Sultan Minerals Inc.

Sultan Minerals Inc.

April 02, 2007 09:30 ET

Sultan Minerals Provides Annual Project Update and 2007 Plans

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 2, 2007) - Sultan Minerals Inc. (TSX VENTURE:SUL)(FRANKFURT:RZN) is a Canadian exploration company concentrating on advanced exploration of its 100% owned Jersey-Emerald Molybdenum and Tungsten Property, formerly Canada's second largest tungsten mine, and its 100% owned Kena Gold Property. Both properties were former producing mines in southeastern British Columbia.


The 9,500-hectare Jersey-Emerald Property is located in southeastern British Columbia, 10 kilometres southeast of the mining community of Salmo. The Property is host to the former Emerald Tungsten Mine, the former Jersey Lead-Zinc Mine and the recently discovered Dodger Molybdenum deposit.

Emerald Tungsten Mine:

The Emerald Tungsten Mine was Canada's second largest producing tungsten mine until 1973 when it closed due to low metal prices. The mine was operated by Canex, a subsidiary of Placer Dome. In November 2006 an initial NI 43-101 compliant resource evaluation of the Emerald mine was completed by Sultan. The study shows that at a cut-off grade of 0.15% tungsten (WO3) there remains a measured plus indicated tungsten resource of 2,510,000 tons averaging 0.37% WO3 with an additional inferred resource of 1,210,000 tons averaging 0.40% WO3. The study shows that the resource may be significantly expanded with additional diamond drilling.

Following the resource estimate, diamond drilling has continued and in December 2006 four diamond drill holes successfully intersected a sizeable zone of low-grade, bulk tonnage, tungsten mineralization with associated gold values in the recently identified East Emerald Tungsten Zone. Surface drilling has been suspended for the winter but underground drilling is continuing. In conjunction with the drill program, Wardrop Engineering Inc. is undertaking a Scoping Study on the tungsten mineralization. The Scoping Study, which includes a conceptual mine design, is expected to be completed by the end of April 2007.

Dodger Molybdenum Zone:

The East Dodger Molybdenum Zone was discovered in 2005 by Sultan during follow-up of reports of extensive molybdenum mineralization seen in historic underground workings and diamond drill holes at the former Emerald Tungsten Mine. Diamond drilling was initiated in April 2005 and the second hole returned an impressive 0.22% MoS2 over its entire 192 foot length. Drilling continued and porphyry style molybdenum has now been intersected in 21 diamond-drill holes (out of 22 holes drilled) over an area that measures 1,000 metres (3,200 feet) north-south by 125 metres (400 feet) east-west. The November resource evaluation showed, that at a cut-off grade of 0.05% Mo, the 21 holes provide an inferred resource of 481,000 tons averaging 0.103% molybdenum (Mo). The zone remains open in all directions and at depth. Historic mine records note the occurrence of similar mineralization in mine workings as far as 600 metres (2,000 feet) west of the East Dodger Zone and more than 200 metres (600 feet) to the south suggesting very large tonnage potential. Underground diamond drilling is presently being carried out to test for molybdenum mineralization to the south of the previous drill program. Assay results will be released when they become available.

Jersey Lead-Zinc Mine:

The Jersey Mine was British Columbia's second largest lead-zinc producer. Production commenced in 1906 and over the mine's life 8.0 million tons of ore grading 1.95% lead and 3.83% zinc was produced from the Jersey and Emerald Zinc deposits. During the mining operation the cut-off grade varied from 3.5% to 4.0% lead-zinc and mineralization below this grade was left un-mined. There are believed to be extensive deposits of this marginal grade lead-zinc mineralization remaining within and adjacent to the historically mined zinc ore bodies that would be economic with present metal pricing. There is also significant potential for higher-grade lead-zinc mineralization in the surrounding terrain and as pillars and remnants in the previously mined zones. Sultan is presently reviewing the potential of all of the previously mined areas of this historic producer in preparation for a lead-zinc resource evaluation.


The 8,000-hectare Kena Gold Property is located in south-eastern British Columbia, 25 kilometres north of the Jersey-Emerald Property and 60 kilometres northeast of the historic, 3.0 million ounce, Rossland Mining Camp, BC's second largest gold camp.

The Kena Property centres on an 8.0 km long gold soil anomaly. Within this broad anomaly two targets, the Gold Mountain and Kena Gold Zones, have been tested with 16,000 metres of drilling in 115 diamond drill holes. A preliminary, NI 43-101 compliant, resource estimate was filed on June 7, 2004. The study shows that using a 0.3 g/T cut-off grade for gold, the two zones have a combined measured and indicated resource of 24,860,000 tonnes containing 541,000 ounces of gold at an average grade of 0.66 g/T gold and an additional inferred resource of 25,800,000 tonnes containing 557,000 ounces of gold at the same grade. Preliminary metallurgical testing shows excellent gold recoveries. A $1.27 million diamond drill program is recommended in order to expand the gold resources.


Sultan also has a 33% stake in a joint venture with Cream Minerals Ltd. and ValGold Resources Ltd., each holding a 331/3% interest in the 85,000 hectare Stephens Lake nickel property situated 100 kilometres east of Gillam, Manitoba. Regional geology and geophysical studies suggest that the Property may be underlain by an extension of the Thompson Nickel Belt, one of the most important nickel producing regions in the world. No work is presently planned for the property and the companies are seeking an additional joint venture partner to assist with exploration of the property.

Sultan's annual audited financial statements and management discussion and analysis may be found on the Company's website: or on

You are invited to attend the Company's Annual General Meeting to be held in the Presidents East Room of the Vancouver Club, 915 West Hastings Street, Vancouver, British Columbia, on April 27, 2007, at 1:30 p.m., Vancouver time.

About Sultan Minerals Inc.

Sultan Minerals Inc. is a Canadian Exploration Company concentrating on advanced exploration at two former producing mines in southeastern British Columbia, Canada, one primarily for gold (Au) - the Kena Property and the other for molybdenum (Mo) and tungsten (W) - the Jersey-Emerald Project. The Company is a member of the Lang Mining Group, which has more than 45 years of experience in precious metal exploration, including the discovery of the Hemlo Gold Mine in Ontario and both the Ferderber and Sleeping Giant gold mines in Quebec. Sultan Minerals Inc. trades on the TSX-Venture Exchange under the symbol SUL.

For further information on the Company's projects, visit

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

Should you wish to receive Company news via email, please email and specify "Sultan Minerals News" in the subject line.

Cautionary Language and Forward-Looking Statements

This press release may contain "forward-looking statements", which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure documents filed from time to time with the Canadian securities authorities.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this News Release. This release has been prepared by management and no regulatory authority has approved or disapproved the information contained herein.

Contact Information