Special Report: Sultan Resources (ASX:SLZ) is turning its attention back to the Lake Grace project that is within the same Mobile Belt as Chalice’s impressive Julimar discovery.

While the company’s recent focus has been on its Lachlan Fold Belt assets in New South Wales, it has certainly not forgotten its Lake Grace project in Western Australia. And there is good reason why.

Sultan noted that Chalice Gold Mines’ (ASX:CHN) recent discovery of the exciting Julimar nickel, copper and platinum group element (PGE) deposit had substantially upgraded the perspectivity of Lake Grace.

Julimar is part of a 26km long layered mafic-ultramafic complex that has rarely been explored.

Chalice reported a top intersection of 33m at 6.5 grams per tonne (g/t) palladium, 0.7g/t platinum, 1.6 per cent nickel, 0.7 per cent copper and 0.1 per cent cobalt from a depth of 44m.

The newfound prospectivity of the Southwest Yilgarn Terrane has sparked a rush to secure ground by major companies such as Anglo American.

As a result, Sultan’s 690sqkm portfolio in the region is now surrounded by the majors, with Anglo applying for 10,130sqkm of ground to the north and west and Gold Road Resources (ASX:GOR) to the east.

Sultan’s Lake Grace portfolio of tenements in relation to the recent applications by other companies Pic: Supplied

Potential for gold, nickel and cobalt

The company has long recognised the gold and nickel potential of Lake Grace and carried out a high-resolution airborne magnetic surveying in 2018 that revealed several unexplored areas with geophysical characteristics indicative of ultramafic rock types.

At the Kulin Hill tenement, the survey identified small enclaves of mafic, ultramafic (a potential nickel host rock) and metasedimentary rocks.

It also hosts a 2.6km long ultramafic body in the north that is known to be associated with nickel and cobalt sulphides in historical drilling.

The survey delineated a further 14.5km strike of interpreted ultramafic bodies to the southeast that remain unexplored.

Sultan says the geology at Kulin Hill extends southwards through the Lake Grace tenements, with a further 9.5km zone of probable ultramafic rocks identified in the central-east portion of the survey area.


Upcoming work

The company is currently reviewing all data relating to potential nickel-copper occurrences at Lake Grace.

Planning is underway for work programs that are likely to include mapping, geochemical sampling and electromagnetic surveys at identified nickel targets.


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.