Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources
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 Leone
Sula Iron & Gold plc, an iron ore and gold exploration company focussed on
Sierra Leone, announces that channel sampling has confirmed the presence of
high-grade iron mineralisation at the Company's wholly owned 153 sq km iron and
gold exploration licence (`the Licence'). The Licence is located in the
northern part of the Sula-Kangari Greenstone Belt in Sierra Leone and is
contiguous to African Minerals' operational Tonkolili 12.8 billion tonne iron
mine in Sierra Leone.
High grade assay results have been returned from two channel samples collected
in the Area 1 target zone of the Licence. Area 1 is located at the northern end
of a 3.1 km long Banded Iron Formation (`BIF') that is coincident with a
strong, linear magnetic anomaly extending from the Tonkolili iron licence area.
Channel sample BHC00001 intercepted 18 metres at 51.83 % Fe and channel
BHC00002 intercepted 22 metres at 56.22 % Fe - see table 1.
Channel samples were taken across a 50 metre wide BIF outcrop; a 10 metre wide
break in outcrop could not be sampled. Importantly, grades were consistent
across the outcrop confirming field observations that the BIF does not suffer
from dilution by non-ferrous bands.
A 2,000 metre diamond drill programme is scheduled to test the strike
continuity, thickness and grade of the BIF in Area 1. In line with this, Sula
has signed a rig contract, and drilling is expected to commence before the end
of Q2 2013. It is the Company's ultimate aim to delineate a maiden resource and
test the potential for an iron deposit in excess of 0.5Bt. Independent mining
consultants SRK ES previously issued an initial exploration target of 500Mt at
30.4% iron for magnetite and 55% iron for haematite. Depending on the results
of the diamond drilling, a second phase programme of shallow vertical holes may
be warranted to target Area 1's potential for direct shipping ore (`DSO').
Sula's Non-Executive Technical Director Chris Wilson said, "I am delighted that
these high grade channel sample results highlight the iron prospectivity within
our licence area. With results of 18 metres at 51.83 % Fe and 22 metres at
56.22 % Fe Area 1 remains a high priority target for our iron exploration. We
are now at a drill ready status and I look forward to beginning the 2,000m
"In addition, we continue to operate a dual commodity exploration focus at our
licence 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 0.29
BHC00001* 20.00 22.00 2.00 60.50 5.90 0.18 0.11 1.30 0.30
BHC00002 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 in
The information in this announcement has been reviewed by Dr Christopher
Wilson, Technical Director of Sula, a Chartered Professional Geologist with 24
years' experience, a Qualified Person (NI 43-101 and JORC), Fellow of the
Australian Institute of Mining and Metallurgy and a Fellow of the Society of
For further information please visit www.sulairongold.com or contact the
Gavin Burnell Sula Iron & Gold plc + 44 (0) 20 7796
James Caithie / Avi Cairn Financial Advisers LLP +44 (0) 20 7148 7900
John-Henry Wicks / Alice Northland Capital Partners +44 (0) 20 7796 8800
Chris Rourke / Guy Wheatley Beaufort International +44 (0) 20 7382 8387
Felicity Edwards/ Charlotte St Brides Media and Finance +44 (0) 20 7236 1177
Sula Iron & Gold plc is an iron ore and gold exploration company focussed on
West Africa. The Company's main objective is to explore and advance its key
Exploration Licence EL54/2011, in Northern Sierra Leone, which boasts a dual
commodity focus and is highly prospective for iron and gold. 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.
Exploration work at the Project has confirmed the presence of banded iron
formation (`BIF') at surface over a strike length of 3.1km and drill-ready. The
BIF extends NE from the Tonkolili mine into Sula's licence area. An exploration
target of 500 million tonnes at 30.4% iron for magnetite and 55% iron for
hematite has been given by independent mining consultants SRK Exploration
Significant greenstone-style gold mineralisation has also been identified at
various prospects within the licence area. Greenstone-style deposits are
typically located on or proximal to regional scale, deep seated faults and
lineaments. Artisanal miners have exploited placer gold within the Project area
for more than 60 years, and active workings are observed in at least five
The Company has a strong board and management team with in depth knowledge of
Sierra Leone and a proven track record in developing African resource projects.