Sultan Resources (ASX: SLZ) says outcropping ultramafic rocks have been identified at its Lake Grace ground in Western Australia, adding weight to its belief that this project forms part of an interpreted mobile zone that also hosts the landmark Julimar nickel-cobalt-platinum group (PGE) discovery made earlier this year.
A number of rock samples have been submitted for assay.
These were collected from areas of sub-outcropping rocks.
In June the company announced that its Lake Grace formed part of an interpreted mobile zone.
That announcement was referring to the Julimar discovery in March, 70km from Perth, by Chalice Gold Mines (ASX: CHN). Chalice’s share price soared when that company announced it had struck a massive sulphide zone with its first ever drill hole.
In addition to the proximity of Julimar, Sultan says historic drilling at Lake Grace showed ultramafic rocks with evidence of nickel and cobalt-bearing sulphides.
‘Strong’ geophysical evidence of Julimar-style mineralisation
Sultan Resources owns a 690 square kilometre portfolio that it has said is highly prospective for gold mineralisation and also contains historically drilled ultramafic rocks showing evidence of nickel- and cobalt-bearing sulphides.
Sultan has now told the ASX that there is “strong geophysical evidence” for the existence of 25km of cumulative strike length across its Lake Grace portfolio.
The company’s ground is surrounded by major mining and exploration companies.
Earlier this year Anglo American lodged applications covering 10,130sq km, extending southeast over a strike length of more than 225km and which abut Sultan’s tenure to the north and west.
Gold Road Resources (ASX: GOR) also has a large gold exploration joint venture in the area.
Drilling 51 years ago found nickel, copper
Sultan says ground inspection of Lake Grace has confirmed the presence of outcropping ultramafic and mafic rocks along with sediments.
Drilling in 1969 by the former Electrolytic Zinc Company of Australasia returned “strong anomalous” nickel, copper and cobalt.
The southwest Yilgarn Terrane, a part of the Yilgarn Craton, hosts not only the Julimar discovery but Newmont Mining’s Boddington gold deposit.
Sultan has previously expressed the view that its area in Western Australia remains underexplored.
Sultan is an Australian focused exploration company with a portfolio of assets in emerging discovery terranes including porphyry gold-copper, structurally hosted gold, nickel, cobalt and base metals.
It also has tenements in the Lachlan Fold Belt of central NSW where exploration is advancing.