17th Jul 2015 07:27
LONDON (Alliance News) - Sula Iron and Gold PLC Friday said it will drill an exploration target at the Ferensola gold project in Sierra Leone which is thought to contain up to 1.5 million ounces of gold in the hope of securing a maiden mineral resource estimate for the project.
The miner said it defined the target after it collected and reviewed all the historical exploration data and after receiving the assay results from a recent programme of independent check sampling.
The initial target has been defined by SRK Consulting (UK) Ltd over a strike length of 2 kilometres. The exploration target forms part of a larger and more "complex" fold structure over a 10 kilometre strike length which will be drilled as part of the company's future exploration.
The check sampling of historic drill cores at the target indicated potential high grade results, including 19.5 metres at 9.2 grammes of gold per tonne including 6.1 metres at 14.8 grammes of gold and 5.0 metres at 17.4 grammes of gold.
A preliminary drill programme has been prepared to assist in the generation of the maiden JORC compliant mineral resource estimate for the Ferensola gold project and to test the potential strike length of the magnetic anomaly.
"The potential quantity and grade is conceptual in nature and there has been insufficient exploration to estimate a JORC compliant mineral resource and it is uncertain if further exploration will result in the estimation of a JORC compliant mineral resource," the company warned.
"In SRK's opinion, the historical exploration data reviewed and verified here, is sufficient in both quality and quantity for an exploration target as defined by the JORC code to be defined," it added.
SRK Consulting has said the exploration target has a tonnage between 5.0 and 7.0 million tonnes of ore at a grade varying between 4.0 to 8.0 grammes of gold per tonne, which could contain anything from 800,000 ounces of gold to 1.5 million ounces.
Sula said it will may seek to secure a joint venture partnership to ensure the drill programme and target can be developed by the most commercial route.
Sula shares were down 3.1% to 1.55 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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