Sultan Minerals Inc.
TSX VENTURE : SUL

Sultan Minerals Inc.

August 02, 2005 09:30 ET

Sultan Minerals Intersects Sizeable Molybdenum & Tungsten Deposits

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 2, 2005) -

(Molybdenum @ US$30.00/Lb, Tungsten @ US$10.00/Lb)

Sultan Minerals Inc. (TSX VENTURE:SUL) is pleased to announce the discovery of sizeable molybdenum and tungsten deposits, on its 100% owned Jersey-Emerald Property, in British Columbia, Canada. The mineralization was intersected in two underground diamond drill holes drilled beneath historic mineralization in the Emerald Mine (See Jersey Drill Hole Location Map: www.sultanminerals.com/s/Jersey_EmeraldMaps.asp). The Emerald Mine was Canada's second largest tungsten producer and was operated by Placer-Dome from 1947 until its closure in 1973 due to low metal prices at the time. Sultan's geologists are extremely excited about the new molybdenum discovery, which could have significant implications for the future of this property.

Hole two was the highlight of the recent two-hole diamond drill program. This remarkable hole assayed 0.22% MoS2 over its entire 192 foot length averaging 3.8 times the average grade of the Endako Mine, Canada's largest molybdenum producer. Hole two also carried 5.19% MoS2 over 3.7 feet within a 13.7 foot long section that assayed 1.72% MoS2 near the bottom of the hole. Significant intersections from both drill holes are given in the following table:



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WIDTH
HOLE NO FROM (ft) TO (ft) (ft) Mo (%) MoS2 (%) W (%)
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JM05-02 4.00 196.00 192.00 0.13 0.22
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Including 48.00 64.20 16.20 0.28 0.47
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Including 48.00 52.25 4.25 0.97 1.62
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and 79.60 102.70 23.10 0.22 0.37
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Including 79.60 84.10 4.50 0.79 1.32
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Including 98.45 102.70 4.25 0.30 0.50
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and 176.00 189.70 13.70 1.03 1.72
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Including 186.00 189.70 3.70 3.11 5.19
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JM05-01 4.00 5.20 1.20 0.07 0.12
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and 138.70 142.00 3.30 0.27 0.45
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and 303.50 307.00 3.50 0.01 0.02 0.20
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and 342.50 394.50 52.00 0.02 0.03 0.11
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including 342.50 344.30 1.80 0.05 0.08 0.35
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including 350.60 362.50 11.90 0.02 0.03 0.14
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including 373.00 379.90 6.90 0.04 0.07 0.27
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including 378.20 379.90 1.70 0.01 0.02 0.93
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including 390.50 394.50 4.00 0.03 0.05 0.32
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and 398.00 461.00 63.00 0.04 0.07
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including 445.65 454.75 9.10 0.16 0.27
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including 445.65 449.75 4.10 0.26 0.43
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Note 1: All dimensions and core lengths are recorded in feet in
order that results are compatible with the historic mine
grid and the existing 4,600 drill hole database.
Note 2: MoS2 grades are calculated from the Mo assays shown in
column 5.


Drill Hole 2 (JM05-02) was drilled to investigate the grade of a 1000-foot (300-metre) wide molybdenum bearing stockwork exposed in the historic tungsten workings (please refer to News Release of March 2, 2005). The hole encountered molybdenum mineralization over its entire length and bottomed in mineralization. The hole was stopped due to completion of the drill contract but will be extended during the next phase of drilling.

The molybdenum mineralization intersected in drill hole 2 occurs along the east margin of a 2,000-foot by 1,000-foot (600-metre by 300-metre) area of molybdenum exposures seen in underground workings. The mineralization is open in all directions and additional drilling will be required to define the margins of the deposit. Inspection of the drill core shows multiple high-grade molybdenite bearing quartz veins forming a molybdenum stock-work hosted within a granite intrusive body.

Drill Hole 1 (JM05-01) was drilled 400 feet (120 metres) south of hole 2 and approximately 100 feet (30 metres) south of the molybdenum bearing stockwork exposed in the underground workings. One of the objectives of this hole was to investigate the possible extension of historic tungsten mineralization. Hole 1 intersected the favourable host rocks for tungsten mineralization between the depths of 303.5 feet and 394.5 feet. This 91-foot (27.5-metre) wide interval included 4.0 feet of 0.32% tungsten (W), and 6.9 feet of 0.27% W with a high grade interval of 0.93% W across 1.7 feet. The hole also intersected varying amounts of molybdenum mineralization over its entire length. The best molybdenum intersection was 0.43% MoS2 over 4.1 feet within a 63-foot wide intersection that assayed 0.07% MoS2.

The tungsten mineralization encountered in Hole 1 is part of the southern extension of the historic East Dodger Tungsten Mine. The intersection in Hole 1 is situated approximately 80 feet (24 metres) below the level of the historic Dodger mine and is readily accessible for mining from the existing workings. This important intersection suggests that tungsten mineralization may extend well beyond the limits of historic mining. Geological studies completed by Placer-Dome prior to the 1973 closure traced the favourable host rock for tungsten mineralization for more than 5,000 feet to the north and south of the former mine.

The Jersey-Emerald property is road accessible and situated in an area of excellent infrastructure near the community of Salmo in south-eastern BC. The Emerald Mine was Canada's second largest tungsten producer and the adjacent Jersey Mine was the largest zinc producer in the Kootenay Arc region of BC. More than $150 million (2005 dollars) in underground development and diamond drilling was completed on the Jersey-Emerald property during the previous mining operations for tungsten and zinc. The deposits went into production in 1906 and were later acquired and operated by Placer Dome from 1947 to 1973. The mine's database contains the digital records for more than 4,600 diamond drill holes completed during the 65-year mining operation. There is an existing network of underground tunnels and workings over a two square kilometre area that provides access to the margins of the recently identified molybdenum and tungsten mineralization. These tunnels are in excellent condition and will be of immense value in future exploration and development.

The Jersey and Emerald mines occur near the top of a hill and in the past have been mined by relatively inexpensive bulk mining methods, with the ore removed through tunnels that extend in from the hillside. The recently identified mineralization occurs at an elevation of 1,300 metres and is readily accessible to heavy-duty trucking. The valley floor below the deposit lies at an elevation of 630 metres. Sultan's consulting engineers speculate that if the mineralization is continuous between the known exposures and if the deposit extends to depth there is potential for a very large volume of mineralization above the valley floor (Please refer to News Releases of March 2, 2005, April 18, 2005 and May 27, 2005).

Information from these initial two holes and from historic mine records are presently being compiled in preparation for follow-up drilling. Drilling is expected to resume in mid-August and will focus on defining the molybdenum and tungsten mineralization in the East Dodger area. The program will attempt to establish grade trends and determine where the highest grades occur within the deposit.

Mr. Ed Lawrence, P.Eng., is managing the underground exploration program. Perry Grunenberg, 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 National Instrument 43-101, "Standards of Disclosure for Mineral Projects".

A.G. Troup, P.Eng., Geol.

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

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