Further Iron Drill Results - Sierre Leone

Sula Iron & Gold plc / Index: AIM / Epic: SULA / Sector: Natural Resources 9 September 2013 Sula Iron & Gold plc (`Sula' or `the Company') Further Drilling Results Confirm Significant Iron Prospectivity in Sierra Leone Sula Iron & Gold plc, an iron ore and gold exploration company focussed onSierra Leone, is pleased to announce a further two positive assay results fromits recently completed 2,000m nine hole iron ore drilling programme at itswholly owned 153 sq km Ferensola Project* (`Ferensola' or `the Licence'),previously called the Blue Horizon licence area, located in the northern partof the Sula-Kangari Greenstone Belt in Sierra Leone, which is prospective foriron and gold. The results to date continue to confirm the Licence'sprospectivity for iron in line with strategy to delineate a maiden JORCcompliant iron resource in 2014. Overview * Best intersections include 29.70m at 52.25% iron (`Fe') and 40.01m at 29.98% Fe, continuing to demonstrate the mineralisation's high iron grade * Previous drill holes returned highs of 30.96m at 37.37% Fe, 6.14m at 55.67% Fe, 11.10m at 54.41% Fe and 69.70m at 37.28% Fe * Drill programme tested the strike continuity, thickness, and iron grade of a 2.2km section of a 3.1km banded iron formation (`BIF') which is coincident with a strong linear magnetic anomaly, proven to extend from African Minerals 12.8Bt iron Tonkolili licence area * Depending on final drill results (three further assay results due) and funding requirements, infill drilling will be conducted in order to delineate a JORC compliant iron ore resource in 2014, and a second phase programme will be implemented to test direct shipping ore (`DSO') potential * An exploration target of 500 million tonnes at 30.4% iron for magnetite and 55% iron for hematite has been suggested by independent exploration consultants SRK Exploration Services Ltd * Maintaining dual-commodity exploration programme to target the Licence's iron and gold prospectivity in order to maximise the Licence area's value potential To view a full version of the announcement, including figures and maps, pleasevisit the Company's website at: www.sulairongold.com Sula's Non-Executive Technical Director Gareth O'Donovan said, "These latestdrill results continue to demonstrate consistent high-grade iron intercepts andfurther confirm that our flagship Ferensola Iron Project in Sierre Leone ishighly prospective for iron. This is especially significant given that ourlicence area runs contiguous, and is on strike with African Minerals'world-class 12.8 Bt Tonkolili Mine. A further three assay results are due fromour recently completed 2,000m drilling programme, and I look forward toreporting on these as we continue to fast-track Ferensola towards delineating amaiden JORC compliant resource early 2014 and testing the DSO potential, bothof which will further prove the economic attractiveness of our project. "Additionally, as previously stated, we are a dual-commodity focussed companyand in this respect we remain committed to further proving the exciting goldpotential of Ferensola where multiple gold targets have already beenidentified. With further sampling, mapping and reconnaissance work planned, Ialso look forward to updating on these developments as we continue to unlockthe intrinsic value of our flagship project and enhance shareholder value." Further Information In line with the Company's on-going exploration and development programme toadvance the Licence towards a maiden JORC compliant iron resource, Sulacompleted a scout drilling programme over a 2.2km section of the Banded IronFormation (`BIF'), which has a known strike length of 3.1km. Six assay resultsof nine have now been received and once all assay results have been analysed,Sula will look to test the entire strike length in further drilling programmes,with the ultimate aim of delineating a JORC compliant iron ore resource in 2014and testing the DSO potential. The BIF is located in Area 1, in the southwest part of the Licence, and islocated directly along strike from an undrilled magnetic high within AfricanMinerals Limited's 12.8 billion tonne Tonkolili Licence. The drilling aims totest the strike continuity, thickness and iron grade of the main BIF target,which has been identified as a high priority target. Results received to date confirm the presence of high grade ironmineralisation. Drill results received from drill holes BHDD007 and BHDD008,returned best intersections of 29.70m at 52.25% iron (`Fe') and 40.01m at29.98% Fe. These results further support the previous drill results receivedfrom BHDD003, BHDD004, BHDD005, and BHDD006 (see announcement dated 22 July2013, and 2 September 2013) and confirm the high grade consistency of the ironmineralisation within the Licence. Table 1: Drilling Results: HOLE_ID FROM TO INTERVAL TRUE Fe P SiO2 Al2O3 Comment WIDTH** (m) (m) (m) (%) (%) (%) (%) (m) BHDD007 11.00 45.30 34.30 29.70 52.25 0.07 4.75 10.72 BIF BHDD007 48.95 65.80 16.85 14.59 55.54 0.07 8.13 4.18 BIF BHDD008 1.28 11.90 10.62 9.19 36.52 0.14 6.91 24.14 Surface Material BHDD008 25.30 39.00 13.70 1.86 42.08 0.15 15.48 13.48 BIF BHDD008 42.80 47.10 4.30 3.72 41.59 0.06 26.27 6.69 BIF BHDD008 139.80 186.00 46.20 40.01 29.98 0.04 44.32 3.36 BIF with Amphibolite BHDD008 210.40 237.30 26.90 23.29 35.64 0.04 39.88 2.03 BIF with Amphibolite ** calculated by SRK ES using cross-sectional interpretation of the mineralisedintercepts in three dimensions; used alpha angle intersection trigonometry,which has assumed the geologies constantly dipping at 70° NW and no holedeviation. Once all of the drill results have been analysed a second phase programme ofshallow vertical holes may be required to test Area 1's potential for directshipping ore (`DSO') iron. Initial field mapping completed in December 2012indicated that the BIF outcrops are variably oxidised to higher grade haematitemineralisation; such supergene processes are responsible for the formation ofthe higher grade DSO ores. General Ferensola Information The Ferensola Project is a renewable four year 153 sq km Exploration Licence,highly prospective for both iron ore and gold. The Licence is located in theSula-Kangari Greenstone Belt in the Northern Province of Sierra Leone, 55kmsouth of the nearest town, Kabala, and 290km north east of the capital Freetownand has good infrastructure with access from Freetown via a tarred roadfollowed by 80km on bush roads. There is an exploration camp located centrally at Ferensola, comprising of corelogging shed, accommodation buildings, an office block, mechanical engineeringworkshops, stores, kitchen and dining facilities, and ablution blocks. * The Company's formerly named Blue Horizon Licence area has been renamed theFerensola Project which direct translation from Kuranko (the indigenous triballanguage) meaning togetherness. The Company's 100% owned licence is part ofthree Kuranko Chiefdoms, Diang, Samia Bendugu and Nieni, all of which theCompany has very strong community relationships with. Quality Assurance / Quality Control (QA/QC) Sample intervals are reported as both metres downhole and as true thickness,which have been calculated by SRK Exploration Services using cross-sectionalinterpretation of the mineralised intercepts in three dimensions, and orientedcore. The actual dip of the BIF varies but is generally fairly steep. All drill core is transported by Company personnel from the drill site to anearby secure storage facility for logging and sampling. Sampling intervals aredefined after core logging and estimation of iron content. The core is splitand half of the core is sent for assay, while the other half is retained in thecore boxes. Samples are sent by courier to ALS Preparation Laboratory in Monrovia, Liberiathen sent to The ALS Group Laboratory in Johannesburg, South Africa, a SANASaccredited laboratory for analyses by XRF. A set of standards, duplicates and blanks is inserted by SRK ES into the samplestream on a regular basis in addition to the laboratory's own internal QA/QCstandards and duplicates. QA/QC results to date are well within the acceptednorm. **ENDS** For further information please visit www.sulairongold.com or contact thefollowing: Nick Warrell Sula Iron & Gold plc +44 (0) 7811 447830 James Caithie / Avi Cairn Financial Advisers LLP +44 (0) 20 7148 7900Robinson John Howes / Alice Lane Northland Capital Partners +44 (0) 20 7796 8800 Limited Felicity Edwards / St Brides Media and Finance +44 (0) 20 7236 1177Charlotte Heap Ltd Notes Sula Iron & Gold plc is an iron ore and gold exploration company focussed onWest Africa. The Company's main objective is to explore and advance its keyExploration Licence EL54/2011, the Ferensola Project, in Northern Sierra Leone,which boasts a dual commodity focus and is highly prospective for iron andgold. The 153 sq km licence area is contiguous to African Minerals' operationalTonkolili Iron Mine that has a JORC compliant resource of 12.8 billion tonnes. Exploration work at the project has confirmed the presence of Banded IronFormation (`BIF') at surface over a strike length of 3.1km and drill-ready. TheBIF appears to extend NE from the Tonkolili Mine into Sula's licence area. Anexploration target of 500 million tonnes at 30.4% iron for magnetite and 55%iron for hematite has been given by independent exploration consultants SRKExploration Services Ltd.