SULA IRON & GOLD PLC: Completion of Initial Field Work Targeting Gold
SULA IRON & GOLD PLC: Completion of Initial Field Work Targeting Gold Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources
8 January 2014
Sula Iron & Gold plc (`Sula' or `the Company')
Completion of Initial Field Work Targeting Gold Mineralisation, Sierra Leone
Sula Iron & Gold plc, a multi-commodity exploration company focussed on Sierra Leone, is pleased to announce the completion of a detailed ground magnetometer and geochemical soil survey over several of its gold targets at its wholly owned 153 km2 Ferensola Project (`Ferensola' or `the Project'). The Project, which is prospective for both iron and gold is located within the northern sector of the Sula-Kangari Greenstone Belt in Sierra Leone. The Company anticipates receiving the results of the field work by the end of Q1 2014, and intends to use these results to identify future drill targets. Please visit the Company's website www.sulairongold.com for a map of Ferensola and the gold target areas identified.
Ferensola is known to host gold mineralisation along deep seated faults, lineaments and shear structures. Five primary gold mineralisation targets have been identified to date within the licence area, and it is these targets which the recent 2013-2014 field work focussed on. Detailed ground work comprising a 15 km2 geophysical and geochemical soil programme were completed. Over 150 line km of ground magnetic surveying carried out on a 100m line spacing was completed to delineate geological structures over two principal target areas - the Lagunda and Yanfarina prospects. Additionally, more than 6,000 soil/ regolith samples have been collected on a 100m x 25m grid pattern. Following the processing and interpretation of all geophysical and assay results, Sula will be able to define robust drill targets at these two prospects.
The Lagunda and Yanfarina gold prospects are located within the western central zone of the Project and occur at the peripheries of north-east trending magnetic anomalies and interpreted as either lithological contacts and/or large scale faulting. These structural features are very significant as they can often act as conduits for mineralising fluids and providing model conditions for potential primary gold mineralisation. Furthermore, the significant Lagunda artisanal alluvial gold workings occur parallel and coincidently to the magnetic trends and lithological boundaries and are considered to be above or proximal to a primary gold mineralised structure.
Importantly, the Project is located a highly prospective area; the greenstone belt which hosts Ferensola also includes Amara Mining Plc's Baomahun Gold Project, which is located to the south of the Project and has a reported resource of 2.78 Moz gold (`Au'). Furthermore, in addition to Lagunda and Yanfarina prospects, multiple gold targets have been identified which remain to be explored; historic drilling at the Dalakuru prospect has intercepted hard rock gold mineralisation that is open in all directions, with highs of 8.72m @ 10.46g/t Au and 1.55m @ 11.68g/t Au.
Sula Chief Executive Nick Warrell said, "I am pleased to announce that we have completed our 2013-2014 field work programme, which targeted gold mineralisation at our highly prospective, multi-commodity Ferensola Project. With an initial focus on the Lagunda and Yanfarina prospects and further targets yet to be explored, I am confident that we are set to significantly enhance Ferensola's gold resource potential this coming year. Furthermore, Sula continues to operate a dual exploration programme and is focussed on delineating a maiden iron JORC resource later this year. As a result, 2014 is shaping up to be a very exciting time for Sula, and I look forward to updating shareholders on the results of this gold exploration, in addition to further news on our iron ore exploration, in due course."
Structural intersections and geochemically anomalous zones within the survey area have been initially identified through interpretation of the ground magnetometer data and precursory analysis of the soil and regolith samples by portable XRF analyser whilst onsite. Selected geochemical samples will be submitted for full multi-element analysis at ALS Monrovia and ALS Loughrea, Ireland respectively.
For further information please visit www.sulairongold.com or contact the following:
Nick Warrell Sula Iron & Gold plc +44 (0) 7811 447830
Matt Wood Sula Iron & Gold plc +44 (0) 20 7583 8304
James Caithie / Avi Cairn Financial Advisers LLP +44 (0) 20 7148 7900 Robinson
Martin Lampshire / David Daniel Stewart & Company Plc +44 (0) 20 7776 6550 Hart
Felicity Edwards / St Brides Media and Finance +44 (0) 20 7236 1177 Charlotte Heap Ltd
Sula Iron & Gold plc is a multi-commodity exploration company focussed on West Africa. The Company's main objective is to explore and advance its Ferensola Project, in Northern Sierra Leone, which is highly prospective for iron and gold. Sula is currently focussed on delineating a maiden JORC compliant iron resource and proving up the gold mineralisation in 2014, by conducting soil geochemistry and ground geophysics prior to a diamond drilling programme, in order to maximise the Licence area's value potential. The 153 sq km licence area is contiguous to African Minerals' operational Tonkolili Iron Mine, which has a JORC compliant resource of 12.8 billion tonnes Fe.
Exploration work at the project has confirmed the presence of Banded Iron Formation (`BIF') at surface, which has a known strike length of 3.1km. The BIF is proven to extend NE from the Tonkolili licence into Sula's licence area. A 2,000m scout drilling programme conducted over a 2.2km section of BIF, confirmed the Licence area's prospectivity for consistently high grade iron mineralisation. An exploration target of 500 million tonnes at 30.4% iron for magnetite and 55% iron for hematite has been given by exploration consultants SRK Exploration Services Ltd.
Significant Greenstone Belt-style gold mineralisation has also been identified at various prospects within the licence area. Five target areas for hard rock gold mineralisation have been identified based on the location of historic drill intercepts, the source areas for alluvial gold deposits, and the position of major structures as defined by airborne magnetic data and drainage orientation.
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