Sultan has uncovered “very significant gold-mineralising system” at Challenger
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Special Report: The region surrounding Sultan Resources’ (ASX:SLZ) underexplored Lake Grace project, 250km south of Perth, is a hive of activity right now.
Lake Grace is the same neighbourhood as Ramelius Resources (ASX:RMS) 700,000 oz Tampia deposit and Ausgold’s (ASX:AUC) 1 million oz Katanning deposit.
It is also surrounded by tenements being actively explored by joint venture between Cygnus Gold (ASX:CY5) and major miner Gold Road Resources (ASX:GOR).
The $700m market cap Gold Road spends over $20 million a year on exploration. It’s a company with a proven track record of discovery.
Sultan Resources managing director Steve Groves says Gold Road, by itself and in JV with Cygnus Gold, is actively exploring several thousand square kilometres of ground.
“They are seeing things that they like there,” he says.
“And they aren’t looking for 500,000 oz deposits; they are looking for multimillion oz deposits.”
Despite all this regional interest, much of Sultan’s Lake Grace Project hasn’t been touched for 25 years.
And based on early testing, the Sultan ground looks as strong — if not stronger — than any of the other early-stage exploration projects in the area.
Challenger: A priority target
Sultan’s primary focus is the Challenger prospect, which was lightly explored in the 1990s.
But after that company left, the landowner wasn’t open to having more explorers on the ground; until now.
Recently, Sultan were the first to drill this area for 25 years.
The company has now released some early drilling results from this maiden program which showed signs of a “very significant gold-mineralising system”.
“These are excellent initial results for our first pass exploration campaign at Challenger and a significant step forward for our small gold exploration company,” says Groves.
“Coupled with historic diamond hole gold results, the program has defined bedrock gold mineralisation of significant thicknesses and gold grades above 0.5g/t over at least 450m and with a down-plunge extent of over 200m.
“Historic aircore results indicate a strike of over 1km to the zone and the sheer volume of gold mineralised rock indicates that a very significant gold-mineralising system has been operating at the Challenger prospect.
“I think we’ve really uncovered a fantastic gold system that we can’t wait to drill further and delineate.”
Sultan is now looking forward to its next stage of exploration. Having uncovered this promising mineralised zone, Sultan is now zeroing in on targets including the “fold hinges” within the structure, where the gold is potentially concentrated.