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EPIC: SULA
Market: AIM
52-week High/Low: 0.56p / 0.09p
Sector: Mining
Market Cap: 8.64M
Phone: +44 (0)7976 994300
Address: 190 High Street, Tonbridge, Kent TN9 1BE.
Website: www.sulairongold.com
Sula Iron and Gold PLC

Sula Iron and Gold PLC

Sula Iron & Gold plc is an AIM-Listed multi-commodity exploration company focused on Sierra Leone exploring for gold, iron ore and coltan. Our current objective is to explore and advance our 153 sq. km Ferensola Project in Northern Sierra Leone, which is highly prospective for gold, iron and coltan.

Sula Iron and Gold PLC

www.sulairongold.com

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Big picture - Why invest in Sula Iron and Gold PLC


Sula Iron and Gold PLC Snapshot

On 6 Janaury 2016, we received all remaining assay results from our gold drilling campaign on the company’s Ferensola Gold Project. SRK Consulting (UK) Ltd previously defined an independent JORC compliant gold Exploration Target (the “Exploration Target”) for the Ferensola Gold Project with a tonnage range of between 5 and 7 million tonnes (“Mt”) at a grade range of between 4 and 8 grammes per tonne (“g/t”) of gold (“Au”), which equates to between 0.8 and 1.5 million ounces Au. The Exploration Target has been restricted to a 2 km strike length segment of a regional fold belt that has a potential overall strike length in excess of 10 km. Overall, drilling has identified multiple sub-parallel mineralised shears over a strike length of approximately 350 m. The total length-weighted grade of all significant drill intersections, including the resampled historic drillholes, equates to 4.48 g/t Au with estimated true thickness ranging from 0.4 m to 7.1 m and averaging 1.5 m. In addition, six goldstone samples and one quartz-pyrite float sample from up to 2 km outside of the Exploration Target returned average grades of 8.4 g/t Au and 69.2 g/t Au respectively and highlights additional licence scale mineralisation potential.Further gold exploration programmes are currently being finalised.

In the first week of May 2015, we temporarily discontinued our coltan exploration activities and switched our geological team’s focus to the gold drilling programme to save costs. The team has since resumed our coltan exploration but it is still at too early a stage to state whether we have a viable project or not. We have learned that the higher value coltan is trending westwards and away from the small licence area we applied for in May 2015. Accordingly, we have decided to wait and see if the initial exploration assessment is promising and then potentially apply for a larger area in due course which will include the smaller licence area.

In December 2014 Sula declared a total oxidised resource of 55.5Mt at 45.39% Fe with a total resource of 514.5Mt Fe at 31.8% Fe. In addition to the above, SRK have identified an exploration target comprising an additional 100Mt to 250Mt, with a grade range of between 20% Fe and 35% Fe that lies below the optimised pit shell and have recommended a short drill programme of 6 holes at an average of 150m depth per hole which has the potential to add to resource accordingly.

Operations

Sula’s main objective is to explore and advance its 153 sq. km Ferensola Project, in Northern Sierra Leone, which is highly prospective for iron, gold and coltan.

In order to maximise the value of Sula’s Ferensola license, Sula has implemented an exploration programme, targeting iron ore, gold and coltan resources.

On 6 Janaury 2016, we received all remaining assay results from our gold drilling campaign on the company’s Ferensola Gold Project. SRK Consulting (UK) Ltd previously defined an independent JORC compliant gold Exploration Target (the “Exploration Target”) for the Ferensola Gold Project with a tonnage range of between 5 and 7 million tonnes (“Mt”) at a grade range of between 4 and 8 grammes per tonne (“g/t”) of gold (“Au”), which equates to between 0.8 and 1.5 million ounces Au. The Exploration Target has been restricted to a 2 km strike length segment of a regional fold belt that has a potential overall strike length in excess of 10 km. Overall, drilling has identified multiple sub-parallel mineralised shears over a strike length of approximately 350 m. The total length-weighted grade of all significant drill intersections, including the resampled historic drillholes, equates to 4.48 g/t Au with estimated true thickness ranging from 0.4 m to 7.1 m and averaging 1.5 m. In addition, six goldstone samples and one quartz-pyrite float sample from up to 2 km outside of the Exploration Target returned average grades of 8.4 g/t Au and 69.2 g/t Au respectively and highlights additional licence scale mineralisation potential.Further gold exploration programmes are currently being finalised

A scout drilling programme, targeting iron mineralisation proven to extend from African Minerals Limited’s 12.8Bt Tonkolili mine licence area, confirmed that Sula’s flagship Ferensola assets host consistently high grade iron mineralisation, with best intersections of 14.59m at 55.54% Fe and 73.18m at 43.66% Fe.

On 16 December 2014 Sula declared a JORC Compliant Oxidised Resource of 55.5Mt at 45.39% Fe with a total resource of 514.5 Mt Fe at 31.8% Fe.

In addition to the above, SRK have identified an exploration target comprising an additional 100Mt to 250Mt, with a grade range of between 20% Fe and 35% Fe that lies below the optimised pit shell and have recommended a short drill programme of 6 holes at an average of 150m depth per hole which has the potential to add to resource accordingly.

An initial exploration programme to identify the presence of a Coltan resource commenced in September 2014 and was targeting two areas of interest, one to the north and one to the south of the licence area.

In the first week of May 2015, we temporarily discontinued our coltan exploration activities and switched our geological team’s focus to the gold drilling programme to save costs. The team has since resumed our coltan exploration but it is still at too early a stage to state whether we have a viable project or not. We have learned that the higher value coltan is trending westwards and away from the small licence area we applied for in May 2015. Accordingly, we have decided to wait and see if the initial exploration assessment is promising and then potentially apply for a larger area in due course which will include the smaller licence area.

 

Iron Ore Drilling Programme

The Ferensola project contains two units Banded Iron Ore Formation (BIF), known quite simply by the team as ‘BIF Target 1’ and ‘BIF Target 2′. BIF Target 1 is contiguous to African Minerals’ Tonkolili iron ore deposit in the south of Sula’s licence area and has been the subject of our recent JORC drilling programmes. BIF Target 2 is located in a 20 sq km region to the north east of BIF Target 1 and is currently being grid surveyed and line cut by field crews in preparation for a new ground-based magnetometer survey which will be completed later this year.

2014 Defined a JORC Compliant Oxidised Mineral Resource and a JORC Compliant Magnetite Mineral Resource Estimate(MRE)

In March 2014 £2.1 million was raised via a placing of new ordinary shares in order to carry out the exploration drilling at Ferensola to define a JORC Oxidised Mineral Resource Estimate (MRE) and JORC compliant Magnetite MRE by the end of 2014 (the “Drill Programme”) and further determine the commercial value of the asset. The BIF Target 1 Drilling Programme designed by SRK UK Ltd commenced on the 9 April 2014. On 16 December, the company declared a total oxide resource of 55.5Mt at 45.39% Fe with a total resource of 514.5Mt at 31.8% Fe. In addition to the above, SRK have identifed an exploration target comprising an additional 100Mt to 250Mt, with a grade range of between 20% Fe and 35% Fe that lies below the optimised pit shell and have recommended a short drill programme of 6 holes at an average of 150m depth per hole which has the potential to add to resource accordingly.

2013 Scout Drilling Programme

Nine Hole 2,000 metre, scout drilling programme completed in September 2013, targeting iron mineralization at its wholly owned 153 sq km Ferensola Project. demonstrated high grade iron consistency –  73.18m at 43.66% Fe, 99.81m at 31.17% Fe and 43.73m at 33.89% Fe.

View  Iron Ore Drilling Programme Map here 

 

Coltan


COLTAN AT FERENSOLA PROJECT

Historical studies within the Blue Horizon licence area have proved the existence of Coltan within the alluvial system. To gather an understanding of the coltan’s distribution within the licence, an initial reconnaissance survey is planned. The map on the right outlines the areas of interest (“AOI”) within the licence that will be initially explored in detail AOI 1 and AOI 2.

On 26 November 2014 Sula raised £600,000 through the issue of new shares for the purpose of accelerating its coltan programme. Conditional upon a positive outcome of the company’s ongoing coltan exploration programme, Sula will consider commissioning a small pilot plant to process a number of bulk samples from the Ferensola Project.
SRK ES have reported that “Pegmatites have been observed in the southeast of the licence and are anticipated to be the source of coltan mineralisation; the pegmatites have not been seen elsewhere in the field but evidence of them is presented by coltan in artisanal float across the licence.”
WHY ARE WE LOOKING FOR COLTAN?

Coltan is mined for its tantalum and niobium elements. There is a very high demand for coltan from the Technology Industry as tantalum is a key element used in the manufacture of capacitors, which are used in almost all electronic circuit boards.

Historically the Democratic Republic of the Congo has been one of the biggest suppliers of low cost coltan to the market giving it the reputation of being a ‘Conflict Mineral’. Recent legislation passed in the US and Europe (The Dodd-Frank Act, 2010) aimed at eliminating the trade in conflict minerals, such as Tantalum and Niobium, requires that end users must be able to show that the minerals from which they were derived have been sourced from conflict-free areas. This has caused a spike in the supply and demand chain, and pushed up the price of coltan in the market.

Sierra Leone complies fully with this legislation, and currently two of the biggest coltan off-takers are actively looking at Sierra Leone as a potential source. Similarly, several Chinese Exploration companies exploring for iron ore in Sierra Leone are also exploring for coltan deposits, as the geology of the region contains coltan bearing pegmatites.

Further, the exploration costs for coltan are relatively low and fairly straightforward because it is coarse grained and tends to be located close to the surface. Establishing a suitable resource generally requires minimal stripping and systematically recorded manual pitting.

GEOLOGY

Columbite-Tantalite also known as “Coltan” is a dull black metallic ore from which the elements niobium and tantalum are extracted. The niobium-dominant mineral in coltan is called columbite, and the tantalum-dominant mineral is called tantalite. The primary source of this mineralisation is within pegmatites which are proximal to magmatic bodies (usually granitic in composition). These pegmatites are much more prone to weathering than the host granitic bodies or hosting country rocks that they are intruded into, causing the coltan mineralisation to be liberated into the soil horizon and alluvial system. Due to the high density of coltan, around 8g/cm3 it remains relatively proximal to its source within the alluvial system.

NIOBIUM

Niobium is primarily used in steel manufacture and for superalloys in the aerospace and electronics industries. It considerably increases the strength of steel and its temperature stability makes it ideal for making superconductor alloys for jet and rocket engines and superconductor magnets for MRI scanners.

Niobium prices are historical very stable and are demand-inelastic, with the 2009 slump in demand from the global steel industry having only minimal impact on pricing. Demand is driven by two sets of factors. The first, overall growth in the global economy influencing the demand for steel, and the second, the demand for aerospace superalloys – which are its largest non-steel market.

TANTALUM

Tantalum is a heat-resistant powder that can hold a high electrical charge. These properties make it a vital element in creating capacitors, the electronic elements that control current flow inside miniature circuit boards and are used across the technology sector, most notably in almost all cell phones, laptops, pagers, sound systems and computers.

The electronics industry accounts for 50-60% of tantalum consumption, with superalloys the other major end-user at around 20%. The two main mechanisms for its pricing are long term contracts with conventional miners, and spot sales for material from artisinal mines and elsewhere. The spot price movements can be dramatic, tending to range between $100/kg – $250/kg, and have spiked as high as $400/kg during the last technology boom.

For more information please click here

Gold

The Ferensola Gold Project – JORC Exploration Target

The independent technical presentation produced by SRK in support of the Exploration Target can be found under the following link: http://www.sulaironandgold.com/srk-presentation-2015-dalakuru-exploration-target/

The Ferensola gold project is located in northeast Sierra Leone, approximately 200 km east-northeast of the capital Freetown. The licence, registered under Sula’s 100% owned subsidiary Blue Horizon, totals 153km2 and is host to the Ferensola iron project and the recently announced Ferensola gold project.

Historically, the Ferensola gold project had been termed the Yanfaran Dalakuru Sende Zone (YDS) with previous operators completing extensive soil sampling, RAB drilling and 5,392m of diamond drilling at three prospects considered prospective for gold. In total, 34 diamond drillholes were completed by previous operators who intercepted significant quartz-sulphide breccias:

2.00m @ 8.76g/t Au and 8.72 m @ 10.46g/t Au from drillhole SDD004
1.55m @ 11.68g/t Au from drillhole SDD016; and
9.03m @ 6.63g/t Au from drillhole SDD033

The YDS was interpreted as being a 5km long northwest-southeast trending structure with mineralisation being controlled by faulting.

Since Sula acquired the licence, extensive exploration activities undertaken have included:

Ground magnetic geophysical surveys
Extensive soil sampling
Trenching
Field mapping and sampling of key locations; and
Re-logging and re-sampling of the historic drill core
The work undertaken by Sula has resulted in the generation of a JORC compliant Exploration Target for the Ferensola gold project, being authored by independent consultants SRK Consulting (UK) Ltd (SRK). The Exploration Target covers a 2km portion of a fold belt with evidence for high grade mineralisation over a distance in excess of 10km. In defining the Exploration Target, SRK used the magnetic anomaly data to define a fold structure and to establish a trace length for the mineralisation which approximated to 2km and with a dip extent of 300m. Mineralisation is assumed to comprise discontinuous sheets of massive sulphide of between 2 and 5m in width, with nominal strike extents of between 100m and 300m. The most significant accumulations of mineralisation are assumed to be contained in fold-hosted shoots akin to ‘saddle reefs’.

SRK defined an Exploration Target for the Ferensola Project with a tonnage range of between 5 and 7 million tonnes (“Mt”) at a grade range of between 4 and 8 grammes per tonne (“g/t”). This equates to between 0.8 and 1.5 million ounces (“Moz”) Au.

For more information please click here 

The Board

 


Roger Murphy
Chief Executive Officer

Roger was previously Managing Director, Investment Banking and Head of Dundee Securities Europe Ltd., which he joined to establish its London office with an emphasis on capital raising for mining and oil & gas companies. Roger’s previous positions include Managing Director at Renaissance Capital, successfully raising capital for a variety of companies, and Head of Sales for Canaccord Adams, London, where he was also a member of its UK Executive Committee. Earlier in his career in the finance industry he worked in mining sector sales for Deutsche Bank, as a mining analyst for both Deutsche Bank and SG Warburg and as a researcher for the World Gold Council. Roger began his career as a geologist working for Anglovaal Mining and BP in Africa.” Roger  has a B.Sc (Hons) in Geology an M.Sc. in Hydrogeology and an MBA (finance).


Matt Wood
Executive Director & Finance Director


Matt is a qualified chartered accountant who has a broad range of managerial skills, gained during a career spanning more than 15 years in the financial sector. He is the Managing Director and one of the founders of CMS Advisory Group, a City of London-based multi-disciplined advisory firm founded in 2006, which provides a full suite of plc services to growth companies, utilising the small cap expertise of its staff in the areas of corporate finance, corporate law, management accounts and company secretarial. Prior to this Matt worked as a NOMAD in the corporate finance department of Beeson Gregory (which became Evolution Securities and was later sold to Investec), advising both AIM and Full List companies on a wide range of transactions including IPOs, secondary fundraisings, mergers and acquisitions and corporate restructurings. Matt is an experienced Non-Executive Director and is currently a Director of Westminster Group Plc and Avarae Global Coins Plc, where he sits on both their audit and remuneration committees.


Howard Baker
Non-Executive Director


Howard is a geologist with over twenty years’ industry experience including exploration geology, mining geology, resource geology and consulting. He spent the early parts of his career working as an exploration and mine geologist at numerous mines worldwide, including Western Mining Corporation’s Mount Keith nickel mine, Anaconda Nickel’s Murrin Murrin nickel laterite mine, Iluka Resources’ Eneabba and Capel heavy mineral sands mines, BHP Billiton’s Yarrie iron ore mine and he worked as a resource geologist for Rio Tinto based out of Perth and Tom Price. From 2007 to 2015, Howard was a Principal Consultant (Resource Geology) and Practice Leader at SRK Consulting (UK) Ltd (“SRK”). In this capacity he was predominantly responsible for numerous Mineral Resource Estimates, including full project management and sign off for numerous large scale projects, including many based in Africa. Howard is currently Managing Director of Baker Geological Services Ltd, an independent geological consultancy. He is also Technical Director of GeoMax Holdings Corporation, a company whose principal focus is the acquisition and development of mineral projects in Brazil.

Nick Warrell
Chief Operating Officer

Nick is the founder of Sula Iron and Gold plc. He has headed up various exploration projects worldwide, including the UK, Australia, South America, and West Africa. In his 36 year commercial career, he established Kernow Tunnelling Company, a specialist hard rock tunnelling company which successfully operated in the UK for 14 years. Nick opened, and operated, the Wheal Concord tin mine in Cornwall for three years which he later sold. He also managed and subsequently owned and sold the Gwynfynydd Gold Mine in North Wales. In Sierra Leone, where he has spent 24 years, he discovered gold and platinum deposits and founded Golden Prospect Mining, which floated on AIM and was later sold. Following this Nick founded Lion Mining Company Limited, which he operated for three years and successfully sold. Nick is an Honorary Paramount Chief of Diang Chiefdom who control the concession area.

Iain Macpherson
Non-Executive Director

Iain is a seasoned mining executive with over 30 years’ experience in senior management and executive roles in both the junior and major mining sectors.

He has a track record of operating, developing and financing mining projects, including having led a number of significant stock market listings, specifically on the London, UK and North American markets and has developed a network of private and institutional investors

In the junior sector he operated in senior operational and executive roles in Western and Eastern Europe and Russia including the development of three new mining projects before moving to South Africa as UraMin’s Chief Operating Officer and subsequently CEO.

From late 2009 to July 2014 he was Chief Executive Officer of Elemental, building the team that has taken the project through exploration into project development and raising the finance to support the successful fast-track project strategy, delivering an on-time and on-budget advanced pre-feasibility study in September 2012.

In late 2014, Iain co-founded Madini with a group of similarly experienced mining professionals focusing on African near cash high margin mining projects.

The company is aware of the following significant shareholders as at 13 December 2016

Shareholder Number %
Madini Occidental 319,874,530 17

 

Address:

SULA IRON & GOLD PLC
201 Temple Chambers
3-7 Temple Avenue
London EC4Y 0DT
United Kingdom

Phone number:

+44 20 7583 8304

Email Address:

[email protected]


Nominated Adviser

Strand Hanson
26 Mt Row
London
W1K 3SQ


Broker

VSA Capital Ltd Fourth Floor
New Liverpool House
15-17 Eldon Street
London
EC2M 7LD


Solicitors to the Company as to English law (TBA)
Legal counsel to the Company as to Sierra Leone law
Yada Williams & Associates
2nd Floor
7 Walpole Street
Freetown
Sierra Leone


Auditor and Reporting Accountant
(Registered as auditors by the Institute of Chartered Accountants in England and Wales) Moore Stephens LLP
150 Aldersgate Street
London EC1A 4AB

United Kingdom

Public Relations

Dominic Barretto,
Yellow Jersey PR Limited
76 Great Suffolk Street
London SE1 OBL
United Kingdom


Registrar Share Registrars Limited
Suite E, First Floor
9 Lion and Lamb Yard
Farnham
Surrey GU9 7LL
United Kingdom

Sula Iron and Gold PLC Timeline

Newswire
February 13 2017
Newswire
December 16 2016

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