TIDMSULA
RNS Number : 8070V
Sula Iron & Gold PLC
02 February 2017
2 February 2017
Sula Iron & Gold plc
("Sula" or the "Company")
Ferensola Gold Project
Operational Update & Grab Sample Assay Results
Sula (AIM: SULA), the multi-commodity exploration company
focused on Sierra Leone, is pleased to announce the following
operational update and grab sample assay results for the Ferensola
Gold Project.
Highlights:
-- Two drill rigs en route to Sierra Leone from South Africa;
-- Oxide ore collected from the Eastern Target of the Ferensola
Gold Project returns a grade of 4.8g/t Au and the artisanal dump
samples from an adjacent river returned grades of up to 11.2g/t Au;
and
-- Significant preparatory work completed at the Dalakuru
exploration camp ("Dalakuru") ahead of the planned drilling
progamme.
Operational Update
Rig Mobilisation
As announced at the time of entering into the drilling contract
with Equity Drilling Ltd ("EQD") on 5 December 2016, two drill rigs
and associated support equipment (the "Drill Rigs"), were being
mobilised from South Africa for deployment at the project site
Sierra Leone. The Drill Rigs left South Africa in December and
whilst originally anticipated to arrive in country in January 2017,
the ship carrying the Drill Rigs is now not expected to dock in
Freetown until early February. On arrival, and following customs
clearance at the Freetown port, they will be transported directly
to the Ferensola site, in order to commence the planned drill
programme designed by Sula's Technical Director.
While Sula originally planned to use a single drill rig, Sula's
chosen drilling partner, EQD, has mobilised two rigs for use at
Ferensola at no additional cost to Sula. Accordingly, this should
ensure that the planned drill programme, originally envisaged to be
2,400m, will be completed expeditiously.
Sula also notes that, as previously announced, EQD is taking a
significant portion of its payment for the drill contract in the
form of new ordinary shares in Sula, (with an agreed floor price
for the ordinary shares of 0.35p), which will serve to assist the
Company in conserving its cash resources. Sula currently
anticipates that, as a result of this financing deal, it will be
able to drill more than the 2,400m originally planned, thereby
potentially enabling a larger JORC Exploration Target to be
identified. Sula's geologists have planned additional holes to
capitalise on this opportunity.
Dalakuru Camp
Since signing the drilling contract, significant preparatory
work has been completed at the Dalakuru Camp ahead of the arrival
of the drilling crews, Drill Rigs and other vehicles,
including:
-- construction of a new bridge and the upgrade and repair of local roads;
-- establishment of 10 new drill collar pads for the Drill Rigs;
-- camp footprint expanded to accommodate the increased number
of people and equipment during the drilling campaign; and
-- three new water sources located to facilitate EQD's access to water required for drilling.
Grab Sample Assay Results
As announced by the Company on 15 November 2016, gold was
recovered from crushed and panned oxide samples collected from a
road cutting that cross cuts the TZ2 ("Eastern Target") IP anomaly
within the Ferensola licence. A sample from this location was
submitted for assay along with additional samples collected from
artisanal waste dumps located within the main river that flows from
the Kuwait artisanal mining area and which cuts across the TZ2 IP
anomaly.
Two artisanal dump samples returned grades of 11.2 and 2.6 g/t
Au respectively, with the oxide sample extracted from the road
cutting returning a grade of 4.8 g/t Au. Whilst the exact source of
the river terrace artisanal waste dump samples is unknown, Sula
believes that the road cutting sample directly relates to the TZ2
IP anomaly and is likely to be close to the mineralised source (see
Figure 1).
Figure 1 shows the location of the samples in relation to the IP
anomaly data and regional grab samples collected to date, with
Figure 2 showing the samples submitted for assay. All samples are
related to quartz / pyrite mineralisation being similar to the
previous samples collected and the dominant mineralisation observed
in the November 2015 diamond drilling campaign at the TZ0 / Sanama
Hill anomaly. Figure 1 also shows the full IP anomaly data whereby
8.5km of potentially mineralised targets has been identified.
http://www.rns-pdf.londonstockexchange.com/rns/8070V_-2017-2-1.pdf
Figure 1: Grab sample locations in relation to the TZ2 IP
anomaly
http://www.rns-pdf.londonstockexchange.com/rns/8070V_1-2017-2-1.pdf
Figure 2: Recent samples submitted for analysis
Roger Murphy, Sula's CEO, commented:
"I am pleased that the latest assay results provide further
evidence of gold mineralisation on the Eastern Target, which we
will be drilling soon. Whilst the delay in shipping, which is
outside our control, somewhat frustrating, we are confident that
with two rigs deployed we will complete the programme faster than
originally planned. I would also like to thank our team on site in
Sierra Leone for their efforts in preparing for the forthcoming
drilling campaign, especially over the holiday season. We look
forward to updating the market on our progress in due course as
appropriate."
For further information, please contact:
Sula Iron & Gold plc
Roger Murphy (CEO) +44 (0) 7788 913794
Strand Hanson Limited (Financial
and Nominated Adviser)
James Harris / Matthew Chandler +44 (0) 20 7409
/ James Dance 3494
VSA Capital Limited (Broker) +44 (0) 20 3005
Andrew Raca 5000
Notes:
Sula is a multi-commodity exploration company focused on Sierra
Leone. The Company's main objective is to explore and advance its
153km(2) Ferensola Project in Northern Sierra Leone, which is
highly prospective for gold, iron ore and coltan. In December 2014,
the Company achieved a corporate milestone in delivering its JORC
MRE for the BIF 1 iron ore project. A total resource of 514.5Mt @
31.8% Fe was identified and total oxide resource of 55.5Mt @ 45.39%
Fe. In July 2015, the Company defined a JORC Exploration Target on
its Ferensola Gold Project. The Exploration Target centres on
Sanama Hill, with a tonnage range of between 5 and 7 million tonnes
("Mt"), grading at between 4 and 8 g/t Au, which equates to between
0.8 and 1.5 million ounces ("Moz") Au. The Exploration Target was
restricted to a 2km strike length segment of the regional fold belt
that is believed to extend for over 10km.
The information in this release that relates to Exploration
Results has been reviewed by Mr Howard Baker, Non-Executive
Technical Director of Sula. Mr Baker is a Chartered Professional
Fellow of the Australasian Institute of Mining and Metallurgy
(Membership Number 224239) and a Competent Person as defined by the
rules of International Reporting Codes that are aligned with
CRIRSCO.
Mr Baker therefore has sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration
and to the activity being undertaken to qualify as a Competent
Person as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration targets, Exploration Results, Mineral
Resources and Ore Reserves', also known as the JORC Code and as a
qualified person under the AIM Rules for Companies. The JORC code
is a national reporting organisation that is aligned with CRIRSCO.
Mr Baker consents to the inclusion in this announcement of the
matters based on his information in the form and context in which
they appear.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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