Sultan Resources : Aircore Drilling Recommences at Lake Grace

The Ni-prospectivityof Sultan's Lake Grace tenement portfolio has long been recognised by the company (see ASX Announcement 20/07/2020, 20/11/2020) and has been verified by the discovery of Chalice Mining Ltd's Julimar Ni-Cu-PGEdeposit ~200km to the northwest in the same belt of rocks (see CHN ASX announcement of 23/03/2020). Sultan's licences contain historically drilled ultramafic rocks with evidence of nickel and cobalt bearing sulfides1 and detailed airborne magnetic surveying by the company (ASX Announcement 03/07/2020) has revealed several unexplored areas with geophysical characteristics indicative of ultramafic rocktypes. The aircore program is designed to confirm the presence of ultramafic rocks interpreted from the magnetics interpretation and help determine the prospectivity of the region for hosting Ni-sulphidedeposits

			Sultan Resources Ltd
			ACN: 623652 522
			CORPORATE DETAILS
			ASX Code: SLZ
			DIRECTORS
			STEVEN GROVES
			MANAGING DIRECTOR
			JEREMY KING
			CHAIRMAN
			DAVID LEES
12th January 2022	NON-EXECUTIVE DIRECTOR
2022 AIRCORE DRILLING FOR JULIMAR-STYLE	CONTACT
Suite 2, Level 1,
only			1 Altona Street
		West Perth WA 6005
NICKEL-SULPHIDE TARGETS AT LAKE GRACE HAS
COMMENCED	www.sultanresources.com.au
[e-mail]
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	Aircore drilling of interpreted Ni-prospective ultramafic occurrences in the Lake
		Grace/Kulin area that commenced late in 2021 re-starts in early January
personal		Ultramafic lithology confirmed in first 4 hole stage of program in late 2021
	o Approximately 2km strike of ultramafic lithology confirmed at first target zone
	o Geological similarities between this zone and the Gonneville Intrusion have
	been recognised
	A further 9 holes at other target areas were completed by the end of 2021
	The targets lie within part of interpreted mobile zone that hosts the recent Julimar Ni-
	Cu-PGE discovery
	Historic exploration at Lake Grace has shown ultramafic rocks with evidence of nickel +
	cobalt bearing sulfides and copper sulphides in drilling
	Strong geophysical evidence for >25km of cumulative strike length of ultramafic rocks
	across Sultan's Lake Grace portfolio
	Lake Grace portfolio surrounded by major mining and exploration companies:
	o Anglo American to north and west
	o Gold Road Resources to east
For		Sultan Resources Limited (ASX: SLZ) (Sultan or Company) is pleased to announce the re-
	commencement of the reconnaissance exploration aircore drilling for nickel-prospective ultramafic
	rocks at the Company's Lake Grace prospect during January . The project is located in the Wheatbelt
	area between Lake Grace and Kulin in WA where the company has been exploring since listing in 2018.

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ASX ANNOUNCEMENT - 12 JANUARY 2022

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Figure 1: Sultan's Lake Grace portfolio of tenements in relation to the tenement1 positions of Anglo American (blue outline), Impact Minerals (maroon outline) and the Gold Road Resources/Cygnus Gold JV (orange outline). All of Sultan's tenure lies within an interpreted mobile zone prospective for Ni-Cu mineralisation as postulated by Impact Minerals Ltd (see Impact Minerals announcement dated 10/06/2020)

Aircore Drilling Progress - December 2021

The aircore program commenced at Target area 1 ("Kulin Hill") in the northern end of the project at Kulin (E70/5095, Figure 2) where previously identified ultramafic rocks have been noted in historic drilling and mapping by Sultan (see ASX Announcement 20/11/2020). The first four holes at this target have been completed and geological logging has confirmed the presence of ultramafic lithology in at least 3 holes (see ASX Announcement 16/12/2021). The aircore holes lie approximately 2km northwest of the historic diamond holes and confirm the strike extent of this first ultramafic target.

The rig also completed a further 6 holes in a single traverse at Target Area 2 some 20 km southeast of Target 1 (Figure 2). These holes ranged from 34 to 61m in depth and intersected mostly granitic rocks, though the two deepest holes (60 & 61m) ended in dark green to black, magnetic mafic rocks containing olivine, pyroxene and feldspar. Further work is required to classify these rocktypes but it is noted that the Gonneville Resource at Jumilar (see CHN ASX Announcement 09/11/2021) is hosted in a mafic-ultramafic intrusive complex ranging from gabbro (mafic) to pyroxenite (UM), peridotite (UM) and harzburgite (UM). Sulphide mineralisation is hosted predominantly in ultramafic units though the mafic gabbroic units are also noted to host sulphide mineralisation.

Following this single traverse at Target Area 2, the rig moved south to Target Area 3 but only managed 3 holes before the program was halted due to extreme weather and a Total Fire Ban. This area, which is much closer to Lake Grace, revealed some intersections of mafic granulites which are the host rocks to gold mineralisation previously drilled by Sultan at Lake Grace (see ASX Announcement 03/07/2019) as well as at established gold resources at Katanning (ASX: AUC) and Tampia (ASX: RMS) in a similar geological setting. No ultramafic rocks were recognised in the initial three holes at Target 3. The magnetic anomaly at Target Area 3 is strongly deformed and, if it represents folded mafic granulites, would present as a highly prospective, previously unrecognised gold target.

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ASX ANNOUNCEMENT - 12 JANUARY 2022

Location of first 4 aircore holes into Kulin Hill

~2km

Approximate location of historic diamond drill holes

Location of first 6 aircore holes into Target Area 2

Figure 2: Location of the interpreted ultramafic bodies (purple) and positions of proposed aircore traverses over the Total Magnetic Intensity reduced to pole image over E70/5095.

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ASX ANNOUNCEMENT - 12 JANUARY 2022

Figure 3: Location of the interpreted ultramafic bodies (purple) and positions of proposed aircore traverses over the Total Magnetic Intensity reduced to pole image over E70/5085.

Comparison between Kulin Hill and the Gonneville Intrusive Complex

Kulin Hill presents as a compelling Ni-sulphide exploration target and shows a number of geological similarities to the Gonneville discovery by Chalice Mining Ltd some 200km to the northwest within the same interpreted mobile belt (Figures 1 & 4)

During November 2021, Chalice Mining Ltd released the maiden resource for the Gonneville Deposit at the Company's Julimar Nickel-Copper-PGE Project (See CHN ASX Announcement 09/11/2021). Ni- Cu-PGE sulphide mineralisation is hosted within the Gonneville Intrusion which is a 1.9km x 09.km x 0.8km section at the southern end of the larger Julimar mafic-ultramafic intrusive complex. The Gonneville intrusion is composed predominantly of serpentinised olivine peridotite / harzburgite, with lesser intervals of pyroxenite, gabbro and leucogabbro and is interpreted to have undergone upper greenschist to lower amphibolite facies metamorphism. Primary Ni-Cu-PGE sulphide mineralisation at Gonneville occurs mostly within the ultramafic domains (harzburgite, pyroxenite), and also within the minor gabbroic domains within the intrusion. Initial drilling targeted prominent EM conductors which marked the location of sulphide mineral accumulations.

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ASX ANNOUNCEMENT - 12 JANUARY 2022

Sultan's Kulin Hill target is marked by an intense, arcuate magnetic anomaly that spans ~2.6km x 0.5 to 1 km in the northern end of E70/5095 (Figures 2 & 4). A series of 5 diamond drillholes were completed at into the anomaly during the late 1960's after outcropping ultramafic rocks were identified to be associated with the magnetic response1. Four of these holes were located at the southern edge of the anomaly and a further hole was drilled in a more central position. The contact zones of the ultramafic rocks with the surrounding host rocks were poorly or not tested.

Examination of the original drillhole logs, petrology reports and a report by Muskett (2001)2 by Sultan has revealed that the magnetic anomaly represents a mafic to ultramafic sequence containing norites, gabbros, pyroxenites, serpentinised dunite and harzburgite. The sequence has been interpreted to have undergone greenschist facies metamorphism2.

Of particular interest in the drill holes was the presence of minor amounts of disseminated nickel sulphides. The finely disseminated sulphides are found throughout the ultramafic sequence and AMDEL petrologists who examined them at the time with an electron probe1 identified that the rounded sulphide grains represent an unknown sulphide containing 50% Ni and 5% Co. These workers concluded that they represent immiscible liquid sulphide drops possibly similar in nature to that in the Skaergaard and Stillwater intrusions1. The AMDEL petrologists also noted that the abundant magnetite in the sequence is slightly nickeliferous and chromiferous1. Further examination of the drill hole logs has also identified minor zones of chalcopyrite mineralisation that return narrow, elevated copper assay results.

Although early days in the exploration at Kulin Hill and surrounds, Sultan is highly encouraged by the broad geological similarities between the mineralised Gonneville intrusion and the mafic-ultramafic sequence at Kulin Hill. The presence of immiscible, Ni and Co-bearing sulphide droplets is considered a key feature for the possible development of Ni-sulphide mineralisation and the scale of the Kulin Hill mafic-ultramafic sequence provides plenty of room for the development of significant accumulation(s) of Ni-sulphide minerals. The area is very poorly explored and Sultan intends to follow up the initial encouraging results with further drill testing and geophysical work to develop deep targets.

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