Sultan Resources : Big Hill Exploration Update

	Sultan Resources Ltd
	ACN: 623652 522
	CORPORATE DETAILS
	ASX Code: SLZ
	DIRECTORS
	STEVEN GROVES
	MANAGING DIRECTOR
	JEREMY KING
	CHAIRMAN
15th March 2022	DAVID LEES
NON-EXECUTIVE DIRECTOR
onlyBIG HILL EXPLORATION UPDATE	CONTACT
Suite 2, Level 1,
1 Altona Street
use	West Perth WA 6005
www.sultanresources.com.au
[e-mail]

 Diamond drilling targeting altered and mineralised structures at the Razorback prospect, Big Hill completed in late 2021.

o A total of 5 holes for 519 metres completed

	o Co-funded grant of up to $81k awarded for the program
 All holes intersected a strongly altered and veined structure containing sulphide minerals
personal	that correlates with surface mapping and sampling
Results have been received and show:


o Elevated levels of porphyry-style mineralisation in elements such as Au, Ag, Cu,

As, Sb, Mo, W

o Results are consistent with the style and intensity of alteration and mineralisation distal to a mineralising porphyry system

 The drilling has confirmed the potential for the discovery of porphyry Cu-Au mineralisation at Big Hill and provided important vectors towards the most prospective part of the system

Sultan Resources Limited (ASX: SLZ) (Sultan or Company) is pleased to provide an update to the market from the Company's Big Hill Cu-Au porphyry project in the Lachlan Fold Belt NSW. Full results for drilling undertaken at the Razorback structure in late 2021 have now been received.

During November and December 2021, Sultan undertook the maiden diamond drill program at the Company's Razorback Ridge Au-Cu prospect in Central NSW. As part of the Big Hill Au-Cu porphyry project Forin the Company's Lachlan Fold Belt ("LFB") portfolio, the drill program was designed to target the structural host beneath outcropping high-grade Cu and Au mineralisation at Razorback. Five diamond drillholes for a total of 519m were completed. All holes successfully intersected the mineralized structure beneath the outcropping skarn breccia previously sampled and mapped at surface (ASX Announcement 30/09/2020). Extended delays due to repeated wet weather conditions at site resulted in the total drilling meters being

less than originally planned.

The drilling is being supported via the New Frontiers Cooperative Drilling Grants Program - Round 4 by the Department of Regional NSW with a co-funded drilling grant of up to $81,000 awarded to Sultan to help cover 50% of direct drilling costs.

Final assay results have now been received and initial interpretations completed.

ASX ANNOUNCEMENT - 15 MARCH 2022

Razorback Drilling Results and Interpretation

RZDD001 and RZDD002 (Figures 1 & 2) were drilled on the same section to test elevated surface geochemistry within an outcropping skarn breccia. These holes were drilled to 69.2 and 107.7m onlyrespectively and both intersected skarn-altered brecciated limestone containing quartz-carbonate- magnetite veining with minor chalcopyrite and pyrite. They passed through the down dip extension of the outcropping skarn breccia trend and concluded in approximately 40m of chlorite-magnetite altered

volcanoclastic sandstone with abundant hematite alteration of clasts and stringers.

Assay results from both holes show elevated levels of gold, copper, silver, arsenic, antimony, molybdenum, tungsten and a noticeable depletion in zinc. No economic levels of these elements were recorded in either hole, indicating that strong supergene enrichment of the structure at surface resulting in the higher-grade rock sample results has occurred. This enrichment could also have depleted some of the original

usemineralisation immediately below the surface within the structure. Although still at low levels, gold mineralisation appears to be increasing in RZDD002 where the structure was intersected some 30m below RZDD001.

Hole RZDD001 returned maximum results from within an 8m down hole intersection (10 - 18m) of 0.014 g/t Au (14-16m), 0.04g/t Ag (10 - 14m), 0.035% Cu (12 - 18m), 0.53ppm Mo (10 - 18m).

Hole RZDD002 returned maximum results from within a 10m down hole intersection (51 -61m) of 0.049 g/t Au (52-53m), 0.09g/t Ag (52 - 53m), 0.07% Cu (52 - 53m), 1.85ppm Mo (55 - 58m), 4.13ppm W (54 -

personal58m).

The full set of assay results for relevant elements for all holes is included in Appendix 1 For

Figure 1: Cross-section, looking north, of holes RZDD001 and 002 showing down hole gold assays. The general tenor of elevated gold content increases in hole 2, suggesting the mineralisation might increase with depth.

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ASX ANNOUNCEMENT - 15 MARCH 2022

onlyusepersonalFigure 2: Cross-section, looking north, of holes RZDD001 and 002 showing down hole copper assays.

RZDD003 and RZDD004 (Figures 3 & 4) were drilled on the same section approximately 150m north of RZDD001 and RZDD002 along the skarn trend with end of hole depths of 90.4m and 171.3m respectively. RZDD003 intersected a 10m zone of quartz-carbonate veined and sericite-altered, hydrothermal breccia containing abundant finely-disseminated pyrite and fuchsite blebs. Dominant units intersected throughout the hole were andesitic-rich,chlorite-magnetite altered volcaniclastics containing minor to moderate quartz-carbonate veining and trace blebs of chalcopyrite and bornite. Hole RZDD004, the deepest drilled at Razorback, encountered intervals of quartz-sericite-pyrite alteration throughout the hole at 15-30m, 31- 37m and 61-74m. Associated with these zones were encouraging sulfide contents of pyrite, chalcopyrite and bornite. This hole intersected multiple structures interpreted to be represented by various zones of sericite bleached volcaniclastic breccias with quartz-carbonate veining and infill containing disseminated pyrite and minor chalcopyrite-bornite blebs. The hole was terminated in unaltered chlorite-magnetite volcaniclastics

The increase in alteration intensity and width, and stronger elevated metal contents compared to holes Forfurther south suggests that these holes are closer to the source of mineralising fluids at Big Hill. These holes are on the southern edge of the Big Hill intrusive complex and provide an exploration vector towards the

potential mineralising porphyry.

Hole RZDD003 returned maximum results from within an 8m down hole structure intersection (30 - 38m) of 0.11 g/t Au (31-32m), 0.15 g/t Ag (31 - 32m), 0.04% Cu (30-31m & 36-37m), 2.8ppm Mo (31-32m) and 5.6ppm W (35-37m).

Hole RZDD004 returned maximum results from within a 12m down hole structure intersection (62 - 74m) of 0.16 g/t Au (67-68m), 0.10 g/t Ag (64 - 65m), 0.04% Cu (64-65m & 67-68m), 3.14 ppm Mo (63 - 65m) and 3.4ppm W (71-72m).

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ASX ANNOUNCEMENT - 15 MARCH 2022

onlyuse

personalFigure 3: Cross-section, looking north, of holes RZDD003 and 004 showing down hole gold assays. The general tenor and thickness of elevated gold content increases in hole 4, suggesting the mineralisation is improving with depth.

For

Figure 4: Cross-section, looking north, of holes RZDD003 and 004 showing down hole gold assays. The general tenor and thickness of elevated copper content increases in hole 4, suggesting the mineralisation is improving with depth.

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ASX ANNOUNCEMENT - 15 MARCH 2022

RZDD005 was drilled further south along the outcropping mineralised skarn trend approximately 200m from RZDD002 to a final depth of 80.4m. The volcaniclastic breccia displaying sericite alteration was intersected from 38-49m with minor pyrite and chalcopyrite mineralisation contained within this interval. The hole was terminated in chlorite-magnetite altered volcaniclastics which is the same unit encountered

onlyin other holes drilled during the program.

Hole RZDD005 returned maximum results from multiple down hole structure intersection of 0.11 g/t Au (38-39m), 0.09g/t Ag (57-58m), 0.06% Cu (32-33m), 0.8 ppm Mo (57-58m) and 4.8ppm W (55-56m).

Discussion

Diamond drilling at the Razorback prospect has highlighted the subsurface continuity of a >1km long zone of sericite-altered volcaniclastic breccia associated with significant copper and gold mineralisation usepreviously mapped and sampled at surface (ASX Announcement 30/09/2020). Drilling and geological logging has confirmed that this zone is continuous, extends to at least 85m below surface and is open in all

directions.

The assay results have confirmed that the strongly altered structure contains porphyry-type mineralisation despite the low tenor of metal content returned. The suite of elevated elements can be up to 10 times higher than background levels in the holes and strongly supports an interpreted porphyry-related hydrothermal origin for the mineralisation and adds further support to the presence of a major mineralised porphyry system at Big Hill.

personalThe drilling also showed increasing width and alteration intensity in the northern-most holes which are closer to the Big Hill complex. Assay results confirmed that these holes also contained the highest levels of elevated porphyry-related elements, including gold and copper, indicating that the mineralising porphyry intrusion is potentially located between Razorback and the previous Big Hill drill holes. This area has been termed the Big Hill-Razorback trend and occurs as a north-westerly oriented zone between the two prospects (Figures 5 & 6). Recent geological mapping has revealed numerous zones of outcropping copper mineralisation associated with localised zones of silica-magnetite alteration (Figure 5 & 6) within the Razorback-Big Hill trend. Induced Polarisation surveys (ASX Announcement 29/04/2021) show resistivity highs indicative of albite plume model of alteration that elsewhere is often associated with porphyry mineralisation, to also occur along the Big Hill-Razorback trend, coincident with mapped porphyry intrusives and outcropping pyrite and chalcopyrite mineralisation.

Albite is a characteristic propylitic alteration mineral in the upper or outer parts of East Lachlan alkalic Au- Cu porphyry systems, including Cadia Ridgeway. These albite zones can manifest as resistivity high features in IP data sets. The Big Hill-Razorback trend is defined by three prominent resistivity highs, the strongest of which occurs approximately 200m south from the completed drill holes at Big Hill (Figure 5). This suggests the potential for a vector towards stronger zones of albite alteration at depth between Big Hill and the

Forhigh-grade outcropping mineralisation at Razorback. Drilling at both Big Hill and Razorback intersected zones of disseminated pyrite which are also characteristic of the upper or outer parts of an alkalic East Lachlan-styleAu-Cu porphyry system. Geochemical analysis confirms the disseminated pyrite zones contain weakly elevated Te-Mo-Se-Re-As-Pb pathfinders relative to surrounding wall-rocks, consistent with an alkalic Au-Cu porphyry environment (ASX Announcement 29/04/2021). Logged pyrite contents in the Razorback drilling (confirmed by elevated sulphur assays) correlates strongly with elevated gold and copper.

The geological and geophysical evidence indicates that the recent drilling at both Razorback and Big Hill has potentially been located on the margins of a large porphyry-epithermal system. This trend will be targeted in future drill programs after a comprehensive review of geophysical and geochemical datasets.

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