Sultan Resources Limited - June Quarterly Report - 30 July 2024
SLZ (SLZ) Share Update July 2024 Monday 29th
Sultan Resources Reports Mixed Results for June Quarter
Sultan Resources Limited (ASX: SLZ) has provided an update on its activities for the quarter ended 30 June 2024, detailing progress on its various projects and the results from recent drilling campaigns.
Instant Summary:
- RC drilling at Calesi Prospect funded by Rio Tinto Exploration (RTX) did not find significant nickel sulfides.
- RTX withdraws from farm-in agreement for E70/5082 after drilling results.
- Khal Nickel-Copper-PGE Project continues to show potential with ongoing geological interpretation.
- Canadian lithium projects in Ontario show promising early results, with further exploration planned.
- Sultan's cash position as of 30 June 2024 is approximately $584,000.
WA Projects
The Kondinin-Lake Grace Project in Western Australia remains a key focus for Sultan Resources. This project includes several prospects such as the Khal Nickel-Copper-PGE Project and the Calesi Prospect.
At the Calesi Prospect, Sultan Resources undertook RC drilling funded by RTX. Two holes were drilled to depths of 210m and 350m. Although the drilling intercepted bands of sulfide-rich mafic amphibolite, no significant nickel sulfides were found. RTX has decided to withdraw from its farm-in agreement for this project.
Canadian Lithium Projects
Sultan Resources owns two lithium projects in Ontario, Canada. Initial reconnaissance assays from the Ruddy Project have identified a priority lithium target area. No active fieldwork was conducted during the quarter due to seasonal conditions, but further exploration is planned.
At the Kember Project, desktop reviews have highlighted several pegmatitic granite occurrences. Reconnaissance activities are planned for the current field season, pending negotiations with First Nation groups.
Other Projects
The Lake Grace Gold Project and Thaduna Project saw no active fieldwork during the quarter. Sultan continues to review exploration data across its Lachlan Fold Belt Project in NSW, with further planning required to define the next round of exploration and drill targets.
Corporate
Sultan's cash position as of 30 June 2024 was approximately $584,000. The company has scheduled its Annual General Meeting for 21 November 2024 and is preparing for director nominations.
The withdrawal of RTX from the farm-in agreement for the Calesi Prospect is a setback for Sultan Resources, potentially affecting investor sentiment. However, the continued potential at the Khal Nickel-Copper-PGE Project and promising early results from the Canadian lithium projects may provide some positive offset.
Investor Reaction:
Analysts are likely to have mixed reactions to this update. The lack of significant nickel sulfide findings at Calesi and RTX's withdrawal may cause concern, but the ongoing potential at other projects could maintain investor interest.
Conclusion:
Investors should keep an eye on further developments at Sultan's various projects, particularly the Khal Nickel-Copper-PGE Project and the Canadian lithium projects. The company's strategic response to the RTX withdrawal will be crucial in maintaining investor confidence.