$6,500,000 Drill Program Recommended for Sultan Minerals Copper-Gold Property, British Columbia, Canada
July 5, 2011, Vancouver, BC - Sultan Minerals Inc. (SUL-TSX-V) ("Sultan") is pleased to report that it has received an updated National Instrument 43-101 report for its Kena Copper Gold Property located in southeastern British Columbia. The report, prepared by Sultan's consulting geologists (Dandy and Grunenberg), recommends a two phase $6,500,000 drill program for the property. The 65 page report may be summarized as follows:
It is the opinion of the authors that the Kena Property has the potential to host economic gold and copper-gold deposits at today's metal prices.
In 2004, Sultan published a preliminary NI 43-101 compliant resource estimate (Giroux and Dandy, 2004). The Kena Gold and Gold Mountain Zones contain a combined measured and indicated resource of 381,000 ounces of gold at an average grade of 1.00 g/t gold, using a 0.5 g/t cut-off grade. There is an additional inferred resource of 389,000 ounces of gold at the same grade and cut-off. The mineralized area covered by this resource estimate remains open along strike and to depth.
Drilling programs through to 2010 have continued to support the existence of this gold resource. Significant gold and copper-gold mineralized zones have been defined and investigated by these exploration programs. These zones (from north to south) include the Gold Mountain Zone, the Kena Gold Zone, and the Kena Copper King Zone. There also remain a number of relatively untested target areas, including historic small mines and showings, located within the property.
Recent property scale compilations indicate that there is a corridor of mineralization (copper and gold) that links all of the historic and newly defined "zones" on the Kena Property.
The authors recommend that future exploration programs be designed to test for large scale-high tonnage deposits along the corridor as well as continue to search for higher grade gold shoots within the broad zones of mineralization.
Due to the success of the exploration programs to date and the recent dramatic increase in gold and copper values, an expanded program is recommended for 2011.
The 2011 exploration work would include two phases of
Diamond drilling. This drilling would target gold on the high grade magnetic corridor containing the Gold Mountain and Kena Gold Zones, and copper-gold in the Kena Copper King Zone.
A $1,284,000 Phase I program is recommended. The Phase I program includes 3,000 metres of
Diamond drilling at a cost of $547,000 for the Gold Mountain Gold zone and 9,000 metres of percussion drilling at a cost of $737,000 for the Copper King zone. Subject to financing, the company intends to proceed with the recommended Phase I program.
Dependent upon the success of the initial phase of drilling in the Gold Mountain and Copper King Zones, an expanded Phase II drill program is recommended in order to fully test the economics of these large zones. An additional 10,000 metres of drilling is recommended for the Gold Mountain Zone and an additional 16,000 metres is recommended for Phase II drilling on the Copper King Zone. The Phase II drilling program is estimated at $5,200,000.
Linda Dandy, P.Geo., is Sultan's project supervisor and "Qualified Person" for the purpose of National Instrument 43-101, who has reviewed and verified the contents of this news release.
For further information on Sultan's projects, visit
www.sultanminerals.com.
Arthur G. Troup, P.Eng., GeologicalPresident and CEO
For further information, please contact:
Marc Lee, Investor & Corporate Communications
Tel: (604) 628-0519 Fax: (604) 628-0446
Email:
mlee@sultanminerals.com or
info@sultanminerals.com This release was prepared by Sultan's management. Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that Sultan expects are forward-looking statements. Although Sultan believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Sultan, investors should review Sultan's filings that are available at www.sedar.com or Sultan's website at www.sultanminerals.com.
You can also view this News Release on our website at:
http://www.sultanminerals.com/s/News-2009.asp?ReportID=465463