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.

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