Drill Rigs Arrive on-site at Dalakuru

RNS Number : 1339Y

Sula Iron & Gold PLC

01 March 2017

 

1 March 2017

Sula Iron & Gold plc

("Sula" or the "Company")

Ferensola Gold Project - Drill Rigs Arrive on-site at Dalakuru

Sula (AIM: SULA), the  gold exploration company focused on Sierra Leone, is pleased to announce, further to the announcement of 13 February 2017, that the two diamond drill rigs arrived yesterday at Sula's Dalakuru exploration camp on its Ferensola project site (the "Dalakuru Exploration Camp").

The two drill rigs and associated support equipment arrived at Freetown Port on 10 February 2017 and were subsequently transported to the Dalakuru Exploration Camp. 

The rigs are now being prepared by the drilling contractor, Equity Drilling Ltd ("Equity Drilling"), on-site in order to commence the Company's planned drill programme designed by Sula's Technical Director. A further announcement will be made once drilling commences. 

As previously announced, whilst the original plans contemplated the use of a single rig, Equity Drilling has mobilised two rigs for use at Ferensola, at no additional cost to Sula. Accordingly, we remain confident that the planned drill programme, originally envisaged to be 2,400m, will be completed expeditiously. 

Furthermore, Equity Drilling 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 shares of 0.35p), which will serve to assist the Company in conserving its cash resources. Sula continues to anticipate that, as a result of this financing deal and the additional rig, it will be able to drill more than 2,400m, thereby potentially enabling a larger JORC Exploration Target to be identified.  Sula's geologists have planned additional holes to capitalise on this opportunity.

A photograph of both drill rigs at the Dalakuru Exploration Camp is displayed via the link below:

http://www.rns-pdf.londonstockexchange.com/rns/1339Y_-2017-2-28.pdf

Roger Murphy, Sula's CEO, commented:

"I'm very pleased that the drill rigs have now arrived on-site at our Dalakuru Exploration Camp. Both our team and Equity Drilling will now work together to prepare the rigs for the forthcoming drill programme.  We are keen to start drilling at both Sanama Hill, where we already have a JORC-Compliant Exploration Target of 5-7Mt at 4-8g/t for 0.8-1.5Moz, and at the 4km long, high-conviction Eastern Target, that has not yet been drilled and which therefore currently has no confirmed gold mineralisation. We look forward to providing a further update in due course."

For further information, please visit www.sulaironandgold.com or contact:

Sula Iron & Gold plc Roger Murphy (CEO)	[phone]
Strand Hanson Limited (Financial and Nominated Adviser) James Harris / Matthew Chandler / James Dance	[phone]
VSA Capital Limited (Broker) Andrew Raca	[phone]

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

Note to editors:

Sula is a multi-commodity exploration company focused on Sierra Leone. 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 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.

 

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