Announcement PDF Sultan Resources Ltd CORPORATE DETAILS ASX Code: SLZ DIRECTORS JEREMY KING CHAIRMAN STEVEN GROVES NON-EXECUTIVE DIRECTOR ASX ANNOUNCEMENT 22nd September 2023 DAVID LEES NON-EXECUTIVE DIRECTOR www.sultanresources.com.au info@sultanresources.com.au RESULTS RECEIVED AT RUDDY LITHIUM PROJECT, NORTH-WESTERN ONTARIO o Assays received from first pass reconnaissance exploration of the Ruddy Project in North-Western Ontario o Priority Lithium target area identified within interpreted ‘Goldilocks’ Zone o Low K/Rb ratios established for high proportion of pegmatites sampled o Sixteen samples selected to be re-assayed by sodium peroxide fusion o Priority zone for further work confirmed and refined ______________________________________________________________________ Sultan Resources Ltd (ASX:SLZ or Company) is pleased to advise that it has received and assessed results from an initial phase of reconnaissance exploration undertaken by Apex Geoscience (Apex) at the Company’s Ruddy Project in North Western Ontario (refer Figures 1, 2, 3) where the Company has now confirmed a priority exploration target within the interpreted (Lithium-Caesium-Tantalum (LCT) “Goldilocks Zone” surrounding the Allison Lake Batholith. The combined observations support a priority zone of interest within the original LCT Goldilocks interpretation, radially distributed from the northern portion of the Allison Batholith, and highlight a priority target (Refer Figures 1-4) for further assessment in the SE portion of the Ruddy tenure. From fieldwork, Apex geologists observed multiple pegmatite occurrences of up to 30m outcrop and up to 15m width within the initial area of focus. Evidence of pegmatite fractionation minerals in the form of apatite or beryl were observed in the field from limited available outcrop, which was generally heavily covered by mosses and lichen. Apex collected a total of 157 samples over 8 days in the field, with over 35% (55 samples) taken from confirmed pegmatitic occurrences in the field. The samples were submitted to ALS laboratories in Canada for multi-element analysis including gold. Review of subsequently receipted data has highlighted general lithium anomalism and coupled with rock/field relationships in the area suggests that additional outcrops previously classified as ‘felsic’, ASX ANNOUNCEMENT –22 ND SEPTEMBER 2023 ‘granitic’ and other indeterminate rock types in the field should be reclassified as likely pegmatitic in nature, with a further 33 samples falling in this category, or around 56% of samples assayed. The Company has reviewed resultant lithium values and geochemical markers such as K/Rb ratios to focus additional fieldwork to discover possible covered mineralised LCT pegmatites. Assays >100ppm Li20 are listed in Table 1 and depicted in Figure 1. Values for ‘whole rock’ (i.e. from assay values, not from mica or feldspar crystal, which may further highlight the substitution of Rb for K in the respective mineral lattice) K/Rb ratios below 65 are listed in Table 2, and depicted in Figure 2. Lower K/Rb ratios are considered indicative of more evolved/fractionated pegmatitic occurrences, and a vector for LCT pegmatite mineralisation. Gold analysis returned 32 samples above the detection limit of 5 ppb to a maximum value of 33 ppb, with only 4 values returned above 20ppb (refer Table 3). The Company considers these results weakly anomalous and continues to assess the potential of the tenure for non-LCT mineralisation. As previously advised, the Company has experienced delays to its planned reconnaissance activities at its Kember Project (refer Figures 4 and 5) after one of four First Nation (FN) groups with established rights in the area requested additional time to inform its members of planned activities. The Company continues to negotiate directly with this FN group and will deliver a revised timetable for the first pass reconnaissance exploration of Kember in due course, ideally to combine with additional groundwork at Ruddy, which can be combined in daily helicopter flights out of Red Lake, ON. Sultan’s Chairman, Mr Jeremy King, commented: “We are very pleased to confirm our initial observations of a priority zone at our Ruddy Project associated with an interpreted LCT Goldilocks Zone, with assay results now highlighting an excellent target to further focus our exploration.” Photo 1. Aerial view across Ruddy Project looking East, Ruddy Lake in background. page 2 ASX ANNOUNCEMENT –22 ND SEPTEMBER 2023 Figure 1: Li20 Assays reporting above 100ppm at Ruddy Project in relation to tenure (refer Table 1). Priority Zone area of focus for LCT Pegmatites in hatched area Figure 2: Pegmatite locations demonstrating lower K/Rb ratios (refer Table 2), considered indicative of more evolved pegmatitic occurrences, and a vector for LCT pegmatite mineralisation. page 3 ASX ANNOUNCEMENT –22 ND SEPTEMBER 2023 Figure 3: All sampled sites at Ruddy Project from June 2023 reconnaissance, includes reclassified pegmatitic occurrences. Figure 4: Pegmatite sites at Ruddy Project; evolved pegmatites with fractionation minerals denoted by darker blue locations. Geology after Fingus, 2022. page 4 ASX ANNOUNCEMENT –22 ND SEPTEMBER 2023 Photo 2. Sample 10111, 614 ppm Li20, outcrop location (5674415mN, 551362mE UTM_Z15). Photo 3. Sample 10112, 512 ppm Li20, 40 K/Rb ratio; outcrop location (5674528mN, 551592mE UTM_Z15). Photo 4. Sample 10131, 523 ppm Li20; outcrop location (5676347mN, 551634mE UTM_Z15). Photo 5. Sample 10329, 370 ppm Li20; 49 K/Rb ratio outcrop location (5675182mN, 549387mE UTM_Z15). page 5 ASX ANNOUNCEMENT –22 ND SEPTEMBER 2023 Table 1: Significant rockchip results Ruddy reconnaissance (sorted) > 100pm Li20 Sample_ID NAD83_Z15_E NAD83_Z15_N Li 20_ppm Cs_ppm 10111 10131 10112 10011 10245 10329 10007 10130 10232 10231 10113 10313 10311 10022 10101 10223 10029 10126 10226 10030 10216 10205 10303 10227 10302 10017 10308 10005 10230 10321 10120 10121 10128 10102 10316 10305 10327 10116 10044 10002 10110 10013 551362 551634 551592 551411 546530 549387 550126 550934 549379 549366 551648 551384 551321 547497 550302 547701 549526 549419 548178 549315 551499 549771 550511 546457 550363 551595 549959 550035 549435 548154 547471 548026 549358 549927 551170 550735 549565 552485 546362 550822 550396 551392 5674415 5676347 5674528 5674437 5677026 5675182 5675410 5676211 5674918 5675122 5674555 5674514 5674352 5677562 5674660 5677284 5675423 5675458 5677115 5675527 5675397 5675196 5674825 5677198 5674635 5675637 5675692 5675459 5675208 5677169 5677651 5677011 5675854 5674884 5674657 5675334 5675195 5675310 5676993 5674828 5675828 5675430 614 523 512 456 419 370 352 352 347 327 324 310 253 253 220 210 197 191 189 189 165 165 155 151 150 144 141 139 138 138 138 138 136 134 131 128 128 114 113 112 108 104 11 20 40 35 96 27 6 10 11 22 2 2 9 9 20 12 13 8 14 66 0 29 1 8 5 70 4 8 15 6 58 16 49 4 6 5 14 4 18 3 6 2 Ta_ppm Be_ppm Rb_ppm Nb_ppm K/Rb_calc 0 1 0 0 0 2 0 0 0 0 0 0 87 0 14 0 6 0 0 47 0 5 0 0 2 17 0 7 5 0 0 0 111 0 1 0 3 1 0 0 0 0 1 1 1 6 6 4 1 1 1 1 0 0 60 1 7 2 5 1 1 23 0 3 0 1 19 98 1 5 5 1 4 1 84 1 1 1 3 1 1 1 4 1 29 112 65 105 201 741 91 82 98 26 3 10 89 103 500 114 457 53 47 732 5 835 2 47 22 257 97 355 562 93 128 105 637 79 36 73 482 126 45 80 25 53 6 6 1 2 5 19 5 5 6 2 1 1 106 3 38 6 32 3 5 47 2 19 1 4 5 38 3 38 22 6 5 6 70 5 3 5 14 6 4 3 2 5 204 214 40 104 117 49 250 218 204 263 286 144 64 240 65 275 42 173 197 47 577 55 474 368 241 31 154 36 55 252 253 273 27 317 208 244 60 196 330 279 97 231 page 6 ASX ANNOUNCEMENT –22 ND SEPTEMBER 2023 Table 2: Significant rockchip results from pegmatites at Ruddy sorted on increasing K/Rb, cut to 65 Sample_ID NAD83_Z15_E NAD83_Z15_N Li 20_ppm Cs_ppm 10115 10128 10214 10017 10124 10201 10041 10005 10109 10015 10239 10112 10029 10307 10312 10209 10127 10207 10220 10103 10030 10010 10215 10329 10125 10218 10211 10009 10203 10230 10205 10204 10306 10233 10327 10107 10006 10241 10213 10234 10206 10229 10311 10106 10101 10105 551998 549358 551398 551595 546290 549972 549974 550035 550038 551253 549476 551592 549526 549886 551302 550154 549333 550044 551682 549760 549315 550762 551135 549387 549530 551151 550775 550602 549654 549435 549771 549728 549988 549488 549565 549858 550083 549899 551297 549967 549846 549550 551321 549783 550302 549727 5675134 5675854 5674526 5675637 5677214 5674893 5676521 5675459 5675678 5675741 5676341 5674528 5675423 5675609 5674373 5675401 5675530 5675466 5675616 5674981 5675527 5675244 5674631 5675182 5675429 5675755 5675243 5675229 5675188 5675208 5675196 5675188 5675271 5674811 5675195 5675452 5675472 5676488 5674329 5675138 5675443 5675229 5674352 5675200 5674660 5675185 31 136 54 144 73 82 38 139 99 63 11 512 197 55 37 50 56 58 59 96 189 28 26 370 83 35 31 68 102 138 165 73 57 55 128 62 36 49 60 19 90 81 253 67 220 77 Ta_ppm Be_ppm Rb_ppm Nb_ppm Sn_ppm K/Rb_calc 23 49 19 70 33 43 29 8 115 37 24 40 13 17 16 14 18 10 10 14 66 15 14 27 12 19 15 24 17 15 29 9 8 20 14 10 15 71 6 34 16 12 9 23 20 24 10 111 18 17 16 51 80 7 53 36 29 6 12 6 13 3 3 12 9 47 3 5 2 4 13 3 9 2 5 5 3 5 4 3 2 15 47 26 9 5 3 87 6 14 2 5 84 67 98 8 55 57 5 88 33 135 1 5 14 4 5 4 4 36 6 23 5 6 4 5 7 5 6 4 5 3 5 5 5 3 4 4 89 93 32 4 3 60 4 7 3 318 637 401 257 1035 1150 468 355 1035 476 435 65 457 518 657 420 621 397 207 381 732 475 524 741 649 656 647 644 549 562 835 294 427 631 482 352 581 620 52 819 621 511 89 693 500 636 32 70 44 38 54 116 69 38 82 54 65 1 32 57 39 46 15 19 21 37 47 27 17 19 23 31 23 44 12 22 19 10 23 17 14 13 24 62 46 24 24 13 106 14 38 11 29 14 16 7 12 30 10 8 152 16 10 2 9 8 11 10 5 5 7 10 13 14 3 8 7 9 10 39 4 6 5 3 9 8 5 4 4 30 22 10 7 4 20 3 31 3 26 27 29 31 32 33 34 36 37 38 40 40 42 42 44 44 44 45 45 46 47 48 48 49 50 52 53 54 54 55 55 56 57 58 60 60 60 61 62 62 63 63 64 64 65 65 Table 3: Gold assays >20 ppb from Ruddy June 2023 reconnaissance Sample_ID 10215 10201 10218 10202 NAD83_Z15_E 551135 549972 551151 549747 NAD83_Z15_N 5674631 5674893 5675755 5674980 Au_ppb 33 28 26 21 page 7 ASX ANNOUNCEMENT –22 ND SEPTEMBER 2023 About the Ruddy Lithium Project The Ruddy Project (Figures 1-6) directly abuts ground to the west held by Green Technology Metals Limited (ASX: GT1) and is located in the province of Ontario about 162km north-north-east of the town of Dryden. The Project covers around 10km2 and sits on the northern extremity of the Allison Lake Batholith, a fertile intrusive responsible for the development of proximal fractionated pegmatites with potential to host lithium, caesium and tantalum (LCT) mineralisation1,2,3. Although there has been no documented exploration over the Ruddy Project claims, previous study of the area by the Ontario Geological Survey (Breaks et al 20032) described the margin of the Allison Lake Batholith at the time as “…an important new exploration target for rare-element mineralization and is the largest such granite thus far documented in Ontario…”. Breaks et al 20032 considered the margin of the Batholith had high potential for further discoveries of rare element mineralization that could occur in exo-contact, metasedimentary-hosted pegmatites or as internal pegmatites within the parent granite, particularly in light of the common regional zonation sequence of rare-element pegmatites from beryl-rich into lithium-rich types. This typically includes spodumene-type pegmatites in an interpreted ‘LCT Goldilocks Zone’ of increased fractionation from the parent granite. With recent renewed interest in rare element mineralisation, the prospective Allison Batholith has emerged as a fully staked, multi-company, battery mineral exploration region. Reports by Green Technology Metals3 describe the identification of the spodumene-bearing Ouroboros Pegmatites approximately 10km southwest of the Ruddy Project (refer Figure 6) in a similar geological setting, which the Company considers highly encouraging. The Company is focusing exploration at Ruddy at outcrop within the interpreted LCT Goldilocks Zone surrounding the Allison Lake Batholith, covering approximately 3.5km of east-west strike in the centre to south of the Company’s Project. About the Kember Lake Lithium Project The Kember Project (Figures 5 and 7) is located in the province of Ontario about 180km north of the town of Red Lake, covering an area of around 30km2. Demonstrating the prospectivity of this area, the Kember Project is located about 8km from the PAK/Bolt/Spark lithium deposits of Frontier Lithium Inc. (Frontier) and is contiguous with this project tenure. Recent drilling by Frontier intersected 398.25m of pegmatite averaging 1.88% Li2O, including a 23.4m zone of 3.12% Li2O (see TSX.V Announcement 8/02/2023). Frontier have also recently announced resources totalling 58.5Mt @ 1.51% Li2O from its most recent NI43-101 instrument effective April 28th 2023, calculated from two of four known spodumene-bearing pegmatite occurrences within its PAK Project holdings. There has been no recorded exploration over the Kember Project area, however, mapping by the Geological Survey of Ontario has historically recorded the presence of pegmatitic granites over a northwest to southeast zone around seven km in length and typically over a kilometre in width, providing an initial zone of interest. These pegmatitic granites will be the focus of initial reconnaissance of 5 to 7 days duration, with four helicopter-supported geologists from Canadian-based experienced geological consultants, APEX Geoscience conducting mapping and sampling of priority outcrop. The Company considers rare element mineralisation can occur associated with internal pegmatites within the parent granite. The Company will also conduct reconnaissance of the eastern edge of the project, closer to changes in granitic composition and contact morphologies. page 8 ASX ANNOUNCEMENT –22 ND SEPTEMBER 2023 Figure 5: Location of Kember and Ruddy Projects in relation to known Lithium deposits, Northwest Ontario N.B. PAK (TSXV:FL) total resource taken from NI43-101 instrument effective April 28, 2023 Mavis resource (ASX:CRR) taken from ASX release dated June 7, 2023 Root Bay, Seymour Lake and McCombe resources (ASX:GT1) taken from ASX release dated May 5, 2023 Georgia Lake (TSXV:RCK) total resource taken from Georgia Lake Project: Pre-Feasibility Study Nov 22, 2022 Separation Rapids (TSX:AVL) total resource taken from NI43-101 instrument effective Sept 26, 2018 Jackpot (Imagine Lithium- private) estimate taken from Ontario Mineral Inventory Record: MDI42E05SW00019; resource is historic and not compliant with formal resource reporting. page 9 ASX ANNOUNCEMENT –22 ND SEPTEMBER 2023 Figure 6: Location of Ruddy Project in relation to regional geology, known pegmatite occurrences (detail sourced from ASX:GT1 Announcement on 24/01/2022), and neighbouring tenure holders. page 10 ASX ANNOUNCEMENT –22 ND SEPTEMBER 2023 Figure 7: Location of Kember Project in relation to regional geology and known spodumene-hosted Lithium deposits, Northwest Ontario. For further detail on the Ruddy and Kember Projects please refer to the following: Sultan (ASX:SLZ) ASX Announcement: 2023 “Sultan Resources enters agreement to acquire 100% interest in highly prospective Canadian lithium exploration ground in Ontario, Canada” dated 17/03/2023 Sultan (ASX:SLZ) ASX Announcement: 2023 “Sultan Completes Acquisition of Canadian Lithium Projects” dated 25/05/2023 Sultan (ASX:SLZ) ASX Announcement: 2023 “Sultan Appoints Experienced Canadian Geological Team” dated 1/06/2023 Sultan (ASX:SLZ) ASX Announcement: 2023 “Multiple mapped pegmatitic occurrences Kember Lithium Project” dated 14/06/2023 Sultan (ASX:SLZ) ASX Announcement: 2023 “Multiple Pegmatites observed at Ruddy Lithium Project” dated 26/06/2023 Sultan (ASX:SLZ) ASX Announcement: 2023 “Priority Zone Identified at Ruddy Lithium Project, Northwestern Ontario” dated 25/7/2023 References 1. Fingas, J, 2022: Assessment Report on Crown Land for the Costello Lake Area – 2021 Prospecting Program, dated May 25th 2022 2. Breaks, F.W., J.B. Selway J.B and A.G. Tindle A.G. 2003, Ontario Geological Survey, Open File Report 6099, Fertile Peraluminous Granites and Related Rare-Element Mineralization in Pegmatites, Superior Province, North-West and North-East Ontario: Operation Treasure Hunt 3. Green Technology Metals (ASX:GT1) ASX Announcement: “Strategic lithium footprint substantially expanded” dated 24/01/2022 This announcement is authorised by the Board of Sultan Resources Ltd For further information contact: info@sultanresources.com.au page 11 ASX ANNOUNCEMENT –22 ND SEPTEMBER 2023 Cautionary Statement: Investors are cautioned that information contained within this release in respect of pegmatite occurrences is not necessarily indicative of lithium mineralization on the property, and that exploration observations will need to be continually backed by laboratory analysis to ascertain the prospectivity of the mineral claims, and there is no guarantee that a significant discovery will be made as a result of its exploration efforts. Competent Persons Statement The information in this ASX Announcement that relates to Exploration Results is based on information reviewed and compiled by Mr Craig Hall, a Competent Person who is a Member of the Australian Institute of Geoscientists, and a full-time employee of Sultan Resources. Mr Hall has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Hall consents to the inclusion in this Announcement of the matters based on his information in the form and context in which it appears. The Competent Person is not aware of any new information or data that materially affects the information contained in the above sources or the data contained in this announcement. Disclaimer In relying on the above mentioned ASX announcement and pursuant to ASX Listing Rule 5.23.2, the Company confirms that it is not aware of any new information or data that materially affects the information included in the abovementioned announcement. About Sultan Resources Sultan Resources is an Australian exploration company with a portfolio of quality assets in emerging discovery terranes. Sultan’s tenement portfolio includes recently acquired lithium-prospective claims in NW Ontario in Canada; a tenement package in the southern terrane region of the Yilgarn Craton in the eastern wheatbelt of Western Australia with priority nickel-cobalt and gold targets, where Rio Tinto have recently formalised a farm-in JV on a central tenement; and tenements located in the highly prospective east Lachlan Fold Belt of Central NSW considered prospective for copper and gold. Sultan’s 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. page 12 ASX ANNOUNCEMENT –22 ND SEPTEMBER 2023 JORC CODE, 2012 EDITION – TABLE 1 Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Criteria Commentary Sampling techniques • Rockchip sampling undertaken by geologists, Selected Sample with Sample ID and location photographed, GPS location of Sample stored, photographs linked to Sample ID stored within Fulcrum software. Drilling techniques • Not Applicable, reporting first pass reconnaissance field sampling only. Drill sample recovery • Not Applicable, reporting first pass reconnaissance field sampling only. Logging • Hand Specimens described in field by lithology, grainsize, and comment. Sub-sampling techniques and sample preparation • ALS preparation: (WEI-21) received, samples weighed; (LOG-21) Client bar codes for samples logged; (CRU-QC and PUL QC) Crushing and Pulverising QC Tests undertaken; (CRU-31) Fine crushing- 70% <2mm; (SPL-21)Split sample if required with riffle splitter;(PUL-31) Pulverise up to 250gm with 85% <75um) Quality of assay data and laboratory tests • ALS analysis by ME-MS61- 48 element 4 acid ICP-MS. Gold analysis via method Au-AA23- 30gm Fire Assay with AAS finish (5ppb DTL) Verification of sampling and assaying • No field standards or duplicates implemented at this stage. Laboratory internal checks undertaken. ME-MS61 notes indicate that REE’s may not be totally soluble in this method. Location of data points • Coordinates are generated from georeferenced mapping, with associated uncertainty. Sample points located using handheld GPS. Project locations fall in UTM N83 Zone 15. Samples listed as material listed in Tables 1, 2 and 3 including coordinates.. Data spacing and distribution • Not Applicable, reporting first pass reconnaissance field sampling only. Orientation of data in relation to geological structure • Not Applicable, reporting first pass reconnaissance field sampling only. Sample security • Samples transported from site daily to locked accommodation at Red Lake, ON, then bulk transported directly to ALS Laboratory in Thunder Bay, ON under direction of APEX Geoscience personnel at completion of programme. • 16 samples resubmitted for Li analysis by sodium peroxide fusion method Audits or reviews Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria Commentary Mineral tenement and land tenure status • The Kember Project consists of 6 granted Multi-cell Mineral Claims (705989-705994) licences held by Gravel Ridge Resources Ltd (705989-991) and Perry Vern English (705992-994) respectively for page 13 ASX ANNOUNCEMENT –22 ND SEPTEMBER 2023 Criteria Commentary • • • Exploration done by other parties • • • • Geology XS Minerals Ltd (XSM). The Kember Project falls within the Sandy Lake First Nation (SLFN), North Spirit Lake First Nation (NSFN), Deer Lake First Nation (DLFN) and Keewaywin First Nation (KFN) ancestral homelands. The Ruddy Project consists of 3 granted Multi-cell Mineral Claims (711362-711364) licences held by Perry Vern English for XS Minerals Ltd (XSM). The Ruddy Project falls within the Cat Lake First Nation (CLFN), Wabauskang First Nation (WFN), and Lac Seul First Nation (LSFN) ancestral homelands. Details surrounding the agreement to purchase the Kember and Ruddy Projects is listed in ASX:SLZ announcement dated 17th March 2023 “Sultan Resources enters agreement to acquire 100% interest in highly prospective Canadian lithium exploration ground in Ontario, Canada”. The Company announced completion of the Kember and Ruddy Projects acquisition on May 25th 2023. Initial observations on the Alison Lake Batholith was completed by the Geological Survey of Ontario by the referenced 2003 report by Breaks et al. Several days of prospecting by John Fingus on the Ruddy Project was completed in 2021, and summarised in his referenced March 2022 Assessment Report on Crown Land for the Costello Lake Area – 2021 Prospecting Program. Observations by Green Technology Metals (ASX:GT1) are referenced in relation to their proximity to the Ruddy Project, based on work completed by Fingus. Exploration over the Kember tenement related to this announcement are attributed to mapping by the Geological Survey of Ontario. The Company is targeting: • LCT Pegmatite mineralisation hosted within granite/sediment/greenstone terranes of Archaean age, Drill hole Information • Not Applicable, reporting first pass reconnaissance field sampling only. Data aggregation methods • Not Applicable, reporting first pass reconnaissance field sampling only. Relationship between mineralisation widths and intercept lengths • Not Applicable, reporting first pass reconnaissance field sampling only. Diagrams • Refer to maps and photos included in this report Balanced reporting • Further detail can be gained from reports referenced or from individual company websites. • More detailed geological review will follow in subsequent reporting Other substantive exploration data Further work • Discussed in this report • Refer figures in the report page 14