31st Mar 2014 11:13
LONDON (Alliance News) - Sula Iron And Gold PLC Monday said it has completed the establishment of its drilling base camp at the company's flagship Ferensola Iron project in Sierra Leone, on schedule.
The iron ore and gold exploration company, said its drilling programme on site is expected to start in the coming days, with regular news flow and drilling updates throughout the 2014 field season as the Company works towards estimating a maiden JORC compliant Direct Shipping Ore resource.
The company said it expects to receive the results from its gold exploration programme at site, which was completed in February, before the end of April. It said it intends to use the results to identify future gold mineralisation drill targets.
Sula received an independent valuation for Ferensola in January which suggested a minimum value for the licence of USD8 million, a maximum value of USD200 million and a technical value of USD36.7 million.
With a current market cap of GBP8.5 million, this valuation could represent significant value potential for Sula Iron & Gold.
Sula Iron & Gold shares were down 14.0% to 3.03 pence, putting it in the top ten AIM fallers Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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