Sula Iron & Gold (LON:SULA)
Sula Iron & Gold has announced the results of further analysis of the historic drill core recovered prior to the November 2015 programme. SULA has also announced the issue of equity arising from the exercise of warrants. Consequently 65,468,750 new ordinary shares were issued at a price of 0.16p/sh resulting in gross proceeds of £104,750. The warrants related to fundraisings in February and March 2016.
The highlights of new assays included 0.7m at 28.9g/t Au from 13.6m depth, 1m at 1.64g/t Au from 35.3m depth and 6.45m at 1.72g/t Au all of which were oxide samples. There was also 1m at 1.26g/t Au from 108.3m depth from a sulphide sample.
In total 25 samples were collected from historic drill holes, all of which were part of the campaign now known to have drilled sub parallel to the dip of mineralisation. Whilst the November 2015 results are likely to demonstrate more accurately the potential of the deposit these latest assays highlight the existence of shallow oxide mineralisation with strong grades.
We reiterate our Speculative Buy recommendation although our target price is reduced marginally to 1.7p/sh to reflect the dilution.