Sultan Resources Ltd (ASX:SLZ) has outlined an area of significant EM conductivity response over 750m in length and 230m in width, which may resolve to two targets with a heli-borne EM survey.
The survey is part of a new phase of exploration on E70/5082 pursuant to a recent option and farm-in agreement with Rio Tinto Exploration Pty Limited (RTX). The agreement provides rights for RTX to undertake preliminary exploration during an initial option period and then elect to earn an 80% interest in E70/5082 by way of $2million of spend within five years. E70/5082 forms part of the company’s broader Kondinin-Lake Grace exploration project.
The company contracted NRG to fly a detailed (100m line-spaced) helicopter-borne time-domain electromagnetic (HTDEM) survey totalling around 80 line km over an area approximately 4km SW of the wheatbelt town of Kulin.
Final data has now been received and interpreted by the company and RTX. The heli-borne EM survey has outlined a significant EM response over 750m in length and 230m in width, which may resolve to two targets with further investigation and is characterised by a strong late-time signal.
The company and RTX consider the geological setting and EM response is suggestive of potential for magmatic nickel sulphide mineralisation.
Previously, RTX had identified a strong untested late time conductivity anomaly from a single line SKYTEM response in the northern part of E70/5082, from 20km line-spaced data, coincident with a circular magnetic and radiometric anomaly which formed the basis for RTX’s entry to the option and farm-in arrangement.
Preliminary modelling of the target has now been completed by RTX consultants, with target depths for modelled plates starting from approximately 70m below surface. Planning for initial RC Drilling to confirm the nature of the geophysical anomaly is underway. The company is pushing forward with gaining relevant approvals to undertake drill testing of the EM target at the earliest opportunity.
RTX have signalled an intention to the company to exercise its option over E70/5082, and fund drilling of the EM anomaly, with the company expecting formal notice of this imminently.
In addition, the company has recently applied for open ground contiguous with E70/5082 around the current area of interest, with three tenements (E70/6529-31) totalling 17 blocks having since been granted.
