Sula Iron & Gold's annual losses widen

7th Mar 2014 07:52

Sula Iron & Gold widened its annual pre-tax loss to 2m pounds from 0.6m pounds, reflecting an increase in administrative and exploration costs mainly in Sierra Leone. The company was yet to make a revenue as it hadn't reached production. However, the group said it made "significant progress" on exploration programmes at its flagship Ferensola Iron and Gold Project, located in the mineral rich Sula-Kangari Greenstone Belt in Sierra Leone."In order to maximise the value of Ferensola, Sula continues to implement a dual exploration programme, and the company has fulfilled a number of key objectives during the period," said Chief Executive Nick Warrell. "For example, a scout drilling programme, targeting iron mineralisation proven to extend from African Minerals Limited's (`African Minerals') 12.8bn-tonne Tonkolili mine licence area, confirmed that our flagship Project hosts consistently high grade iron mineralisation, with best intersections of 14.59m at 55.54% iron and 73.18m at 43.66% iron."Another initial gold exploration programme started in the fourth quarter of 2013 and was completed in February 2014.The results of this programme are expected by March 31st and will enable Sula to identify drill targets, targeting hard rock gold mineralisation.The group's cash position improved post-year end following the placing to raise £0.8m in October 2013 and the exercise of warrants in January and February 2014, which raised a further £0.6m. The company today announced that it has raised a further £2.1m via a placing to fund its projects. RD