SULTAN RESOURCES LTD

ACN: 623652 522

CORPORATE DETAILS

ASX Code: SLZ

DIRECTORS

STEVEN GROVES MANAGING DIRECTOR

JEREMY KING CHAIRMAN

ASX ANNOUNCEMENT

21[st] January 2020

DRILL PROGRAM APPROVED TO TEST ANOMALIES AT LAKE GRACE GOLD PROJECT

DAVID LEES NON-EXECUTIVE DIRECTOR

CONTACT

Suite 2, Level 1, 1 Altona Street West Perth WA 6005 www.sultanresources.com.au [email protected]

Highlights

Approvals received for drill program to test exceptional gravity anomalies
1,000m Reverse Circulation program planned on three-dimensional inversion modelling
Targeting very strong, 2km long gravity high associated with Challenger Gold Prospect – down dip of recent gold intersections :
Shows strong similarities to the gravity response that marks the Tampia Gold Deposit
Larger than the Tampia gravity anomaly
Drill rig to mobilise to site by end of January

The Board of Sultan Resources Ltd ( Sultan or the Company ) is pleased to inform shareholders that all approvals have been received for a drilling program to test the prominent gravity anomalies revealed by the detailed ground gravity survey completed at the Company’s Lake Grace Project in 2019 (ASX announcements 23/09/2019, 29/10/2019 ). The program will comprise 5 Reverse Circulation (“RC”) holes for 1,000m and is designed to test the peak gravity anomalies in positions down dip of the Challenger gold mineralisation discovered by the Company in 2019[2] . A drill rig and crew are working to mobilise to site before the end of January.

ASX ANNOUNCEMENT – 21ST JANUARY 2020

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Figure 1: Regional map view of Sultan’s Lake Grace portfolio in relation to surrounding tenure and significant gold deposits. SLZ’s Challenger Gold Prospect is marked by a red star.

Program Details

The drill program has been designed to test the outstanding anomalies revealed by the Company’s recent ground gravity survey at Lake Grace. The prominent anomaly that surrounds and lies down dip of the extensive near-surface gold mineralization defined by Sultan and previous explorers[1] at Challenger will be the focus of the five-hole program. Three-dimensional inversion modelling has been undertaken on the gravity data. Density variations inferred from this work have revealed the spatial distribution of peak density (3.2gm/cc) bodies that appear geophysically similar to those that host the bulk of gold mineralisation at the nearby Tampia deposit[3] (Figure 2). Gold-hosting rock types at Tampia are predominantly sulphidic mafic gneiss. Drilling by Sultan in 2019 intersected sulphide-banded mafic gneiss hosting gold mineralization dipping shallowly towards the gravity anomalies defined by the ground gravity survey.

Two standout anomalies (A and B) have been identified as a priority for drill testing in the five-hole program (Figure 3):

Holes 1, 2 and 3 will drill vertically (180m to 190m) to target Anomaly B, where a potential fold axis trends coincident with the peak gravity anomaly.
Hole 4 will be a deep (240m) angled hole targeting Anomaly A in the general vicinity of historic diamond holes by North which returned high grade gold on the edge of the gravity anomaly.
Hole 5 (190m) will test down dip of Sultan’s recent RC drilling where thick zones of low to moderate grade mineralisation were intersected. The hole is some 280m to the NE of previous drilling, within the trend of the stronger gravity response.

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A
B
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Figure 2. Comparison of the 2km long Challenger gravity anomaly to the Tampia gravity response at the same scale. Note that the accurate shape at Challenger could indicate a folded sequence and the proximity to previous deeper drilling at Challenger (blue dots) suggesting that the most prospective area of the gold-hosting stratigraphy remains untested.

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Figure 3. Plan view of the proposed drill holes (yellow stars) in relation to the peak gravity anomalies (A and B) and Sultan’s previous drilling (blue dots). The red dashed outline indicates the extent of +0.1g/t Au gold mineralization close to surface and in deeper drill holes.

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ASX ANNOUNCEMENT – 21ST JANUARY 2020

The ground gravity at Lake Grace revealed at least four prospective targets (Figure 4), the most prominent of which exists at the Challenger Gold Prospect. All four targets are associated with mafic rock types and recent and/or historic gold anomalism.

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Figure 4. Proposed exploration targets for the Challenger gravity survey with recent and historic significant gold results

Sultan will keep the market informed upon commencement of the program and as results come to hand.

For further information contact: Managing Director Steve Groves [email protected]

Investor Relations Peter Taylor [email protected] 0412 036 231

References:

1 North Limited - Public Company Report A45226: “ Final Report on Exploration Licences E70/1367 & E70/1368 August 1995
2 Sultan Resources – ASX Release: “ RC Drilling on Historic Targets at Lake Grace Complete ” 04/04/2019
3 Explaurum Limited – Company Presentation: “Unlocking Wheatbelt Gold – Tampia Gold Project” 03/08/2019

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ASX ANNOUNCEMENT – 21ST JANUARY 2020

Competent Persons Statement

The information in this report that relates to Exploration Targets and Exploration Results is based on historical exploration information compiled by Mr Steven Groves, who is a Competent Person and a Member of the Australian Institute of Geoscientists. Mr Groves is Managing Director and a full-time employee of Sultan Resources Limited. Mr Groves has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Groves consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

About Sultan Resources

Sultan Resources is a West Australian focused exploration company with a portfolio of quality assets in emerging discovery terranes currently targeted by successful explorers such as Gold Road Resources, Sandfire Resources and Lodestar Minerals. Sultan’s tenement portfolio includes prospective targets for gold, Nickel, Cobalt and base metals and include tenements at Thaduna, Lake Grace, East Tallering and Dawallinu, all located within the southern terrane region of the Yilgarn Craton in south and south eastern Western Australia. Sultan’s board and management strategy is for a methodical approach to exploration across the prospects in order to discover gold and base metals that may be delineated via modern exploration techniques and exploited for the benefit of the company and its shareholders.

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Appendix 4: JORC Code, 2012 Edition Table 1 - Lake Grace Project

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation Sampling • Nature & quality of sampling (e.g. cut channels, random chips, or specific techniques specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.
Include reference to measures taken to ensure sample representivity & the appropriate calibration of any measurement tools or systems used.
Aspects of the determination of mineralisation that are Material to the Public Report.
In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

Commentary

Geochemical samples were taken from drill chips produced by a reverse circulation (RC) drill rig. Samples were split from the sample stream every metre as governed by metre marks on the drill string, by a cone splitter approximating between 7-13% of the full metre of sample. The dust box was used to control the flow of chips to the cone splitter.
Duplicates were taken every metre from the alternate sample opening on the cone splitter. This gave flexibility to where field duplicates were introduced into the geochemical sampling stream to the lab and allowed for compositing at any depth or interval.
On a regular basis both sample and duplicate were weighed with a simple hook based hand held scale to check for representivity of both the metre sampled and the duplicate. This weight was not recorded, rather used as an in-filed measure to alert drillers of issues with the cone splitter and drilling.
Samples were collected in calico bags – each bag weighed approximately 1- 3kg.
A small (1-2 teaspoon sized) representative sample was kept of each metre for record purposes.
Drilling • Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, techniques auger, Bangka, sonic, etc.) & details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented & if so, by what method, etc.).
Reverse Circulation drilling was used to obtain 1m samples for the purpose of geological logging and geochemistry. Compositing was performed for some geochemical samples (see elsewhere in this table)
RC sampling completed using a 5.5” diameter drill bit with a face sampling hammer. RC drilling rigs were equipped with a booster compressor.

ASX ANNOUNCEMENT – 21ST JANUARY 2020

Criteria	JORC Code explanation	Commentary	Commentary
Drill sample	• Method of recording & assessing core & chip sample recoveries & results	•	RC Drillers were advised by geologists of the ground conditions expected for
recovery	assessed.		each hole and instructed to adopt an RC drilling strategy to maximize sample
	• Measures taken to maximise sample recovery & ensure representative		recovery, minimize contamination and maintain required spatial position.
	nature of the samples.	•	Sample recovery is approximated by assuming volume and rock densities for
	• Whether a relationship exists between sample recovery & grade & whether sample bias may have occurred due to preferential loss/gain of fine/coarse		each metre of the drill hole and back referencing to this for individual metres coming from the cone splitter.
	material.
Logging	• Whether core & chip samples have been geologically & geotechnically	•	All drilling in this ASX release is by reverse circulation (RC). RC holes are
	logged to a level of detail to support appropriate Mineral Resource		geologically logged on a 1m interval basis. Where no sample is returned due
	estimation, mining studies & metallurgical studies.		to voids or lost sample, it is logged and recorded as such. The weathering
	• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.		profile is logged with no washing/sieving as well as washed/sieving to identify the transition into fresh rock and to identify unweathered quartz veins. In fresh rock all RC chips are logged by washing/sieving.
	• The total length & percentage of the relevant intersections logged.
		•	Geological logging is qualitative and quantitative in nature.
		•	Visual estimations of sulphides and geological interpretations are based on
			examination of drill chips from a reverse circulation (RC) drill rig using a 20x
			hand lens during drilling operations. Chips are washed and sieved prior to
			logging.
		•	It should be noted that whilst % mineral proportions are based on standards
			as set out by JORC, they are estimation only and can be subjective to individual
			geologists to some degree.
Sub-sampling	• If core, whether cut or sawn & whether quarter, half or all core taken.	•	Geochemical samples were taken from drill chips produced by a reverse
techniques & sample preparation	• If non-core, whether riffled, tube sampled, rotary split, etc.& whether sampled wet or dry.		circulation (RC) drill rig. All sampling techniques are described above. The nature and quality of the sampling technique was considered appropriate for the drilling technique applied and for the geochemical analysis sought.
	• For all sample types, the nature, quality & appropriateness of the sample preparation technique.	•	As described above a cone splitter was used to split samples from the RC sample stream. The cone splitter was levelled prior to drilling and this level
	• Quality control procedures adopted for all sub-sampling stages to maximise		was checked at regular intervals throughout the drilling of each drill hole to
	representivity of samples.		ensure representivity of sample.

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ASX ANNOUNCEMENT – 21ST JANUARY 2020

Criteria	JORC Code explanation	Commentary
	• Measures taken to ensure that the sampling is representative of the in situ	• A field duplicate was taken for every metre sampled and both duplicate and
	material collected, including for instance results for field duplicate/second-	original sample were checked in an approximate manner for weight/size as a
	half sampling.	quick measure of sample representivity and thus if the cone splitter was
	• Whether sample sizes are appropriate to the grain size of the material being	working adequately.
	sampled.	• Field duplicates were introduced into the geochemical sample submission at
		approximately 1 in 20 samples or 5% of the sample stream.
		• Prior to analysis, samples were split into those that needed to be composited
		and those that did not, the latter generally being those zones of geological
		interest or zones of potential mineralisation.
		• All compositing was completed in the laboratory by laboratory controlled riffle
		splitters normally used for splitting samples after crushing. It is the experience
		of the geologist that a lab controlled environment produces a far more
		representative split of each metre sample than what can be achieved in the
		field by hand.
		• Where intervals were composited, the compositing represents 4 m of 1 m RC
		samples, except at the end of the interval where the ‘left-over’ could
		represent 2 or 3 m of 1 m RC samples.
		• Blanks and laboratory-introduced geochemical standards focussed on gold
		were introduced into the sample stream at the rate of 1 in 20 or 5% or at
		smaller intervals.
		• At the lab, samples were crushed to a nominal 2mm using a jaw crusher
		before being split using a rotary splitter into 400-700g samples for pulverising.
		• Samples were pulverised to a nominal >90% passing 75 micron for which a
		100g sample was then selected for analysis. A spatula was used to sample
		from the pulverised sample for digestion.
		• The Bureau Veritas geochemical laboratories in Perth use their own internal
		standards and blanks as well as flushing and cleaning methods accredited by
		international standards.

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Criteria	JORC Code explanation	Commentary
		• Sample sizes and splits are considered appropriate to the grain size of the
		material being sampled as according to the Gi standard formulas.
Quality of	• The nature, quality & appropriateness of the assaying & laboratory	• Geochemical analyses performed consisted of a four acid digestion and/or
assay data &	procedures used & whether the technique is considered partial or total.	peroxide fusion before Inductively Coupled Plasma Mass Spectrometer
laboratory tests	• For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make &	(ICPMS) or Inductively Coupled Plasma Atomic Emission Spectrometer (ICPAES). This technique is considered a total analysis.
	model, reading times, calibrations factors applied & their derivation, etc.	• All standards, blanks and field duplicate procedures are described above.
	• Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) & whether acceptable levels of	• Acceptable levels of accuracy for the data have been achieved. For instance, the total error for Au concentrations above 10x detection limit was +15.4% to
	accuracy (i.e. lack of bias) & precision have been established.	-14.5% (mean difference). This is considered within expectations for
		geochemical sampling of RC drilling and shows no significant bias towards the
		positive or negative.
Verification	• The verification of significant intersections by either independent or	• Verification of significant intersections as shown by the results of geochemical
of sampling	alternative company personnel.	analyses has been made via employees of Sultan Resources internally.
& assaying	• The use of twinned holes.	• There were no dedicated twinned holes in this drilling program.
	• Documentation of primary data, data entry procedures, data verification,	• All geological and geochemical data has been checked by both Sultan
	data storage (physical & electronic) protocols.	Resources employees and Zephyr Professional Pty Ltd consultants. All
	• Discuss any adjustment to assay data.	geological and drilling data has been entered into a Sultan Resources Access database.
Location of	• Accuracy & quality of surveys used to locate drill holes (collar & down-hole	• All collar locations presented were finalised using a hand-held differential GPS
data points	surveys), trenches, mine workings & other locations used in Mineral	(DGPS) with base station (currently an Austech ProMark500 and ProFlex500).
	Resource estimation.	Accuracy of the DGPS is approximately to 100mm in the vertical and 50mm
	• Specification of the grid system used.	on the horizontal.
	• Quality & adequacy of topographic control.	• MGA94, Zone 50
		• Elevation were in AHD (MGA94, Zone 50)
Data spacing	• Data spacing for reporting of Exploration Results.	• Drilling has been for exploration only, spacing varies between targets.
& distribution

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Criteria	JORC Code explanation	Commentary
	• Whether the data spacing & distribution is sufficient to establish the degree
	of geological & grade continuity appropriate for the Mineral Resource &
	Ore Reserve estimation procedure(s)&classifications applied.
	• Whether sample compositing has been applied.
Orientation of	• Whether the orientation of sampling achieves unbiased sampling of possible	• Drill angle details are given in the text and tables of the ASX announcement.
data in	structures & the extent to which this is known, considering the deposit type.	Orientation was determined according to the expected orientation of the
relation to geological	• If the relationship between the drilling orientation & the orientation of key mineralised structures is considered to have introduced a sampling bias, this	exploration target.
structure	should be assessed & reported if material.
Sample	• The measures taken to ensure sample security.	• All geochemical samples were selected by geologists in the field and sent
security		directly to the laboratory from the field via a delivery truck , packaged in
		bulker bags. Results of geochemical analysis were sent directly to the project
		geologist for entering into the Access database and for analysis.
Audits or	• The results of any audits or reviews of sampling techniques & data.	• Not applicable
reviews

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral	• Type, reference name/number, location & ownership including agreements	• The Lake Grace Project lies in the eastern wheatbelt, approximately 250km
tenement &	or material issues with third parties such as joint ventures, partnerships,	east-southeast of Perth. The Project comprises five Exploration Licences
land tenure	overriding royalties, native title interests, historical sites, wilderness or	(70/5081, 70/5082, 70/5085, 70/5095 and 70/5179) covering an area of
status	national park & environmental settings.	approximately 690km2over or near the prospective Yandina Shear Zone which
	• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	is known to host gold mineralisation elsewhere in the Southwest Terrane. All licences are held 100% by Sultan Resources The Lake Grace tenements are subject to Native Title Claim by the Ballardong People (WAD6181/1998). The
		North Tarin Rock Nature Reserve has a trivial impact the western margin
		E70/5081.

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Criteria	JORC Code explanation	Commentary
Exploration	• Acknowledgment & appraisal of exploration by other parties.	• Previous exploration over the Lake Grace applications has been limited. Work
done by other		reported was generally generative in nature and at a reconnaissance level.
parties		The most detailed exploration was undertaken by North Ltd during the 1990’s
		and is considered to have been performed to a high standard.
Geology	• Deposit type, geological setting & style of mineralisation.	The Project lies in the Lake Grace Domain of the Southwest Terrane. It is
		comprised of granulite facies granitic gneisses, gneissic remnants of
		greenstone belts, charnokitic granites and post-tectonic granites. The
		greenstone rock sequences are metamorphosed to high-grade upper
		amphibolite to granulite facies. Structurally-controlled gold mineralisation
		occurs broadly as multiple, well-defined stacked elongate to ellipsoidal lodes
		that vary in size from 1-10 m thick, 50-150 m wide (east-west) and 50-200 m
		long (north-south) that have undergone post-mineralisation deformation. The
		gneissic package dips between 35° to 40° to the southeast and strikes 040°.
		The host rocks form an open synform that plunges 30° toward 120°.
Drill hole	• A summary of all information material to the understanding of the	N/A
Information	exploration results including a tabulation of the following information for all
	Material drill holes:
	`o` Easting & northing of the drill hole collar
	`o` elevation or RL (Reduced Level – elevation above sea level in metres) of
	the drill hole collar
	`o` dip & azimuth of the hole
	`o` down hole length & interception depth
	`o` hole length.
	• If the exclusion of this information is justified on the basis that the
	information is not Material & this exclusion does not detract from the
	understanding of the report, the Competent Person should clearly explain
	why this is the case.
Data	• In reporting Exploration Results, weighting averaging techniques, maximum	• N/A
aggregation	and/or minimum grade truncations (e.g. cutting of high grades)&cut-off
methods	grades are usually Material & should be stated.

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Criteria	JORC Code explanation	Commentary
	• Where aggregate intercepts incorporate short lengths of high grade results
	& longer lengths of low grade results, the procedure used for such
	aggregation should be stated & some typical examples of such aggregations
	should be shown in detail.
	• The assumptions used for any reporting of metal equivalent values should be
	clearly stated.
Relationship	• These relationships are particularly important in the reporting of	• No true widths have been stated in this ASX release, all relate to downhole
between	Exploration Results.	intercept lengths.
mineralisatio n widths & intercept lengths	• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known & only the down hole lengths are reported, there should be a clear statement to this effect (e.g.‘down hole length, true width not	• The main zones of mineralisation are interpreted to be shallow-dipping to the northwest, and drill holes were either drilled at steep angles to the southwest, or vertical.
	known’).
Diagrams	• Appropriate maps & sections (with scales)&tabulations of intercepts should	• See drill hole location map accompanying this ASX release.
	be included for any significant discovery being reported These should
	include, but not be limited to a plan view of drill hole collar locations &
	appropriate sectional views.
Balanced	• Where comprehensive reporting of all Exploration Results is not practicable,	• Only observations are reported, see data details above for further information
reporting	representative reporting of both low & high grades and/or widths should be
	practiced to avoid misleading reporting of Exploration Results.
Other	• Other exploration data, if meaningful & material, should be reported	Gravity
substantive	including (but not limited to): geological observations; geophysical survey	The bulk of this report relates to the data from a recent Ground gravity survey.
exploration data	results; geochemical survey results; bulk samples – size&method of treatment; metallurgical test results; bulk density, groundwater,	Specifications of the survey include: A total of 2156 ground gravity readings were acquired by Atlas Geophysics for
	geotechnical & rock characteristics; potential deleterious or contaminating	Sultan Resources Ltd (Sultan) between 23/9/19 and 8/10/19. Readings were
	substances.	taken at varying spacings along east-west lines mostly positioned 200m apart.
		Closer spaced readings were taken around the Challenger prospect on a 100m x
		100m grid
		Readings have been corrected to produce a spherical cap bouguer anomaly
		(SCBA) with all processing and imaging using a value of 2.67 gm/cc in the
		bouguer correction
		All coordinates used are on the GDA94 datum andprojected to MGA50.

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Criteria JORC Code explanation Commentary Magnetics 8,996line-km of airborne magnetic and radiometric data have been acquired over the Lake Grace and Kulin Hill project areas and are referred to in this document. Specifics of the survey include: • GSWA Registration Number R71465 • Contractor: MagSpec Airborne Surveys • Aircraft: Cessna 206 VH-HIS • Acquisition Date: December 2018 • Flight Line Spacing 100 m • Flight Line Direction 090 – 270 degrees • Sensor Elevation 40 m AGL • Magnetics G-823 Caesium Vapour Magnetometer • Sample Rate: 0.05 seconds • Resolution: 0.001 nT • Radiometrics Radiation Solutions RS-500 • Crystal Volume Down: 32 L • Channels: 1024 • Sample Rate: 0.5 seconds
Further work • The nature & scale of planned further work (e.g. tests for lateral extensions • The focus on future work will be to further define the extents of gold or depth extensions or large-scale step-out drilling). mineralisation and to also search for higher-grade zones within the extents of
• Diagrams clearly highlighting the areas of possible extensions, including the the mineralised area.Techniques such as detailed ground geophysics and main geological interpretations & future drilling areas, provided this further drilling will be used to achieve this.

		• Resolution: 0.001 nT • Radiometrics Radiation Solutions RS-500 • Crystal Volume Down: 32 L • Channels: 1024 • Sample Rate: 0.5 seconds
•	The nature & scale of planned further work (e.g. tests for lateral extensions	• The focus on future work will be to further define the extents of gold
	or depth extensions or large-scale step-out drilling).	mineralisation and to also search for higher-grade zones within the extents of
•	Diagrams clearly highlighting the areas of possible extensions, including the	the mineralised area.Techniques such as detailed ground geophysics and
	main geological interpretations & future drilling areas, provided this	further drilling will be used to achieve this.
	information is not commercially sensitive.

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AI assistant

SULTAN RESOURCES LTD Regulatory Filings 2020

65816_rns_2020-01-20_b2f0823d-9cea-454a-8822-268e49e289c9.pdf