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Sultan Resources Advances Exploration Efforts at Calesi Nickel Prospect

14 December 2023 08:47
ASX: SLZ
Sultan Resources Advances Exploration Efforts At Calesi Nickel Prospect

Sultan Resources Limited (ASX:SLZ) is making significant strides in exploration, having recently submitted a Programme of Works (PoW) to the Department of Mines, Industry Regulation and Safety (DMIRS) for the Calesi magmatic nickel prospect near Kulin, Western Australia, and is now preparing for an extensive drill program slated for the first quarter of 2024.

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Figure 1: Channel 24Z EM response image overlain on aerial photography, with tenement E70/5082 highlighted. EM data also indicates the position of the Tier3 Jitarning-Kulin rail line, closed since 2013. Initial planned 2 hole RC drill traverse highlighted in inset.

Rio Tinto’s Strategic Involvement

The Calesi prospect falls under exploration license E70/5082, subject to an option and farm-in agreement with Rio Tinto Exploration Pty Limited (RTX), a subsidiary of Rio Tinto Ltd.

Notably, RTX has exercised its option to earn an 80% interest in the exploration license by fully funding the $2 million exploration commitment within a five-year timeframe.

This strategic partnership positions Sultan Resources for shared success and leverages the expertise and financial backing of a major player in the industry.

Electromagnetic Survey Unveils Potential

In August, NRG Geophysics conducted a detailed helicopter-borne time-domain electromagnetic (EM) survey over the Calesi prospect area.

The survey revealed a substantial EM conductivity anomaly characterised by a strong late-time signal, spanning over 750m in length and 230m in width.

The geological setting and EM response indicate the potential for magmatic nickel sulfide mineralisation, adding a layer of excitement to the upcoming drilling campaign.

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Figure 2: Channel 34Z EM response image overlaying greyscale aeromagnetics from Sultan 2017 survey. Original SKYTEM line denoted by light blue flight line. Section Line A -B for Figure 3 below highlighted in white. Flight lines are 100m spacing.

Drill Program Details

The PoW outlines a comprehensive initial drill program consisting of two Reverse Circulation (RC) holes, with the option for additional diamond drilling if necessary.

The planned depths of up to 350m are strategically designed to penetrate the modelled target from approximately 70m below the surface.

The chosen locations for drilling fall outside the 30m buffer of the Tier 3 Railway Reserve, as stipulated by the conditions of grant of E70/5082.

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Figure 3: Overview Plan of Sultan’s Kondinin-Lake Grace Project in the Southwest Terrane of WA, with RTX farm-in/JV tenement E70/5082 and current area of interest highlighted.

The Company is also currently in the process of obtaining Ministerial permission under the 1978 Mining Act to conduct drilling within 30m of the Railway Reserve and within the reserve itself.

Previous Discoveries Pave the Way

Building on previous findings, RTX identified a compelling late-time conductivity anomaly in the northern part of E70/5082, coinciding with a circular magnetic and radiometric anomaly.

This discovery formed the basis for RTX’s entry into the option and farm-in arrangement, highlighting the prospect’s promising geological characteristics.

SLZ’s Australian Stock Exchange-listed share price is currently trading at $0.015 (8.30am UTC+ 8 hours).

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