High Grade Gold Intersected at Southern Target TZ4

RNS Number : 3463H

Sula Iron & Gold PLC

07 June 2017

 

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

7 June 2017

Sula Iron & Gold plc

("Sula" or the "Company")

High grade gold intersected at Southern Target TZ4 - a new discovery area

Sula (AIM: SULA), the gold exploration company focused on Sierra Leone, is delighted to announce the first results from batch 2 of its recently completed 3,783m, 14 hole drill program across Sanama Hill (TZ0), Eastern Target (TZ2), Southern Target (TZ4) and the Kuwait artisanal anomaly on its Ferensola Gold Project.

Highlights

·     5.2g/t over 1.22m from drill hole FDD021, the first hole drilled into TZ4, the Southern Target;

·     The Southern Target is a new discovery area at Ferensola, drilled by Sula for the first time.

The Southern Target is adjacent to TZ2, the Eastern Target, and around 2km South from Sula's Sanama Hill, where assay results have already returned high-grade gold.  The gold in FDD021 was recovered from a quartz pyrite shear zone, very strongly resembling the host for gold mineralisation previously found at Sanama Hill, where multiple such shears have been found.  Additionally, logging shows that the gold-bearing shear on FDD021 dips at 38° to the WNW.  This shallow dip angle could make the mineralisation more amenable to potential open pit mining in the future. 

Roger Murphy, CEO of Sula commented: "The high-grade gold found in TZ4 is a significant result for us.  With this hole, we have demonstrated that gold mineralisation is not restricted to Sanama Hill and it supports our belief, based on our extensive geophysical work, and the intense artisanal activity in numerous sites across the licence, that there are multiple gold deposits across our Ferensola licence area.  Whilst recognising that FDD021 is the first result we have received from TZ4, it is worth noting that the Southern Target is much longer than Sanama (see figure 3), where we already have an Exploration Target of 0.8m oz - 1.5m oz. This further demonstrates our strong belief that Ferensola hosts a significantly larger gold system than the original Exploration Target."

Figure 1 below shows the location of the Ferensola Licence and the drillhole collars set against the regional magnetic anomaly and interpreted regional shear zones and artisanal workings.

http://www.rns-pdf.londonstockexchange.com/rns/3463H_1-2017-6-6.pdf

Figure 2 below shows the location of the TZ0 (Sanama Hill), TZ2 (Eastern Target) and TZ4 (Southern Target) with the core from the high-grade intersection from FDD021 highlighted.

http://www.rns-pdf.londonstockexchange.com/rns/3463H_1-2017-6-6.pdf

Results have also been received for FDD016, located to the east of FDD015 on TZ2, the Eastern Target. No significant assays were returned from this hole.

Assay results from the remaining seven holes will be released as and when they become available.

Exploration Summary

Sula recently completed a 3,783 metre 14 hole drill program across Sanama Hill (TZ0), Eastern Target (TZ2), Southern Target (TZ4) and the Kuwait artisanal anomaly on its Ferensola Gold Project.

The collar coordinates and collar dip and azimuth are shown in Table 1 below with the locations of the drill holes shown in Figure 3 below where they are set against the magnetic anomaly and Induced Polarisation ("IP") chargeability data. FDD016 and FDD021 have been highlighted.

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.

Table 1:                Drillhole Collar Information

Batch	Hole ID	Target	Easting	Northing	Elevation	Collar Dip	Collar Azimuth	Depth (m)
1	FDD011	TZ2	221917	1016498	571	55	130	305.5
1	FDD012	TZ2	222130	1016681	615	55	130	385.5
1	FDD013	TZ2	222011	1016603	603	55	131	309.5
1	FDD014	Sanama Hill	221396	1017820	606	60	115	196.8
1	FDD015	TZ2	222420	1017092	650	55	130	329.5
2	FDD016	TZ2	222486	1017035	670	55	130	155.3
2 (Pending)	FDD017	Sanama Hill	221593	1017685	607	55	120	352.6
2 (Pending)	FDD018	TZ2	222002	1016427	579	55	130	158.2
2 (Pending)	FDD019	TZ2	221873	1016534	564	55	130	158.5
2 (Pending)	FDD020	Sanama Hill	221366	1017662	570	55	110	298.9
2	FDD021	TZ4	221392	1015424	606	55	150	155.4
2 (Pending)	FDD022	Sanama Hill	221537	1017325	535	55	130	331.5
2 (Pending)	FDD023	TZ4	221263	1015400	610	55	130	332.4
2 (Pending)	FDD024	Kuwait (TZ2)	221381	1016526	532	55	130	313.7
		TOTAL						3,783m

Table 2 summarises the key intersections.

Table 2:                Significant intersections from FDD016 and FDD021         

Hole ID	From	To	Apparent Thickness (m)	True Thickness (m)	Au (g/t)
FDD016	-	-	-	-	-
FDD021	116.45	117.67	1.22	1.22	5.2
Including	116.45	117	0.55	0.55	3.7
	117	117.67	0.67	0.67	6.4

http://www.rns-pdf.londonstockexchange.com/rns/3463H_1-2017-6-6.pdf

Figure 3: Drillhole location map highlighting holes FDD016 and FDD021

Figure 4 below shows a more detailed view of the Southern Target (TZ4) and the location of FDD021. Figure 4 also shows the location of some Sula trench assays which reported (17^th July 2015) two zones of mineralisation from 224m to 228m and from 264m to 268m with grades of 3.28 g/t and 2.54 g/t respectively, the locations of regional grab samples collected by Sula, which include a previously reported quartz pyrite sample of 69.2g/ Au, and the locations of historic drill holes, which includes 6.45m at 1.72g/t Au from an oxide intersection in hole SDD013. The IP anomaly data, which is coincident with a magnetic anomaly, has a strike length of approximately 1km and displays a shallower dip and is replicated in the high-grade intersection from FDD021. The structural logging shows the intersection to be dipping at 38° to the WNW, being significantly shallower angle than the mineralisation at Sanama Hill. The shallow dip and perpendicular intersection has also resulted in the true thickness being the same as the apparent thickness.

http://www.rns-pdf.londonstockexchange.com/rns/3463H_1-2017-6-6.pdf

Figure 4: Southern Target (TZ4) showing the location of FDD021, Sula trench assays, regional grab samples, IP Chargeability data and historic drill holes

**ENDS**

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]
Ongeza Mining (Financial and Technical Adviser)
Iain Macpherson / Ilja Graulich	[phone]

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.

 

END

 

 

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