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Sula Iron and Gold PLC: THE INVESTMENT CASE

Sula considers surface mine at Ferensola after samples boost

Historic hole grades were unexpectedly good said Sula
picture of gold ounces
INVESTMENT OVERVIEW: SULA The Big Picture
Some 25 samples were collected from historic core

Sula Iron & Gold PLC’s (LON:SULA) decision to use two drills to speed up the process of exploration at its Ferensola gold site in Sierra Leone was fortuitous but handy says Roger Murphy, chief executive.

Contractor Equity Drilling said it could have the two drills for the same price, so it made sense he said.

The acid test or ‘truth machine’ of drilling is now fast approaching, says Murphy and he can’t wait.

“We’ve done all of the geophysical and technical work and have a high degree of confidence but it is the drill that will confirm that.”

Drills have arrived

The two diamond drill rigs have now landed in Sierra Leone, been unloaded and are awaiting customs clearance, he added.

WATCH: Sula Iron & Gold CEO Roger Murphy speaks to Proactive's Andrew Scott

Equity Drilling is taking a large chunk of its payment in shares and Sula anticipates that with the extra rig it will be able to drill more than the 2,400m originally planned.

This will potentially result in a larger JORC exploration target to be identified.

Drilling will focus on Sanama Hill, which already has a JORC-compliant exploration target of 0.8-1.5mln oz, and at the as yet undrilled 4km long, high-conviction Eastern Target. 

Samples from historic drill holes at Ferensola have indicated more potential high grades of gold at the site.

Samples better than expected 

In particular, there were exceptionally positive results pointing towards good gold grades within the project's weathered oxide zone.

One oxide sample returned an assay of 28.9g/t of gold over a narrow width, with 1.72g/t found in another hole over 6.45m.

Some 25 samples were collected from historic core remaining on site that was drilled prior to Sula's ownership with all visible fresh sulphide zones and potential oxidised mineralisation zones tested.

Drilled towards the northwest pointed to gold running underneath and parallel to the zones already identified by Sula.

Murphy added the results point to an opportunity for an early start on a near surface deposit and it will look at an oxide exploration programme alongside the drilling.

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