John Fardy Zinc Deposit
JORC Resources Established
Sultan Corporation Limited’s (ASX: SSC) exploration program conducted during the past 12 months was highly successful in upgrading the JORC resource at John Fardy; delineating maiden JORC resources at Peelwood; and identifying strong mineralisation at the Black Springs project. All projects remain open to further expansion and will be tested in the coming year.
Sultan Corporation is pleased to announce updated resources at its John Fardy and Peelwood prospects. Table 1 details the combined resource for these prospects.
Table 1 - Combined Resource Update for John Fardy and Peelwood
Resource | Tonnes | Zn % | Cu % | Pb % | Ag g/t | Zinc Equiv. |
Combined Resource | 895,000 | 3.94 | 0.8 | 0.73 | 16 | 8.0 |
NB: The zinc equivalence formula and relevant calculation variables are outlined in the section titled “Description and notes on John Fardy and Peelwood Resource Estimates.”
John Fardy and Peelwood have both been estimated in accordance with the JORC Code (2004) and the individual resource estimates are given in Table 2 below. The categories of indicated and inferred with decreasing levels of confidence are as follows:
Table 2 - Individual Resource Updates for John Fardy and Peelwood Prospects
Resource *(1% Zn cut-off) | Resource Category | Tonnes | Zn% | Cu% | Pb% | Ag g/t | Zinc Equiv. |
| John Fardy | Indicated | 597,000 | 4.5 | 1.0 | 0.6 | 15 | 9.2 |
| Inferred | 39,000 | 3.0 | 1.1 | 0.3 | 13 | 7.8 |
| Total | 636,000 | 4.4 | 1.0 | 0.5 | 15 | 9.0 |
| Peelwood ** |
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| Inferred | 259,000 | 2.82 | 0.3 | 1.28 | 17 | 5.45 |
| Total | 259,000 | 2.82 | 0.3 | 1.28 | 17 | 5.45 |
| Combined Resource |
| 895,000 | 3.94 | 0.8 | 0.73 | 16 | 8.0 |
* John Fardy October 2008 Resource was estimated by Chris Black of Cube Consulting Pty Ltd
** Peelwood Resource was estimated by Kevin Alexander of Sultan Corporation Ltd
NB: The zinc equivalence formula and relevant variables for calculation are outlined in the section titled “Description and notes on John Fardy and Peelwood Resource Estimates.”
John Fardy and Peelwood zinc and copper prospects are 100% owned by Sultan Corporation and are located 75km south of Bathurst in central New South Wales. These prospects are part of a larger contiguous group of tenements held by Sultan and include other advanced targets such as Black Springs (see Figure 1).
Develop Mine/Generate Cash Flow
As previously announced to the market (ASX: 16-06-2008) Sultan has engaged Intermine Engineering Consultants to complete all design and mining engineering studies. Intermine has optimised the current resource and preliminary indications show that the following tonnages are likely to occur within the respective open cuts at John Fardy and Peelwood projects.
Table 3 – Open Pit Estimates
Resource | Tonnes | Zn % | Cu % | Pb % | Ag g/t | Zinc Equiv. | |
John Fardy | 360,000 | 5.01 | 0.99 | 0.70 | 16 | 10.2 | |
Peelwood | 109,000 | 5.67 | 0.55 | 2.72 | 32 | 11.6 | |
Combined Resource | 469,000 | 5.16 | 0.90 | 1.17 | 20 | 10.5 | |
Sultan considers there are reasonable prospects for eventual economic extraction of this resource. Intermine has completed preliminary mine designs for both John Fardy and Peelwood and continue to manage the processes necessary to obtain regulatory approvals required to commence mining operations at both prospects.
Metallurgical Test Work
SSC engaged Metallurgical Design to establish recovery characteristics of zinc, copper, lead and silver minerals. Metallurgical Design has also been responsible for optimising plant configuration for ore treatment. In August and September, AMM was subcontracted by Metallurgical Design to conduct metallurgical test work of the John Fardy ore. Results of the test work are as follows:
- Sulphide minerals are readily liberated at both 75 micron and the coarser 106 micron;
- Both grind recoveries of zinc, copper and lead are all well in excess of 90% and generally more than 95%;
- Finer grinding is not required to enhance floatation performance; and
- Very good Flotation Bulk Concentrate Recovery = 43.5%.
Table 4 - Recovery of Base Metals
Base Metal | % Recovery | Head Grade | Conc. Grade |
Zinc | 96 | 9.9 | 22.2 |
Lead | 97.7 | 2.0 | 4.6 |
Copper | 98.3 | 0.7 | 1.5 |
Sulphur | 96.8 | 17.7 | 39.3 |
Exploration at Peelwood is at an earlier stage than at John Fardy and independent metallurgical test work has not been undertaken. Sultan’s Chief Geologist stated “The mineralisation at Peelwood is broadly similar in style to mineralization at John Fardy”.
Preliminary Project Indicators
Sultan has engaged McSweeney Partners Pty Ltd to conduct engineering design and a costing study based on a 120-150ktpa treatment plant. Preliminary assessment suggests the capital costs would fall within the expected values. Sultan’s Managing Director, Mr. Derek Lenartowicz said “The characteristics of John Fardy prospect indicate that Sultan Corporation will end up with a project that has a relatively low capital and operating cost due to the anticipated simplicity of the ore treatment circuit.”
