Sultan raising $2.4m for Lachlan Fold Belt copper-gold drilling
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Special Report: Sultan is poised to add $2.4m to its coffers that will be used for drilling at the Lachlan Fold Belt in NSW and advancing the Lake Grace project in WA.
Institutional and sophisticated investors have highlighted their confidence in the company and its projects by providing firm commitments for the share placement of 10.9 million shares priced at 22c each to raise the funds.
This represents a 4.8 per cent discount to the 15-day volume weighted average price of Sultan Resources’ (ASX:SLZ) shares immediately prior to the raising.
The placement is managed jointly by Xcel Capital and ARQ Capital with placement shares expected to be issued on or around November 2.
Proceeds will be used to drill the Tucklan epithermal gold target and Big Hill copper-gold porphyry target in the Lachlan Fold Belt and advancing the Lake Grace project.
Sultan is currently preparing to carry out a 12-hole drilling program at Tucklan that targets priority anomalies identified since the prospect was acquired in July as well as under historical gold workings that have no drilling to date.
These targets include a high-order 1.6km by 600m induced polarisation chargeability anomaly that is located below low grade gold and copper soil anomalies, outcropping gold mineralisation and undrilled historical workings.
Drilling is expected to start in mid-November.
At Big Hill, the company recently discovered a new outcropping high-grade target dubbed Razorback Ridge.
Rock chip samples from the outcrop have returned results of up to 2.25 grams per tonne (g/t) gold and up to 2.65 per cent copper.
In September, Sultan started reconnaissance ground work for nickel-prospective ultramafic rocks at identified magnetic anomalies within the Lake Grace project, which is in the same belt of rocks as the Julimar nickel, copper and platinum group elements deposit.
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.
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.