Sula considers options for Sierra Leone gold project after encouraging sampling

After finding "very encouraging" gold samples from test drilling at its Ferensola project in Sierra Leone, explorer Sula will soon look to engage with potential joint venture or farm-out partners.

The AIM-listed company said on Wednesday that while structural interpretation works and detailed analysis of data captured from 9,000 metres worth of drilling at its Ferensola gold project in Sierra Leone was still ongoing, it had already begun to explore the potential of adding more drill sites across the asset.

The soil and sampling study, conducted under the guidance of Sula's project partner, had thrown up "very encouraging" high-grade gold intersections at several other targets across the Ferensola licence.

Sula said it intends to "examine various options" for the further development of the licence, with the board of the view that a potential joint venture or farm-out deal would provide a "cost-effective means to prove-up the potential inherent value that the company believes this project contains".

Roger Murphy, chief executive officer at Sula, said, "The challenge faced by Sula in the current climate is how best to develop this project with a view of maximising value for our stakeholders."

"With that in mind the board has commenced a process to evaluate how best to continue developing Ferensola's gold asset and also to bring in additional opportunities to the company," he added.

Murphy also stated that Sula was evaluating suitable opportunities and expressions of interest regarding additional sites on the asset to insulate itself from any potential failures elsewhere.

Murphy said, "The board believes that these should not only increase value, but also mitigate single project financing risk. I look forward to updating the market in due course."

As of 0915 BST, shares had surged 17.50% to 0.0940p.