Sultan Resources (ASX:SLZ) has commenced a helicopter electromagnetic (EM) survey on a section of its Lake Grace property. This move comes after the company entered an option farm-in and joint venture agreement with major miner Rio Tinto (ASX:RIO) in June.
The focus of the survey is a robust, yet untested, conductivity anomaly located in the northern part of E70/508. This anomaly aligns with a circular magnetic and radiometric anomaly, suggesting the possibility of magnetic nickel sulphide mineralization.
NRG has been engaged by Sultan to conduct the detailed 100-m lined space helicopter-borne time-domain electromagnetic (HTDEM) survey over an 80km area, approximately 45km southwest of Kulin, WA.
Conductivity anomalies, detectable through electromagnetic surveys, indicate potential mineral deposits at early-stage exploration levels. Sultan’s objective is to confirm the characteristics and extent of the conductivity anomaly on E70/5082 before considering on-ground exploration for further assessment and testing of the anomaly.
Sultan’s recent partnership with Rio Exploration (RTX) has paved the way for such initiatives. The agreement allows RTX to earn up to 80% ownership of E70/5082 by investing $2 million in exploration expenditures over five years. This arrangement provides Sultan with a well-funded joint venture partner for exploration and development expenses, reducing risk for the small-cap company.
Sultan is concurrently active in its Kulin Hill project, situated in proximity to Chalice Mining’s (ASX:CHN) Gonneville PGE-nickel-copper-cobalt discovery at the Julimar project. This effort aligns with Sultan’s ongoing exploration endeavors, including their recently acquired lithium projects in Ontario, Canada.
As part of the exploration process, Sultan plans to review and interpret the collected data from the EM survey, followed by the release of survey results. In parallel, the company is engaged in fieldwork at its lithium projects in Canada, focusing on potential mineralized LCT pegmatites using geochemical markers and lithium values.
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