Sultan Minerals Inc.
TSX VENTURE : SUL
FRANKFURT : RZN

Sultan Minerals Inc.

March 01, 2010 09:00 ET

Sultan Minerals Reports Substantial NI 43-101 Lead-Zinc Resource Estimate

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2010) - Sultan Minerals Inc. (TSX VENTURE:SUL)(FRANKFURT:RZN) ("Sultan" or the "Company") is pleased to announce that independent initial resource calculations for the Lead and Zinc zones on its 100% owned Jersey-Emerald Property in the Kootenay District of British Columbia show a substantial resource. Resource calculations and the resulting National Instrument 43-101 Technical Report were prepared by Giroux Consultants Ltd of Vancouver, BC.

As shown in the following table, the estimate shows an indicated resource of 5,320,000 tons averaging 1.04% lead and 2.60% zinc and an inferred resource of 16,930,000 tons averaging 1.00% lead and 2.18% zinc using a cut-off grade of 1.5% combined lead-zinc.

Within this large low-grade resource there is higher grade mineralization with an indicated resource of 1,900,000 tons averaging 1.96% lead and 4.10% zinc using a cut-off grade of 3.5% combined lead-zinc. There is an additional inferred resource of 4,980,000 tons averaging 1.95% lead and 3.37% zinc at the same 3.5% combined cut-off grade.

The results of the resource evaluation are summarized in the following table which gives indicated and inferred tonnage and grade estimates. These preliminary values of combined lead and zinc range from amenability to low-grade open pit mining up to a higher-grade underground mining scenario.

TOTAL Pb-Zn RESOURCES FOR JERSEY PROJECT

Classification Cutoff % Tons>Cutoff Pb % Zn% Pounds of Lead Pounds of Zinc
Indicated 1.5 5,320,000 1.04 2.60 111,000,000 277,100,000
Inferred 1.5 16,930,000 1.00 2.18 339,600,000 738,100,000
Indicated 3.5 1,900,000 1.96 4.10 74,600,000 155,900,000
Inferred 3.5 4,980,000 1.95 3.37 194,500,000 335,600,000

It is important to note that this Mineral Resource estimate is based entirely on Sultan's Jersey Mine area. The study demonstrates that excellent exploration potential for significant deposits of Lead-Zinc mineralization may also exist in the vicinity of Sultan's two adjacent historical mines and in the surrounding terrain. The authors recommend that a preliminary economic assessment study be undertaken to determine the tonnage and grade required for a feasibility study.

A total of 5,042 drill holes and a geologic solid that outlined the lead-zinc mineralization were used for this study. The grade distributions for both lead and zinc within the mineralized solid were examined using lognormal cumulative probability plots and appropriate capping levels were established. Uniform down hole 5-ft. composites were produced to honour the boundaries of the mineralized solid. A nominal value of 0.001% was inserted for both lead and zinc in unsampled intervals within the mineralized solid. This resulted in far more 5-ft. composites than individual assays. It also seriously reduced the mean grade for both lead and zinc and increased the coefficient of variation.

A block model with blocks 25 x 25 x 25 ft. in dimension was superimposed over the mineralized solid. The underground workings were also modeled and were subtracted from the mineralized solids in determining tonnage for each block. Imperial units of measure were used in this study to remain consistent with the historical mining database.

Grades for lead and zinc were interpolated into the block model using ordinary kriging. Geologic continuity of the Jersey Pb-Zn zone has been established through underground mining, mapping and diamond drilling. Grade continuity has been quantified through the use of the semivariograms. Within the Jersey Zone that surrounds the old mine workings blocks are classified as Indicated and Inferred based on grade continuity. Blocks estimated using search ellipse dimensions of up to ½ the semivariogram range were classified as Indicated. The remaining estimated blocks were classified as Inferred.

The terms "mineral resource", "indicated mineral resource" and "inferred mineral resource" are defined in and required to be disclosed by NI 43-101. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves, or that all or any part of an inferred mineral resource will ever be upgraded to a higher category.

The Company's consultants have suggested that until an economic evaluation is completed a combined 3.5% Pb+Zn is a realistic cutoff grade for a bulk-mineable underground operation and 1.5% Pb+Zn is a realistic cutoff grade for an open pit mining operation in this location, at current prices. The following tables set out the indicated and inferred resource at cutoff grades for Pb+Zn ranging from 0.25% to 6.00%.

JERSEY INDICATED RESOURCE
Cutoff
Pb+Zn (%)
Tons > Cutoff
(tons)
Pb (%) Zn (%) Million Lbs.
Pb
Million Lbs.
Zn
0.25 11,020,000 0.59 1.57 130.7 346.7
0.50 9,420,000 0.68 1.79 127.7 337.8
0.75 8,090,000 0.77 2.01 123.8 325.4
1.00 7,030,000 0.85 2.21 120.1 310.3
1.25 6,110,000 0.95 2.41 115.8 294.0
1.50 5,320,000 1.04 2.60 111.0 277.1
1.75 4,640,000 1.15 2.80 106.3 259.8
2.00 4,050,000 1.25 3.00 101.3 242.7
2.25 3,570,000 1.36 3.18 96.7 226.7
2.50 3,110,000 1.48 3.38 91.8 210.0
2.75 2,730,000 1.60 3.57 87.2 194.9
3.00 2,430,000 1.71 3.73 83.3 181.3
3.25 2,140,000 1.84 3.93 78.6 168.2
3.50 1,900,000 1.96 4.10 74.6 155.9
3.75 1,700,000 2.07 4.28 70.2 145.5
4.00 1,510,000 2.20 4.47 66.4 135.0
4.25 1,360,000 2.31 4.63 62.8 125.8
4.50 1,230,000 2.43 4.79 59.7 117.8
4.75 1,110,000 2.55 4.95 56.6 109.8
5.00 1,000,000 2.68 5.10 53.6 102.0
5.25 910,000 2.81 5.22 51.2 95.0
5.50 810,000 2.94 5.43 47.7 88.0
5.75 740,000 3.06 5.55 45.3 82.2
6.00 690,000 3.14 5.70 43.3 78.7
JERSEY INFERRED RESOURCE
Cutoff
Pb+Zn (%)
Tons > Cutoff
(tons)
Pb (%) Zn (%) Million Lbs.
Pb
Million Lbs.
Zn
0.25 42,330,000 0.51 1.22 428.4 1033.7
0.50 34,480,000 0.60 1.44 413.8 990.3
0.75 28,580,000 0.70 1.63 397.8 933.4
1.00 23,970,000 0.79 1.82 379.7 871.5
1.25 19,930,000 0.90 2.01 359.1 801.2
1.50 16,930,000 1.00 2.18 339.6 738.1
1.75 14,460,000 1.11 2.35 319.9 678.2
2.00 12,440,000 1.21 2.50 301.3 621.5
2.25 10,670,000 1.32 2.65 281.3 566.2
2.50 9,130,000 1.44 2.81 262.2 512.4
2.75 7,810,000 1.56 2.95 244.1 461.1
3.00 6,720,000 1.68 3.10 225.7 416.9
3.25 5,780,000 1.81 3.24 209.5 374.3
3.50 4,980,000 1.95 3.37 194.5 335.6
3.75 4,260,000 2.11 3.50 179.9 298.2
4.00 3,680,000 2.26 3.62 166.1 266.7
4.25 3,170,000 2.41 3.75 153.0 237.9
4.50 2,740,000 2.57 3.88 141.1 212.4
4.75 2,420,000 2.72 3.97 131.8 192.0
5.00 2,130,000 2.88 4.06 122.7 172.8
5.25 1,860,000 3.06 4.15 113.7 154.3
5.50 1,660,000 3.23 4.20 107.1 139.4
5.75 1,460,000 3.40 4.26 99.3 124.5
6.00 1,300,000 3.55 4.34 92.2 112.9

This study demonstrates strong potential for remnant lead-zinc resources within and adjacent to the historic mine workings. The study indicates that combined lead-zinc grades in the remnant blocks may be significant enough to support underground bulk mining methods of extraction. The near surface geometry of some portions of the zones also suggests potential for open pit extraction.

The report makes a number of recommendations that can be summarized as follows:

  1. A drill program of 20 short drill holes (up to 100 feet each) in 3 different areas of the mine be completed to provide initial verification and evaluation of the remnant resource potential. Existing areas of access to the underground workings combined with resource blocks that infer the best combination of grade and tonnage will determine which areas are to be tested.
  2. The flat-lying room and pillar style of underground workings are quite complex and require advanced methods to be accurately surveyed. It is recommended that accurate surveys be conducted underground in those 3 areas that are determined for follow-up drilling.
  3. It is recommended that a preliminary economic assessment study for lead-zinc be completed by the company at this stage. This will provide Sultan with tonnage and grade cutoff percentages for resource feasibility. The study for the lead-zinc resource will include:
  • Preparation of a mine plan.
  • Design and costing of surface facilities.
  • Review of ore transport options.
  • Review of tailings disposal options.
  • Review wastewater disposal alternatives.
  • Review historic metallurgy and conduct further metallurgical testing.

The proposed budget for the recommended program is estimated at $463,000.

Sultan is very encouraged and extremely pleased with the results of this study, which suggests that a substantial lead-zinc resource exists on the property. The resource is comparable in tonnage and grade with many of the historic lead-zinc mines in the area.

This Mineral Resource estimate is based entirely on Sultan's Jersey Mine area. Recent exploration suggest there may be potential for similar resource development in the vicinity of Sultan's HB and Garnet lead-zinc-silver mines located 3.0 km north of the Jersey deposit and elsewhere on the 18,000-hectare property. Sultan is planning work programs to test the potential of these other target areas in 2010.

Mr. Perry Grunenberg, P.Geo., of PBG Geoscience is the Company's project supervisor and "Qualified Person" for the purpose of National Instrument 43-101, "Standards of Disclosure for Mineral Projects".

For further information on Sultan's projects, visit www.sultanminerals.com.

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 the Company expects are forward-looking statements. Although the Company 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 the Company, investors should review the Company's filings that are available at www.sedar.com or the Company's website at www.sultanminerals.com.

SEC 12g3-2(b): 82-4741

To view the map accompanying this release please click on the following link: http://www.sultanminerals.com/i/pdf/March_1_2010_img.pdf.

No regulatory authority has approved or disapproved the information contained in this news release.

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