Sultan Minerals Provides Year-end Exploration Update
January 08 2014 - 8:25AM
Access Wire
Sultan Minerals Inc.
(SUL - TSX Venture) ("Sultan" or the "Company") is pleased to
provide a year-end update of activities for the Company's Daylight,
Kena Gold and Jersey-Emerald projects. The highlight for 2013 was
Sultan's 100% owned Daylight Gold Property where the Company
obtained 25.6 g/t gold, 175.2 g/t silver and 0.34% copper across a
1.9 metre wide vein.
Daylight Gold
Property:
During 2013 Sultan
focused its exploration activities on it Daylight Gold Property
located 10 km south of the town of Nelson in southeastern, British
Columbia. The Daylight property overlies several historic,
high-grade, gold mines that operated in the late 1890's and early
1900's. The historic mines have been owned by several individuals
for many years and little exploration has been done since the
Daylight mine closed in 1949.
A complete review of
historic information on the Daylight property was recently
completed by the company's consulting geologist, Perry Grunenberg.
The study included an assessment of historical exploration, mining
and sampling activities and recent geochemical, geophysical and
sampling programs completed by Sultan. The project review has
successfully identified four gold bearing targets that require
exploration. These are the Starlight Shear Zone, the North Star
Shear Zone, the Great Eastern Porphyry Gold Zone, and the Silver
King Gold Corridor.
The
Starlight Shear Zone is host to the
Starlight, Victoria and Daylight gold mines. This mineralized shear
strikes 125 o and dips
65 o SW. The zone is up
to 50 metres wide and has been traced by an IP geophysical survey
for 3.0 km along strike. The shear zone centres on a series of gold
bearing, en echelon, quartz veins often surrounded by a low grade
network of smaller veins on both sides of the principal quartz
vein. Associated sulfides consist of pyrite and locally
chalcopyrite. In November a prospecting and rock chip sampling
program was completed on the Starlight Shear Zone. The highlights
of the program were: 1) the Starlight Gold Vein which assayed 10.3
g/t gold and 68.15 g/t silver over a 60.0 metre vein length with an
average vein width of 1.6 metres and 2) the Victoria Gold Vein
which assayed 28.1 g/t gold across a vein width of 0.85 metres. The
best channel sample across the Starlight Vein assayed 25.6 g/t
gold, 175.2 g/t silver and 0.34% copper across a 1.9 metre wide
vein (see News Release of December 16, 2013).
The
North Star Shear Zone lies 500 metres north
of the Starlight shear and appears similar to the Starlight zone.
The zone was explored with 7 long trenches in 1939 which exposed a
54 metres wide shear zone with a strike of 130o and a dip of 67o SW. The trenches were reported to have
assayed 1.20 g/t gold across the entire 54 metre width. An IP
geophysical survey completed by Sultan showed the zone to give a
prominent IP chargeability anomaly that has been traced 2.0 km
south where it joins with the Starlight IP anomaly.
The
Great Eastern Porphyry Gold Zone is a strong
untested gold soil anomaly that is 1.1 km long and up to 500 metres
wide located 100 metres west of the historic Great Eastern Gold
Mine. This target follows the southwest contact of the Silver King
Intrusive with the Elise volcanics.
The
Silver King Gold Corridor is located within
the main Silver King Intrusive along the eastern margin of the
Daylight property. The target is a string of strong gold anomalies
that follow the trend of the intrusive. The soil anomaly is 1.0 km
long and up to 300 metres wide.
In light of these
extremely encouraging targets and the success of the 2013 sampling
program Sultan plans to investigate the potential of the Daylight
property for high grade vein type mineralization as well as
bulk-tonnage gold mineralization in 2014. Permits are now in place
for the planned follow-up program that will involve additional
surface sampling, trenching and diamond drilling of the four target
areas discussed above.
Kena Gold
Property:
Sultan's 7,600
hectare Kena Gold property adjoins the Daylight property on its
eastern border. The Kena property presently has a NI43-101
compliant measured and indicated resource of 490,000 ounces of gold
and an additional drill inferred resource of 1.399 million ounces
of gold using a cut-off grade of 0.30 g/t.
In 2012 Sultan
entered into a joint Venture agreement with Altair Gold Inc.
(Altair) of Vancouver, B.C. giving Altair an option to earn up to
75% interest in the Kena gold project by taking the property to
production. To earn an initial 60% interest in the property Altair
must incur exploration expenditures of $6.15 million over the next
4 years and make cash and share payments to Sultan totaling $2
million and 2,166,666 shares over the next four years (please see
News Release July 2, 2013).
In 2012 Altair
explored the property with 7,527 meters of diamond drilling on the
known showings and completed an updated resource estimate. In 2013
Altair carried out regional prospecting and sampling programs in
order to prepare the property for drill testing in 2014.
Jersey-Emerald
Project.
The Jersey Emerald Property is
located in southeastern British Columbia, 10 kilometres southeast
of the community of Salmo. The 15,000 hectares Property includes
British Columbia's second largest historic lead zinc mine as well
as Canada's second largest historic tungsten mine which have been
inactive since 1973. The property has a significant remnant
resource for tungsten (please see News Release January 21, 2009)
and for lead zinc (please see News Release March 1, 2010).
In November 2013:
Sultan entered into an option agreement with Margaux Resources Ltd.
("Margaux") for the disposition of 100% of the Jersey-Emerald
property. Under the terms of the agreement, Margaux has an
exclusive option to acquire the Property by making payments to
Sultan of an aggregate $4.0 million, paid in several installments
on or before November 8, 2016.
Sultan will retain a
1.5% net smelter returns royalty ("NSR") on the Property. For a
period of 60 days following the earlier of (a) the commencement of
commercial production on the Property or (b) the completion of a
feasibility study on the Property, Margaux may purchase 50% of the
NSR (being a 0.75% net smelter returns royalty) from Sultan for a
payment to Sultan of $5.0 million.
Sultan has obtained shareholder approval
and TSX Venture Exchange approval for the sale of the property
(see news release of November 11, 2013). The
transaction is currently pending shareholder and TSX Venture
Exchange Approval for Margaux.
Mr. Grunenberg, P.Geo., of PBG
Geoscience of Kamloops, B.C., is Sultan's project supervisor and
"Qualified Person" for the purpose of NI 43-101, "Standards of
Disclosure for Mineral Projects".
For further information on the Company's projects, visit
www.sultanminerals.com.
Arthur G. Troup, P.Eng., Geological
President and CEO
For further
information please contact:
Marc Lee, Investor and Corporate Communications
Tel: (604) 628-0519 Fax: (604) 628-0446
Email: mlee@sultanminerals.com
or info@sultanminerals.com
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