Sula Iron & Gold PLC Ferensola Gold - Batch 1 Assay Results (9338E)

TIDMSULA

RNS Number : 9338E

Sula Iron & Gold PLC

12 May 2017

Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources

12 May 2017

Sula Iron & Gold plc

("Sula" or the "Company")

Ferensola Gold - Batch 1 Assay Results

Sula (AIM: SULA), the gold exploration company focused on Sierra Leone, is pleased to announce the results from Batch 1 of its recently completed 3,783 metre 14 hole drill program across Sanama Hill (TZ0), Eastern Target (TZ2), TZ4 and the Kuwait artisanal anomaly on its Ferensola Gold Project.

Batch 1 comprises 1,265 samples from 5 drillholes: FDD014 from Sanama Hill, (from where we drilled 10 holes in December 2015) and FDD011, FDD012, FDD013 and FDD015 from TZ2 (Eastern Target), a new, never before drilled target.

FDD014 at Sanama Hill was designed to test the down dip / plunge extension to the previously identified high grade mineralisation. The TZ2 drillholes were designed to test for potential mineralisation indicated by a highly chargeable IP anomaly.

Batch 1 Highlights:

-- 5 drillholes assayed: 1 drillhole from Sanama Hill (TZ0) and 4 drillholes from the TZ2, the Eastern target;

-- High grade assay results of 15.9g/t over 4.8m (3.1m true width), including 37g/t Au over 0.75m, from within a mineralised shear zone interval of 32.6m (21.0m true width) with a length weighted grade of 3.65g/t Au were intersected between 122.85m and 155.45m in drillhole FDD014 at Sanama Hill;

-- 6.8 g/t Au was also intersected between 185m and 186.2m in FDD014 along with an oxide zone assay of 2.31 g/t Au between 48m and 49.5m;

-- FDD014 demonstrates continuity of gold mineralisation 45m from the previous high grade intersections recorded in FDD002 and FDD004 from drilling carried out in December 2015;

-- Logging and structural data collected at FDD014 highlights a complex zone of thickening associated with a significant shear zone within the Sanama Hill target; and

-- Drilling at the Eastern Target (TZ2) confirms a major sulphide system associated with numerous shear zones.

Batch 2

Samples from the remaining 9 drillholes are due to leave our Dalakuru exploration camp today bound for the ALS assay testing laboratory in Ireland.

Roger Murphy, Sula's CEO, commented:

"I am delighted by these results and the progress we are making at Sanama Hill in finding high grade gold. We believe there is much more to be found, as we now understand the structural controls on mineralisation better. The results from FDD014 returned the thickest width, containing the highest grade that Sula has drilled to date. It is extremely encouraging that the oxide and high grade sulphide gold mineralisation we are finding at Sanama Hill is shallow and thus potentially open-pittable. Similarly, the high-grade zones should be amenable to underground mining.

The first results from TZ2 (Eastern Target) clearly demonstrate that there is a mineralised system with results from three more holes to come. The improved geological understanding gained has led us to drill other areas, including "Kuwait", a nearby area of intense artisanal mining, which is part of the TZ2 anomaly. Also, the structural controls we are beginning to understand at Sanama Hill will help us to target exploration at TZ2 and elsewhere.

In summary, we believe the tremendous grades and thicknesses achieved on Sanama Hill and our enhanced geological understanding will help us to find more gold across our 153km(2) licence both in the area we are currently working and elsewhere on the project. We are confident that assays from Batch 2, dispatched today, will be a further significant step in that process."

Exploration Summary

The collar coordinates and collar dip and azimuth are shown in Table 1 with the locations of the drillholes shown in Figure 1 where they are set against the magnetic anomaly and Induced Polarisation ("IP") chargeability data. Figure 2 and Figure 3 show the locations of the Batch 1 drillholes at Sanama Hill and TZ2 in more detail.

All samples are half diamond core and have been analysed by fire assay at ALS Laboratories in Ireland. As part of the sampling programme and along with the standard half core samples, Sula inserted certified reference samples and locally sourced blank samples. The samples submitted are summarised in Table 2.

   Table 1:                Drillhole Collar Information 
 
    Batch       Hole    Target   Easting   Northing   Elevation   Collar    Collar    Depth 
                 ID                                                 Dip     Azimuth     (m) 
------------  -------  -------  --------  ---------  ----------  -------  ---------  ------- 
      1        FDD011    TZ2     221917    1016498       571        55       130      305.5 
============  =======  =======  ========  =========  ==========  =======  =========  ======= 
      1        FDD012    TZ2     222130    1016681       615        55       130      385.5 
============  =======  =======  ========  =========  ==========  =======  =========  ======= 
      1        FDD013    TZ2     222011    1016603       603        55       131      309.5 
============  =======  =======  ========  =========  ==========  =======  =========  ======= 
                        Sanama 
      1        FDD014    Hill    221396    1017820       606        60       115      196.8 
============  =======  =======  ========  =========  ==========  =======  =========  ======= 
      1        FDD015    TZ2     222420    1017092       650        55       130      329.5 
============  =======  =======  ========  =========  ==========  =======  =========  ======= 
 2 (Pending)   FDD016    TZ2     222486    1017035       670        55       130      155.3 
============  =======  =======  ========  =========  ==========  =======  =========  ======= 
                        Sanama 
 2 (Pending)   FDD017    Hill    221593    1017685       607        55       120      352.6 
============  =======  =======  ========  =========  ==========  =======  =========  ======= 
 2 (Pending)   FDD018    TZ2     222002    1016427       579        55       130      158.2 
============  =======  =======  ========  =========  ==========  =======  =========  ======= 
 2 (Pending)   FDD019    TZ2     221873    1016534       564        55       130      158.5 
============  =======  =======  ========  =========  ==========  =======  =========  ======= 
                        Sanama 
 2 (Pending)   FDD020    Hill    221366    1017662       570        55       110      298.9 
============  =======  =======  ========  =========  ==========  =======  =========  ======= 
 2 (Pending)   FDD021    TZ4     221392    1015424       606        55       150      155.4 
============  =======  =======  ========  =========  ==========  =======  =========  ======= 
                        Sanama 
 2 (Pending)   FDD022    Hill    221537    1017325       535        55       130      331.5 
============  =======  =======  ========  =========  ==========  =======  =========  ======= 
 2 (Pending)   FDD023    TZ4     221263    1015400       610        55       130      332.4 
============  =======  =======  ========  =========  ==========  =======  =========  ======= 
                        Kuwait 
 2 (Pending)   FDD024    (TZ2)   221381    1016526       532        55       130      313.7 
============  =======  =======  ========  =========  ==========  =======  =========  ======= 
                                                   TOTAL                              3,783m 
============  =======  ============================================================  ======= 
 
   Table 2:                Summary of Sample Submission 
 
 Batch    Hole    Standard Half    Blank     Certified 
           ID      Core Samples    Samples    Reference 
                                               Samples 
------  -------  --------------  ---------  ----------- 
   1     FDD011        301           8           16 
======  =======  ==============  =========  =========== 
   1     FDD012        261           7           14 
======  =======  ==============  =========  =========== 
   1     FDD013        269           8           14 
======  =======  ==============  =========  =========== 
   1     FDD014        131           4           7 
======  =======  ==============  =========  =========== 
   1     FDD015        208           5           12 
======  =======  ==============  =========  =========== 
     Total            1,170          32          63 
===============  ==============  =========  =========== 
 

http://www.rns-pdf.londonstockexchange.com/rns/9338E_1-2017-5-11.pdf

Figure 1: Drillhole location map highlighting holes FDD011, 012, 013, 014 and 015

http://www.rns-pdf.londonstockexchange.com/rns/9338E_1-2017-5-11.pdf

Figure 2: Drillhole location map highlighting hole FDD014 at Sanama Hill (TZ0)

http://www.rns-pdf.londonstockexchange.com/rns/9338E_1-2017-5-11.pdf

Figure 3: Drillhole location map highlighting holes FDD011, 012, 013, and 015 at TZ2

TZ0 - Sanama Hill

Figure 4 shows the assay intervals returned from drillhole FDD014 along with assays from holes FDD002 and FDD004 from the November 2015 drilling campaign and SDD004 being a resampled historic drillhole. Table 3 shows a summary of the significant assay intervals from FDD014 with all significant assays from FDD014 shown in Appendix 1. As shown in Table 3, FDD014 intersects a zone of 32.6m in apparent thickness with a length weighted average grade of 3.65 g/t Au. A true thickness of 21m, being 64% of the apparent thickness has been calculated using the drilling angle and dip of the controlling shear zone within FDD014, FDD004 and FDD002. This intersection contains samples less than a cut-off of 0.5 g/t Au to assist in the modelling of the mineralised zone.

Logging of the core within the mineralised zone of FDD014 shows a complex network of quartz-pyrite breccia, being similar to the mineralisation observed previously with Figure 4 showing examples of core from within the controlling shear zone and the high grade mineralised intervals between 139.5m and 143.7m. A sample assaying 37 g/t Au is highlighted between the two red markers and being composed of up to 70% pyrite. This high-grade sample lies within a zone with a length weighted grade of 7.4 g/t Au over a true thickness of 8.1m.

As shown in Figure 4, the high-grade mineralisation intersected within FDD014 has enabled a broad zone of mineralisation to be modelled within Sanama Hill that connects FDD014 to the holes from the previous drilling campaign, confirming the continuation of the mineralisation associated with the shear zone and plunging to the southwest.

Outside of the main mineralised package, a single sample of 6.8 g/t Au was recorded between 185m and 186.2m in addition to an oxide zone assay between 48m and 49.5m of 2.31 g/t Au. The FDD014 oxide zone assay provides a third intersection that suggests a new plane of mineralisation exists to the west of the shear zone highlighted in Figure 4 and that joins high grade assays from FDD002 and FDD008. This zone is highlighted in Figure 5.

   Table 3:                Significant intersections from holes FDD014 
 
    Hole      From     To     Apparent Thickness   True Thickness     Au 
     ID                               (m)                (m)         (g/t) 
===========  ======  ======  ===================  ===============  ======= 
   FDD014      2.9     4.5           1.6                1.0          0.53 
===========  ======  ======  ===================  ===============  ======= 
   FDD014     48.0    49.5           1.5                1.0          2.31 
===========  ======  ======  ===================  ===============  ======= 
   FDD014     122.9   155.5          32.6               21.0         3.65 
===========  ======  ======  ===================  ===============  ======= 
 including    122.9   124.0          1.15               0.7          1.76 
===========  ======  ======  ===================  ===============  ======= 
              128.0   129.0           1                 0.6          1.68 
===========  ======  ======  ===================  ===============  ======= 
              131.0   131.4          0.39               0.3          0.71 
===========  ======  ======  ===================  ===============  ======= 
              135.0   147.6         12.55               8.1          7.4* 
===========  ======  ======  ===================  ===============  ======= 
              152.0   155.5          3.45               2.2          5.85 
===========  ======  ======  ===================  ===============  ======= 
   FDD014     185.0   186.2          1.18               0.8          6.78 
===========  ======  ======  ===================  ===============  ======= 
 

*includes 37 g/t Au from 142.25m to 143m

The structural data associated with all drill programmes will be reviewed in due course to assist in future drill planning so that the high-grade zone can be targeted with improved confidence. A better understanding of the structural controls could also be helpful to try to predict and target other high grade zones within the licence.

http://www.rns-pdf.londonstockexchange.com/rns/9338E_1-2017-5-11.pdf

Figure 4: Sanama Hill zone of mineralisation in proximity to the controlling shear zone - 37 g/t Au sample shown between the red markers

http://www.rns-pdf.londonstockexchange.com/rns/9338E_1-2017-5-11.pdf

Figure 5: Plane of mineralisation to the west of the FDD014 shear zone (purple) identified through oxide samples within FDD002, FDD008 and the 2.31 g/t Au assay reported within Batch 1

A review of the geophysical IP data associated with the high grade Sanama Hill drillholes shows a zone of high resistivity and low chargeability with the high resistivity believed to be related to the elevated levels of quartz in the area. This is shown in Figure 6 and provides further potential sources of mineralisation alongside Au bearing mineralisation associated with high IP chargeability data observed at Sanama Hill.

http://www.rns-pdf.londonstockexchange.com/rns/9338E_1-2017-5-11.pdf

Figure 6: Sanama Hill zones of high resistivity (blue) and high Chargeability (yellow)

TZ2

These are the first drill holes in TZ2 which is a 4km long IP anomaly. Figure 7 shows the IP chargeability anomaly at TZ2 with the drilling confirming the presence of a metavolcanic unit, similar to that at Sanama Hill and being intersected by numerous shear zones and large accumulations of disseminated and veinlet sulphides that confirm mineralisation and that are believed to be the source of the IP signature.

To date the results have not returned significant gold assays although a single 1m intercept from FDD012 of 0.63 g/t Au has been identified. This is shown in Figure 7 along with examples of sulphide mineralisation from holes FDD011, FDD013 and FDD015.

Batch 2 samples will include a further 3 drillholes from TZ2, being FDD016, FDD018 and FDD019, the latter of which, shown in Figure 8, is collared in close proximity to the road outcrop oxide sample that was crushed, panned and liberated recoverable gold and which returned an assay of 4.8 g/t Au from a second sample collected. Batch 2 will also include FDD024, being the Kuwait artisanal hole that targets a zone of high resistivity as observed at Sanama Hill.

http://www.rns-pdf.londonstockexchange.com/rns/9338E_1-2017-5-11.pdf

Figure 7: Examples of sulphide intercepts within the TZ2 anomaly - FDD012 0.63 g/t Au sample shown between the red markers and being associated with a quartz - pyrite vein

http://www.rns-pdf.londonstockexchange.com/rns/9338E_1-2017-5-11.pdf

Figure 8: Location of Batch 2 TZ2 drillholes and the high resistivity Kuwait artisanal hole FDD024

APPIX 1 - FDD014 RAW ASSAY INTERVALS

 
  Hole      From      To      Apparent    True Thickness   Au (g/t) 
    ID                        Thickness         (m) 
                                 (m) 
========  =======  =======  ===========  ===============  ========= 
 FDD014     2.93     4.53       1.6            1.0           0.53 
--------  -------  -------  -----------  ---------------  --------- 
      Length / Length 
       Weighted Grade           1.6            1.0           0.53 
--------------------------  -----------  ---------------  --------- 
 FDD014    48.03    49.53       1.5            1.0           2.31 
--------  -------  -------  -----------  ---------------  --------- 
      Length / Length 
       Weighted Grade           1.5            1.0           2.31 
--------------------------  -----------  ---------------  --------- 
 FDD014    122.85    124        1.2            0.7           1.76 
========  =======  =======  ===========  ===============  ========= 
 FDD014     124     124.7       0.7            0.4           0.19 
========  =======  =======  ===========  ===============  ========= 
 FDD014    124.7     126        1.3            0.8           0.25 
========  =======  =======  ===========  ===============  ========= 
 FDD014     126      127        1.0            0.6           0.12 
========  =======  =======  ===========  ===============  ========= 
 FDD014     127      128        1.0            0.6           0.14 
========  =======  =======  ===========  ===============  ========= 
 FDD014     128      129        1.0            0.6           1.68 
========  =======  =======  ===========  ===============  ========= 
 FDD014     129      130        1.0            0.6           0.09 
========  =======  =======  ===========  ===============  ========= 
 FDD014     130      131        1.0            0.6           0.08 
========  =======  =======  ===========  ===============  ========= 
 FDD014     131     131.39      0.4            0.3           0.71 
========  =======  =======  ===========  ===============  ========= 
 FDD014    131.39    132        0.6            0.4           0.28 
========  =======  =======  ===========  ===============  ========= 
 FDD014     132      133        1.0            0.6           0.26 
========  =======  =======  ===========  ===============  ========= 
 FDD014     133      134        1.0            0.6           0.10 
========  =======  =======  ===========  ===============  ========= 
 FDD014     134      135        1.0            0.6           0.04 
========  =======  =======  ===========  ===============  ========= 
 FDD014     135      136        1.0            0.6           2.45 
========  =======  =======  ===========  ===============  ========= 
 FDD014     136      137        1.0            0.6           4.94 
========  =======  =======  ===========  ===============  ========= 
 FDD014     137      138        1.0            0.6           5.67 
========  =======  =======  ===========  ===============  ========= 
 FDD014     138      139        1.0            0.6           0.47 
========  =======  =======  ===========  ===============  ========= 
 FDD014     139     139.6       0.6            0.4           3.09 
========  =======  =======  ===========  ===============  ========= 
 FDD014    139.6     140        0.4            0.3          18.30 
========  =======  =======  ===========  ===============  ========= 
 FDD014     140      141        1.0            0.6          19.95 
========  =======  =======  ===========  ===============  ========= 
 FDD014     141     141.64      0.6            0.4          16.65 
========  =======  =======  ===========  ===============  ========= 
 FDD014    141.64   142.25      0.6            0.4           2.31 
========  =======  =======  ===========  ===============  ========= 
 FDD014    142.25    143        0.8            0.5          37.00 
========  =======  =======  ===========  ===============  ========= 
 FDD014     143     143.8       0.8            0.5           9.00 
========  =======  =======  ===========  ===============  ========= 
 FDD014    143.8     145        1.2            0.8           0.65 

========  =======  =======  ===========  ===============  ========= 
 FDD014     145      146        1.0            0.6           0.23 
========  =======  =======  ===========  ===============  ========= 
 FDD014     146     147.55      1.6            1.0           1.31 
========  =======  =======  ===========  ===============  ========= 
 FDD014    147.55    149        1.4            0.9           0.12 
========  =======  =======  ===========  ===============  ========= 
 FDD014     149      150        1.0            0.6           0.08 
========  =======  =======  ===========  ===============  ========= 
 FDD014     150     150.68      0.7            0.4           0.08 
========  =======  =======  ===========  ===============  ========= 
 FDD014    150.68    152        1.3            0.8           0.27 
========  =======  =======  ===========  ===============  ========= 
 FDD014     152      153        1.0            0.6          14.05 
========  =======  =======  ===========  ===============  ========= 
 FDD014     153     153.79      0.8            0.5           4.94 
========  =======  =======  ===========  ===============  ========= 
 FDD014    153.79    155        1.2            0.8           1.47 
========  =======  =======  ===========  ===============  ========= 
 FDD014     155     155.45      0.4            0.3           1.00 
--------  -------  -------  -----------  ---------------  --------- 
 Length / Length 
  Weighted Grade                32.6           21.0          3.65 
--------------------------  -----------  ---------------  --------- 
 FDD014     185     186.18      1.2            0.8           6.78 
--------  -------  -------  -----------  ---------------  --------- 
      Length / Length 
       Weighted Grade           1.2            0.8           6.78 
--------------------------  -----------  ---------------  --------- 
 

**ENDS**

For further information please contact:

 
 Sula Iron & Gold plc 
 Roger Murphy (CEO)                 [phone] 
 
 WH Ireland Limited (Nominated 
  Adviser and Broker) 
  Paul Shackleton / James 
  Bavister                          [phone] 
 VSA Capital Limited (Broker) 
 Andrew Raca                        [phone] 
 Ongeza Mining (Financial 
  and Technical Adviser) 
 Iain Macpherson / Ilja Graulich    [phone] 
 

Notes:

Sula Iron & Gold plc is a gold focused exploration company focused on West Africa. The Company's main objective is to explore and advance its 153km(2) Ferensola Project in Northern Sierra Leone. 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 June 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.

The potential quantity and grade is conceptual in nature and there has been insufficient exploration to estimate a JORC compliant Mineral Resource and it is uncertain if further exploration will result in the estimation of a JORC compliant Mineral Resource. In SRK's opinion, the historical exploration data reviewed and verified here, is sufficient in both quality and quantity for an Exploration Target as defined by the JORC Code to be defined.

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.

Howard Baker has 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 a Competent Person 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. Howard Baker consents to the inclusion in the announcement of the matters based on his information in the form and context in which they appear.

** Ends **

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