Sula Iron & Gold (LON:SULA) shares rallied on Wednesday, after the company updated the market on its strategy.
The gold exploration company said it was considering adding new assets to its portfolio, alongside detailed analysis and structural interpretation work is taking place on its Ferensola gold project in Sierra Leone.
According to the company announcement, this work is being conducted under the guidance of Madini’s Qualified Person, John Gould, supported by a “highly-experienced South Africa-based geologist with significant experience of exploration data capture and analysis” in Archean greenstone gold deposits.
Roger Murphy, Sula’s Chief Executive, commented:
“The Ferensola Gold Project is a very exciting project. The challenge faced by Sula in the current climate is how best to develop this project with a view of maximising value for our stakeholders.”
He continued: “With that in mind the Board has commenced a process to evaluate how best to continue developing Ferensola’s gold asset and also to bring in additional opportunities to the Company. The Board believes that these should not only increase value, but also mitigate single project financing risk. I look forward to updating the market in due course.”
Back in September, the company revealed the results of its drilling programme at Ferensola, hitting 19.3 grams per tonne over 1.2 metres in one hole in the Southern target in Sierra Leone.
Additionally, a regional soil sampling programme put in place to explore various structural targets revealed anomalous gold grades to the northeast of Sanama Hill, providing a minimal cost method of identifying new and untested gold zones.
“These high-grade results once more provide strong evidence that in Ferensola we have a serious gold province,” Mr Murphy commented at the time.
Shares in the company are currently up as much as 17.50 percent as of 10.39AM (GMT), as the market react to the strategy update.