Quarterly Activity Report

RNS Number : 8110C

Sula Iron & Gold PLC

22 January 2015

 

22  January 2015

Sula Iron & Gold plc

("Sula" or the "Company")

Quarterly Activity Report

Issue 1

Maiden JORC Compliant Mineral Resource Estimate delivered on time and under budget

c£1.2million raised to progress coltan and gold projects

Positive initial results from SRK fieldwork for coltan

Sula Iron & Gold plc, the exploration and development company focused on iron ore, gold and coltan in Sierra Leone, is pleased to provide shareholders with the Company's first Quarterly Activity Report, which will be issued to the market every three months, following the Company's most active period since inception.

Operational Highlights:

•    Maiden JORC Compliant Mineral Resource Estimate ("MRE") prepared by SRK in December 2014 which exceeded expectations with total resource of 514.5Mt @ 31.8% Fe and total oxide resource of 55.5Mt @45.39%;

•    MRE also identified an exploration target comprising an additional 100Mt to 250Mt, with a grade range of between 20% Fe and 35% Fe that lies below the optimised pit shell;

•    Successful fundraising in November and December 2014 raising total funds of c£1.2m;

•    Fieldwork carried out by Sula technicians confirms high grade samples of coltan found along streams that flow from deeper within the licence area.

Outlook for 2015

·     Further gold and coltan exploration with the objective of progressing both projects to drilling stage;

·     Identify joint venture partner and subsequently generate value from the iron ore project now exploration on BIF1 is completed;

·     Establish joint venture partner for gold project; and

·     Maintain and progress discussions with potential off-taker for the coltan project.

NB. The Mineral Resource quoted above occurs entirely within the licence boundary and within an optimised pit shell though the pit shell itself was not constrained by licence boundary limitations.

Commenting Nick Warrell, CEO of Sula, said:

"The last few months have seen the Company achieve a major corporate milestone within the time and budget originally outlined in our strategy, as well as the confirmation that the area is highly prospective for coltan mineralization. We are delighted with the achievements made and as we start 2015 excited to progress our highly prospective gold and coltan projects with the funds secured in late 2014. With regards to the iron ore, we are proud to have delivered the positive MRE on time and under budget, and will now work towards establishing a joint venture partner to generate value from the project.

"I would also like to take this opportunity to explain in non-technical terms what the MRE released on 16 December 2014 signified. SRK confirmed that from the metallurgical test work undertaken it demonstrates that a saleable product can be generated from the oxide zones.  SRK has also recommended that we drill six additional holes, at a depth of approximately 150m, totaling 900m, which would add an additional 100Mt to 250Mt to the resource. 

"SRK, with its past experience and knowledge of similar West African ore bodies, believes that there will be no geological changes in the fresh magnetite BIF and the higher figure is achievable.  There is no faulting or shearing or oxidization in the drilled magnetite to date which gives them the confidence to make the statement that they have made."

To view a full version of the MRE announcement, please visit the Company's website at: www.sulaironandgold.com.

Sula Iron & Gold plc Nick Warrell / Matt Wood		[phone]
Cairn Financial Advisers LLP (Nominated Adviser) James Caithie / Avi Robinson		[phone]
VSA Capital Limited (Broker) Bhavesh Patel / Richard Buckle		[phone]
Strand Hanson (Financial Adviser) Simon Raggett / James Harris		[phone]
Yellow Jersey PR (Financial PR) Dominic Barretto / Kelsey Traynor		[phone]

 

END

 

 

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