|Fri Oct 5, 2001|
Sultan Options Two Adjacent Properties Adding 1,100 Hectares To The Kena property
|Sultan Minerals Inc. ("Sultan") is pleased to report that it has acquired two new exploration properties located adjacent to and contiguous with its Kena Property, north of the community of Ymir in south-eastern British Columbia. These properties are called the Great Western and Tough Nut. The properties both contain extensive gold geochemical and induced polarization chargeability geophysical anomalies similar in nature to that of Sultan's Gold Mountain Zone. These anomalies are associated with bodies of Silver King intrusive as are the Gold Mountain Zone anomalies.|
The Great Western Claim Group consists of 3 claim (75 hectares) units and has been optioned from Robert Bourdon of Nelson, BC. The terms of the option are that Sultan must make total cash payments of $45,000 and issue 200,000 common shares to Mr. Bourdon over a three-year period from the date of Canadian Venture Exchange approval of the option agreement. In exchange for the above payments and at the end of the three year payment period, Sultan will have the exclusive right and option to earn 100% interest in the Great Western Claim Group of properties, subject only to royalties, payable to Mr, Bourdon, of 3.0% net smelter returns from production of gold and silver, 1.5% net smelter returns from production of other metals and a further 200,000 common shares of Sultan, due upon receipt of a positive feasibility study. Sultan will have the right to purchase _ of the above net smelter return from Mr. Bourdon for $1,000,000 upon commencement of commercial production. This option agreement is subject to Canadian Venture Exchange approval.
Assessment reports on the Great Western Claim Group filed by previous property owners indicated a high gold soil geochemical anomaly (with values between 100 and 1000 ppb gold) over 600 x 300 metres. Although the claims are contiguous with the Kena Property, a 300 metre gap in soil geochemical coverage exists where the claims join, near the northwest corner of the Kena Property. The 2100 metre by 650 metre gold soil geochemical anomaly on the Gold Mountain Zone can now be extended for a further 500 metres over the Great Western Claim Group. Additional soil geochemical surveys are now underway to cover the narrow gap between the Kena and Great Western Claim Group and extending for an additional 1000 metres to the north over the northern extent of the Silver King intrusive unit.
The Tough Nut Claim Group consists of 32 two-post and fractional claim units, one two-unit metric mineral claim, one six-unit metric mineral claim and one crown grant (1,025 hectares) and has been optioned from Lloyd Addie (80%) and Gordon Addie (20%), both of Nelson, BC (the "Optionors"). The Optionors jointly hold 100% right, title and interest in and to the Tough Nut Claim Group and have exclusive right and authority to deal with the property, subject only to a 1% net smelter return royalty on ST-1, ST-2 and Sandy 2 mineral claims held by Pallaum Minerals Ltd. and Globenet Resources Inc. The terms of the option are that Sultan must make total cash payments of $120,000 and issue 200,000 common shares to the Optionors over a four-year period from the date of Canadian Venture Exchange approval of the option agreement. In exchange for the above payments, Sultan will have the exclusive right and option to earn 100% interest in the Tough Nut Claim Group of properties at the end of the four-year payment period, subject only to the following royalty:
Should the Optionors receive the $2,000,000 option buyout allowed for above, no further royalty payments to the Optionors shall be required with respect to the ST-1, ST-2 and Sandy 2 mineral claims until such time as the $1,000,000 cap has been attained on the underlying royalty to Pallaum Minerals Ltd. and Globenet Resources Inc.
Previous exploration on the Tough Nut Claim Group has included soil geochemical sampling which indicated an area of about 1300 by 400 metres with gold soil values of >50 ppb. This soil geochemical anomaly is associated with a very high chargeability geophysical anomaly. These coincident anomalies are centred over a 600 metre long band of Silver King porphyry intrusive rock that lies to the northwest of Sultan's Gold Mountain Zone and comprise a distinct subparallel anomalous feature.
Sultan's consultant, P&L Geological Services, is currently compiling the new property information and is merging it with data from the Kena Property. Initial information suggests that there is potential to expand the wide zone of gold mineralization currently being drill tested on the Kena Property.
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
No regulatory authority has approved or disapproved the information contained in this news release.
You can view the Next 2001 News Releases item: Wed Oct 10, 2001, Second Drill Now On Site, Kena Property, BC
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