TIDMSULA
RNS Number : 8090Z
Sula Iron & Gold PLC
01 June 2016
1 June 2016
Sula Iron & Gold plc
("Sula" or the "Company")
Ferensola Gold Project - Initial IP Survey Results
Sula (AIM: SULA), a multi-commodity exploration company focused
on Sierra Leone, is pleased to announce the initial results from
the Induced Polarisation ("IP") survey that is currently being
completed over a portion of the Company's 100% owned, flagship,
Ferensola Gold Project. In summary, the ongoing IP survey being
completed highlights the larger scale gold prospectivity in the
group's Ferensola licence area, outside of the current Exploration
Target, with results received to date verifying the mineralisation
potential within areas previously sampled by Sula and which are
further supported by the regional magnetic anomaly data previously
used to define the mineralised fold belt. The IP survey will
provide invaluable information to assist in the next phase of
exploration, being a planned large scale drill programme in
conjunction with an extension of the IP survey across the wider
licence area.
Highlights:
-- Ongoing IP survey highlights the larger scale potential of the Ferensola Gold Project outside of the Company's
currently defined Exploration Target.
-- IP signature over the Sanama Hill drill site confirmed with recorded IP chargeability values of between 20 and
30 millivolts per volt ("mV/V").
-- The Sanama Hill IP signature corresponds with the known sulphide mineralisation from the Company's November 2015
drilling campaign.
-- Multiple additional targets are now being identified with IP chargeability values of up to 3 times the values
recorded over Sanama Hill.
-- An "Eastern Target", corresponding with the regional magnetic anomaly data and regional samples collected by Sula,
shows IP chargeability values to date of up to 100 mV/V with a potential strike length in excess of 4km.
-- The IP survey is being extended to incorporate the potential northeast extension of the "Eastern Target".
-- A review of all existing geophysical data highlights multiple additional targets to be tested by future IP
surveys. This includes a magnetic anomaly supported by regional sampling that displays a strike length of
approximately 6km and is currently termed the "Western Target".
Sula completed a maiden drilling campaign in November 2015 (as
announced previously on 30 November 2015), which targeted historic
high grade intersections on the Sanama Hill prospect within the
153km(2) Ferensola licence. Sula's drilling campaign, which
totalled 10 drillholes for 1,556 metres 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
480 metres. Eight out of ten drillholes intersected mineralisation
which, along with regional sample results, is believed to be
related to a 10km long fold belt identified through the
interpretation of the regional ground magnetic survey.
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 to test
the chargeability of the sulphide mineralisation over the Sanama
Hill prospect, with a total of 80 line kilometres planned over
select regions of the licence, enabling a comparison of results to
the known area of mineralisation. To date, SEMS Exploration
Services Limited ("SEMS") has completed approximately 40 line
kilometres of the planned 80 line kilometres, 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 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.
Sula's CEO, Nick Warrell, commented:
"I am delighted with these initial IP survey results which
continue to support our belief that the Ferensola Gold Project
could host a significant resource. The IP survey further highlights
the growing confidence in respect of our activities completed to
date, with every new phase of work corroborating our technical
understanding of the project. The latest results observed,
particularly in the identification of significantly stronger IP
anomalies to those recorded over the November 2015 drill programme,
will provide the framework for a major drilling campaign, whilst
additional IP survey work is ongoing over the larger licence
area."
"Sula is entering a truly exciting phase in its short history
and we look forward with increased anticipation in updating the
market as the project progresses towards the implementation of a
major drilling campaign".
Initial IP Survey Results
To date, Sula has been provided with seven interpreted cross
sections showing the IP chargeability results. These lines targeted
the November 2015 drilling location at Sanama Hill, the eastern
magnetic anomaly and the previously reported corresponding high
grade goldstone / sulphide stone samples. Figure 1 shows the
regional fold belt and the locations of the IP survey lines
processed to date. The sections show a strong anomaly on Line 38,
being associated with the Sanama Hill drill site. Line 38 is shown
in more detail in Figure 2 where the IP anomaly appears stronger to
the east of the current conceptual interpretation, as based on the
November 2015 drilling, with an associated IP chargeability of
between approximately 16 and 30 mV/V. It should be noted that, at
present, all sections use independent chargeability legends and
therefore the strength of the signal cannot be compared on a colour
gradient alone.
Figure 1: Selected IP Section lines processed to date
http://www.rns-pdf.londonstockexchange.com/rns/8090Z_-2016-5-31.pdf
Figure 2: IP section line number 38 corresponding with the
Sanama Hill, November 2015 drill site
http://www.rns-pdf.londonstockexchange.com/rns/8090Z_-2016-5-31.pdf
When aligning the various IP sections to the local grid which is
being used to coordinate the survey, it is clear that additional
and significant anomalies are being identified. Figure 3 shows the
aligned sections where it is apparent that additional anomalies are
present to the east of the Sanama Hill prospect. The "Eastern
Target" currently shows a potential strike length of over 2km, with
the corresponding magnetic anomaly data indicating that the strike
length of the Eastern Target could extend to over 4km in total. The
extent of the Eastern Target will be tested during the remainder of
the survey.
Figure 3: Aligned IP chargeability data
http://www.rns-pdf.londonstockexchange.com/rns/8090Z_-2016-5-31.pdf
Figure 4 shows the Eastern Target IP anomalies for section lines
19 and 23. Here, a double anomaly is shown with IP chargeability
values on line 19 being up to 100 mV/V. Sula acknowledges that the
presence of an IP anomaly does not confirm the presence of gold
mineralisation, however, the strength of the IP chargeability
values being recorded does indicate the likely presence of massive
sulphide material with the associated grab samples, being up to
69.2 g/t Au in this part of the licence, and the concentrated
artisanal mining activity in the area, clearly suggesting the
likelihood of associated gold mineralisation from the anomaly being
recorded. This is further corroborated by the known high grade gold
mineralisation associated with the sulphides now confirmed by the
November 2015 drilling campaign. Similar anomalies are observed for
the Eastern Target on completed section lines 35 to 40.
Figure 4: Line 19 and line 23 IP data with chargeability values
up to 100 mV/V on line 19 with grab sample locations and grades
shown
http://www.rns-pdf.londonstockexchange.com/rns/8090Z_-2016-5-31.pdf
In reviewing the geophysical data available for the project, and
through discussions with SEMS, it is now believed that the regional
Total Magnetic Intensity ("TMI") data correlates most accurately
with the IP anomalies being observed and gives a clear indication
of existing and potential targets on the Ferensola licence. Figure
5 shows the various anomalies identified that all form part of the
regional fold belt. Eastern Target 1 and Eastern Target 2 are
currently being confirmed through the ongoing IP survey, along with
the Sanama Hill and Dalakuru Targets. Of significance, a "Western
Target" TMI anomaly is observed that coincides with grab sample
results of 1.0, 2.56 and 4.9 g/t Au that has an apparent strike
length of approximately 6km. This Western Target, along with other
TMI anomalies observed are expected to form part of future IP
surveys, covering a greater area of the licence. The Sanama Hill /
Dalakuru and the Eastern Target anomalies, as supported by
drilling, sampling, magnetic and IP data, currently form
significant "drill ready" targets.
Figure 5: Regional TMI imagery with current targets
identified
http://www.rns-pdf.londonstockexchange.com/rns/8090Z_-2016-5-31.pdf
During a recent site visit by Sula's Non-Executive Technical
Director, Mr Howard Baker, the scale of the targets being
identified were observed, along with a review of the IP process
being completed by SEMS. Figure 6 shows a view, looking north, from
Eastern Target 1 as shown in Figure 5 and identified through the IP
survey to date on lines 19 and 23. Whilst the IP survey is no
measure of the exploration potential of the targets, it is apparent
that the Sanama Hill prospect is far smaller than both Eastern
Target 1 and Eastern Target 2 and, in collaboration with the
results being observed 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 it being the most
prospective part of the licence to drill first. Sanama Hill was
chosen as the primary drill site in an attempt to confirm the
geometry of the mineralisation in terms of dip and strike, as well
as confirming the nature of the mineralisation and the geological
controls at play, all of which were achieved through the ability to
target the known zones of mineralisation from the historical
drilling.
Figure 6: View from Eastern Anomaly 1, looking north at Sanama
Hill and Eastern Anomaly 2
http://www.rns-pdf.londonstockexchange.com/rns/8090Z_-2016-5-31.pdf
**ENDS**
For further information please contact:
Sula Iron & Gold plc
Nick Warrell / Matt Wood / Howard
Baker +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
Yellow Jersey PR (Financial PR)
Dominic Barretto / Harriet Jackson +44 (0) 7544 275 882
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 153 sq. km. Ferensola Project in Northern
Sierra Leone, which is highly prospective for coltan, gold and iron
ore. 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 is based on information collected by or under the
supervision of Dr Paul Stenhouse (Senior Consultant, Structural
Geology) of SRK, a Chartered Professional Geologist of the
Australasian Institute of Mining and Metallurgy (Membership Number
312576) and a Competent Person as defined by the rules of
International Reporting Codes that are aligned with the Committee
for Mineral Reserves International Reporting Standards ("CRIRSCO")
who promote international best practise in the reporting of mineral
exploration results, mineral resources and mineral reserves.
In addition, 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.
Paul Stenhouse and Howard Baker have 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 Competent Persons 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. Paul Stenhouse consents
to the inclusion in the announcement of the matters based on his
information in the form and context in which they appear.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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