LONDON (ShareCast) - Sula Iron & Gold, an iron ore and gold exploration company focussed on Sierra Leone, has reported that five target areas for hard rock gold mineralisation have now been confirmed for follow-up exploration at Sula's wholly owned 153 sq km Blue Horizon iron ore and gold exploration licence in Sierra Leone.

The five target areas appear to host source areas of placer gold, with historic diamond drilling intercepts including both 8.72m at 10.46g per tonne gold and 1.55m at 11.68g per tonne gold.

Sula's Non-Executive Technical Director, Chris Wilson, said: "We are delighted that reconnaissance work has identified five highly prospective exploration targets that appear to host the source areas of placer gold within the licence area. The potential presence of these gold sources confirms our belief that the licence is highly prospective for gold.

"This marks another step in our efforts to establish a leading dual-commodity iron ore and gold exploration company. With defined exploration programmes in place to prove up the gold potential, and work on-going on our iron ore prospects, we are confident that our licence offers investors significant upside potential."

Beaufort, Sula’s Joint Broker said: "Sula ticks all the right boxes … progress reports should flow steadily in the coming months and culminate in a compliant resource estimate before the year end. This is the time at which other operators in the region might well express an interest. Investors should enjoy the ride."

The share price rose 7.14% to 5.62p by 14:00 on Monday.

NR

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