Sultan Resources gets out of the blocks with some ‘excellent’ drilling results at its unexplored Lake Grace gold project
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Special Report: The junior explorer uncovered “numerous significant intervals” from its initial reverse circulation drilling program, as it hunts for gold in WA’s Wheatbelt region.
Sultan Resources (ASX: SLZ) had some good news for the market this week, as early drilling results showed the company is well on track to expand its exploration program at Lake Grace.
The assay results revealed gold grades of at least 0.5 grams per tonne across a strike target of more than 450m at its Challenger prospect.
Among the best hits was a 13m stretch of at least 0.5g/t, including 2m at 1.13g/t.
Sultan MD Steven Groves said the early results were indicative of a “very significant gold-mineralising system”. The company is now looking forward to its next stage of exploration, which will involve the identification of high-grade target zones within the broader rock structure.
Speaking with Stockhead at last week’s RIU Resources Conference in Sydney, Groves explained why WA’s south-west region is potentially fertile ground for gold exploration.
For one thing, it’s historically been a strong farming area – an industry which hasn’t always taken a positive view towards mining exploration companies. But he also highlighted some interesting details about the nature of the underlying rock.
“It’s actually similar rocks to those you’d get around Kalgoorlie and in the Yilgarn, but it’s got a high metamorphic grade. So it’s what Kalgoorlie-style gold mineralisationmight look like if you put a bit of temperature and pressure onto it,” Groves explained.
However, “the gold is still there”, it just looks different. “In those sorts of environments, the geology gets a bit harder to interpret, so it’s been left alone for that reason”.
Having uncovered a promising mineralised zone, Groves is now zeroing in on target areas including “fold hinges” within the structure
“The gold is often concentrated where the rocks are folded. So in the geophysics you can pick up the folded shape of the rock and pinpoint the strongest targets,” Groves explained.
While Groves is looking forward to the next stage of exploration at Lake Grace, he’s also encouraged by the increased levels of activity in the broader area.
Specifically, the nature of the companies who have staked out ground nearby – experienced mining companies with deep pockets.
“Gold Road are next door, they’ve got 5000sqkm of ground on that area. And they’re coming at it from a very technical point of view – they’ve got a huge exploration budget and they’ve identified this area as the place to be,” Groves said.
The Tampia gold deposit, which lies 20 – 30km north of Sultan’s portfolio, was recently acquired by ASX-listed Ramelius Resources through a takeover of Explaurum Limited, while Ausgold is exploring at its 1moz Katanning project about 60km to the south – both of which Groves calls a “vote of confidence in the area”.
Based on early geo-chemical testing though, the Sultan resource looks as strong — if not stronger — than any early-stage exploration project in the area.
In view of that, the Sultan team is keen to embark on the next stage of its exploration phase.