Perth, Oct 31, 2007 AEST (ABN Newswire) - Sultan Corporation (ASX:SSC) Provide Shareholder Update Report Oct 2007.
1. JOHN FARDY Project - analysis of historical data finalized with independent JORC resource verification. JORC resource of 862,000 Tonnes at 6.7% Zinc equivalent.
2. Sultan made two acquisition of additional ground (EL2980 and EL6767) consolidating Sultan's 100% ownership of the Peelwood Project in NSW.
3. $2.4 million was raised by the placement of 57.3 million shares at 4.2 cents per share issued to sophisticated investors.
4. Employment of key personnel.
PLANNING FOR FUTURE DEVELOPMENTS
A 4,000m drilling program is scheduled to commence November 2007.
To determine the size and economic potential of the prospects, Sultan aims to target:
1. Down plunge extensions to the resource at John Fardy;
2. Historical intersections at Peelwood;
- (Peelwood 10.7m @ 5.87% Zn, 0.9% Pb, 1.1% Cu, 32g/t AG),
3. Testing down dip of surface mineralization at Central Hill; and
- (Central Hill 0.98m @ 15% ZN, 8.0% Pb, 1.39% Cu, 30g/t Ag).
4. Follow up drilling and testing of prospective strategraphic horizon at Single Tree and Black Springs:
- Single Tree Hill (18m@ 1.29% Zn and 0.5% Pb)
- Black Springs (4m @ 9.67% Zn, 3.62%Pb, 31g/t Ag; 2m @ 2.53% Zn, 2.14% Pb, 25g/t Ag).
The anticipated duration of the program is 4 months. The budget for the program is $600,000.
DEVELOPMENT and EXPLORATION PROJECTS
The Peelwood Zinc/Copper Project consists of EL2934, EL6081, EL6082, EL6767 and EL 6831. These tenements are located approximately 70kms south of the City of Bathurst in eastern New South Wales. The Peelwood zinc project has several historical zinc-lead-copper-silver mines and prospects including:
- John Fardy zinc-copper deposit;
- Peelwood Mine prospect;
- Black Springs prospect;
- Central Hill prospect;
- Single Tree Hill prospect; and
- Elsienora prospect.
JOHN FARDY PROJECT
The currently defined JORC Resource of John Fardy stands at:
862,000 tonnes of 6.7% zinc equivalent
The John Fardy deposit is at an advanced stage of exploration. There are numerous diamond drill hole intersections of commercial massive sulphide mineralization with zinc, copper and silver grades.
The John Fardy deposit is located on freehold land that is not subject to native title. It is well situated for infrastructure.
The John Fardy deposit consists of a massive sulphide body that is strata bound within acid volcanic and sediments. The current known mineralization has a strike length of approximately 100 metres and a horizontal width up to 25 metres and dips approximately 60 degrees westwards.
On the 12/9/2007, the Directors of Sultan Corporation Limited (SCC) were pleased to announce that a resource has been estimated for its wholly owned John Fardy zinc and copper deposit near Crookwell in NSW. This estimate was made in accordance with the requirements of the JORC Code (2004).
---------------------------------------------------Resource Category Tonnes Zn% Cu% Pb% Ag g/t Zinc Equiv.---------------------------------------------------JORC Code-Compliant Resource---------------------------------------------------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---------------------------------------------------
Sultan considers that there are reasonable prospects for eventual economic extraction of this resource.
ACQUISITIONS
Sultan Corporation made a number of strategic purchases of well defined exploration targets that have significantly increased our landholdings at Peelwood. Sultan currently owns a 100% of Exploration License No. EL2934, EL6081, El6082, EL6831 and EL6767 in the Peelwood area.
They are located approximately 70kms south of the City of Bathurst in eastern New South Wales and cover an area of approximately 261 square kilometres.
Our main asset at Peelwood is the John Fardy deposit. John Fardy offers excellent potential to add further value through exploration. In addition, the Peelwood zinc project has several historical mines and prospects with zinc-rich volcanic-hosed sulphide-style mineralization. A number of these old mines or prospects have the potential for similar style of mineralization to that at John Fardy.
EL6081 - BLACK SPRINGS
Exploration License Application No. 2980 covers approximately 135 square kilometres and is located approximately 90 kilometres south of the City of Bathurst. The application adjoins the southern boundaries of Sultan's Licence Nos 2934 and 6081.
EL6081 contains Black Springs, Single Tree Hill North, Big Magpie Hill and, Phil's river prospect respectively.
The best intersection is 3.0 metres of 12.0% zinc, 4.14% lead and 35g/t silver in a Hole BSJ7. Five ironstone gossans over a strike length of 2km have been identified.
EL6767 - ELSIENORA
Sultan buys 100% of the Elsienora Project (EL6767). EL6767 has boundaries with Exploration License 6082 and 6831 that are 100% owned by Sultan Corporation. Exploration License Application No. 6767 covers approximately 37 square kilometres and is located approximately 70 kilometres north of Canberra.
A defined mineralisation trend over a significant strike length of approximately 500 metres is currently divided by EL6767 and EL 6082. The acquisition of EL No. 6767 will allow this trend to be consolidated under 100% Sultan ownership.
The best intersection is 2.65 metres of 8.46% zinc, 3.13% lead, 71g/t silver and 0.57g/t of gold in Hole DDH004.
LAND CONSOLIDATION
The acquisition of EL6082 and El 6767 adds two significant assets to Sultans 100% owned portfolio of tenements within the Peelwood area. This offers an excellent opportunity to drill test advanced exploration targets with high-grade zinc intercepts from previous drilling.
CORPORATE ACTIVITY
On July 27th, the Company was pleased to announce a placement of 57 million shares at 4.2 cents per share to raise $2.39 million to be issued to sophisticated investors.
The directors were also please to announce that in conjunction with the placement, the Company offered eligible shareholders the opportunity to acquire additional shares via a Share Placement Plan (SPP). Applications received totalled $69,300.
As a result of this placement, the Company has a strong balance sheet comprising sufficient funds to undertake the planned exploration program.
MANAGEMENT
On the 26th July, 2007, Mr. Kevin Alexander joined the company as Chief Geologist.
Kevin is a geologist with 25 years experience in the exploration and mining of base metals, gold and diamonds in Australia, Indonesia, Russia, Kazakhstan and Armenia. He had held a number of positions at the chief Geologist and Exploration Mangers level and in particular has considerable exposure to projects ranging from pre-feasibility stage through to advanced development and operating mines.
On the 7th August, 2007, Mr. Trevor Benson was appointed as Non-Executive Director of the company.
My Benson has brought extensive financial and corporate experience to the Board. Mr. Benson for many years has been involved in Stock broking and Investment Banking.
COMPANY PROFILE
Sultan Corporation Limited is an Australian base metals explorer and emerging zinc producer. Sultan's primary objective is to deliver long-term shareholder value by rapidly becoming a mid-tier resource company.
The company strives to achieve this through the discovery, acquisition and development of new economic mineral deposits.
Sultan's Board of Directors and management team have extensive global industry experience.
They are well qualified and resourced to steer the company to achieve SSC's goals and objectives.
On the 12/9/2007, the Directors of Sultan Corporation Limited (SCC) were pleased to announce that a resource has been estimated for its wholly owned John Fardy zinc and copper deposit near Crookwell in NSW. This 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.
The 100% owned Peelwood Project in New South Wales is considered to have outstanding potential to host economic mineral deposit of zinc and copper.
Contact
Derek Lenartowicz
Managing Director
Ph: (08) 9217 3300
Fax: (08) 9388 3006
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