Sultan Scales Back Nickel Drilling as Cash Reserves Tighten to $336K

Exploration Focus Shifts Amid Market Dynamics

Sultan Resources Limited (ASX: SLZ) has provided its quarterly update for the period ending December 31, 2024, highlighting ongoing exploration activities across its portfolio in Western Australia and Canada. The company is strategically advancing its gold and lithium projects while temporarily pausing nickel drilling efforts due to subdued market sentiment for nickel.

In Western Australia, Sultan continues to compile and review extensive historical and recent exploration data for its Kondinin-Lake Grace Project. This includes a significant 30-kilometre prospective gold horizon around the Lake Grace Gold Project, with a current focus on a 3.5-kilometre demagnetised zone identified through geochemical programs dating back to the 1990s and early 2000s. The company is also reassessing the original undrilled Kulin gold discovery, which previously yielded high-grade gold assays, to refine drill targets.

Nickel-Cobalt Project on Hold

The Khal Nickel-Cobalt Project, situated within the Kondinin-Lake Grace tenements, remains a priority target due to its fertile ultramafic-mafic sequence and historical indications of nickel-cobalt sulfide mineralisation. However, Sultan has deferred active drilling at Khal in response to the current depressed nickel market, opting to conserve capital and await more favourable conditions before advancing this magmatic sulfide target.

Canadian Lithium Projects Gain Momentum

Across the Pacific, Sultan’s Canadian lithium projects in Ontario are progressing with promising early-stage results. At the Ruddy Project, reconnaissance assays have identified a priority lithium target zone within the interpreted LCT Goldilocks Zone surrounding the Allison Lake Batholith. These findings, supported by low potassium-to-rubidium ratios indicative of evolved pegmatites, set the stage for further exploration.

Meanwhile, the Kember Project awaits field reconnaissance, which was delayed due to ongoing consultations with First Nation groups. Although the company had secured funding through the Ontario Junior Exploration Programme, the timing constraints of the local field season have postponed on-ground activities until negotiations conclude and conditions permit.

Financial Position and Corporate Developments

During the quarter, Sultan completed a placement raising approximately $338,834 at $0.01 per share, with proceeds earmarked for due diligence and working capital. The company’s cash reserves stood at around $336,000 at the end of December 2024. Exploration expenditure for the quarter was modest at about $51,000, reflecting a cautious approach amid market uncertainties.

The board remains vigilant in reviewing acquisition and joint venture opportunities, particularly in North America’s gold and critical metals sectors, aiming to enhance shareholder value. However, Sultan acknowledges that no guarantees exist that such transactions will materialise or meet expectations.

Overall, Sultan Resources is navigating a challenging commodity environment by prioritising its most prospective assets, maintaining financial discipline, and positioning itself for future growth in gold and lithium markets.