TIDMSULA
RNS Number : 2583R
Sula Iron & Gold PLC
08 December 2016
8 December 2016
Sula Iron & Gold plc
("Sula" or the "Company")
Ferensola Gold Project - Re-sampling of Additional Historic
Drill Core Yields Positive Results with Increased Evidence of Near
Surface High Grade Oxide Mineralisation
Sula (AIM: SULA), the multi-commodity exploration company
focused on Sierra Leone, is pleased to announce that additional
samples taken from historic drill core have yielded further
positive results, with one oxide sample returning an assay of
28.9g/t Au.
Highlights:
-- 28.9g/t Au returned from an oxide sample within the historic
drill hole SDD001 for the interval from 13.6m to 14.3m.
-- 1.64g/t Au returned from an oxide sample within the historic
drill hole SDD001 for the interval from 35.3m to 36.3m.
-- Historic oxide assay result of 1.72g/t Au over 6.45m from
hole SDD013 confirmed through the re-sampling.
-- 1.26g/t Au returned from a fresh sulphide sample within the
historic drill hole SDD004 for the interval from 108.3m to
109.3m.
-- Increased evidence of high grade near surface oxide mineralisation.
In early November 2016, samples were collected from historic
drill core remaining on site and which was drilled prior to Sula's
ownership of the Ferensola project's licence. Whilst the quality of
the samples collected was deemed poor, due to core box degradation
over time, the samples were collected with the objective of
assessing further zones of potential mineralisation and in order to
extract the maximum amount of information from the historic core.
As such, all visible fresh sulphide zones and potential oxidised
mineralisation zones were sampled.
In total, 25 samples were collected from historic drillholes
which were drilled towards the northwest and which are now known to
be sub-parallel to the actual dip of the mineralised shear zones
identified by Sula. The sample results received serve to, further
highlight the potential of the Ferensola Gold Project with
increasing evidence of high grade near surface oxide
mineralisation.
All samples were analysed by way of fire assay at ALS
Laboratories in Ireland.
Roger Murphy, Sula's CEO, commented:
"It is very pleasing that what was planned largely as a
confirmatory exercise has yielded some exceptionally positive
results pointing towards exciting gold grades within the project's
weathered oxide zone. This represents an opportunity for an early
start on a near surface deposit that will enhance the project's
economics. We will re-examine a potential oxide exploration
programme as the planned drilling programme, due to commence in the
New Year, unfolds."
For more detailed information, refer to "Sula's Historical
Sampling 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 visit www.sulaironandgold.com or
contact the following:
Sula Iron & Gold plc
Roger Murphy (CEO) +44 (0) 20 7583 8304
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 is a multi-commodity exploration company focused on Sierra
Leone. 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. In July 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 information in this release that relates to Exploration
Results has been reviewed by Mr Howard Baker, Non-Executive
Technical Director of Sula. 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.
Mr Baker therefore 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 and as a
qualified person under the AIM Rules for Companies. The JORC code
is a national reporting organisation that is aligned with CRIRSCO.
Mr Baker consents to the inclusion in this announcement of the
matters based on his information in the form and context in which
they appear.
Sula's Historical Sampling Programme
Figures 1 to 3 show the locations of the various samples being
reported herein with Figure 1 showing the location of the 28.9g/t
Au and 1.64g/t Au samples located to the north of the Sanama Hill
drill site. The samples are for intervals from between 13.6m to
14.3m and 35.3m to 36.3m respectively and further demonstrate the
potential for high grade oxide mineralisation that exists across
the Project's licence area. It should be noted that drilling to
date has focussed on the fresh sulphide mineralisation and it is
becoming increasingly evident that potential exists for near
surface high grade oxide mineralisation, as supported by drill
results, regional grab samples, trench samples and extensive
artisanal workings.
http://www.rns-pdf.londonstockexchange.com/rns/2583R_-2016-12-7.pdf
Figure 1: Location of 28.9g/t Au and 1.64g/t Au oxide
samples
Figure 2 shows the location of the 1.26g/t Au sample from
historic drill hole SDD004, being partially sampled by SRK
Consulting (UK) Ltd as part of its JORC compliant Exploration
Target announced in June 2015. The sample shows additional
potential mineralisation and correlates to the modelled strands of
mineralisation that dip sub-parallel to the orientation of the
historic drill holes.
http://www.rns-pdf.londonstockexchange.com/rns/2583R_1-2016-12-7.pdf
Figure 2: Location of 1.26g/t Au fresh sulphide sample
Figure 3 shows the location of the historic assay result of
1.72g/t Au over a reported 6.45m interval within hole SDD013. Sula
re-sampled a 15m interval overlapping the historic assay result
with a returned grade of 0.85g/t Au. As such, and given the quality
of the sample collected by Sula, it is believed that the original
historic assay result is more reliable and considered to be valid.
It is observed that the oxide sample taken correlates with Sula's
trench assays and a portion of the TZ4 Induced Polarisation (IP)
anomaly further validating the IP anomaly as potentially hosting a
sulphide bearing system.
http://www.rns-pdf.londonstockexchange.com/rns/2583R_2-2016-12-7.pdf
Figure 3: Location of 1.72g/t Au oxide sample
Oxide Potential
Sula is continuing to increase its level of data from within the
oxide zone at its Ferensola Gold Project with grab samples, the
historically reported RAB samples, Sula's trenching samples and
core samples showing the high-grade nature of the near surface
oxide zone. Table 1 below summarises all samples collected from
within the oxide zones that returned an assay result of more than
0.5g/t Au.
Drilling has shown that the oxide cap is approximately 50m thick
although critically, drilling completed to date by Sula has focused
on the underlying fresh mineralisation to determine the controlling
structures for the project. Drilling does not directly overlay the
high-grade system identified. Nevertheless, 10 core samples have
now been recovered from within the oxide zone that return a length
weighted grade of 3.4g/t Au with trenching and RAB samples showing
weighted average grades of 2.6g/t Au and 2.8g/t Au respectively.
Regional grab samples show an average grade of 9.7g/t Au.
The increasing quantity of available data from within the oxide
zone, coupled with the extensive potential mineralised strike
length identified through the recent IP survey and visible gold
reported from crushed and panned samples from the TZ2 Eastern
Target, provides increased confidence in the presence of extensive
potential near surface high grade oxide mineralisation.
Table 1: Summary of all Oxide Samples collected to date
Sample Type Au (g/t) Min (g/t Max (g/t Count
Au) Au)
================ ========= ========= ========= ======
Grab Samples 9.7 0.7 69.2 27
================ ========= ========= ========= ======
Historic RAB* 2.8 0.5 7.4 3
================ ========= ========= ========= ======
Sula Trenching
Samples* 2.6 0.6 5.8 9
================ ========= ========= ========= ======
Core Samples* 3.4 0.8 28.9 10
================ ========= ========= ========= ======
*length weighted
** Ends **
This information is provided by RNS
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