Sultan kicks off nickel exploration at Lake Grace
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Special Report: Sultan has kicked off exploration for Julimar-style nickel sulphide targets at its Lake Grace project in Western Australia.
The company has started reconnaissance ground work for nickel-prospective ultramafic rocks at identified magnetic anomalies within the project, which is in the same belt of rocks as the Julimar nickel, copper and platinum group elements deposit.
And there is plenty of evidence that Sultan Resources (ASX:SLZ) is on the right track.
Historical drilling at Lake Grace has intersected ultramafic rocks with evidence of nickel and cobalt bearing sulphides while airborne magnetic surveying by the company has revealed several unexplored areas with geophysical characteristics indicative of ultramafic rock types.
Additionally, there is strong geophysical evidence for more than 25km of cumulative strike length of ultramafic rocks across the company’s Lake Grace portfolio.
It is also telling that companies such as Anglo American and Gold Road Resources (ASX:GOR) have picked up ground surrounding Sultan’s acreage to the northwest and east respectively.
Hardly surprising given that Chalice Gold Mine’s (ASX:CHN) Julimar is interpreted to be about 26km long and four high-grade sulphide zones have been intersected to date. Recent exploration has uncovered a new 6.5km-long electromagnetic (EM) anomaly.
Sultan’s work program will initially consist of a broad-spaced mapping and rock/soil sampling program across the magnetic anomalies.
Initial phases of the program will predominantly use existing public roads, farm tracks and fence lines which provide good coverage across the area to access the anomalies.
Any areas where confirmed ultramafic rocks or geochemical anomalies that indicate likely ultramafic occurrence will be followed up with detailed grid-based soil or shallow drill sampling.
EM surveys will also be used over bodies of verified ultramafic rocks to locate any buried conductive bodies.
Previous airborne magnetic surveys over the entire 690sqkm Lake Grace portfolio had resulted in the discovery of small enclaves of mafic and ultramafic rock within a portion of the Kulin Hill area.
In the north of Kulin Hill, a 2.6km long ultramafic body is known to be associated with nickel and cobalt sulphides in historical drilling while a further 14.5km strike of interpreted ultramafic bodies to the southeast remains unexplored.
The geology at Kulin Hill also extends southwards through the Lake Grace tenements along with a further 9.5km zone of probable ultramafic rocks in the central-east portion of the survey area.
This article was developed in collaboration with Sultan Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.