SLZ
Sultan Resources LTD
ASX
Quarterly Activities/Appendix 5B Cash Flow Report
Sentiment:
Quarterly Activities Report
28 April 2025 2:50 AM
Sultan Resources provides an update on its activities for the quarter ended March 31, 2025, focusing on projects in Western Australia, Canada, and New South Wales, while also reviewing new opportunities.
Delay expected
Drilling at the Khal Nickel-Cobalt Project is delayed due to depressed nickel sentiment.
Reconnaissance activities at Kember were delayed after First Nation groups requested additional time to inform its members of planned activities.
Capital raise
The Company can raise additional capital to continue to fund its operations.
This has previously proven to be successful.
Summary
- Sultan Resources has released an update on its activities for the quarter ending March 31, 2025.
- The company's focus remains on its projects in Western Australia, including the Kondinin-Lake Grace Gold Project and the Khal Nickel-Cobalt Project.
- At the Kondinin-Lake Grace project, a prospective horizon of at least 30km of strike requires further investigation.
- The company is reviewing the original undrilled Kulin gold discovery, which previously returned high-grade gold assays averaging 12.7 g/t Au.
- Due to depressed nickel sentiment, the company has delayed drill testing at the Khal Nickel-Cobalt Project but intends to apply for Exploration Incentive Scheme (EIS) co-funding for drilling in the first quarter of 2026, capped at $220k.
- In Canada, exploration is focused on the Ruddy and Kember Lithium Projects.
- Negotiations for access to the Kember Project with First Nation groups are ongoing, with caribou nursery season requiring observance through to mid-July 2025.
- No active fieldwork was undertaken in the Lachlan Fold Belt Project in NSW during the quarter, but renewal documentation was submitted.
- The company is reviewing acquisition or joint venture opportunities to enhance shareholder value.
- Sultan Resources' cash position as of March 31, 2025, was approximately $218,000.
- Exploration and evaluation expenditure during the quarter amounted to approximately $85,000.
Sentiment
Score: 6
Explanation: The report presents a mixed sentiment. While there are positive aspects such as identified exploration targets and ongoing exploration activities, the delays in drilling and access negotiations, coupled with a low cash position, temper the overall outlook.
Positives
- The Lake Grace Gold Project has a significant prospective horizon of at least 30km.
- The Kulin gold discovery shows potential with high-grade gold assays.
- The company is actively seeking funding for drilling at the Khal Nickel-Cobalt Project.
- A priority exploration target has been identified at the Ruddy Lithium Project.
- The company is reviewing new acquisition and joint venture opportunities.
- Renewal documentation for Lachlan Fold Belt Project has been submitted.
Negatives
- Drilling at the Khal Nickel-Cobalt Project is delayed due to depressed nickel sentiment.
- Access negotiations for the Kember Lithium Project are ongoing and subject to delays.
- The company's cash position as of March 31, 2025, was approximately $218,000.
- A compulsory 40% tenure reduction has been actioned at the Kondinin-Lake Grace project.
Risks
- Depressed nickel sentiment could further delay the Khal Nickel-Cobalt Project.
- Ongoing negotiations with First Nation groups could further delay exploration at the Kember Lithium Project.
- The company's limited cash position could impact future exploration activities.
- There is no guarantee that the EIS co-funding application will be successful.
- There is no guarantee that any new acquisition or joint venture opportunities will be concluded.
Future Outlook
The company intends to issue a more complete release on the residual gold prospectivity in the Kulin & Lake Grace Gold Projects in the current quarter, apply for EIS co-funding for drilling at the Khal Nickel-Cobalt Project in Q1 2026, and re-commence discussions for access to the Kember Project after the caribou nursery season. The company also continues to review acquisition or joint venture opportunities.
Management Comments
- Sultans board and management is committed to the responsible discovery of metals via modern exploration techniques, and to add value to these projects for the benefit of the company and its shareholders.
Industry Context
The report reflects the current industry trends of exploring for gold, nickel, and lithium in Western Australia and Canada. The delay in nickel drilling due to 'depressed Nickel sentiment' highlights the impact of market conditions on exploration strategies. The focus on lithium projects in Canada aligns with the increasing global demand for lithium in battery technology.
Comparison to Industry Standards
- The average gold grade of 12.7 g/t Au from the Kulin gold discovery is significantly higher than the average grade of many operating gold mines globally.
- For example, the average gold grade for open-pit mines is often in the range of 1-2 g/t Au.
- The company's application for EIS co-funding is a common practice in the mining industry to mitigate exploration costs, similar to companies like Chalice Mining (CHN) who have also utilized government funding for exploration activities.
- The ongoing negotiations with First Nation groups for the Kember Lithium Project reflect the increasing importance of community engagement in mining projects, a standard practice for companies like Rio Tinto and BHP.
Stakeholder Impact
- Shareholders: The update provides information on the company's activities and financial position, which may influence investment decisions.
- Employees: The report outlines ongoing and planned exploration activities, which could impact job security and future employment opportunities.
- Customers: As an exploration company, Sultan Resources does not have direct customers, but successful discoveries could lead to future mining operations and supply agreements.
- Suppliers: Exploration activities will generate demand for drilling services, equipment, and other supplies.
- Creditors: The company's financial position and exploration progress will be relevant to creditors assessing the company's ability to meet its obligations.
Next Steps
- Issue a more complete release on the residual gold prospectivity in the Kulin & Lake Grace Gold Projects.
- Apply for Exploration Incentive Scheme (EIS) co-funding for drilling at the Khal Nickel-Cobalt Project.
- Re-commence discussions for access to the Kember Project after the caribou nursery season.
- Review acquisition or joint venture opportunities.
Key Dates
- 16/05/2019: SLZ:ASX First Gold Assay Results
- 21/01/2020: SLZ:ASX Drill Program Approved to test anomalies at Lake Grace
- 3/06/2021: Sultan (ASX:SLZ) ASX Announcement: 2021 WA Nickel Project Update
- 23/11/2021: Sultan (ASX:SLZ) ASX Announcement: 2021 Drilling for WA Julimar-style Nickel Targets to Commence
- 08/02/2022: Application date for Kember and Ruddy Projects
- 3/02/2022: Sultan (ASX:SLZ) ASX Announcement: 2022 Exploration Update
- 4/05/2022: Sultan (ASX:SLZ) ASX Announcement: 2022 Aircore Results for Kulin Hill NI-Sulphide Target Received
- 22/06/2022: Sultan (ASX:SLZ) ASX Announcement: 2022 Sultan to Drill Nickel Targets
- 21/06/23: SLZ:ASX announcement: Rio Tinto and Sultan enter into Option and JV Agreement
- 16/08/23: SLZ:ASX announcement: Helicopter EM Survey Commences at Rio-Sultan Ground
- 25/05/2023: Sultan (ASX:SLZ) Announcement: 2023 Sultan Completes Acquisition of Canadian Lithium Projects
- 1/06/2023: Sultan (ASX:SLZ) Announcement: 2023 Sultan Appoints Experienced Canadian Geological Team
- 14/06/2023: Sultan (ASX:SLZ) Announcement: 2023 Multiple mapped pegmatitic occurrences Kember Lithium Project
- 26/6/2023: Sultan (ASX:SLZ) Announcement: 2023 Multiple Pegmatite occurrences noted as exploration commences at Ruddy Project, North-Western Ontario
- 23/7/24: SLZ:ASX announcement: Calesi Drill results
- 25/07/2023: Sultan (ASX:SLZ) Announcement: 2023 Priority Zone Identified at Ruddy Lithium Project, Ontario
- 22/09/2023: Sultan (ASX:SLZ) Announcement: 2023 Results Received at Ruddy Lithium Project
- 24/10/23: SLZ:ASX announcement: EM Survey Confirms Significant Geophysical Anomaly
- 6/03/24: SLZ:ASX announcement: 'Calesi Nickel Prospect Drilling to Commence
- 14/3/24: SLZ:ASX announcement: Calesi Prospect Drilling Completed
- 28th February 2025: Deadline for on-ground expenditure for Ontario Junior Exploration Programme (OJEP) funding for Kember activities.
- 31st March 2025: End of reporting quarter; cash position approximately $218,000.
- Mid-July 2025: End of Caribou nursery season within Kember, allowing for re-commencement of discussions for access.
- 4th and 29th August 2025: Application period for Exploration Incentive Scheme (EIS) co-funding for Round 32, 2026 Projects.
- December 1st 2025 and November 30th 2026: Period for which Exploration Incentive Scheme (EIS) co-funding is available for drilling.
- First quarter 2026: Slated drilling of the Khal Ni-Co target, pending successful EIS co-funding application.
Keywords
exploration, lithium, nickel, gold, projects, resources, drilling, Sultan
SLZ
Sultan Resources LTD
ASX
Sector: Materials
Filings with Classifications
Delay expected
15 July 2025 9:23 PM
Capital Raising Update
- The rights issue was extended to ensure that all shareholders had ample opportunity to participate.
Capital raise
7 July 2025 7:16 PM
Exploration Update
- Proceeds from the current capital raising are in part intended to support early-stage exploration across the identified targets and progress towards drilling and potential discovery.
Capital raise
16 June 2025 6:47 PM
Capital Raise Update
- The document details a pro-rata non-renounceable entitlement offer to raise approximately $1,157,349 before costs, with a shortfall offer also available.
Worse than expected
16 June 2025 6:47 PM
Capital Raise Update
- The extension of the closing date for the entitlement offer suggests that the company did not receive the expected level of subscriptions by the original deadline.
Delay expected
16 June 2025 6:47 PM
Capital Raise Update
- The closing date for the entitlement offer has been extended from Friday, 20 June 2025, to Friday, 4 July 2025.
Capital raise
10 June 2025 7:52 PM
Capital Raise Announcement
- Sultan Resources Ltd is undertaking a non-renounceable pro-rata 1 for 1 entitlement offer to raise up to approximately $1,157,349 before costs.
- The offer allows eligible shareholders to subscribe for new shares at an issue price of $0.005 per share.
Capital raise
1 June 2025 6:52 PM
Capital Raise Announcement
- Sultan Resources Ltd. has announced its intention to undertake an equity raising of up to approximately $1,157,349 before costs.
- This capital raise will be conducted via a non-renounceable pro-rata entitlement offer of fully paid ordinary shares.
Capital raise
1 June 2025 6:46 PM
Rights Issue Offer Document
- Sultan Resources Ltd is conducting a non-renounceable pro-rata rights issue to raise approximately $1,157,349 before costs.
- The Offer allows eligible shareholders to subscribe for one new share for every one share they currently hold at an issue price of $0.005 per share.
- The funds raised are primarily earmarked for working capital, including exploration expenditure, administration, and staff remuneration, with a small portion covering offer expenses.
- The Offer opens on June 11, 2025, and is scheduled to close on June 20, 2025, with new shares expected to be issued on June 27, 2025.
Capital raise
1 June 2025 6:40 PM
Capital Raise Announcement
- Sultan Resources Ltd is undertaking a non-renounceable entitlement offer to raise up to approximately $1,157,349 before costs.
- The offer is for 1 New Share for every 1 Share held by Eligible Shareholders at an issue price of $0.005 per Share.
- The funds are intended to finance proposed exploration expenditure, project assessment, and working capital.
Capital raise
28 April 2025 2:50 AM
Quarterly Activities Report
- The Company can raise additional capital to continue to fund its operations.
- This has previously proven to be successful.
Delay expected
28 April 2025 2:50 AM
Quarterly Activities Report
- Drilling at the Khal Nickel-Cobalt Project is delayed due to depressed nickel sentiment.
- Reconnaissance activities at Kember were delayed after First Nation groups requested additional time to inform its members of planned activities.
Worse than expected
12 March 2025 2:11 AM
Half-Year Financial Report
- The company reported a net loss of $283,664 for the half-year, which is worse than the previous period's loss of $406,844.
Delay expected
12 March 2025 2:11 AM
Half-Year Financial Report
- Access to the Kember Project in Canada has been delayed due to prolonged negotiations with First Nation groups.
Capital raise
30 January 2025 9:20 PM
Quarterly Report
- The company completed a placement to raise $338,834 during the quarter.
- The company has indicated that it can raise additional capital to continue to fund its operations.
Delay expected
30 January 2025 9:20 PM
Quarterly Report
- The Khal Nickel-Cobalt project has been delayed due to depressed nickel sentiment.
- Field reconnaissance at the Kember Project was delayed due to negotiations with First Nation groups.
Capital raise
13 December 2024 12:55 AM
Options Issuance Notice
- The company has issued options which, if exercised, could lead to a capital raise.
Capital raise
23 October 2024 6:32 PM
Trading Halt Announcement
- The company is undertaking a capital raising.
Capital raise
20 October 2024 10:44 PM
Annual General Meeting Notice
- The company is seeking shareholder approval for a 10% placement facility to raise capital.
- The exact amount of capital to be raised will depend on market conditions and the number of equity securities issued.
Delay expected
15 October 2024 5:57 PM
Project Update
- Reconnoissance activities at the Kember Project have been delayed due to consultations with First Nation groups.
- The submission for OJEP funding at Kember may not be progressed if access isn't gained by mid-November 2024, potentially delaying exploration.
Delay expected
29 July 2024 7:07 PM
Quarterly Activities Report
- Reconnaissance activities at the Kember Lithium Project have been delayed due to requests from a First Nation group.
Capital raise
29 July 2024 7:07 PM
Quarterly Activities Report
- The Company can raise additional capital to continue to fund its operations.
- This has previously proven to be successful.
Worse than expected
29 July 2024 7:07 PM
Quarterly Activities Report
- Rio Tinto Exploration (RTX) has withdrawn from the farm-in agreement for the Calesi Ni Prospect (E70/5082) after drilling failed to find significant gold values.
Worse than expected
22 July 2024 6:36 PM
Exploration Update
- The drilling results did not yield economically significant gold or nickel values, leading to Rio Tinto's withdrawal, indicating worse than expected outcomes.
Delay expected
29 April 2024 7:02 PM
Quarterly Activities Report
- Reconnaissance activities at the Kember Lithium Project in Canada have been delayed due to First Nation consultation requirements.
Worse than expected
29 April 2024 7:02 PM
Quarterly Activities Report
- Drilling at the Calesi prospect did not find support for magmatic nickel sulfides, which is worse than expected.
Better than expected
13 March 2024 2:30 AM
Half-Year Financial Report
- The operating loss decreased to $406,844 from $1,261,284 in the prior corresponding period.
- Basic and diluted loss per share improved to (0.27) cents from (1.51) cents.
Delay expected
13 March 2024 2:30 AM
Half-Year Financial Report
- Ground conditions have been unsuitable for drilling at Reserve 18455 since receiving permission to drill.
Capital raise
13 March 2024 2:30 AM
Half-Year Financial Report
- On 6 February 2024, the Company announced that it is undertaking a pro-rata non-renounceable attaching listed option (exercisable at $0.03 and expiring 3 years from the date of issue) for every three (3) New Shares subscribed for and issued.
- The Offer closed on 5 March 2024.
- under the Offer were issued on 12 March 2024.
- The Company will liaise with the Underwriter to determine the allocation of the remaining Shortfall Securities in accordance with the term of the Underwriting Agreement (and sub-underwriting agreements) and complete the allotment of the Shortfall Securities.
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