Gold Drill Results and Soil Sample Programme

RNS Number : 7574R

Sula Iron & Gold PLC

26 September 2017

 

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

26 September 2017

Sula Iron & Gold plc

("Sula" or the "Company")

High Grade Gold Drill Results and Successful Soil Sample Programme

Sula (AIM: SULA), the gold exploration company focused on Sierra Leone, is pleased to announce that the final assay results from the Phase 3 drill programme and "structural target" soil samples have been received for the 100% owned Ferensola Gold Project.

Highlights:

·  19.3 g/t Au over 1.2m in FDD035 at the Southern Target (TZ4), where four out of six holes drilled have returned good gold grades;

·   8.6 g/t Au over 2m in FDD038 at Sanama Hill;

·  7.5g/t over 0.7m in near surface oxide ore in FDD029 at Sanama Hill.  This is one of multiple oxide mineralisation intervals encountered; and

·  A regional soil sampling programme designed to ground-truth structural targets shows anomalous gold grades to the northeast of Sanama Hill and so provides a low cost means to highlight new untested gold zones.

Roger Murphy, Sula's CEO, commented:

"These high-grade results once more provide strong evidence that in Ferensola we have a serious gold province.  19.3g/t further confirms that the Southern Target is a quality stand-alone gold target with more than one style of mineralisation observed.  And again, we see evidence for high grade gold areas at Sanama Hill.  Equally the soil sampling programme validates our structural work and suggests that there are several other Sanama Hill & Southern Targets to be found on our licence. 

"As planned, Sula will now switch from a high-cost drilling phase and enter a period of low-cost analysis and review where further interpretation work will be done on the large volume of data now accumulated as a result of the drilling. During this period, and on cessation of the current wet season, we will continue with ad hoc lower cost field exploration at Ferensola.

In order to maximise the Company's exploration spend, and to further demonstrate the Board's commitment to the Company, the Board has agreed to defer all of its remuneration in cash for the foreseeable future.  During this period of data review, the Board will also assess the various strategic opportunities that have been presented to the Company to determine the best path to advance Sula and to provide the best return we can achieve for shareholders."

Phase 3 Drill Programme

Sula completed a 5,185m Phase 3 drilling programme in July 2017 which targeted areas of known high-grade mineralisation at Sanama Hill and the Southern Target, (TZ4). This brings drilling completed in 2017 to a total of 8,985m. 

Soil Sample Programme

Following a detailed structural review of the licence that identified a total of 19 target zones at Ferensola, a soil sampling programme was completed across 8 of the targets. Using a commonly employed low-detection bulk leach method, results show anomalous gold values within most of the targets. This exploration and accompanying assay method is therefore believed to provide a robust and low cost method of target generation going forward.

Assay Results

Highlights from these assays are:

·   Further high-grade mineralisation identified at the Southern Target with 19.3 g/t Au intersected in FDD035 between 287m and 288.2m. This intersection lies near extensive regional high-grade grab samples and mineralisation identified in trench number 11 completed by Sula in 2015. It is also around 600m from the 5.2 g/t Au encountered in FDD021 at the Southern Target and has a different structural orientation, which suggests multiple controls on mineralisation.  Four of the six holes drilled into the Southern Target have now returned good gold grades. This attests to the target's prospectivity;

·   High-grade mineralisation identified in FDD038 at the northern extents of the drilling completed at Sanama Hill. 8.6 g/t Au was returned from between 134m and 136m with the intersection being near high grade historic RAB assays and a high-grade oxide sample of 28.9 g/t Au that was returned from a re-assay of historic drill core; and

·    Further mineralisation observed from drillholes FDD028, FDD029, FDD030, FDD034, FDD036 and FDD037 at Sanama Hill and at FDD031 at the Southern Target.

Geological Interpretation Process Commenced, Conclusions to Follow

Sula's field work in 2017 has generated a significant quantity of geological data.  This data has been captured into a geological database for analysis and interpretation.  Interpretation of all the data collected at Ferensola through the three drill campaigns, the soil sampling, geophysics and other field activities is ongoing, and Sula intends to update the market on the conclusions of this work once it is completed. Sula intends to engage with third party geologists, expert in the field of Archaean Greenstone gold in Africa, who will assist in this process and review the exploration target and all other exploration data.

Figure 1 summarises the exploration carried out to date across the Sanama Hill and Southern Targets with Figure 2 showing the location and results from the soil sampling programme.

**ENDS**

For further information please contact:

For further information please contact:

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

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	FDD028	Sanama Hill	221313	1017770	601	65	100	426
2	FDD029	Sanama Hill	221398	1017806	598	55	115	284
2	FDD030	Sanama Hill	221438	1017845	618	70	110	296
2	FDD031	TZ4	221252	1015596	574	55	155	305
2	FDD032	Sanama Hill	220606	1017333	592	55	130	266
2	FDD033	TZ4	221252	1015536	542	55	155	366
2	FDD034	Sanama Hill	221245	1017730	525	60	115	392
2	FDD035	TZ4	220909	1015532	537	55	155	347
2	FDD036	Sanama Hill	221336	1017921	606	60	115	455
2	FDD037	Sanama Hill	221349	1018011	612	55	115	455
2	FDD038	Sanama Hill	221473	1018095	596	60	115	455
		TOTAL						5,185m

Table 2:                Summary of Sample Submission

Batch	Hole ID	Standard Half Core Samples	Blank Samples	Certified Reference Samples	Soil Samples
2	FDD028	190	4	10
2	FDD029	83	3	4
2	FDD030	119	4	6
2	FDD031	130	3	8
2	FDD032	-	-	-
2	FDD033	151	5	8
2	FDD034	108	2	6
2	FDD035	94	3	5
2	FDD036	202	5	10
2	FDD037	152	4	8
2	FDD038	264	7	14
2	SOIL				117
Total		1,493	40	79	117

Table 3:                Significant intersections from the batch 2 assays from drillholes FDD028 to FDD038. No samples were submitted for drillhole FDD032

Hole ID	From	To	Fresh / Oxide	Apparent Thickness (m)	True Thickness (m)	Au (g/t)
FDD028	0.0	1.5	Oxide	1.5	1.5	0.9
FDD028	220.0	221.0	Fresh	1.0	0.7	1.38
FDD028	223.0	224.0	Fresh	1.0	0.7	0.75
FDD028	297.0	298.0	Fresh	1.0	0.7	0.97
FDD029	5.5	6.3	Oxide	0.8	0.8	0.53
FDD029	30.8	31.4	Oxide	0.7	0.7	7.50
FDD029	116.0	120.0	Fresh	4.0	2.8	2.3
including	116.0	117.0	Fresh	1.0	0.7	2.7
including	119.0	120.0	Fresh	1.0	0.7	6.0
FDD030	7.6	18.1	Oxide	10.5	10.5	0.7
including	16.6	18.1	Oxide	1.5	1.5	2.1
FDD030	34.0	36.1	Oxide	2.2	2.2	1.7
FDD030	126.0	132.0	Fresh	6.0	4.2	2.1
FDD030	158.0	160.0	Fresh	2.0	1.4	1.6
FDD030	239.0	239.7	Fresh	0.8	0.5	0.6
FDD031	50.05	51.55	Oxide	1.5	1.5	0.61
FDD031	108	109.3	Fresh	1.3	0.9	0.50
FDD034	43.13	45.13	Oxide	2.0	2.0	1.54
FDD034	362	362.4	Fresh	0.4	0.3	0.57
FDD035	287	288.2	Fresh	1.2	0.8	19.3
FDD036	29.15	30.65	Oxide	1.5	1.50	0.94
FDD036	38.15	39.65	Oxide	1.5	1.50	0.62
FDD037	31.33	32.83	Oxide	1.5	1.5	1.36
FDD037	46.33	48.25	Oxide	1.9	1.9	1.75
FDD037	83	86.15	Fresh	3.2	2.2	1.02
FDD038	5.93	12.83	Oxide	6.9	6.9	0.74
FDD038	134	136	Fresh	2.0	1.4	8.61
including	134	135	Fresh	1.0	0.7	10.15
including	135	136	Fresh	1.0	0.7	7.06

http://www.rns-pdf.londonstockexchange.com/rns/7574R_-2017-9-25.pdf

Figure 1: Sanama Hill (left) graphical summary of drill intersections and Southern Target (right) drilling and regional sampling results

http://www.rns-pdf.londonstockexchange.com/rns/7574R_1-2017-9-25.pdf 

Figure 2: Summary of soil sampling results against the identified structural targets (0.0001 g/t Au detection limit)

Notes:

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.

** Ends **

 

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