|Tue Apr 17, 2001|
Re-evaluation of Tungsten Reserves Emerald Tungsten Mine, BC
|Sultan Minerals Inc.(SUL-cdnx)announces that due to the recent increase in price and demand for tungsten, the Company is currently re-evaluating tungsten reserves at the former Emerald Tungsten Mine located near Salmo in southeastern British Columbia.|
The Emerald Tungsten mine, located on Sultan's 100% owned property, was the largest tungsten producer in British Columbia and the second largest in Canada. The mine was initially put into production for the war effort in 1942 by Wartime Metals Corp., a Federal Government Agency. In 1947, Canadian Exploration Ltd. (now Placer Dome Ltd.) purchased the government held tungsten reserves, and in 1952 purchased the tungsten mill. Total production from four zones on the historic Emerald Property was 1,597,802 tons of tungsten ore grading 0.76% tungsten oxide (WO3). The mine closed in 1973 due to low tungsten prices combined with new royalty laws making the mine less profitable. Management believed the mine would re-open at a later date when prices were more favourable but this did not happen. Sultan Minerals acquired the property in 1993 to explore for gold skarn mineralization which is spatially related to the tungsten deposits.
When the mine closed, tungsten reserves remained in two of the zones: the Emerald and the East Dodger. The Emerald zone produced 1,076,799 tons with tungsten grades averaging 0.86% WO3. When mining ceased, recoverable reserves of 34,800 tons grading 0.73% WO3 remained and mine documents stated that extensive deposits were believed to exist south of the open pit portion of the Emerald mine. These deposits were not explored and developed due to low tungsten prices at that time.
The East Dodger zone produced 521,023 tons grading 0.56% WO3. When production ceased, an unmined reserve of 42,500 tons grading 0.45% WO3 remained. During the final year of operation extensive deposits of low grade ore (<0.40% WO3) were found to the north and south of the East Dodger deposit. These deposits were not developed at the time due to low tungsten prices.
The company has contracted P&L Geological Services to conduct a review of the mine data, confirm the grade and tonnage of the remaining tungsten reserves, and to assess the potential for additional deposits. This study is anticipated to be completed by early May.
The company's primary target remains the Kena Gold Property, located near Nelson, B.C. Permitting is now in place for the proposed 2001 drill program.
A.G. Troup, P.Eng.
For further information please contact:
Investor Relations at the Lang Mining Group
Tel: (604) 687-4622 Fax: (604) 687-4212
Toll Free: 1-888-267-1400 Email: Investor@langmining.com
Ticker Symbol: SUL-cdnx
SEC 12g3-2(b): 82-4741
No regulatory authority has approved or disapproved the information contained in this news release
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