Peelwood Mine, Central Hill and Single Tree
HIGH GRADE NEAR SURFACE RESOURCE AT PEELWOOD
Sultan Corporation Limited is pleased to report the completion of an initial JORC resource estimate for its Peelwood prospect, located 75km south of Bathurst in central New South Wales. Sultan’s JORC resource for Peelwood has been estimated in the category of ‘inferred’.
It is expressed at cut-off grades of 0% and 4% zinc equivalent. The estimate is:
· 259,060 tonnes at 5.45% zinc equivalent (0% zinc equiv cut-off grade) · 105,400 tonnes at 12.04% zinc equivalent (4% zinc equiv cut-off grade)
These Peelwood resources are separate and additional to the previously announced John Fardy resource. As a result, the new inferred resource has the potential to supplement any future mining operation at John Fardy. Sultan previously announced a JORC resource of at John Fardy of:
· 862,000 tonnes at 6.7% zinc equivalent.
Peelwood is an historic silver and base metal mining area and is located approximately 1km SSE of Sultan Corporation Limited’s John Fardy Project.
Results from all recent and historical drillholes have been used to calculate the resource. Twelve diamond core holes were drilled at Peelwood between 1951 and 2002. Sultan has augmented this historical data by drilling a further three diamond holes for 467.7 metres in the April-May period of 2008.
The nearby historical Peelwood mine and Central Hill prospect and the more distant Mount Costigan mine and Single Tree Hill prospect all contain commercially extractable mineralisation and have not been fully investigated. Each of these historical old mines or prospects has the potential for John Fardy style mineralization that will supplement the existing John Fardy resource. The future exploration of the Peelwood prospects will be directed towards increasing the JORC resource of the John Fardy deposit and finding additional mineralisation at other nearby locations.
