Sula Iron & Gold signs new contract with Equity Drilling

AIM-listed gold exploration company Sula Iron & Gold has signed a new 5,000m drilling contract with Equity Drilling on its flagship Ferensola gold project.

The drilling will focus mostly on Sula's TZ0, Sanami Hill targets, and the programme will aim to infill and extend the areas of known high grade mineralisation and to improve the confidence in the geological interpretation and support a more accurate determination of the contained gold.

Sula may also undertake further scout drilling on targets within the Ferensola licence. The scout drilling will be designed around the pending Batch 2 assay results, and after the completion of a review of all data collected to date by Tect Geological Consulting, a South African based structural geology firm. Re-commencement of drilling is planned in the next fortnight subject to weather conditions.

Chief executive officer Roger Murphy said: "We are pleased to be able to announce a further drilling programme focussed on Sanama Hill, and also aimed at the other compelling targets touched upon by our recently completed programme. Equity Drilling has once again provided a convincing, flexible proposal which will allow further drilling before the rainy season.

"We see the recently reported 21m true width intersection at 3.65g/t with a high grade core of 15.9g/t over 3.1m as a complete game changer in terms of our assessment of Sanama's potential. We are convinced that there are more like this to be found at Sanama Hill and elsewhere and hope that our new drilling programme confirms this."

At 0922 BST, the shares were up 5.3% to 0.42p.