Sula Iron & Gold PLC (LON:SULA) Ferensola Gold Project – Drill Rigs Arrive RNS

 

RNS Number : 6596W
Sula Iron & Gold PLC
13 February 2017

Sula Iron & Gold plc

Ferensola Gold Project – Drill Rigs Arrive in Sierra Leone

Sula (AIM: SULA), the multi-commodity exploration company focused on Sierra Leone, is pleased to announce that the two diamond drill rigs shipped from South Africa in December 2016, have now docked and were unloaded at Freetown Port on Friday 10 February 2017.

Five containers, holding two drill rigs and associated support equipment, which were shipped in December 2016, arrived and were unloaded on Friday 10 February 2017 at Freetown Port, in Sierra Leone. Following customs clearance at Freetown Port, the containers will be transported directly to the Ferensola project site, in order to commence the Company’s planned drill programme designed by Sula’s Technical Director.

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As previously announced, whilst the original plans contemplated the use of a single rig, Equity Drilling Ltd has mobilised two rigs for use at Ferensola, at no additional cost to Sula. Accordingly, this should ensure that the planned drill programme, originally envisaged to be 2,400m, will be completed expeditiously.

Furthermore, Equity Drilling is taking a significant portion of its payment for the drill contract in the form of new ordinary shares in Sula (with an agreed floor price for the shares of 0.35p), which will serve to assist the Company in conserving its cash resources. Sula continues to anticipate that as a result of this financing deal and the additional rig, it will be able to drill more than the 2,400m originally planned, thereby potentially enabling a larger JORC Exploration Target to be identified.  Sula’s geologists have planned additional holes to capitalise on this opportunity.

Roger Murphy, Sula’s CEO, commented:

“I’m delighted that the rigs have now arrived in country. Our team in Sierra Leone is  now working to see them clear customs and be transported to site as fast as possible.  We are keen to start drilling at both Sanama Hill, where we already have a JORC-Compliant Exploration Target of 5-7mt at 4-8g/t for 0.8-1.5mn oz., and at the 4km long, high-conviction Eastern Target, that has not yet been drilled and which therefore currently has no confirmed resource estimate. We look forward to updating further in due course.”

For further information, please contact:

Sula Iron & Gold plc

Roger Murphy (CEO)

+44 (0) 7788 913794

Strand Hanson Limited (Financial and Nominated Adviser)

James Harris / Matthew Chandler / James Dance

+44 (0) 20 7409 3494

VSA Capital Limited (Broker)

Andrew Raca

+44 (0) 20 3005 5000 

Note to editors:

Sula is a multi-commodity exploration company focused on Sierra Leone. The Company’s main objective is to explore and advance its 153km2 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.

This information is provided by RNS
The company news service from the London Stock Exchange

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