Sula Iron & Gold PLC Operational and Corporate Update (1318K)
05 July 2017 - 4:00PM
UK Regulatory
TIDMSULA
RNS Number : 1318K
Sula Iron & Gold PLC
05 July 2017
SULA IRON & GOLD PLC
("Sula" or the "Company")
Operational and Corporate Update:
Phase 3 drilling samples dispatched for Assay
Sula (AIM: SULA), the gold exploration company focused on Sierra
Leone, is pleased to announce that:
-- Samples from the first three holes completed in its Phase 3
drill campaign have left Sierra Leone bound for assaying at ALS
Laboratories in Ireland;
-- Excellent drilling progress with six holes completed at
Sanama Hill for a total of over 2,000 metres ("m"), with the rigs
routinely achieving 100m per day;
-- Logging of the first six holes drilled at Sanama Hill is now
complete with a second batch of samples being planned for dispatch
in the coming weeks; and
-- One rig has been moved from Sanama Hill and has already
commenced drilling at the Southern Target TZ4, which is a new
discovery area made in the Phase 2 programme, where 5.2 grammes per
tonne ("g/t") of gold ("Au") over 1.22m was intersected in
drillhole FDD021.
Roger Murphy, Sula's CEO commented:
"I am delighted with the rapid progress we are making in this
Phase 3 drilling campaign which is ahead of schedule and I am
encouraged by the quartz -pyrite mineralisation that we are seeing
in the holes we have drilled so far. Results from the first batch
of assay are expected towards the end of July and we will update
the market at that time."
Detail of the Phase Three Drill Programme
362 samples from the first three holes of this third phase have
now left Sierra Leone and are due to arrive in Ireland for assaying
in the coming days. These samples have been taken from drillholes
FDD025, FDD026 and FDD027 that are located on the Sanama Hill
target within the Ferensola Gold Project. Figure 1 below shows the
location of the three drillholes which are collared to the west of
the existing drillholes and which target potential mineralisation
to the west and at depth extensions to the existing mineralisation.
Shear zone related quartz-pyrite mineralisation has been
intersected in all three drillholes with example mineralised core
shown in Figures 2, 3 and 4 below.
Sula anticipates that the assay results from these three
drillholes will be received towards the end of July 2017, depending
on the current laboratory turnaround time. In the meantime, logging
and sampling is being completed on drillholes FDD028, FDD029 and
FDD030 from Sanama Hill, with FDD031 currently being drilled at the
Southern Target, TZ4. FDD031 is targeting an extension to the
mineralisation previously identified in the 3,789m Phase 2 drilling
campaign completed in early May 2017 that returned an assay result
of 5.2 g/t Au over 1.22m. Subsequent batches of samples will be
dispatched to Ireland for assay over the coming weeks.
http://www.rns-pdf.londonstockexchange.com/rns/1318K_-2017-7-4.pdf
Figure 1: Location of drillholes FDD025, FDD026 and FDD027 at
Sanama Hill (left image: looking down, right image: looking
north)
http://www.rns-pdf.londonstockexchange.com/rns/1318K_-2017-7-4.pdf
Figure 2: Shear zone and quartz-pyrite mineralisation from
FDD025
http://www.rns-pdf.londonstockexchange.com/rns/1318K_-2017-7-4.pdf
Figure 3: Shear zone with haematite alteration and quartz-pyrite
mineralisation from FDD026
http://www.rns-pdf.londonstockexchange.com/rns/1318K_-2017-7-4.pdf
Figure 4: Shear zone with massive quartz-pyrite mineralisation
from FDD027
Issue of Equity
Sula further announces that it has issued 7,920,000 new ordinary
shares of 0.1p each in the Company ("Ordinary Shares") in
settlement of fees incurred over the last 6 months from a number of
its advisers. The Ordinary Shares were issued at price of 0.25p,
being the closing mid-market price on 30 June 2017.
Accordingly, application has been made for the new Ordinary
Shares to be admitted to trading on AIM ("Admission") and it is
expected that Admission will become effective and that dealings in
the New Ordinary Shares will commence at 8.00 a.m. on 7 July 2017.
The new Ordinary Shares will represent approximately 0.3 per cent.
of the Company's share capital as enlarged by the new Ordinary
Shares (the "Enlarged Share Capital"). The new Ordinary Shares will
rank pari passu in all respects with the Company's existing
Ordinary Shares and will be issued fully paid.
Following Admission, the Company's Enlarged Share Capital will
comprise 2,435,040,672 Ordinary Shares. This figure may be used by
shareholders as the denominator for the calculations by which they
may determine if they are required to notify their interest in, or
a change to their interest in, the Company under the Financial
Conduct Authority's Disclosure and Transparency Rules.
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
For further information, please contact:
Sula Iron & Gold plc
Roger Murphy (CEO) +44 (0) 20 7583 8304
WH Ireland Limited (Nominated
Adviser and Broker)
Paul Shackleton / James
Bavister +44 (0) 20 7220 1666
VSA Capital Limited (Broker)
Andrew Raca
Blytheweigh (Public Relations) +44 (0) 20 3005 5000
Camilla Horsfall/ Nick Elwes +44 (0) 20 7138 3224
Ongeza Mining (Financial
and Technical Adviser)
Iain Macpherson / Ilja Graulich +27 (0) 11 469 0629
This information is provided by RNS
The company news service from the London Stock Exchange
END
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