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VSA Capital Market Movers - Sula Iron and Gold PLC

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Sula Iron & Gold (LON:SULA)

Sula Iron & Gold (LON:SULA) has announced the results from its Batch 1 assays which cover 5 over the 14 drill holes in this current programme. One hole was from Sanama Hill (the existing Exploration Target) and the remainder were from the Eastern Target Zone which has not previously been drilled.

Highlights from hole FDD014, on Sanama Hill, included high grade intersections such as 15.9g/t Au over 4.8m (3.1m true width), and 37g/t Au over 0.75m both from within a mineralised shear zone interval with a true width of 21m. This was intersected at a depth of between 122.85m and 155.45m. These are the most promising results that Sula has returned to date and indicate that the Sanama Hill prospect may be more attractive than previously thought.

The initial results from the Eastern Target confirm that there is indeed a mineralised system present although as yet the gold assays returned have not been significant. The most notable result was a 1m intercept at 0.63g/t. However, as structural controls are better understood this will aid in defining future drilling. There are still three drill holes with results outstanding on this target, however.

Batch 2 results will include the remaining 9 holes including the final three from the Eastern Target and the samples have been dispatched from the exploration camp. The initial results from Sanama Hill are encouraging while it remains early days for the Eastern Target.

We reiterate our Speculative Buy recommendation and target price of 1.6p


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