Sultan Minerals Inc.

Sultan Minerals Inc.

March 02, 2005 09:30 ET

Sultan Minerals Excited By Molybdenum Potential At Jersey-Emerald Mine, B.C.




MARCH 2, 2005 - 09:30 ET

Sultan Minerals Excited By Molybdenum Potential At
Jersey-Emerald Mine, B.C.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 2, 2005) - Sultan
Minerals Inc. (TSX VENTURE:SUL) has recently received a report that
suggests its Jersey-Emerald Property in southeastern British Columbia
holds the mineral rights to a potentially large porphyry molybdenum
deposit. The molybdenum mineralization was originally identified in
historic underground workings and diamond drill holes at the former
Emerald Tungsten Mine, which was Canada's second largest tungsten
producer. Historic mine records show that the mineralization was
encountered within an area measuring 700 metres by 300 metres and
remains open in all directions.

Molybdenum, usually occurring as the mineral molybdenite, is a
silvery-gray metal commonly referred to as moly. Molybdenum is primarily
used as an alloy to strengthen steel and inhibit corrosion, but is also
used for high-tech metal alloys, industrial chemicals and as a
lubricant. Analysts estimate that the iron and steel industries consume
about 80 percent of the world's molybdenum to increase their product's
durability and hardness. Roskill Information Services Ltd. reports that
about 70 percent of the world's molybdenum is produced as a by-product
of copper mines, with only 30 percent being produced as a primary
product. Recently, spot molybdenum prices have been higher than US$30.00
per pound, or approximately ten times historic prices.

Mr. Ed Lawrence, P.Eng., former mine manager of Placer Dome's Jersey and
Emerald Mines was recently contracted by the Company to review the
molybdenum potential of the property. His report suggests that there is
a possibility of a large porphyry molybdenum deposit on the
Jersey-Emerald property.

Mr. Lawrence reports as follows: "Widespread molybdenum occurrences have
been noted on this property since the 1930's confirming that the
underlying intrusive is molybdenum bearing. Initially moly was found in
surface showings on the western slope of Iron Mountain, where the
Emerald and Feeney tungsten deposits were later developed. In general,
these occurrences consisted of high-grade moly along fracture surfaces,
and in skarns associated with tungsten mineralization. Moly in these
showings tended to have good grade but limited continuity or potential
volume. However, as the tungsten deposits were being developed in the
1940's, 1950's, and 1970's the source of this skarn moly was found to be
in a stockwork within the underlying granitic intrusive."

"During the operation of the lead-zinc and the tungsten mines in the
period from 1906 to 1973, no specific molybdenum evaluation was carried
out. It wasn't until 1981 that a preliminary program was initiated, but
unfortunately was curtailed because of falling moly prices. However,
this limited work showed that significant moly occurs in a large
stockwork of vertical quartz veins found in the underlying intrusive
rocks. The best exposure of this mineralization is in the Dodger 4200
Drift North (Dodger 42DrN). This drift is a 5 metre by 5 metre former
truck haulage drift that was driven northerly, from near the end of the
Dodger 4200 Crosscut East. Mapping of this drift revealed moly in a
stockwork of east-west trending quartz veins for the entire distance
that the drift was in intrusive; about 330 metres. Above average
frequency of moly-bearing veins occurs over a distance of 110 metres in
the central area of this exposure. Similar veins but with a north-south
trend were also found in this drift, but their moly content is
undetermined at this point. The 1981 program was terminated before a
detailed sampling program could be carried out on the underground
workings. The north end of this drift is still in the intrusive hosted
stockwork, therefore it is unknown how far to the north the
mineralization continues. At the south end of the exposure the intrusive
dips under the development work and drilling is required to determine
its potential.

"A second area where the intrusive was revealed was in development of
the East Dodger mine, located about 100 metres east of the Dodger 42DrN
mentioned earlier. During development work by Placer in the 1970s, moly
was found in the typical stockwork described earlier, both in
development work and also in diamond drill core. These moly occurrences
are probably the easterly extension of the large moly-bearing exposure
in the Dodger 42DrN. One remarkable drill core sample ran 4.44% Mo over
a 4.0 metre length including a section of 20.8% Mo over 0.8 metres
within this intersection. Another intersection in the same general area
ran 0.71% Mo over a 2.1 metre length, and another ran 0.60% Mo over a
2.2 meter length. While these may not be representative of the overall
grade of the area, these and many other intersections indicate that
there is an unusually high distribution of molybdenum in the Dodger
area. Further evidence of this was obtained during sampling of a
development drift in the same area carried out by Sultan Minerals in
1995. These samples averaged 0.05% Mo over a 57 metre length, with a
12.1 metre section running 0.11% Mo. This drift is about 150 metres
north of the high-grade drill intersection mentioned above.

"Also of interest is the occurrence of widespread moly in a similar
stockwork located about 700 metres to the west, where it has been
intersected by the Invincible Main Haulage decline. Here again, moly is
found in a stockwork of vertical quartz veins within an intrusive. The
northern extent of the zone is unknown here because in the 1981 moly
exploration program, it was not possible to map the decline beyond about
75 metres due to flooding." In summary, the currently known
stockwork-type moly occurrences on the Jersey-Emerald Property are open
in all directions, with the greatest potential being to the west of the
Dodger 42DrN.

During the study by Mr. Lawrence, the Company reviewed the logs from
some 4,600 drill holes completed by Placer Dome during the 35 year life
of the mine. The logs show 392 reported occurrences of molybdenite of
which only 45 occurrences were assayed for molybdenum. The Placer Dome
assays range from 0.029% Mo to 20.80% Mo with 31 samples carrying
greater than 0.10% Mo. Multi-element analyses obtained by Sultan
Minerals Inc. during its surface and underground exploration activities
from 1995 to 1998 show that many of their samples carry significant
concentrations of molybdenum.

Readers are cautioned that the molybdenum assays from Placer Dome's
work, quoted in this release, are historical in nature and were compiled
before the implementation of NI 43-101 reporting standards. The samples
taken by Sultan Minerals Inc. during more recent exploration of the mine
workings confirm the presence of important molybdenum concentrations
sufficient to encourage exploration for economic deposits of molybdenite.

The company is currently modelling the historic drill data and is
plotting the location of all previous molybdenum occurrences. An
exploration program consisting of underground sampling and diamond
drilling to investigate targets generated from the historic data is
being planned. The main objective of initial work will be to establish
where the highest grades occur within the stockwork and to establish
grade trends. The exploration program is being supervised by Linda
Dandy, P.Geo., of P&L Geological Services of Lac Le Jeune, BC. Linda
Dandy, is the Company's project supervisor and "Qualified Person" for
the purpose of National Instrument 43-101, "Standards of Disclosure for
Mineral Projects".

For a complete copy of Mr. Lawrence's report and information on the
Company's other projects, visit

Arthur G. Troup, P.Eng. Geological

President and CEO


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