Last checked at 25 Feb 2013 07:00
SULA IRON & GOLD PLC - High Grade Iron Results & Drill Contract SignedSULA IRON & GOLD PLC - High Grade Iron Results & Drill Contract Signed
PR Newswire
London, February 22
25 February 2013
Sula Iron & Gold plc (`Sula' or `the Company')High Grade Channel Sample Results and Drill Contract Signed to Commence 2,000m Drilling Programme at Iron Project in Sierra LeoneSula Iron & Gold plc, an iron ore and gold exploration company focussed onSierra Leone, announces that channel sampling has confirmed the presence ofhigh-grade iron mineralisation at the Company's wholly owned 153 sq km iron andgold exploration licence (`the Licence'). The Licence is located in thenorthern part of the Sula-Kangari Greenstone Belt in Sierra Leone and iscontiguous to African Minerals' operational Tonkolili 12.8 billion tonne ironmine in Sierra Leone.
High grade assay results have been returned from two channel samples collectedin the Area 1 target zone of the Licence. Area 1 is located at the northern endof a 3.1 km long Banded Iron Formation (`BIF') that is coincident with astrong, linear magnetic anomaly extending from the Tonkolili iron licence area.Channel sample BHC00001 intercepted 18 metres at 51.83 % Fe and channelBHC00002 intercepted 22 metres at 56.22 % Fe - see table 1.
Channel samples were taken across a 50 metre wide BIF outcrop; a 10 metre widebreak in outcrop could not be sampled. Importantly, grades were consistentacross the outcrop confirming field observations that the BIF does not sufferfrom dilution by non-ferrous bands.
A 2,000 metre diamond drill programme is scheduled to test the strikecontinuity, thickness and grade of the BIF in Area 1. In line with this, Sulahas signed a rig contract, and drilling is expected to commence before the endof Q2 2013. It is the Company's ultimate aim to delineate a maiden resource andtest the potential for an iron deposit in excess of 0.5Bt. Independent miningconsultants SRK ES previously issued an initial exploration target of 500Mt at30.4% iron for magnetite and 55% iron for haematite. Depending on the resultsof the diamond drilling, a second phase programme of shallow vertical holes maybe warranted to target Area 1's potential for direct shipping ore (`DSO').
Sula's Non-Executive Technical Director Chris Wilson said, "I am delighted thatthese high grade channel sample results highlight the iron prospectivity withinour licence area. With results of 18 metres at 51.83 % Fe and 22 metres at56.22 % Fe Area 1 remains a high priority target for our iron exploration. Weare now at a drill ready status and I look forward to beginning the 2,000mdrill programme.
"In addition, we continue to operate a dual commodity exploration focus at ourlicence area in order to prove up both the iron ore and gold potential.Consequently Sula looks set to maximise the licence area's resource potential."
Table 1: Select XRF results from significant channel sample intervals.
Channel From To (m) Interval Fe (%) Al2O3 P (%) S (%) SiO2 TiO2 ID (m) (m) (%) (%) (%)BHC00001 0.00 18.00 18.00 51.83 13.13 0.10 0.04 1.23 0.29BHC00001* 20.00 22.00 2.00 60.50 5.90 0.18 0.11 1.30 0.30BHC00002 0.00 22.00 22.00 56.22 8.64 0.12 0.06 1.55 0.27*No sample collected between 18 and 20 metres in BHC00001 due to small break inoutcrop.
The information in this announcement has been reviewed by Dr ChristopherWilson, Technical Director of Sula, a Chartered Professional Geologist with 24years' experience, a Qualified Person (NI 43-101 and JORC), Fellow of theAustralian Institute of Mining and Metallurgy and a Fellow of the Society ofEconomic Geologists.
**ENDS**For further information please visit www.sulairongold.com or contact thefollowing:Gavin Burnell Sula Iron & Gold plc + 44 (0) 20 7796 8826James Caithie / Avi Cairn Financial Advisers LLP +44 (0) 20 7148 7900RobinsonJohn-Henry Wicks / Alice Northland Capital Partners +44 (0) 20 7796 8800Lane Limited Chris Rourke / Guy Wheatley Beaufort International +44 (0) 20 7382 8387 Associates LimitedFelicity Edwards/ Charlotte St Brides Media and Finance +44 (0) 20 7236 1177Heap
LtdNotes
Sula Iron & Gold plc is an iron ore and gold exploration company focussed onWest Africa. The Company's main objective is to explore and advance its keyExploration Licence EL54/2011, in Northern Sierra Leone, which boasts a dualcommodity focus and is highly prospective for iron and gold. The 153 sq kmlicence area is contiguous to African Minerals' operational Tonkolili ironmine, which has a JORC compliant resource of 12.8 billion tonnes.
Exploration work at the Project has confirmed the presence of banded ironformation (`BIF') at surface over a strike length of 3.1km and drill-ready. TheBIF extends NE from the Tonkolili mine into Sula's licence area. An explorationtarget of 500 million tonnes at 30.4% iron for magnetite and 55% iron forhematite has been given by independent mining consultants SRK ExplorationServices Ltd.
Significant greenstone-style gold mineralisation has also been identified atvarious prospects within the licence area. Greenstone-style deposits aretypically located on or proximal to regional scale, deep seated faults andlineaments. Artisanal miners have exploited placer gold within the Project areafor more than 60 years, and active workings are observed in at least fiveseparate areas.
The Company has a strong board and management team with in depth knowledge ofSierra Leone and a proven track record in developing African resource projects.