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Sultan Resources’ EM Survey Confirms Significant Geophysical Anomaly

24 October 2023 14:18
ASX: SLZ

Sultan Resources (ASX:SLZ) have unveiled the results from a helicopter-borne Electromagnetic (EM) survey over tenements E70/5082, Southwest of Kulin in WA.

The EM surveys were funded by Rio Tinto Exploration (RTX) as part of an option and farm-in arrangement between the two companies established in June, and highlighted several significant geophysical anomalies with the companies planing to target in a later drill campaign.

Working with Rio Tinto

Sultan’s agreement with mining giant Rio Tinto was announced in June, and outlined Rio’s subsidiary Rio Tinto Exploration Pty Limited will be allowed to undertake the preliminary expiration of exploration licence E70/5082 during an initial option period, and are then able to earn up to 80 per cent interest in the licences by sole funding $2 million dollars in exploration activities, including a minimum of 1000 metres of RC and/or diamond drilling, within five years.

Following the positive results, RTX have confirmed its intention to exercise the option to farm-in to E70/5082 and fund an initial drill program to test the EM anomaly.

The EM Surveys: Identifying Anomalies

Sultan Resources contracted New Resolution Geophysics (NRG) to conduct the helicopter-borne time-domain electromagnetic (HTDEM) survey over E70/5082, part of the broader Kondinin-Lake Grace exploration Project, in a detailed, 100 metre spaced, totalling around 80 line kilometres.

The EM survey outlined a significant EM response over 750 metres in length and 230 metres in width, which may indicate two targets with further investigation, characterised by a strong late-time signal.

Sultan and RTX consider the geological setting and EM response is prospective of potential magmatic nickel sulfide mineralisation.

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Figure 1: Channel 24Z EM response image overlain on aerial photography. EM data also highlights the position of the Tier3 Narrogin-Kulin rail line, closed since 2013.

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Figure 2: AEM conductivity response for Heli-EM flight line over E70/5082

Future Drilling

RC drilling is currently being planned to target the newly identified anomalies, funded by Rio Tinto Exploration, with Sultan continuing to push forward with gaining relevant approvals to undertake drill testing of the EM target at the earliest opportunity.

The Company has also recently applied for open ground contiguous with E70/5082 around the current area of interest, with 3 tenements (E70/6529-31) totalling 17 blocks having since been granted.

SLZ’s Australian Stock Exchange-listed share price is currently trading at $0.019 (2.15pm UTC+ 8 hours).

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