Perth, Sep 12, 2007 AEST (ABN Newswire) - The Directors of Sultan Corporation Limited (SCC) are pleased to announce that a resource has been estimated for its wholly owned John Fardy zinc and copper deposit near Crookwell in NSW and that the estimate was made in accordance with the requirements of the JORC Code (2004).
The John Fardy deposit contains a presently known estimated total resource of:
862,000 tonnes of 6.7% zinc equivalent
Sultan considers that there are reasonable prospects for eventual economic extraction of this resource.
The resource has been estimated in the categories of measured, indicated and inferred with decreasing levels of confidence as follows:
-------------------------------------------------Resource Tonnes Zn% Cu% Pb% Ag g/t ZincCategory Equiv.-------------------------------------------------measured 470,000 4.9 0.9 0.7 14 7.4indicated 301,000 3.3 1.1 0.3 13 5.8inferred 91,000 3.3 1.1 0.3 13 5.8-------------------------------------------------Total 862,000 4.2 1.0 0.5 13 6.7-------------------------------------------------
These estimates are qualified by the appended descriptions and notes on methodology, assumptions and levels of confidence. They should be read in conjunction with the descriptions of the nature and mode of occurrence of the John Fardy deposit and its drill hole intersections with a plan and sections that were published in Sultan's announcements on 5 and 26 June 2007.
The John Fardy deposit is open at depth and the deepest diamond drill hole intersection is in Hole AJF 07 at 270 m vertically below the surface with a drill hole width of 10.71 m of 3.80% Zn, 0.91% Cu, 0.34% Pb and 10 g/t Ag. Sultan expects to commence an exploration diamond drilling program designed to test the down plunge extension of the deposit within the next five weeks. This program will take approximately three months to complete.
In addition to drilling at the John Fardy deposit, Sultan will conduct exploration activities at the Central Hill, Peelwood mine, Black Springs and single Tree Hill prospects which occur in close proximity to John Fardy. These four prospects have had only minimal drilling but in all cases have returned significant mineralised intercepts. At the Black Springs prospect, hole BSJ 7 intersected 3.00 m of 12.0% Zn, 4.14% Pb and 35 g/t Ag which was announced by the company on 17 July 2007.
The managing Director Mr. Derek Lenartowicz said: "The John Fardy resource starts at the surface with the highest zinc, copper and lead grades concentrated in the upper vertical 80 metres of the deposit. This represents an ideal scenario from a mining point of view, with the likely development of an open cut mine followed by underground stoping"
Descriptions and Notes on the John Fardy Resource Estimate
The hanging and foot walls of the deposit are well defined but its lateral boundaries are somewhat gradational. A cut-off grade of a minimum of 5% zinc equivalent over a minimum horizontal width of two metres has been adopted. The minimum horizontal width of the deposit is two metres and the maximum is 26.27 m.
The zinc equivalent grade has been calculated by adding the zinc grade and the adjusted grades of copper, lead and silver. The grades of copper, lead, and silver have been multiplied by factors that express the assumed relative prices of the metals. The assumed metal prices are zinc USD 1.5 per pound, copper USD 3.0 per pound, lead USD 1.2 per pound and silver USD 12.0 per ounce and they are based on the prices of these metals during the period May 2006 to August 2007. Sultan considers that all these metals have a reasonable potential to be recovered. No assumptions have been made and no factors have been applied to adjust the grades for the different potential metallurgical recoveries of the metals. The Zinc equivalence formula is:
Zinc equivalent% = Zn% + 2.0Cu% + 0.8Pb% + 0.01Ag g/t
Analyses were undertaken on half-core samples from the diamond drill hole intersections, during several periods by several laboratories using several methods. The qualities of the earlier sampling and analyses are not known. However, the results of early holes are confirmed by those of later holes.
The horizontal width of the deposit was calculated for each drill hole intersection. The grades of the horizontal width were calculated from assays of core samples weighted for their lengths. The intersections above the adopted cut off grade have been used to estimate the resource.
The estimated volumes of the categories of the resource were determined on a longitudinal projected section, from the horizontal widths and the interpreted lateral boundaries of the deposit. Estimated tonnages were determined by applying the adopted bulk density factors.
Estimated grades of the categories of the resource were determined from the metal factors of the horizontal widths. No adjustments have been made to high or low grades.
It is assumed that the deposit will be mined by a bulk underground mining method but no allowance has been made for possible dilution and some possible low-grade internal waste has been included in the estimated resource.
The measured resource is between the base of oxidation at approximately RL 680 m and the depth of RL 550 m and it has been estimated with a relatively high level of confidence. There are 24 closely spaced diamond drill hole intersections within and six holes outside the measured resource. In addition, metallurgical sample Holes JF 40 and 41 verified the grades and widths but they are not included in the estimation because their full survey data were not recorded. Early hole NP 13 which is a long hole of small diameter has been ignored because there was no down hole azimuth survey and the small diameter hole would have been strongly deflected to the north and outside the deposit. Specific gravity determinations on numerous samples of core from intersections within the measured resource in holes JF 16, 25, 37, 38, 39 and 40 gave densities between 3.00 and 4.26 and an insitu dry bulk density of 3.7 t per bcm has been adopted for the measured resource.
The indicated resource is between RL 550 m and RL 400 m and it has been estimated with a reasonable level of confidence. There are five widely spaced diamond drill hole intersections within and two holes outside the indicated resource. Specific gravity determinations on samples of core from the intersection in hole AJF 02 gave densities between 3.08 and 4.21 and an insitu dry bulk density of 3.6 t per bcm has been adopted for the indicated resource.
The inferred resource is between RL 400 m and RL 350 m and it has been estimated at a relatively low level of confidence. There are no drill hole intersections within and one hole outside the inferred resource. From the nature and mode of occurrence of the mineralisation, it is reasonable to interpret an inferred resource by extrapolation for a maximum vertical distance of 85 metres from the nearest drill hole intersection in the deposit. The inferred resource represents 11% of the total estimated resource and the insitu bulk density and grades of the indicated resource have been adopted for the inferred resource.
The information in this announcement that relates to a resource has been compiled in accordance with the requirements of the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2004) by Mr Boyd Pratt who is a Fellow of the Australasian Institute of Mining and Metallurgy and the Principal of Boyd Pratt & Associates. Mr Pratt has sufficient experience which is relevant to the style of mineralization under consideration and to the activity he is undertaking to be qualified as a Competent Person as defined by the JORC Code 2004. Mr. Pratt consents to the inclusion in the release of the matters based on this information in the form and context in which it appears.
Contact
Derek Lenartowicz
Managing Director
Ph: (08) 9217 3300
Fax: (08) 9388 3006
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