TIDMSULA
RNS Number : 4135N
Sula Iron & Gold PLC
26 October 2016
26 October 2016
Sula Iron & Gold plc
("Sula" or the "Company")
Ferensola Gold Project - Final IP Survey Results
26 October, 2016, London. Sula (AIM: SULA), a multi-commodity
exploration company focused on Sierra Leone, is pleased to announce
that, based on additional geophysical work recently completed, the
Board believes that the Company's wholly owned flagship Ferensola
Gold Project, located in central Sierra Leone, has greater
potential than the Company's currently defined Exploration
Target.
Further to the Company's announcement of 1 June 2016, the final
results from an induced polarisation (IP) survey conducted over a
portion of the Ferensola license area, confirm that the licence has
larger scale gold prospectivity than previously announced, which
could potentially lead to a material increase in the Company's
current JORC-compliant Exploration Target of 0.8 to 1.5Moz (derived
from 5-7Mt at 4-8g/t gold).
Roger Murphy, Sula's CEO designate, commented: "I am delighted
with these results, which support our belief that Ferensola could
host a significant gold resource. The IP survey further highlights
the growing confidence in our activities with every new phase of
work, corroborating our technical understanding of the project and
supports the mineralisation potential within areas previously
sampled by Sula."
Sula completed a maiden drilling campaign in November 2015,
which targeted historic high grade intersections on the Sanama Hill
prospect within the 153km(2) Ferensola licence and confirmed that
the mineralisation is associated with the magnetic and IP
anomalies. The new IP results are significantly stronger and more
continuous beyond the original drilling programme and Exploration
Target.
Commenting further, Mr Murphy said: "This suggests that other
areas may be at least as prospective as Sanama Hill, which hosts
the current Exploration Target. The IP results, particularly in the
identification of significantly stronger anomalies to those
recorded over the November 2015 drill programme, will provide the
framework for a forthcoming drilling campaign. Subject to funding,
we plan to continue with additional IP survey work over the larger
licence area in due course."
"The survey indicates a significant potential mineralisation
footprint and it is clear that multiple targets exist within the
Ferensola licence. It is apparent from this survey that these
targets highlighted in the final IP data, are larger than our
existing Sanama Hill prospect on which the existing Exploration
Target is based. The results confirm our belief that the Sanama
Hill prospect was simply the most logical part of the licence to
drill first, but not the most prospective part."
Highlights:
-- The IP survey highlights the larger scale potential of the
Ferensola Gold Project outside the Company's currently defined
Exploration Target, thereby indicating significant upside potential
to this Exploration Target.
-- A total of 8.5km strike lengths recorded from the various
high chargeability zones interpreted to be associated with
potentially mineralised sulphides.
-- The IP results are significantly stronger and more continuous
beyond the Sanama Hill November 2015 drill site (the results of
which were announced on 14 December 2015), which suggests that
other areas may be more prospective than Sanama Hill which hosts
the current 0.8 to 1.5Moz Exploration Target.
-- IP data corresponds with areas of high grade gold samples,
regional magnetic data and extensive artisanal mining
localities.
-- Area surveyed dominated by the 3.5km strike length Eastern
Target with six initial targets identified.
For more detailed information, see "Sula Exploration Programme"
below.
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
For further information, please contact:
Sula Iron & Gold plc
Roger Murphy / Nick Warrell /
Matt Wood / Howard Baker +44 (0) 7788 913794
Strand Hanson Limited (Financial
and Nominated Adviser)
James Harris / Mathew Chandler
/ James Dance +44 (0) 20 7409 3494
VSA Capital Limited (Broker)
Andrew Raca +44 (0) 20 3005 5000
Notes:
Sula Iron & Gold plc is a multi-commodity exploration
company focused on West Africa. The Company's main objective is to
explore and advance its 153km(2) Ferensola Project in Northern
Sierra Leone, which is highly prospective for gold, iron ore and
coltan. 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.
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.
Sula Exploration Programme
Sula completed a maiden drilling campaign in November 2015 (the
results of which were announced on 14 December 2015) which targeted
historic, high grade intersections on the Sanama Hill prospect,
within the Company's flagship 153km(2) Ferensola licence. Sula's
drilling campaign, which totalled 10 drillholes for 1,556m of
diamond core, resulted in multiple strands of sub parallel
mineralisation that averaged 4.21 grammes per tonne ("g/t") gold
("Au") over a strike length of 480m. Eight out of ten drillholes
intersected mineralisation which, along with regional sample
results, is believed to be related to a fold belt identified
through the interpretation of the regional ground magnetic
survey.
The drill programme showed that gold mineralisation is
predominantly hosted by shear zone related brecciated quartz-pyrite
that has resulted in magnetite alteration of the host rock and
which provides the source of the regional magnetic anomaly.
The IP survey was commissioned firstly to test the chargeability
of the previously identified sulphide mineralisation at the Sanama
Hill prospect and, secondly, to examine other selected targets
across the licence. A total of 80 line kilometres were planned over
select regions of the licence, enabling a comparison of results to
the known Sanama Hill mineralisation.
SEMS Exploration Services Limited ("SEMS") completed 56.2 line
kilometres of the planned 80 line kilometres, at a dominant spacing
of 200m with the results corroborating the potential for a
significant mineralised system within the licence, well beyond the
limits of the Sanama Hill prospect and the previously defined SRK
Consulting (UK) Ltd ("SRK") independent JORC compliant Exploration
Target (the "Exploration Target"). The currently defined
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.
IP Survey Results
The results from the final IP data are summarised in Figure 1
through to Figure 7. Sula will present the data in an updated
corporate video to be posted on the Company's website, at
www.sulaironandgold.com, in the coming weeks.
Figure 1 shows the six main anomalies interpreted by SEMS to
host potentially substantive sulphide mineralisation. As shown, the
anomalies are coincident with the regional magnetic anomalies which
are believed to be derived from the magnetite alteration of the
host rocks associated with the shear zones. The dashed rectangle
represents the approximate location of the currently defined
Exploration Target.
Figure 1: SEMS target zones interpreted from the IP data
http://www.rns-pdf.londonstockexchange.com/rns/4135N_-2016-10-25.pdf
Figure 2 shows a 700m strike section covering the November 2015
Sanama Hill drill site. The previously reported drill intersections
are shown along with the interpreted strands of mineralisation and
the regional grab sample results. The drilled zones averaged
4.21g/t Au with an average true thickness of 1.5m over a strike
length of 480m. Figure 2 shows that the IP signature increases in
strength to the east of the modelled intersections with two clear
anomalies evident. Figure 3 shows the stacked chargeability and
resistivity results for line 38 which cuts through the drilled
area. As shown the mineralisation modelled is associated with
chargeability levels of approximately 20 to 25mV/V with an
associated resistive high. Also of note, is the significant
resistive low on the footwall side of the mineralisation being
potentially indicative of a porous shear zone, as identified by the
November 2015 drilling campaign. It should be noted that, due to
the anomalies outside of the drilled area showing higher
chargeability values, the results for line 38 and line 39 are
displayed using a legend of increased resolution.
Figure 2: Sanama Hill November 2015 drill area and associated IP
anomaly
http://www.rns-pdf.londonstockexchange.com/rns/4135N_1-2016-10-25.pdf
Figure 3: Line 38 stacked chargeability and resistivity
results
http://www.rns-pdf.londonstockexchange.com/rns/4135N_2-2016-10-25.pdf
Figure 4 and Figure 5 show a large anomaly previously termed the
Eastern Target. Here, the IP survey has highlighted numerous
anomalies with an IP signature consistently above 40mV/V and often
over 70mV/V. The individual anomalies observed within the Eastern
Target cumulatively cover a strike length in excess of 6km. These
anomalies are supported not only by the magnetic anomaly but also
the regional grab samples previously reported and where high grade
Au is associated with fresh quartz-pyrite and "goldstones" which
are the oxidised version of the host sulphides and one of the
targets for the local artisanal miners.
Figure 4: Showing 2.7km of the 3.5km total strike length Eastern
Target
http://www.rns-pdf.londonstockexchange.com/rns/4135N_3-2016-10-25.pdf
Figure 5: Location of previously reported high grade grab
samples
http://www.rns-pdf.londonstockexchange.com/rns/4135N_4-2016-10-25.pdf
Figure 6 shows the northern targets and a wide spaced extension
to the Eastern Target. As shown, the Eastern Target IP anomaly is
observed to the final section (line 59) where the anomaly remains
consistent with that observed to the south.
Figure 6: Northern IP targets and Eastern Target extension
http://www.rns-pdf.londonstockexchange.com/rns/4135N_5-2016-10-25.pdf
Figure 7 shows an example of the IP chargeability data and
associated IP resistivity data from the south of the Eastern
Target. As shown, the high chargeability / high resistivity zone is
accompanied by a strong decrease in the resistivity, being on the
footwall side of the IP anomaly. This suggests a zone of porosity,
common in vuggy sulphide rich shear zones. This is further verified
by observations made during the November 2015 drilling
campaign.
Figure 7: Example of high chargeability / high resistivity
target zone and associated low resistivity shear zone" (line
13)
http://www.rns-pdf.londonstockexchange.com/rns/4135N_6-2016-10-25.pdf
In summary, the IP survey indicates a potentially significant
mineralisation footprint well beyond the currently defined
Exploration Target and it is clear that multiple targets exist
within the Ferensola licence. Whilst the IP survey is, by itself,
no measure of the exploration potential of the targets, it is
apparent that the Sanama Hill prospect is smaller than other
targets now identified and, in collaboration with the results from
the IP survey, confirms Sula's belief that the Sanama Hill prospect
was simply the most logical part of the licence to drill first,
rather than being the most prospective part of the licence.
Sanama Hill was chosen as the initial drill site to confirm the
geometry of the mineralisation in terms of dip and strike, as well
as to confirm the nature of the mineralisation and the geological
controls at play. All those objectives were met, which enables the
Company to target other zones with confidence. Subject to funding,
the Company plans to continue with additional IP survey work over
the larger licence area in due course.
** Ends **
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCPGGPUUUPQGGA
(END) Dow Jones Newswires
October 26, 2016 02:00 ET (06:00 GMT)
Power Metal Resources (LSE:POW)
Historical Stock Chart
From Apr 2024 to May 2024
Power Metal Resources (LSE:POW)
Historical Stock Chart
From May 2023 to May 2024