Sula Iron & Gold widens loss in 'busy' first half

Sierra Leone-focused multi-commodity exploration company Sula Iron & Gold reported on a “busy” first half on Thursday, with some promising drilling results and a somewhat wider loss in the six months to 31 March.

During the period, a 1,556.2m diamond drilling campaign was completed with gold mineralisation greater than 0.5 g/t being intersected within eight of the ten drillholes.

The AIM-traded firm said drilling has identified multiple sub-parallel mineralised shears over a strike length of around 480 metres.

It said the total length-weighted grade of all significant drill intersections equated to 4.21 g/t, with estimates true thicknesses ranging from 0.4 metres to 7.1 metres and averaging 1.5 metres.

Sula’s board said the regional sampling programme was continuing to confirm the high-grade nature of mineralisation beyond the limits of the currently defined exploration target and maiden drill site, with samples to date returning assay results up to 69.2 g/t.

Regional samples submitted for assay returned results in excess of 0.5g/t, reporting a weighted average of 9.0 g/t and a maximum of 69.2 g/t.

Post-period end, Sula started an induced polarisation survey that has highlighted the larger scale potential of the Ferensola Gold Project outside the currently-defined exploration target, with significant ‘drill ready’ targets now identified.

On the finance side of things, around £1m was successfully raised during the period by way of equity placements with new and existing investors.

The loss for the period was £1.11m, compared with the £0.89m loss last year, resulting in a loss per share of 0.19p.

Net assets were lifted slightly, and stood at £5.97m at period end, compared with £5.78m a year ago.

“It has been another active 6 month period for Sula, having completed another successful drill programme and further advanced the potential gold target through the IP survey,” said chief executive Nick Warrell.

“The current uncertainty and volatility in world markets has not helped us in recent weeks, but I'm pleased to report that Sula is currently in late stage contractual negotiations with respect to securing a potential joint venture partner to assist with the development of its Ferensola Gold Project, including the provision of additional working capital to Sula.

“An update on this matter will be provided in due course, as and when appropriate,” Warrell added.