Sultan expands footprint in fertile Yilgarn Craton as gold price hits new record
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Special Report: What better time to be granted a gold-prospective piece of ground than when the price of the precious metal is notching new highs?
Sultan Resources (ASX:SLZ) has just scored itself 77 sq km of ground right next its substantial Lake Grace project in the Yilgarn Craton in Western Australia with the granting of a new licence by the government.
With gold hitting $US1338 (around $1870 in Aussie dollars) on Thursday and major investment banks with targets of $US1400+ after last year’s record buying by Central Banks, gold is back on centre stage.
Precious metals analyst Jordan Eliseo told Stockhead recently that as the gold bull market gets more entrenched, capital will start to move down to the juniors and even to some of the explorers.
Sultan has a portfolio of quality assets in highly prospective regions currently being targeted by successful explorers such as Gold Road Resources (ASX:GOR), Sandfire Resources (ASX:SFR) and Lodestar Minerals (ASX:LSR).
The Yilgarn Craton is one of the world’s most economically productive in terms of mineral wealth, particularly gold.
In 2013, the region even shot past the highly fertile Witwatersrand goldfields in South Africa based on yearly gold production.
Sultan’s new licence is prospective for gold mineralisation and sits along strike to the southeast of the historically mined Griffins Find gold deposit and the historically drilled Ridge/Taylors gold prospect.
The entire Lake Grace project area is situated in the wheatbelt district of southern Western Australia, with most of the licences located on privately-owned farmland.
Individual landowner access agreements are required to secure surface access rights to the land.
Sultan has identified priority areas where it wants to start exploring and it says it has only had a “positive and cordial welcome” from all the landowners the company has approached.
Access agreement negotiations with relevant landowners over priority areas are well advanced.
Sultan started exploration at its Lake Grace project in December last year.
About 9000-line kilometres were surveyed across the project to provide high-resolution magnetic imagery, to further understand the geology and structure with a view to identifying potential gold and nickel target areas for follow up ground exploration.
Preliminary images of the data have been received and Sultan has commissioned Core Geophysics to undertake full processing and interpretation of the data to assist in generating targets for drilling.