Operational Update

RNS Number : 8759H

Sula Iron & Gold PLC

13 June 2017

 

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

13 June 2017

Sula Iron & Gold plc

("Sula" or the "Company")

Operational Update: Phase 3 drilling commences; structural survey identifies new targets and assay results

Sula (AIM: SULA), the gold exploration company focused on Sierra Leone, is pleased to announce that:

·     phase 3 drill programme has commenced;

·     17 new target zones for gold mineralisation have been identified through a structural geology review by a leading independent expert commissioned by Sula; and

·     the last of Batch Two assay results have been returned.

Phase 3 Drill Programme

Following an initial 1,500m programme carried out in 2015 and the recently completed 3,800m scout programme, Sula will focus Phase 3 drilling on areas of known high grade mineralisation. This drilling programme started on Monday 12 June 2017. The new 5,000m drilling contract with Equity Drilling ("EQD") is focusing primarily on the Sanama Hill and Southern Targets utilising drill rigs that are on site and which were used for the recently completed 3,800m programme. Sanama returned values of up to 15.9 g/t over 3.2m, within 3.65g/t over 21m in the most recent drill programme while the Southern Target showed 5.2g/t over 1.2m.

As previously announced, the programme will aim to extend and infill the areas of known high grade mineralisation and to improve the confidence in the geological interpretation and support a more accurate determination of the contained gold.

17 New Targets from Detailed Structural Survey

A detailed structural review of the licence has been completed by Tect Geological Consulting ("Tect") with the identification of a total of 19 target zones at Ferensola, including both Sanama Hill and the Southern Target. See Figure 1 below for detail demonstrating the range of identified targets. Tect have worked on projects in Sierra Leone and elsewhere in Africa with a similar structural setting to that observed at Ferensola.

http://www.rns-pdf.londonstockexchange.com/rns/8759H_-2017-6-12.pdf

Figure 1: Tect regional structural interpretation target definition

Assay Results

Sula is pleased to report that all assay results have now been received from the recently completed 3,800m drill programme. Highlights from these assays are:

·     confirmation of a new mineralised system at the newly identified TZ4 Southern Target, where FDD023 intersected two true thickness intervals of 0.8m grading 1.59g/t and 1.79g/t. These hits are 135m distant from the previously reported discovery hole FDD021 (5.2g/t over 1.22m) and so provide evidence of potential to establish lateral continuity of mineralisation;

·     a new zone of mineralisation beneath the Kuwait artisanal area from the underlying fresh material where FDD024 hit a true thickness interval of 0.8m at 2.13g/t between 63m and 64m down the hole; and

·     further evidence of gold mineralisation at Sanama Hill where FDD020 hit true thickness intervals of 1.3m at 0.97g/t and 1.8m at 1.48g/t. With this result, 10 of the 14 drill holes into Sanama Hill have returned mineralisation with an average of 2.05m at 3.9 g/t (average true thickness and length-weighted grade).

Roger Murphy, Sula's CEO, commented:

"This drill programme has continued to prove our confidence in Sanama Hill, demonstrating that there are thick high-grade pay-shoots to be found. Our success at the Southern Target has confirmed our belief in the regional potential of the Ferensola licence and the exciting results of the independent structural survey once again demonstrates the validity of our vision for Ferensola and confirms that there are many other areas that merit detailed investigation for gold mineralisation that we will be adding to future programmes.

I am pleased to be able to commence our Phase 3 drill programme so quickly and well before the start of the rainy season. I am confident that this drilling programme, taken together with the results from the previous two drill programmes, will continue to take this project towards the potential that we have always seen."

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

Exploration Summary

Figure 2 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/8759H_-2017-6-12.pdf

Figure 3 below shows the location of the TZ0 (Sanama Hill), TZ2 (Eastern Target) and TZ4 (Southern Target) with a view from the south of TZ4 looking north towards Sanama Hill.

http://www.rns-pdf.londonstockexchange.com/rns/8759H_-2017-6-12.pdf

The collar coordinates and collar dip and azimuth for the recently completed 3,783m drill programme are shown in Table 1 with the locations of the drillholes shown in Figure 4 where they are set against the magnetic anomaly and Induced Polarisation ("IP") chargeability data.

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:           DGPS Drillhole Collar Information

Assay Batch	Hole ID	Target	Easting	Northing	Elevation	Collar Dip	Collar Azimuth	Depth (m)
1	FDD011	TZ2	221918	1016499	568.4	55	130	305.5
1	FDD012	TZ2	222129	1016679	621.3	55	130	385.5
1	FDD013	TZ2	222012	1016603	602.0	55	131	309.5
1	FDD014	Sanama Hill	221396	1017822	605.5	60	115	196.8
1	FDD015	TZ2	222421	1017091	654.6	55	130	329.5
2	FDD016	TZ2	222485	1017034	675.7	55	130	155.3
2	FDD017	Sanama Hill	221594	1017683	603.5	55	120	352.6
2	FDD018	TZ2	222003	1016427	576.5	55	130	158.2
2	FDD019	TZ2	221873	1016533	562.1	55	130	158.5
2	FDD020	Sanama Hill	221368	1017657	560.1	55	110	298.9
2	FDD021	TZ4	221393	1015423	600.9	55	150	155.4
2	FDD022	Sanama Hill	221537	1017325	527.9	55	130	331.5
2	FDD023	TZ4	221261	1015399	606.8	55	130	332.4
2	FDD024	Kuwait (TZ2)	221381	1016524	528.8	55	130	313.7
		TOTAL						3,783m

Table 2:           Summary of Sample Submission

Batch	Hole ID	Standard Half Core Samples	Blank Samples	Certified Reference Samples
2	FDD016	119	3	6
2	FDD017	110	3	5
2	FDD018	111	3	6
2	FDD019	123	3	6
2	FDD020	85	1	4
2	FDD021	81	3	4
2	FDD022	124	3	7
2	FDD023	124	3	7
2	FDD024	207	6	11
Total		1084	28	56

http://www.rns-pdf.londonstockexchange.com/rns/8759H_-2017-6-12.pdf

Figure 4: Location of drillholes comprising the Batch 2 samples (including FDD016 and FDD021 previously reported)

Table 3 shows the significant intersections returned from the Batch 2 assays with Figure 5, Figure 6 and Figure 7 showing the locations of the assay results at their respective locations of Sanama Hill, the TZ4 southern target and the Kuwait artisanal mining area.

The true thickness of each interval has been determined from the structural data recorded from the intersection which provides the dip and dip direction of the structure.

Table 3:           Significant intersections from Batch 2

Hole ID	From	To	Apparent Thickness (m)	True Thickness (m)	Au (g/t)
FDD016	-	-	-	-	-
FDD017	-	-	-	-	-
FDD018	-	-	-	-	-
FDD019	-	-	-	-	-
FDD020	72.4	74.0	1.6	1.3	0.97
	80.8	83.0	2.2	1.8	1.48
FDD021	116.5	117.7	1.2	1.2	5.20
Including	116.45	117	0.55	0.55	3.7
	117	117.67	0.67	0.67	6.4
FDD023	118.0	119.0	1.0	0.8	1.59
	153.5	154.5	1.0	0.8	1.79
FDD024	63	64	1	0.8	2.13

Figure 5 shows the intersections from FDD020 with Table 4 summarising all Sanama Hill mineralised intervals returned to date. Based on an approximate cut-off grade of 0.5g/t Au, the mineralised true thickness equates to 2.05m with a length weighted average grade of 3.88g/t Au. Mineralisation is observed across multiple sub parallel strands. In total, 14 drillholes have been completed at Sanama Hill with significant mineralisation observed in 10 of the holes completed.

Mineralisation at Sanama Hill appears to be associated with a high resistivity anomaly which is believed to be related to the increased quartz content within the major intersections being particularly evident in FDD002, FDD004 and the recently completed FDD014 which reported a true thickness of 21m at 3.65g/t.

Sula completed two drillholes at the TZ4 Southern target with both FDD021 and FDD023 returning mineralised intervals. In addition to the drillholes completed by Sula, SDD013 completed by the previous licence holders returned an oxide sample of 1.72g/t over an apparent thickness of 6.45m. The true thickness of the historical intersection is unknown due to the oxide nature of the sample and the unknown dip of the mineralisation in this area. As shown in Figure 6, the TZ4 mineralised intersections correspond with an IP Chargeability high and lies near high-grade grab samples collected in the area surrounding TZ4 which is the site of intensive artisanal mining activities.

Figure 7 shows the location of FDD024 completed at the Kuwait artisanal mining area. The site was selected due to the location of intense artisanal mining and the location of a high resistivity zone similar to that observed at Sanama Hill. FDD024 returned a 2.13g/t sample between 63 and 64 m.

http://www.rns-pdf.londonstockexchange.com/rns/8759H_-2017-6-12.pdf

Figure 5: Location of the FDD020 intersections at Sanama Hill along with the locations of the FDD017 and FDD022 drill collars

Table 4:           Sanama Hill Intersection Summary

Hole ID	From	To	Apparent Thickness (m)	True Thickness (m)	Au (g/t)
FDD001	120	122.45	2.45	2.01	3.25
FDD001	139	140.7	1.7	1.39	1.03
FDD001	147.15	148.05	0.9	0.74	11.56
FDD001	160	161	1	0.82	10.58
FDD001	165	166	1	0.82	0.67
FDD002	19	24	5	3.83	1.72
FDD002	83.8	88	4.2	3.22	3.05
FDD003	51.3	54	2.7	1.91	2.29
FDD003	57.47	58.1	0.63	0.45	3.52
FDD003	75.9	76.4	0.5	0.35	1.03
FDD004	102.5	105.2	2.7	1.74	2.26
FDD004	109.2	114.25	5.05	3.25	4.93
FDD004	120.2	123.6	3.4	2.19	3.98
FDD005	60.4	61.4	1	0.71	0.85
FDD005	97.4	98.1	0.7	0.49	0.55
FDD005	120	120.5	0.5	0.35	12.05
FDD005	129	130	1	0.71	0.84
FDD005	131.8	132.5	0.7	0.49	3.88
FDD005	136	138	2	1.41	0.80
FDD005	155.3	156.3	1	0.71	3.54
FDD005	158.65	159.65	1	0.71	1.30
FDD008	21	23.4	2.4	1.97	5.66
FDD008	29.4	30.1	0.7	0.57	1.60
FDD008	55.3	56	0.7	0.57	1.24
FDD008	70	72	2	1.64	0.86
FDD009	96	97.5	1.5	1.23	0.64
FDD009	133.9	134.8	0.9	0.74	1.28
FDD010	27	28	1	0.82	1.13
SDD004	82.9	99.66	16.76	7.08	10.72
SDD016	169.8	174.1	4.3	1.82	5.25
SDD033	164.8	170.1	5.3	4.34	3.42
FDD014	2.93	4.53	1.6	1.03	0.53
FDD014	48.03	49.53	1.5	0.96	2.31
FDD014	122.85	155.45	32.6	20.95	3.65
FDD014	185	186.18	1.18	0.76	6.78
FDD020	72.35	73.98	1.63	1.34	0.97
FDD020	80.84	83	2.16	1.77	1.48
Average True Thickness and Length Weighted Grade				2.05	3.88

http://www.rns-pdf.londonstockexchange.com/rns/8759H_-2017-6-12.pdf

Figure 6: Location of the FDD021, FDD023 and historical SDD013 intersections at the TZ4 Southern Target set against the modelled IP data

http://www.rns-pdf.londonstockexchange.com/rns/8759H_-2017-6-12.pdf 

Figure 7: Location of the FDD024 intersection at the Kuwait artisanal mining area

Structural Review

Sula commissioned a review of all data collected to date by Tect Geological Consulting. Tect is a group of structural geologists who specialise on the link between structural geology and mineralisation. They have worked on gold mineralisation in Sierra Leone and several other West African countries for a number of companies.  Tect focussed on the regional geology, geophysical data and structural data collected during the two drill campaigns completed by Sula along with the assay results and core photographs.

Based on the work completed, and shown in Figure 8, Tect identified 19 targets that are deemed suitable structural traps for gold mineralisation as well as creating an interpretation of the regional shear zone network within the licence.

Of the 19 targets identified, Target 1 corresponds with Sanama Hill and Targets 5 and 16 correspond with the TZ4 Southern Target. Several of the other targets are also corroborated by artisanal activity or soil geochemistry.

The work completed by Tect will be used to guide future exploration campaigns.

http://www.rns-pdf.londonstockexchange.com/rns/8759H_-2017-6-12.pdf

Figure 8: Tect regional structural interpretation target definition

Notes:

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

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.

** Ends **

 

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