Sultan Minerals Inc.
TSX VENTURE : SUL
FRANKFURT : RZN

Sultan Minerals Inc.

January 25, 2011 09:00 ET

Sultan Minerals Intersects 1.55 Metres of 7.94 g/t Gold at Its Kena Property, BC

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 25, 2011) - Sultan Minerals Inc. (TSX VENTURE:SUL)(FRANKFURT:RZN) ("Sultan") is pleased to announce it has received assay results for two diamond drill holes completed in December on the Gold Mountain Zone of its Kena Property located in southeastern British Columbia. 

In September 2010, Sultan drilled 5 holes into a high grade gold structure located west of the Gold Mountain Zone. The results confirmed the continuity of mineralization within this structural corridor, which is marked by a mafic dyke (see News Release dated October 18, 2010). In December, two step-out diamond drill holes, 10HG-06 and 07, were put in to test the northern extension of a high grade structure extending north from the central core of the Gold Mountain Zone. These holes tested for high grade gold mineralization associated with a recently identified structural trend, marked by mafic dykes.

Hole 10HG-06 intersected the contact with the underlying volcanic earlier than anticipated and therefore did not hit the marker dyke or the projected high grade gold bearing structure. The hole did succeed in intersecting a 33.52 metre zone of low grade gold mineralization and bottomed in mineralization. Hole 10HG-07 successfully intersected 7.94 g/t gold over 1.55 metres in a strongly silicified structure. Computer modeling shows that the anticipated high grade structure runs through this drill section but cross-faulting in that area has shifted the mineralization approximately 30 metres to the west. Results from these two holes can be summarized as follows:

  • Hole 10HG-06 – 0.84 g/t gold over the bottom 33.52 metres (from 127.41 to 160.93 metres depth) including 2.0 metres of 3.80 g/t gold.
  • Hole 10HG-07 – 2.02 g/t gold over 6.05 metres (from 54.00 to 60.05 metres depth), and 0.90 g/t gold over 21.65 metres (from 103.70 to 125.35 metres depth) including 1.55 metres of 7.94 g/t gold.

Prior diamond drilling in the central core of the Gold Mountain Zone shows broad zones of porphyry gold mineralization. Within this bulk tonnage style gold mineralization lie several high grade gold shoots within mineralized structures that are often marked by mafic or lamprophyre dykes. The following tables summarize the previously reported bulk tonnage gold intersection and the associated high grade mineralization. (see www.sultanminerals.com for prior news releases on the Kena Property).

GOLD MOUNTAIN ZONE – BULK TONNAGE GOLD RESULTS
Entire hole lengths containing bulk tonnage gold values
HOLE #   HOLE DEPTH
(metres)
  GOLD GRADE
(g/t)
01GM-01   137.00   0.95
01GM-02   134.26   0.92
01GM-03   124.05   1.87
01GM-05   170.08   0.95
01GM-08   214.27   0.92
01GM-28   184.05   0.92
02GM-31     76.05   1.04
02GM-33   101.50   1.52
02GM-39   137.35   1.23
02GM-40   106.73   1.41
02GM-42   251.00   0.84
R02GM-03     80.77   1.22
GOLD MOUNTAIN ZONE – HIGH GRADE GOLD RESULTS
HOLE #   FROM
(metres)
  TO
(metres)
  WIDTH
(metres)
  GOLD
(g/t)
01GM-03     48.77     50.00   1.23   240.07
01GM-03     74.00     76.00   2.00     29.84
01GM-04     84.00     86.00   2.00     16.34
01GM-06   130.00   132.00   2.00   18.86
01GM-08   204.00   206.00   2.00   172.10
01GM-10   257.00   258.00   1.00     32.36
01GM-20     64.00     66.00   2.00     15.56
01GM-28     48.00     51.35   3.35     16.35
02GM-33       9.00     13.00   4.00     19.66
02GM-35   117.00   119.00   2.00     15.03
02GM-39     30.00     32.00   2.00     16.69
02GM-42     83.00     85.00   2.00     18.21
02GM-62     80.97     83.00   2.03     34.44
03GM-65     16.00     17.00   1.00     14.66
03GM-71     43.00     44.00   1.00     40.66

A substantial 2011 diamond drilling program is recommended for the Gold Mountain Zone to define the dimensions of the very significant gold mineralization outlined in the above tables.

Sultan is also planning 2011 work programs for two additional project areas: the Kena – Copper King Zone and the Jersey-Emerald Tungsten-Zinc Property.

Copper King Zone

On the Kena property's Copper King Zone, a pattern drilling program has been recommended to test strong coincident copper-gold soil geochemistry and induced polarization chargeability anomalies. Limited drilling on this very large target has returned values of 0.24% copper equivalent over 255.10 metres with higher grade zones assaying up to 0.62% copper equivalent over 20.00 metres(see News Release dated November 10, 2010).

Jersey-Emerald Property – Tungsten-Zinc Deposit

In 2009 and 2010, Sultan completed two NI43-101 resource estimate (Giroux and Grunenberg, 2009, 2010) showing significant tonnages of tungsten and zinc mineralization on the Jersey-Emerald Property (see News Releases dated Jan 21, 2009 and Mar 1, 2010). The resource estimate for tungsten, measured and indicated 2,719,000 tonnes grading 0.358% WO3, and inferred 2,320,000 tonnes grading 0.341% WO3, at a 0.150% WO3 cut-off; and, for lead zinc, 1,900,000 tonnes indicated at 1.96% lead plus 4.10% zinc and 4,980,000 tonnes inferred at 1.95% lead plus 3.37% zinc, within a low grade zone containing 5,320,000 tonnes indicated at 1.04% lead plus 2.60% zinc and 16,930,000 tonnes inferred at 1.00% lead plus 2.18% zinc.

An initial pre-scoping study was completed by Wardrop Engineering in 2007, and continuing internal studies by the company indicate potential for an economic tungsten deposit. In 2011, the company plans on completing a full scoping study in preparation for a pre-feasibility study.

Sultan is currently seeking joint venture partners for the Kena and Jersey-Emerald Properties. Additional information on work completed to date on the Properties can be found on the company website www.sultanminerals.com

Linda Dandy, P.Geo., is the project supervisor and "Qualified Person" for the purpose of National Instrument 43-101, who has reviewed and verified the contents of this news release.

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

SEC 12g3-2(b): 82-4741

This release was prepared by Sultan's management. 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.

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