View the Molybdenum Technical Report (PDF, 753 KB)
Prepared by E. Lawrence, P.Geo.
In May 2005, the Company entered into a purchase agreement to acquire the Invincible Tungsten Mine property, covering an area of 25 hectares, located approximately 6 kilometres south of Salmo, B.C. Sultan will purchase the property from the Seller for a cash payment of $3,000 and 9,000 common shares of Sultan common stock and will acquire a 100% right, title and interest in and to the property, subject to a 2% Net Smelter Return royalty ("NSR"), which Sultan may, at its discretion, reduce to a 0.5% NSR by the payment of $150,000 to the Seller after the completion of a positive feasibility study; and an Annual Advance Royalty Payment of $3,000, which will commence in year 2010. The Invincible Mine property is located within the Jersey Emerald property boundary (see "Location and Access" map below).
In October of 1993, the Company entered into an option agreement with Lloyd Addie and Robert Bourdon, whereby the Issuer acquired an option to purchase a 100% interest in the Jersey Claim Group near Salmo, British Columbia, for consideration of 200,000 shares of the Issuer and cash payments totaling $43,389. The claims overlie the former Jersey and Emerald lead, zinc and tungsten mines operated by Placer Dome from 1947 to 1972.
The Company's interest in the Jersey Emerald property is subject to a 3% NSR, which can be reduced to 1.5% by making additional cash and share payments totalling $500,000 and 50,000 shares on completion of a positive feasibility study. In October 2000 an amendment to the agreement extended the start of the royalty payments to 2004. In consideration, 200,000 common shares were issued to the royalty holders.
The optioned property is comprised of 28 crown granted mineral claims, 4 two-post claims and 80 mineral units encompassing approximately 1,700 hectares in the Nelson Mining Division. The property has since been expanded by staking, optioning and purchasing additional claims and now includes 47 crown granted mineral claims, 60 two-post claims and 278 mineral units in 15 four-post claims.
The Jersey Emerald property is located in southeastern British Columbia at latitude 49°06'N and longitude 117°13'W (NTS 82F/3), 10 kilometres southeast of the community of Salmo. The claims cover an area of approximately 4,000 hectares between the Salmo River on the west and the top of Nevada Mountain on the east, and are bounded by Hidden Creek on the north and the South Salmo River on the south. Year round gravel roads and power lines cross the property and water is plentiful. Underground workings of the historic Jersey and Dodger deposits are in excellent condition allowing for future underground access with little rehabilitation.
The Jersey Emerald property lies near the south end of the Kootenay Arc and is underlain by rocks of the Cambrian Laib Formation and the Ordovician Active Formation. The Laib Formation is comprised of mixed carbonates and pelites that have been subdivided into the Truman Member brown argillites, the Emerald Member black argillites and the Reeves Member limestones.
The eastern part of the property has historically been mapped as a much younger (Ordovician) Active argillite, however recent work by the Company indicates that the contact may in fact be conformable and that the Active Formation appears to be geochemically identical to the Laib Formation Emerald Member black argillites. Three Cretaceous granitic stocks intrude the Jersey mine rocks.
The earliest record of exploration in the area dates back to 1895 when gossanous areas on the south side of Iron Mountain attracted the attention of prospectors. The area was initially explored for gold and the 1896 Minister of Mines Report states that assays as high as 100 g/t (3.5 oz/t) gold were obtained. Continued prospecting discovered lead mineralization on the Emerald claims and shipments were made beginning in 1910. In 1938, tungsten and molybdenite mineralization was discovered in skarn bands at the site of the long abandoned gold workings. In 1942 and 1943 the government put the Emerald Tungsten Mine into production to serve the war effort. The mine then remained inactive until 1947 when Canadian Exploration Ltd. (now Placer Dome) purchased the property. Tungsten production recommenced in 1947 and lead-zinc production in 1949. Tungsten production of 1.6 million tons grading 0.76% tungsten was produced from the Emerald, Feeney, Invincible and Dodger deposits. Lead-zinc production of 8.4 million tons grading 1.95% lead and 3.83% zinc was produced from the Jersey and Emerald deposits.
The Jersey Emerald property has remained inactive from 1973 when the mine closed until 1993 when the Company optioned the property.
Work done since 1994 by the Company has defined four distinct deposit types on the Jersey Emerald property. These are carbonate-hosted lead-zinc (Irish style massive sulphide), sedex type zinc-silver-copper, and gold-bismuth skarn and tungsten skarn mineralization.
Tungsten occurs in two distinct types of deposits on this property, referred to as the 'Emerald-type' and the 'Dodger-type'. Emerald-type occurs at the contact of the Reeves Limestone with granitic intrusives. Dodger-type occurs as disseminations within metamorphosed limey shales. A direct granite contact is not a prerequisite for mineralization to occur and ore zone tend to be banded parallel to the sedimentary beds. Emerald-type tungsten is generally higher grade than Dodger-type.
The Emerald/Dodger Tungsten mine was the largest tungsten producer in British Columbia and second largest in Canada. It closed in 1973 due to poor tungsten prices and the expectation of the implementation of a "super royalty". With the recent substantial increase in tungsten price the company will be re-evaluating the existing reserves and implementing a program designed to define additional areas on the Property that have high tungsten potential.
The Bismuth Gold Zone, a stratabound gold target, was drilled by the Company in 1994 to 1997. This zone lies along the east and west margins of the Jersey Mine, located stratigraphically between the Jersey lead-zinc workings and the Emerald and Dodger tungsten workings. On the east margin an average 10-metre wide mineralized band runs for a distance of 1,900 metres, and on the west a 1 metre wide band has been traced for 600 metres. These mineralized bands contain pyrrhotite and/or pyrite with variable amounts of arsenopyrite and bismuth in a quartz-rich gangue.
The Bismuth Gold Zone mineralization appears to have a combination of vein and skarn styles, and is somewhat similar to Pogo-type mineralization, but occurring much higher in the mineralizing system. Gold values up to 28 g/t over a 1-metre sample width occur in this zone, however the average grade over the entire zone is 2.5 g/t gold.
Also, the Cretaceous aged Emerald, Jersey and Dodger granitic stocks (probably related to a single intrusive body at depth) host sheeted quartz veins of the Fort Knox style. The best examples of the sheeted vein systems can be seen in the vicinity of the historic Invincible and Dodger Tungsten mines. To date, these vein systems have not been evaluated for their gold potential.
In 1996 and 1998, soil geochemical surveys south of the main Jersey-Emerald mine area defined the Wilson Creek Zone. This zone is outlined by a 2,700 x 1,000 metre zinc-silver-copper-barium soil anomaly that contains zinc values up to 6,500 ppm. In 1999, the Company completed detailed geological mapping and geophysical surveys over the Wilson Creek Zone and found that the soil anomaly lies entirely within black argillaceous shales leading the Company's geologists to believe it may have potential for important stratabound (Sedex-style) zinc mineralization. A magnetic survey run over the central portion of the soil anomaly defined zones of high magnetic response coincident with the higher portions of the geochemical anomaly. Detailed geological mapping confirmed the presence of bedded pyrrhotite-pyrite mineralization in the area of high magnetics. Three test lines of gravity survey were run across the soil anomaly. The lines gave elevated gravity responses coincident with high zinc-barium geochemistry and high magnetic readings. On line 5,100N, a 175-metre wide 0.8 mgal response corresponds to zinc soil values of up to 5,559 ppm. On line 5,500N, a 400-metre wide 0.6 mgal response corresponds to zinc soil values up to 5,957 ppm.
A trenching and diamond drilling program is recommended to test the coincidental geochemical and geophysical responses for their sedex deposit potential.
The historic Jersey lead-zinc deposit occurs in dolomite horizons within the Reeves limestone unit. In 1995, diamond drilling encountered a second lead-zinc bearing dolomite horizon located 55 metres below the Jersey mine horizon. Research of Placer Dome's drill logs and sections uncovered several drill intersections which penetrated this Lower Jersey dolomite horizon, and contained significant lead-zinc values. This horizon appears to underlie the entire Jersey Mine area, and to date has not been systematically tested by diamond drilling.
Follow up work consisting of trenching, chip sampling and diamond drilling is recommended for the zinc-silver-copper sedex target termed the Wilson Creek Zone. Also due to the recent substantial increase in tungsten prices, the property's tungsten reserves and areas with significant potential need to be explored. A mine modelling program, using historic mine data will best show the primary target areas for tungsten mineralization.