$3.3m market cap Sultan could be dialling in on a massive gold find at Challenger
Special Report: Sultan’s 5 hole, 991m drilling program targeting a “very significant gold-mineralising system” at the Challenger gold prospect is complete. All-important assays are now pending.
In May last year, Sultan’s (ASX:SLZ) maiden drilling program at Challenger – part of the underexplored Lake Grace project in the Wheatbelt region of WA — hit near surface anomalous (low grade) gold which pointed to a major gold system deeper down.
A subsequent gravity survey – which measured the density of the underlying rock — indicated this near surface stuff dipped “tantalizingly” towards a very strong, 2km-long gravity anomaly.
By the way, when companies talk about going ‘along strike’ or ‘down dip’ this is what they mean:
There were already remarkable geophysical and geological similarities between Challenger and Ramelius Resources’ (ASX:RMS) ~700,000oz Tampia deposit and Ausgold’s (ASX:AUC) 1 million oz Katanning deposit.
Both are located in Challenger’s neighbourhood.
Now, all five holes from the most recent drilling (assays pending) have hit very thick intervals of the same rock types associated with gold mineralisation at Tampia and Katanning, Sultan says.
The intervals of high-density mafic rocks (rich in magnesium and iron) intersected in the program are much thicker than those defined by previous drilling at Challenger and explain the strong gravity anomalies revealed in the recent gravity survey, the company says.
Sultan managing director Steve Groves says the gravity survey was very effective in outlining hugely thick bodies of mafic rocks (rich in magnesium and iron) at Challenger.
“The fact that these mafic bodies are consistently sulphidic and contain regular quartz intervals is very encouraging given the association of these features with gold mineralisation in our previous drilling and elsewhere in the southwest Yilgarn,” he says
“We will await the assay results with great anticipation.”