Ferensola Gold - Phase 3 Assay Results

RNS Number : 9547M

Sula Iron & Gold PLC

03 August 2017

 

  Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources

3 August 2017

Sula Iron & Gold plc

("Sula" or the "Company")

Ferensola Gold - Phase 3 Assay Results

Sula (AIM: SULA), the gold exploration company focused on Sierra Leone, is pleased to announce the Phase 3 drilling results from its recently completed 5,185 metre, 14 hole drill program across Sanama Hill.

The initial results comprising 336 drill core samples from 3 of the 14 drillholes FDD025, FDD026 and FDD027, are all located on Sanama Hill.

The three holes were designed to test the potential for downdip and southern extensions to the high-grade gold mineralisation encountered in FDD014 during the Phase 2 drilling campaign completed earlier in the year. The Company is pleased to report that the results from the first three holes have extended the continuity of gold mineralisation along strike and down dip.

Batch 1 Highlights:

·   The three holes have extended the continuity of gold mineralisation both along strike and down dip;

·   FDD025 intersected 6.9 g/t Au between 257.4m and 259m including 10.2 g/t Au between 258m and 259m;

·   FDD026 intersected 2.5 g/t Au oxide mineralisation between 0m and 1.2m;

·   FDD027 intersected 2.8 g/t Au between 294m and 297m, including 5.7g/t Au between 294.9m and 296m;

·   Drilling has confirmed vertical mineralisation continuity up to 300m from surface and remains open ended to depth; and

·   Sula has completed a soil sampling programme across eight targets identified in a recent structural study of the licence.

Samples from the remaining 11 drillholes are due to leave Freetown within the next week bound for the ALS assay testing laboratory in Ireland. In addition, Sula has completed a soil sampling programme across eight new targets identified during the Tect Geological Consulting ("Tect") structural study with 117 samples being collected for analysis.

Roger Murphy, Sula's CEO, commented:

"These are very pleasing results in their own right, but more importantly, with every hole we drill our understanding of Sanama Hill's gold endowment improves significantly.  These three holes have extended the continuity of gold mineralisation both along strike and most importantly down dip.  With another 11 holes still to report, we  hope this continuity will grow.  Once all the data is available we will undertake a detailed geological assessment and interpretation of Sanama and the licence as a whole that will drive the next stage of the project's development.

"The average of all our drilling to date has returned a minimum grade of 3.9 g/t over a true thickness of 2.0m with the potential for greater widths to be discovered. We look forward to reporting the results of the remaining 11 drill holes and the surface sampling programme in due course."

For further information please contact:

Sula Iron & Gold plc	[phone]
Roger Murphy (CEO)
WH Ireland Limited (Nominated Adviser and Broker)	[phone]
Paul Shackleton / James Bavister
VSA Capital Limited (Broker)	[phone]
Andrew Raca
Blytheweigh (Public Relations)	[phone]
Camilla Horsfall/ Nick Elwes
Ongeza Mining (Financial and Technical Adviser)	[phone]
Iain Macpherson / Ilja Graulich

Exploration Summary

The collar coordinates and collar dip and azimuth for all holes completed during Phase 3 are shown in Table 1 with the locations of the drillholes shown in Figure 1. Figure 2 shows the locations of the Batch 1 drillholes at Sanama Hill in more detail.

All samples are half diamond core and have been analysed by fire assay at ALS Laboratories in Ireland. As part of the sampling programme and along with the standard half core samples, Sula inserted certified reference samples and locally sourced blank samples. The samples submitted are summarised in Table 2.

Table 1:                Drillhole Collar Information

Batch	Hole ID	Target	Easting*	Northing*	Elevation*	Collar Dip	Collar Azimuth	Depth (m)
1	FDD025	Sanama Hill	221337	1017817	564	55	115	404
1	FDD026	Sanama Hill	221317	1017771	600	55	115	413
1	FDD027	Sanama Hill	221337	1017817	564	58	95	323
2 (Pending)	FDD028	Sanama Hill	221313	1017770	601	65	100	426
2 (Pending)	FDD029	Sanama Hill	221398	1017806	598	55	115	284
2 (Pending)	FDD030	Sanama Hill	221438	1017845	618	70	110	296
2 (Pending)	FDD031	TZ4	221252	1015596	574	55	155	305
2 (Pending)	FDD032	Sanama Hill	220606	1017333	592	55	130	266
2 (Pending)	FDD033	TZ4	221252	1015536	542	55	155	366
2 (Pending)	FDD034	Sanama Hill	221245	1017730	525	60	115	392
2 (Pending)	FDD035	TZ4	220909	1015532	537	55	155	347
2 (Pending)	FDD036	Sanama Hill	221336	1017921	606	60	115	455
2 (Pending)	FDD037	Sanama Hill	221349	1018011	612	55	115	455
2 (Pending)	FDD038	Sanama Hill	221473	1018095	596	60	115	455
		TOTAL						5,185m

*drill collars will be surveyed by accurate differential GPS in the coming weeks

Table 2:                Summary of Sample Submission

Batch	Hole ID	Standard Half Core Samples	Blank Samples	Certified Reference Samples
1	FDD025	136	4	7
1	FDD026	125	3	6
1	FDD027	75	2	4
Total		336	9	17

http://www.rns-pdf.londonstockexchange.com/rns/9547M_-2017-8-2.pdf

Figure 1: Phase 3 drillhole location map with the Phase 3 drillhole collars coloured red

http://www.rns-pdf.londonstockexchange.com/rns/9547M_1-2017-8-2.pdf

Figure 2: Drillhole location map highlighting drillholes FDD025, FDD026 and FDD027 at Sanama Hill (Blue collars, EOH = End of Hole)

Batch 1 Results

Table 3 shows a summary of the significant assay intervals from FDD025, FDD026 and FDD027. Figure 3 shows the assay intervals returned from drillholes FDD025 and FDD027 along with assays from previous drilling campaigns. Figure 4 shows the location of the oxide assay interval returned from FDD026 and Figure 5 shows the core samples from holes FDD025, FDD026 and FDD027. Logging of the core within the fresh mineralised zones of FDD025 and FDD027 shows a quartz-pyrite breccia, similar to mineralisation observed previously.

Structural logging of the fresh drill core indicates that at depth, the orientation of the mineralised shear zone dips to the east-northeast at approximately 85°, being the opposite direction to the more typical west-northwest dip. This results in a true thickness correction factor of approximately 55% of the apparent thickness.

Table 3:                Significant intersections from holes FDD025, FDD026 and FDD027           

Hole ID	From	To	Apparent Thickness (m)	True Thickness (m)	Au (g/t)
FDD025	257.4	259.0	1.6	0.9	6.9
including	258	259	1.0	0.6	10.2
FDD026	0.0	1.2	1.2	1.2	2.5
FDD027	294.0	297.0	3.0	1.5	2.8
including	294.9	296.0	1.1	0.6	5.7

Batch 2

Batch 2, comprising samples from drillholes FDD028 to FDD038 and a soil sampling programme of targets identified through the Tect structural study will depart Freetown shortly for assay at ALS Laboratories. The remaining Sanama Hill drillholes continued to target depth and lateral extensions to the high-grade zone identified through drillhole FDD014 with strike extensions to the Sanama Hill mineralisation being tested to the north through drillholes FDD037 and FDD038 (Figure 1 and Figure 2). Three drillholes were completed at the Southern Target, TZ4, and a single scout drillhole was completed to the southwest of Sanama Hill (FDD032) to test one of the high IP-resistivity anomalies.

Figure 6 shows the locations of the soil samples collected set against the Tect structural targets. Of note, area 18 was observed to be located at an area of active and extensive artisanal workings, as shown in Figure 7.

Batch 2 results are expected to be received by mid-September.

http://www.rns-pdf.londonstockexchange.com/rns/9547M_2-2017-8-2.pdf

Figure 3: FDD025 and FDD027 mineralised intervals

http://www.rns-pdf.londonstockexchange.com/rns/9547M_3-2017-8-2.pdf

Figure 4: FDD026 mineralised interval

http://www.rns-pdf.londonstockexchange.com/rns/9547M_4-2017-8-2.pdf

Figure 5: Mineralised drill core from FDD025 (top), FDD026 (middle) and FDD027 (bottom)

http://www.rns-pdf.londonstockexchange.com/rns/9547M_5-2017-8-2.pdf

Figure 6: Soil sample locations shown by green dots (Area 1 = Sanama Hill, Areas 5 and 16 = TZ4)

http://www.rns-pdf.londonstockexchange.com/rns/9547M_6-2017-8-2.pdf

Figure 7: Artisanal mining activity at soil sampling Area 18

**ENDS**

Notes:

Sula Iron & Gold plc is a gold focused exploration company in West Africa. The Company's main objective is to explore and advance its 153km² Ferensola Project in Northern Sierra Leone. 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.

The potential quantity and grade is conceptual in nature and there has been insufficient exploration to estimate a JORC compliant Mineral Resource and it is uncertain if further exploration will result in the estimation of a JORC compliant Mineral Resource.  In SRK's opinion, the historical exploration data reviewed and verified here, is sufficient in both quality and quantity for an Exploration Target as defined by the JORC Code to be defined. 

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.

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

** Ends **

 

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