Positive assay results from the first two drill holes of Sula Iron & Gold 2 000 m drilling programme targeting iron mineralisation has been received.

The results are from its wholly owned 153 sq km Blue Horizon licence area located in the northern part of the Sula-Kangari Greenstone Belt in Sierra Leone, which is prospective for iron and gold. Initial results confirm presence of iron mineralisation with comparable grades to African Minerals Tonkolili Project.

The company, an iron ore and gold exploration company focused on West Africa, has as its main objective the exploration and advancement of its key Exploration Licence EL54/2011, in Northern Sierra Leone, which boasts a dual commodity focus and is highly prospective for iron and gold.

The 153 sq km licence area is contiguous to African Minerals’ operational Tonkolili Iron Mine that has a JORC compliant resource of 12.8 billion tonnes

Drilling focused on ‘Area 1’ to test the strike continuity, thickness and iron grade of a 3.1km banded iron formation (‘BIF’) and eight holes out of the planned nine have been drilled to date. The remaining holes’ results will be announced in due course.

Depending on final drill results a second phase programme will be implemented to test direct shipping ore (‘DSO’) potential

Sula’s Non-Executive Technical Director, Gareth O’Donovan said results include intersections of 30.96m at 37.37% Fe and 6.14m at 55.67% Fe taken from the primary target Area 1. This highlights the prospectivity of the Licence and we look forward to updating the market shortly on the remaining assay results which we hope will further enhance our understanding of the iron mineralisation, as we look to define the Licence’s DSO potential and the estimation of a maiden JORC compliant resource later in 2013.  In addition, we continue to operate a dual commodity exploration programme, and remain focused on also proving the gold potential of our highly prospective Licence.”