Special Report: Sultan Resources has returned to the field with a ground gravity survey aimed at identifying priority gold targets at its Lake Grace project for follow-up drilling.

The survey will cover almost 20km of the prospective gold trend at Lake Grace, which includes the Challenger prospect, and will provide detailed geological information on the dense, mafic gold-hosting rock types.

Sultan (ASX:SLZ) managing director Steve Groves told Stockhead that gold-hosting rocks are denser than the surrounding rock and would show up as “warm” colours in a gravity survey.

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This approach has been used successfully at the neighbouring Katanning and Tampia deposits.

“We know where our gold mineralisation is. We have a big blob of low-grade gold, but we need to find the high-grade bits,” he said.

“We are hoping that the survey will map out structural positions that are potentially hosting the high-grade gold – that’s where we will look to drill next.”

Groves added that the style of mineralisation at Lake Grace appears very similar to that seen at Ramelius Resources’ (ASX:RMS) 700,000 ounce Tampia and Ausgold’s (ASX:AUC) 1 million ounce Katanning deposits, which is unsurprising given that Sultan’s project is located between them.

“Both these deposits aren’t very high-grade, but they have numerous high-grade sections in them that make them economic,” he said.

Lake Grace is located about 250km south of Perth within a region that is enjoying active exploration by the likes of Gold Road (ASX:GOR).

Sultan’s recent drilling at the Challenger was the first such program in 25 years and proved up evidence of a “very significant gold-mineralising system”.

 

>> Learn more about Sultan Resources.

 

Read more: Sultan has uncovered “very significant gold-mineralising system” at Challenger
Sultan Resources gets out of the blocks with some ‘excellent’ drilling results at its unexplored Lake Grace gold project

 

 

This story was developed in collaboration with Sultan Resources, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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