3rd Feb 2015 09:19
LONDON (Alliance News) - Sula Iron & Gold PLC saw its shares drop Tuesday morning, even though it said a technical valuation for its Ferensola iron project in Sierra Leone had increased by more than half to USD56 million over the last 12 months.
The company got a maiden mineral resources estimate for the project last December, and SRK Exploration Services was then commissioned to update the technical valuation of the exploration asset. SRK thinks the work done by Sula over the past year has increased the technical value to USD56 million and the maximum potential value of the property to USD210 million.
Still, Sula Iron & Gold shares were down 7.2% at 1.02 pence Tuesday morning.
"This does not address the market sentiment of such investments and as such a potential investor's valuation may differ greatly from the technical valuation as the result of their view of the current or future status of the mining industry and the company's financial position," Sula conceded.
"I am delighted with both the Technical and Potential values that SRK ES has given to Sula's assets at our Ferensola Project. We have demonstrably unlocked and enhanced shareholder value during 2014 and are determined to replicate that during 2015," Sula Chief executive Nick Warrell said in a statement.
The Ferensola Licence covers an area of 153 square kilometres and is located in the central
part of the Sula Mountains of Sierra Leone. SRK thinks the licence has the potential to host mineral deposits of iron, gold and coltan, which is used in the capacitors that control current flow in mobile phone circuit boards.
Sula Iron & Gold shares were down 7.1% at 1.02 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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