the more disseminated materials. So the sub vertical structures that you see there which are typically around a gram or just under in this area. We see this cross cutting through that area. It's of particular interest, obviously, because the 10 is much higher. The structural orientation

11:09 is different to what we're seeing in the vertical stuff in the area. And also the style of the mineralisation looks like it could be quite different as well. So we think all of that bodes well to adding a nice chunk of ounces in this particular area. And then there's the added question of where it intercepts the sub-vertical material, whether we get an enrichment zone and a blowout in those areas there. So I think the other point about this is, you know, this particular area is untested for 1.8 kilometres along trend. So there's scope for down-dip extensions and extensions along strike. It also gives us a new target models. We've got identified 3 areas like this that need to be drilled.

11:55 And in the belt where we say flat zones like this, it's typically associated with higher, tender and larger deposits. And that's what we're seeing here with the limited amount of drilling that we've got done into it. So the most analogous deposit to this in the Bell is probably in Deva's Kari pump deposit at their Hoonday project. And the maiden resource on that was 1 million ounces at 2.7. So this has got a way to go to catch that, but this has only got 4,000 metres into it so far.

12:26 Then looking at a different type of drilling we've been doing, so filling in the gaps in the resource model. So looking at areas where we've got previous drilling, but anomalous drill results, we've gone through and drilled those areas. And you can see in the we've got a new high-grade mineralised zone in between historical drilling. And I think the probably key takeaway from this really is when you look at all the oxide intercepts from this drilling, it's high grade, it's shallow. You can see 7 at 8, 12 at 4 from 20m, 11 at 4.5m, from 30m, 11 at 4, from 13. This is another area. If you look at this, we've got in the phantom, we have a large cross-linking structure we've just got onto.

13:14 South of that, you come to we're finding new mineralisation in between where we've drilled historically.

13:21 And then if you look at OBE, we have a new geological tarting model for flat zones. And then if you keep heading south, we drilled an area way off the mineralised trend, it's about 600 metres off. It's in an area that extends for about 1.7 kilometres between and MC. It's not dissimilar to what we see at Phantom, but the hits here are probably a bit better. So it's, once again, it's this structural complexity we're talking about, cross-linking structures that and MC appear to be tied to as well, and between them, you're looking at a couple million ounces. So the intersections here, they're shallow, they're in oxide material, and really the results highlight the potential and support our narrative, but there's still a lot of room to find more ounces in this area.

14:19 So if you look at probably the best intersect through that area is 34 at 1.65 from 18 metres. So obviously in oxide and something we need to follow up and put more holes into.

14:32 And then the MC, once again, we've got new foot wall mineralisation here. It's in shallow oxide material. It sits within the resource pit shell, but outside the resource. And really it just continues to highlight the potential that we see in the corridor. So these are pretty solid thicknesses at pretty good grades, particularly for oxides. So as you can see from some of the drill results there, 17 at 2 from 29, 23 at 1.4 from 15 and a number of other good hits. So all of this is super accretive and it builds on what we've got already. Likewise, further drilling outside the resource at has returned some pretty good results. The best hit there was 21 at 7.5 from surface. So as I was saying, the area still has potential to put a lot more into our resource. All the drilling we're doing is oxide. So all this will come in as an oxide resource.

15:36 And really our aim is to get it to be able to run a good 7 or 8 years on oxide feed in any development that we do.

15:45 So really the takeaways from the current program so far, I guess the main observations, we have had some pleasant surprises with, you know, cross structures, you know, oblique and acute to existing mineralization and importantly the flat structures that we're seeing at Obie, which we have a new exploration model for follow-up there. We're seeing quite a lot of structural complication along and within a crustal scale feature. So if you go back to the, one of the original slides that shows all the soil anomalies, and really that's tracking out a large regional fault that runs through the area, and it's quite deep and is the fluid source. We've got multiple mineralising events, multiple mineralisation types within the immediate areas and not only within the Tankoro corridor, but if we didn't have the permit boundary within Dever, they have 2 or 3 different styles of mineralisation there as well. So we're seeing a lot of geological complexity, a lot of structural complexity. We're seeing a lot of ounces in the area. So this area is, you know, it's very exciting for us. The main game for us now is really just to get the oxides to a point where we're pretty comfortable to fund and build a development and have very good return and good payback.

17:07 I think the other thing too is that the deposit length and the mineralised corridor is substantial. There's depth potential, We're seeing high grade feeder zones, which I pointed out with the pit shells at and MC where the pits bell out and the oxides run to 50 to 80 metres. So that's pretty good from a mining and processing point of view. The deposit remains open in all directions as well. And with these new geological target models, that really, I guess, gives us a lot more to work with going forward. I think if we look back, the early exploration focused on establishing, I guess, the full length potential of the mineralisation in a north, north-east direction.

17:56 We were quite focused on what we call the train tracks and really we missed the subtleties of the—we missed the subtleties of other possible orientations and really that's what we're drilling now. So what we're seeing is, you know, the new orientations, you know, they have grade, the potential to add tonnage

18:17 and improve the oxide fresh split for the area, which obviously has a positive impact on mining and more drilling is needed in these areas. And the, I guess what we like from what we've seen from the drilling is mentioned the structural complexity, the multiple mineralising events, the length and width of the mineralisation, and really that's due to the plumbing and the scale of the fluid penetration. Depth of oxidation. We've proven that there's space and scope for new discoveries in between and adjacent to historical drilling. The corridor is large and it's an intrusion-related deposit. So when this is considered in conjunction with Bantu, It's just 6 kilometres to the west, so there is a lot of mineralisation in the area, over 4 million ounces within a 6 kilometre radius, kind of within 150 metres of depth.

19:14 So These are all characteristics of the big deposits that you see around the world. But it's the reason why we're stuck with this over the years with a few delays along the way, but we're back in action now, which is pretty good to see. And just really to round out the priorities for 2023 is to get some holes into the Bondi

19:34 deposit. This is a deposit we bought from Orzone. It's got about 500,000 ounce resource on it now, but it's quite high grade, quite high quality deposit. This long section you can see here is about 3 kilometres long, but really the takeaway from this is the purple zones in the resource are 2.5 to 5 grammes in the block model. And what you can see in that is most of the drilling

20:04 in those areas is quite shallow. So it's very well drilled in the top 100 metres, but the deeper drilling sparse and not very well targeted. So we're pretty keen to get in and do some drilling. If you look at some of the historical intercepts, they're pretty solid, 52 at 5, 13 at 20, 66 at 3.8. So this is a high priority for us and will be the next area that we drill. And then we have regional targets, but in the interest of time, I won't run through these, but our main focus is drilling where there is gold already. Obviously, that gives us the highest probability of success. So we're really just drilling the high probability, high quality targets and aiming for all the low hanging fruit.

20:47 And the milestones to this year is to finish off the drilling, which we're targeting to do by the middle of the year, do a resource update and get a PEA out sometime through the course of this year so we can frame up what the project looks like to the public. So that's all I've got for now. And I'll go over to questions. Absolutely, Andrew. And just as a reminder to everyone in the audience, if you do have any questions, please submit them in the Q&A chat found on the right hand side of your screen. To get started though, first question, is a $1,900 or more gold price going to impact share prices? I think if $1,900 is sustained, I would like to think that would have a pretty positive impact on pricing or share pricing for us but everyone else.

21:40 Typically when the market turns, and hopefully that's what we're seeing now, money will flow into your more established producers and work its way down the food chain. We've already seen a bit of a lift off our bottoms, but we're obviously still

21:55 pretty undervalued relative to our peer group, very undervalued to that point. But yes, $1,900 gold for us, based on our internal numbers on the project now will give this project a $400 million to $500 million US NPV and 80% internal rate of return on the work we've done internally on this. So we're doing work now to verify those numbers, but it does have a material impact for us. I think what people need to remember is when we drilled this project originally, we were drilling at an 11 to $1,200 Gold price environment. So a lot of the targeting has been framed with that Gold price in mind. So that's why with the, I guess, the amount of oxide we've got and the grades that, you know, we see a pretty financeable project with good returns.

22:52 Absolutely. Another question, are you back drilling? We expect to be back drilling in the next 6 to 8 weeks. We had a hiatus, obviously through the rainy season, after we completed drilling last year. We've been compiling all the drill results and then with the shape of the gold market in the last quarter of last year, we thought it was prudent just to see how things pan out in the new year. So the guys have been back in the field. We had the Bondi permit granted. We were waiting on the paperwork for that. That came through last week. So now we can start preparing to start drilling on Bondi. And we'd kind of like to be on there in March. All right, great. And just speaking of that, are there any other drill results to come in the first half of 2023?

23:45 Yes, this is the seventh batch of results we put out of the drilling. So we did 20,000 or 21,000 metres of drilling. I think we probably have one more new release which will wrap out, I guess, the last of the drilling out of the work that we've done. That's obviously back-feeding into targeting in the Tankoro area. But Bondi is really the area that we want to drill. So our VPX was on site at Bondi around Christmas, having a look at what we need to do to get cranked up there. So we haven't drilled there for a number of years. We need to get the exploration camp set up and up and running and obviously do the preliminary work with the local communities and artisanal miners in the area to make sure things run smoothly on the ground. So that preparatory work's kind of ongoing as we speak.

24:35 All right, great. When would a feasibility study be planned for Centura and are you in contact with Endeavour at all? Yeah, We're doing some internal work at the moment on a PEA type document. So, for us, we'll—in the second half of the year, when we've done the resource update, we'll look to get a PEA out then. The work we're doing internally now, we might crystallise that and get something out prior to then. We probably anticipate putting out 2 PEAs, 1 for, I guess, a more modest size project with a low capital number for start-up and then 1 with a larger project. There's a lot of ounces now, so the work we've done, the inventory stands north 1.5 million ounces at this point in time.

25:26 It will be a phased development, so it will be built in stages and it will be scalable. I would like to think by the end of this year, we'll have some kind of PEA out and be starting feasibility work. We've done a lot of work internally over time. So taking it to the next stage should be fairly rapid. Right. Can you speak to how many metres of drilling that you're planning for 2023 and what are the permits that you're waiting on? Yes. We've got—we commenced a 50,000 metre drill program in May last year and we're 20,000 metres into that. So there's about 30,000 to 35,000 metres of drilling to finish in that. That's mostly air core, so it's shallow in relativity and inexpensive, so we budget about $40 a metre for that, for drilling and assays.

26:25 There'll be follow-up work from that, plus the drilling at Bondi. So there's probably another 30,000 to 40,000 metres of drilling to go, but we'll be focusing on the high impact drilling first. Probably the last 20 or 30% of the drilling will be kind of catching up the stragglers to bring it in. So there's still quite a lot of drilling to do this year. But I guess a good point about that is most of that will be relatively inexpensive. So it's not 30,000 or 40,000m of diamond drilling, probably three quarters of it's going to be air core and the balance primarily will be RC. Right. Okay. What's the exploration target? Yeah, the exploration target, historically we had between 7 and 10oz per metre drilled. So if we get that kind of conversion rate in the current program, we'd kind of like to have between 300,000 and 500,000oz.

27:20 I think if you look at the fine print in some of our news releases, we do state exploration targets in there and it is substantially more than that, but based on historical drill results, that's what we get. If you look at both the Tankoro mineral resource and the Bondi mineral resource, and I didn't talk about it in this deck, but there's around 150,000oz of unclassified material at Bondi that we modelled up from ore zones drilling that didn't make it into the resource because we pulled out holes we weren't happy with on the QAQC side of things. So it's unclassified, but it's modelled. So there's ounces there. It just needs drilling in to verify and twin holes. There's 150,000 ounces there.

28:12 And I don't know what the number of that, maybe 50% goes into pit constrained resource. And then Tancoro, there's probably a similar amount again, where we've got unclassified material or areas where there's saddles in the resource pit shells that where a bit of drilling will bring them in. So there's some kind of like hanging fruit and We haven't really hit those areas yet. It's really more the targets we've developed over time that hadn't been drilled that we're drilling now that we think have the potential to add materially to the resource. So I know It's an open-ended question, but if we got 300,000oz to 500,000oz out of the current program, we'd be pretty happy, because that's all in oxides or primarily oxides. So that's kind of what we're targeting.

28:59 Right. Are you able to lower the cut-off grades? We can. It's all a question of economics. If you look at how we're scheduling the development at the moment, and I say this is internal work, but the way we schedule it is to high grade and everyone does this, you hit your high grade material early on. And by virtue of mining your high grade material earlier on, you're going to be mining lower grade material, which we'll put on a stockpile. The way the scheduling is looking at the moment is that probably after 3 years we could do a plant expansion and feed through all the lower grade material. So really the cut off grade is a function of the gold price and obviously at $1,900 that would lower the cut off grade but it will also lower the feed grade. So basically you take anything that's economic at the end of the day.

29:55 But the cut-off grades that we use now are based on Gold price assumptions and what makes the most sense. Absolutely. What's the estimated CapEx and processing flow sheet of the internal estimate you cited? Yes, we've got 2 project sizings we're looking at. So we're looking at a, I guess, a modest size plant that's nominally around 1 million tonne a year soft drop or just over. The capital number on that, and we're looking at a modular build on that. So the capital number on that is probably around the US$50M to US$60M mark. The payback on that current Gold price is probably around 12-months and would allow us probably around the 70,000oz a year mark at pretty good costs for the first 7-years and head grade of over 2g. So head grade of 2g in oxide is obviously going to give you pretty good economics.

30:55 The larger project, which would be normally a 1.8, 2 million tonne a year hard rock plant, once again, staged. The first stage would be oxide, just pure oxide CIL. Then we'd upgrade the plant for hard rock and then we'd upgrade again for the sulphides. That plant initial CAPEX estimate was around the 150 million mark. US, these are all US numbers. For the start-up, because you're just talking a plain vanilla oxide CIL, and then progressive upgrades to upgrade the common unition circuits, probably 10 million, and then upgrade to the sulphide circuits, another 40 million. But the way we're doing now is trying to push that out to year 8 plus, but at the end of the day, the different transitions to material types will be grade driven and cost driven. So there's no point feeding low grade oxide material if you've got high grade fresh material to feed. So the capital numbers for the modest development, say 50 to 70, but I think it'll be at the lower end of that and the larger one around the 150 mark, but that's kind of the capital numbers that we're looking at at this point.

32:05 Absolutely, and just as we're short on time, we're going to go into one final question before we wrap up for the day. What are your expectations on the growing resources and how many ounces can you add with this program? Sorry, what was the first part of that question? What are your expectations on the growing resources? What's our expectation on the growing the resources? Yes. Yes, I think we kind of touched on this. The drilling we're doing now is just really targeting near surface kind of high value oxide materials. So, you know, if we can get the oxide, yeah, peak constrained oxides well through 1 million ounces, and we're fairly close to that now, that would be where we would get to. I think for us, once we've completed this 50,000 metres of drilling, done the drilling, we want to do it bondy.

32:53 We'll circle back and look at what gaps need to be closed and follow up. Then we'll put a pin in it and look at what the final development will be. So we'd like to be in that position by the end of this year. So if we're kind of optimistic, we'd hope to have a resource for the Sanitura project of around, I guess, 3.5 million ounces or something like that to start with, but importantly, have at least a third of that in oxides or better so that we can run the first 7 or 8 years on oxide feed. That would be where we would like to get to by the end of the current process. Right. Well, listen, Andrew, I want to thank you for coming on today. That is really all the time that we have, but before we hang up today, I do want to ask if you have any closing remarks before we leave.

33:41 I think the closing remarks is we're very pleased with the drill results that we've received so far. We've, I guess, proven our view that there's still a lot of potential to find more mineralisation in between areas that we've already drilled. I think that's been very much vindicated with 7 new releases now, all in new mineralised areas. So I think that's probably the biggest thing for us. And really now it's just trying to nail all that down this year in the most cost-effective way that we can. So I think that the real takeaway for us is the drilling so far has gone really well. We've intersected a lot of near surface, high value oxide mineralisation, And really the looking ahead this year is very much getting that drilling completed and framing up what a project development might look like.

34:45 You