Update re Ferensola Gold Project

RNS Number : 1515P

Sula Iron & Gold PLC

15 November 2016

 

15 November 2016

Sula Iron & Gold plc

("Sula" or the "Company")

Update re Ferensola Gold Project

Visible Gold from Eastern Target IP Anomaly and Manual Trenching Programme Commenced

Sula (AIM: SULA), the multi-commodity exploration company focused on Sierra Leone, is pleased to announce that visible gold has been recovered from weathered iron oxide / quartz samples ("goldstones") that were collected from a road exposure that cross-cuts the large Eastern Target (TZ2) Induced Polarisation (IP) anomaly. The samples were crushed and panned.

Significantly, the samples and gold recovered are located from an area where no previous samples have been recovered to date and where the location can be directly correlated to the IP anomaly, which is believed to represent a substantial source of metallic sulphides, which elsewhere on the Ferensola property are associated with gold. As such, the Board has further confidence that the Ferensola Gold Project has far greater potential than the Company's currently defined Exploration Target.

Sula has collected additional samples from the location which will be assayed at a later date and has also commenced a manual trenching programme over select targets across the TZ2 IP anomaly.

Roger Murphy, Sula's CEO, commented:

"We are again delighted with the news flow from our work on Ferensola. This latest data provides the first confirmation that the large Eastern Target, that is outside the existing JORC Exploration Target, contains gold mineralisation. This finding further confirms that IP is a valid and efficient means of directing our exploration programmes and provides further comfort as we move towards drilling the Eastern Target. The success and low cost of trenching and sampling activities compared to drilling, is also pleasing." 

Highlights:

·   Visible gold recovered from two quartz rich iron oxide samples collected from a road exposure that cross cuts the TZ2 Eastern Target IP anomaly.

·   Mineralisation styles observed are identical to previous samples collected that are believed to represent the oxidised form of the high grade brecciated quartz pyrite that hosts the regional gold mineralisation.

·   Manual trenching across select IP targets commenced.

For more detailed information, refer to the section entitled "Sula Exploration Programme" below and visit the Company's website at www.sulaironandgold.com which shows this news release inclusive of images and photographs.

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)	[phone]
Strand Hanson Limited (Financial and Nominated Adviser)
James Harris / Mathew Chandler / James Dance	[phone]
VSA Capital Limited (Broker)
Andrew Raca	[phone]

Notes:

Sula Iron & Gold plc is a multi-commodity exploration company focused on West Africa. The Company's main objective is to explore and advance its 153km² 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 June 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.

An Exploration Target is a statement or estimate of the exploration potential of a mineral deposit in a defined geological setting where the statement or estimate, quoted as a range of tonnes and a range of grade (or quality), relates to mineralisation for which there has been insufficient exploration to estimate a Mineral Resource.

The information in this release that relates to Exploration Results has been reviewed by Mr Howard Baker, Non-Executive Technical Director of Sula Iron and Gold plc. 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.

Howard Baker 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. The JORC code is a national reporting organisation that is aligned with CRIRSCO. Howard Baker consents to the inclusion in the announcement of the matters based on his information in the form and context in which they appear.

Sula Exploration Programme

Following the completion of our IP survey, where six IP anomalies interpreted to be associated with potentially mineralised sulphides were identified over a strike length of 8.5km, Sula identified potential locations where the local infrastructure could have exposed evidence of mineralisation. Of note, a road to the south of the town of Dalakuru was observed to pass through the large TZ2 Eastern Target IP anomaly in an area where some of the strongest IP readings were recorded. Figure 1 shows the location of the samples collected in relation to the modelled IP anomalies and the regional samples collected to date. As shown, the location of the samples directly correlates to the large TZ2 IP anomaly.

http://www.rns-pdf.londonstockexchange.com/rns/1515P_-2016-11-14.pdf

Figure 1: Sample locations and modelled IP anomaly

Figure 2 shows sample 1 and the recovered panned concentrate and visible gold. The samples collected are believed to represent the fully oxidised brecciated quartz pyrite that is known to be associated with gold mineralisation in the region and has been confirmed through the November 2015 drilling campaign completed by Sula (the results of which were announced on 14 December 2015).

Similar samples have been collected from across the licence including from trenches made by Sula that overlie the Sanama Hill 2015 drill site and as such, Sula is confident that the new samples collected represent a similar mineralised system that has been identified through the completed IP survey. Sula observes that the new samples collected are believed to be close to source of mineralisation given the association with the IP anomaly and the style of mineralisation observed.

http://www.rns-pdf.londonstockexchange.com/rns/1515P_1-2016-11-14.pdf

Figure 2: Visible gold from crushing and panning of sample 1

Figure 3 shows sample 2 and the recovered panned concentrate and visible gold

http://www.rns-pdf.londonstockexchange.com/rns/1515P_2-2016-11-14.pdf

Figure 3: Visible gold from crushing and panning of sample 2

Sula is further pleased to report that a manual trenching programme has commenced across selected targets identified throughout the IP anomaly. The trenching, whilst not aimed to excavate ground to significant depth due to the hard laterite cap prevalent in the area, is believed to be suitable for identifying signs of near surface mineralisation that could be correlated to the underlying IP anomaly.

Please see the Company's website at www.sulaironandgold.com for images and figures

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