Sultan Minerals Inc.

Sultan Minerals Inc.

November 29, 2010 09:00 ET

Sultan Minerals Inc. Reports Third Quarter Exploration Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 29, 2010) - Sultan Minerals Inc. (TSX VENTURE:SUL)(FRANKFURT:RZN) (the "Company") today released financial results for its fiscal 2010 third quarter ended September 30, 2010. In the third quarter during the third quarter Sultan's exploration efforts focused on the 8,173-hectare Kena Gold-Copper Project located near the community of Ymir in southeastern British Columbia. Exploration expenditures on the Kena property to September 30 totalled $330,201.

The Kena Gold-Copper property encompasses two areas of porphyry-style gold mineralization – the Gold Mountain and Kena Gold Zones situated within an 8.0-km long gold geochemical anomaly. Sultan tested the two zones with 12,000 metres of diamond drilling in 80 drill holes in 2001-2003 and a preliminary NI 43-101 resource estimate was prepared by Giroux Consultants Ltd. in June 2004. The report shows a measured and indicated resource of 11,820,000 tonnes containing 381,000 ounces of gold at an average grade of 1.0 g/T using a 0.5 g/T cut-off grade for gold. There is an additional inferred resource of 12,150,000 tonnes containing 389,000 ounces of gold at the same grade (June 7, 2004, News Release) and the mineralization remains open along strike to the north and south indicating potential to expand the resource with additional diamond drilling.

In July 2010, Sultan completed an IP geophysical survey of the Kena Copper King Zone situated immediately south of the Kena Gold Zone. The survey defined a continuous six-kilometre long geophysical anomaly trending south from the Gold Mountain and Kena Gold Zones to the south end of the Kena Copper King Zone (see News Release dated July 20, 2010). Geophysical modeling and field geological studies suggest the anomaly is reflecting sulphide mineralization emplaced in a strong and laterally persistent deformation zone that runs north-westerly across the property (September 9, 2009, News Release).

In August 2010, GPS Field surveys were carried out to accurately locate all known showings and historic diamond drill holes over this extensive geophysical target. The surveys show that all significant showings and four historic gold mines on the property are associated with areas of strong IP geophysical response. The program also discovered that several historic diamond drill holes from previous exploration programs intersected the margins of the coincident Copper-King soil anomaly and the IP geophysical anomaly but were only partially assayed or were not assayed for copper. Sultan's geologists located, sampled and assayed approximately 800 metres of un-sampled diamond drill core remaining from the historical programs. Assays for 442 drill core samples collected from the un-sampled portions of these historic drill holes show broad widths of copper and gold mineralization in three wide-spaced drill holes confirming potential for a significant bulk tonnage copper-gold zone.

In September 2010, Sultan tested the coincident Copper-King soil anomaly and the IP geophysical anomaly with 540 metres of diamond drilling in two holes. Both holes intersected copper mineralization confirming the results of the three historic holes. The five drill holes tested an IP geophysical anomaly that is 6,000 metres long and 900 metres wide indicating potential for a sizeable zone of bulk tonnage copper-gold mineralization which is currently open for expansion in all directions.

The table below gives the significant copper and gold intersections obtained from the two recent and three historic drill holes in the Kena Copper King Zone. The northern most hole KK81-4 and southern most hole K90-4 are located 1,262 metres apart along the recently identified northwest trending IP geophysical chargeability anomaly. Drill holes TK87-42 and 10CK-02 bottomed in copper equivalent grades of 0.359% and 0.427% indicating that the mineralized zone remains open to depth.

Cu Eq
KK81-4 0.00 117.00 117.00 0.22 0.137 0.294
including 0.00 33.00 33.00 0.33 0.204 0.440
TK87-42 80.17 168.86 88.69 0.21 0.128 0.279
including 91.09 100.50 9.41 0.29 0.166 0.280
and 128.50 133.58 5.09 0.37 0.226 0.492
and 163.50 168.86 5.36 0.28 0.147 0.359
K90-4 3.35 391.95 388.60 0.12 0.111 0.180
including 30.00 40.50 10.50 0.10 0.624 0.437
and 138.50 196.50 57.00 0.27 0.164 0.359
including 168.00 181.50 13.50 0.45 0.275 0.588
and 238.50 250.50 12.00 0.35 0.184 0.449
and 310.50 316.50 15.00 0.22 0.129 0.290
10CK-01 1.45 212.00 210.55 0.166 0.132 0.237
including 1.45 67.50 66.05 0.222 0.135 0.295
And 85.50 119.50 34.00 0.183 0.132 0.254
And 192.00 212.00 20.00 0.430 0.360 0.624
10CK-02 121.00 145.69 24.69 0.221 0.093 0.271
including 139.00 145.69 6.69 0.372 0.103 0.427
*Cu Eq % was calculated using the following formula: (Cu (%) x 22 x 2.5) + (Au (g/t) x 0.03125 x 950) / (22 x 2.5). These calculations are based on a value of $2.50 for copper and $950 for gold.

The Copper King mineralization lies within an elliptical IP geophysical anomaly that is 6,000 metres long and 900 metres wide. The geophysical anomaly encompasses the Kena Gold and Gold Mountain zones at the north end suggesting there is mineral zoning within this large mineralized system. The Company's geologists recommend an extensive drill program to better define the extent of the copper-gold mineralization which is open in all directions and at depth.

During the September 2010 drill program gold mineralization was tested with six drill holes in three locations along a strong, 7-kilometre long structural corridor. The results confirm the presence of a high grade gold corridor that has now been intersected by wide spaced drilling and trenching over a 5.65-kilometre length (see news release dated October 18, 2010).

The table below shows the assay values from 13 drill holes and one trench that have tested this gold bearing structural corridor. Assays are reported from north to south.

03TR-7* 23+35N 4+25W TRENCH   2.00 66.83
03GM-65* 23+30N 4+05W 15.00 17.00 2.00 7.48
Including     16.00 17.00 1.00 14.66
10HG-02 21+25N 3+75W 46.50 48.50 2.00 1.34
02GM-62* 21+00N 3+98W 80.97 83.00 2.03 34.44
10HG-01 21+00N 3+75W 49.00 51.00 2.00 0.89
10HG-04 21+00N 3+75W 70.00 72.00 2.00 7.02
Including     71.10 72.00 0.90 13.10
10HG-03 20+75N 3+75W 55.50 57.50 2.00 4.06
01GM-20* 9+00N 0+75W 64.00 66.00 2.00 15.56
10HG-05 9+00N 0+75W 54.63 79.75 25.12 1.33
Including*     57.00 59.40 2.40 6.19
including*     58.35 59.40 1.05 9.94
03GM-71* 2+50N 0+10E 42.00 44.00 2.00 21.11
Including     43.00 44.00 1.00 40.66
02GM-53* 2+00N 0+26E 122.00 124.00 2.00 11.82
02SG-04* 33+15S 4+25E 54.00 56.00 2.00 12.63
10SG-05 33+10S 3+50E 142.65 153.00 10.35 0.70
Including     151.79 153.00 1.21 2.028
WEIGHTED AVERAGE         15.65
*previously reported (see News Releases dated December 4, 2003 and January 9, 2002)

Sultan is very pleased with the continuous nature of the gold mineralization along this deep-seated structural corridor. As is common in high-grade gold deposits, values within the shear structure are consistently elevated, although grades vary widely. The average gold grade for these 14 intersections, within the mineralized structure, is 15.65 g/t over a minimum 2- metre mining width. These drill holes all lie along the same northwest-southeast trending structure lying to the west of the previously reported Gold Mountain and Kena Gold Zone. This mineralized structure has been traced with a magnetometer geophysical survey over a 7-kilometre strike length. The three recent wide-spaced drill sites test 5.65 kilometres of the strike length but only to shallow depths. 

The drill results shows that the gold mineralization along the high grade corridor occurs in steeply dipping alteration zones along the margins of one or more late mafic dykes. The mineralization consists of high grade gold veins that are often surrounded by an envelope of lower grade mineralization. The gold mineralization has been traced from surface to a vertical depth of 60 metres in drill hole 10HG-05, the deepest hole, and remains open to depth and along strike. Previous drilling in the adjacent Gold Mountain Zone demonstrated that the gold mineralization in that deposit extended to a vertical depth of 435 metres and remains open to depth. Sultan's geologists believe that the mineralization in the high grade corridor could extend to similar or greater depths and have very large tonnage potential. 

Sultan is very pleased with the continuous nature of the gold mineralization along this deep-seated structural corridor. As is common in high grade deposits, gold values within the shear structure are consistently elevated although grades vary widely. Sultan's geologists recommend that additional drilling be carried out along the high grade gold corridor in order to investigate the mineralization at depth and along strike.

Exploration expenditures on the Kena property in fiscal 2010, with the fiscal 2009 comparative figures shown in parentheses, include the following: assays and analysis - $19,726 ($Nil); drilling - $152,016 ($Nil); geological and geophysical – $119,237 ($23,870); travel and accommodation - $17,453 ($2,099) and site activities – $14,943 ($3,914). Acquisition costs of $6,826 ($2,809) were incurred. 

Ms. Linda Dandy, P.Geo of P&L Geological Services of Lac Le Jeune, BC, is the Company's project supervisor and "Qualified Person" for the purpose of NI 43-101, "Standards of Disclosure for Mineral Projects".

Arthur G. Troup, P.Eng., Geological, President and CEO

SEC 12g3-2(b): 82-4741

This release was prepared by the Company'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.

Contact Information