As far as I?m concerned, all is good and there?s no reason to panic.
If the SP goes down a bit, don't worry, it WILL come back. We've only just begun.
Let's not forget that just few short weeks ago we were at 0.4c and today we closed at 2.3c not to mention a high of 3.4 last week. That's a huge increase in such a short time.
Over the last 2 days we could clearly see that the SP was being suppressed with BOTS selling every 2 minutes and many fake sale orders. To me there is only one explanation: someone is trying to scare those with weak stomachs to sell, so they can get in at a lower price.
SSC has a great potential with 3 excellent projects and a very pro-active and capable MD at the helm. Let?s not forget that Derek is our Co.?s largest shareholder and therefore has a vested interest in making Sultan a success.
The next 3-4 months should unlock the true potential of all 3 projects so we should expect a consistent news flow from the Co.
Peelwood North:
Peelwood North is on the verge of becoming a producer. The Co advised on the 30th Nov ?10 that 75% of mine approvals are completed. All we are waiting for is the all important water supply and water balance study being prepared by Aquaterra.
On the 4th Nov ?10 the Co. advised: ?The study will initially focus on surface water to provide a secure water supply. It will involve catchment analysis to ascertain if the site can reliably deliver the required water supply via surface runoff, capture and storage. This will take account of harvestable rights requirements embodied in the water legislation and will include water balance modeling assuming a conservative dry weather scenario. It will also include a cost estimate for the acquisition of the required water."
This is the important part: "The water study is last of the major studies required to obtain the information necessary to prepare the Environmental Impact Statement (EIS) in accordance with the Director-General?s requirements under the NSW Environmental Planning and Assessment Regulation 2000. Successful completion of the EIS will allow Sultan to apply for a Development Authority, which is the final approval prior to the granting of a mining licence and the commencement of mining operations.?
This project will generate cashflow to help us fund Montenegro. If the water study confirms sufficient water then it?s probably a 99% chance that Sultan will become a producer. Hopefully now we can all see how important this water study is so bring it on Mr. MD and don?t keep us in suspense.
Peelwood:
As advised by the Co. on the 21st Feb ?11, the sampling programme has returned some significantly elevated gold results so to prove up the resource the Co. will now implement a follow-up programme, which will include drilling. Based on some previous posts on HC, I believe that this drilling should commence shortly and if it does we could expect the final results in early May.
If the drilling proves up the Au results then our next door neighbor, Newmont (worlds largest Au producer) will be silly not to buy our Elsienora Project. This would tie in very nicely with their already stated 3 million ounce resource and would give SSC more then enough cash to fully fund the Peelwood North and Montenegro projects without any further CR and dilution.
Let?s keep our fingers crossed for some outstanding results.
Montenegro:
This project is said to be 20 times larger then Peelwood North with an immediate potential to commence mining. The Co. advised that we are currently working on a JORC conversion process, which is being prepared by geologists from Golder Associates.
?Sultan's estimation of the tonnage of mineralised material at the exploration target site is 7.7 to 9.6 million tonnes ranging from 2.3-2.7% Zn, 1.5-2.7% Pb, 0.2-0.23% Cu and 17-24 g/t Ag. This is based on the three significant deposits: Brskovo, Visnjica and Zuta Prla.?
The 1st phase involving data capture and the creation of a digital geological database had been completed ahead of schedule. The 2nd phase involving geological modeling and resource estimation was due for a completion by the end of Feb ?11 as advised in the last quarterly. This is now 9 days overdue so we should expect this update very shortly.
It is also anticipated that the drilling will commence in May ?11.
Why would you even consider selling your shares now with so much growth potential. Just remember: ROME WASN?T BUILT IN A DAY and nor will Sultan.
SSC Price at posting:
2.4¢ Sentiment: Buy Disclosure: Held
