(Ecofin Agency) - Mining firm Sarama Resources completed the first stage of exploration campaign at its South Houndé gold mine, in Burkina Faso. Cost of the campaign was estimated at $3.5 million funded by Acacia Mining. This funding was provided in accordance with an ear-in agreement giving Acacia the right to hold up to 70% of the South Houndé project in exchange for an investment of $15 million.

The first phase, which is based on studies undertaken during the fourth quarter of 2015, includes geological studies, geochemical and geophysical surveys, 6,200m, 4,900m, and 1,100m AC, RC and diamond drilling. It helped identify potential for higher grade mineralized cross structures at the MM and MC prospects.

“The newly identified cross structures have introduced the potential to upgrade resources at the Project. We look forward to receiving the final results from the Q1 2016 program which should further build on the current mineral resource base of 2.1 Moz Au,” said CEO of Sarama, Andrew Mining. The firm said second stage will start at the end of April.