Yesterday Sultan Corp released their latest assays from the John Fardy high grade Zinc deposit. 2x drill holes released; *6m @7.89% Zn, 1.32% Cu, .37% Pb & 28 g/t Ag *7m @ 2.88% Zn, 1.35% Cu, .12% Pb & 11 g/t Ag
Previous results released from current drill program are *9.5m @ 8.67% Zn, 21 g/t Ag from 50m incl. 4m @ 18.61% Zn, 3.86% Pb & 39.6 g/t Ag *5.4m @ 6.96% Zn & 24 g/t Ag from 292m incl. 4.4m @ 8.39% Zn & 30 g/t Ag *7m @ 15.02% Zn & 13.4 g/t Ag from 278m incl 4m @ 23.19% Zn & 12.6 g/t Ag these results also included minor copper and lead credits.
The John Fardy deposit is 100% owned by Sultan and there are no native title issues.
Prior to current drill campaign the JF deposit contained a JORC compliant resource of 862,000t Zn, Cu, Pb and Ag with the resource containing the equivalent of 6.7% Zn. 60% of the 862,ooot resource has been given as measured (being the highest JORC category).
The deposit contains some very high intersections and grades and is open at depth and considered a candidate for open-pit mining due to its shallow and contained nature. This translates to cheap extraction costs particularly with good infrastructure close by.
The deposit remains open at depth
The estimated in-ground-value of the deposit prior to current drill campaign is approx $200m. Sultan has a current MC of approx $7m and is therefore highly leveraged to exploration success.
The current drillprogram should result in a resource upgrade to approx 1.3-1.5mt. This seems very achievable given excellent assay results from current program.
Sultan is funded throughout the remainder of drill program and into pre-feasability.
With regards to management, the MD has an excellent reputation in project development and mine management (ex WMC) and is also the largest shareholder in the Co. This to me is always a very positive sign.
Aside from John Fardy deposit Sultan has several other tenements in the region with multiple drill targets.
At current sp of 1.4c (this has me absolutely buggered) this stock is so undervalued it beggars belief. The results so far from current drill program have been ignored by the market but soon we will see a significant resource upgrade and with it a significant re-rate of this sadly overlooked stock which has been sold down with the rest of the spec sector. FREE MONEY HERE, YOU'RE STEALING THEM AT THESE PRICES
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