|Tue Aug 28, 2001|
Sultan Minerals Resumes Exploration Following Successful Financing and Favourable Metallurgy
|Kena Property -- Gold Mountain Zone|
Sultan Minerals Inc. (SUL-cdnx) is pleased to report that due to the successful completion of the initial 2001 diamond drill program on the Kena Property, located north of Ymir in southeastern British Columbia, the Company is aggressively expanding its exploration efforts. Two work programs are now commencing on the property. Diamond drilling will resume on the Gold Mountain Zone where 21 new drill stations have been surveyed and permitted. In conjunction with the drilling a regional exploration program will investigate the entire prospective Silver King Porphyry rock unit.
Gold Mountain Zone
In the Gold Mountain Zone, the 7 diamond drill holes completed to date have tested a 200 by 300 metre zone within a 2,100 by 650 metre gold geochemical and coincident geophysical anomaly. All 7 drill holes cut classic, gold bearing, porphyry style mineralization within the homogenously altered Silver King Porphyry intrusive body. Assay results from these holes show wide zones of gold mineralization as seen in hole 01GM-01 which intersected 106 metres from 8 to 114 metres averaging 1.16 g/t gold including a 12 metre section that assayed 4.02 g/t gold. Also of significance, hole 01GM-05, collared 50 metres grid west of hole 1 cut 134 metres from 8 to 142 metres averaging 1.10 g/t gold including 14 metres that assayed 3.98 g/t gold (see News Releases dated June 29 and July 17, 2001). The Gold Mountain Zone mineralization currently remains open in three directions and to depth.
The Gold Mountain Zone has been investigated with structural analyses done by consultant David Rhys, P.Geo. of Panterra Geoservices, detailed mapping and alteration studies by Kathryn Dunne, P.Geo. and petrographic studies completed by R.C. Wells, P.Geo., of Kamloops Geological Services Ltd. These studies show that host rock composition, gold grades and the distribution of hydrothermal alteration are consistent with a porphyry gold depositional setting. Also, of significance is the notable lack of deleterious elements in the core assays, with extremely low arsenic (generally <10 ppm), cadmium (<2 ppm), and lead (<10 ppm).
In recent weeks four major international mining companies have expressed interest in the project and have visited the property. The companies have all taken independent samples for analysis and two have requested core samples for metallurgical studies Results of a metallurgical study completed by one of these companies on the Gold Mountain Zone mineralization show extremely encouraging results. The results of this study may be summarized as follows:
This next phase of diamond drilling will test the depth extent of gold mineralization over a length of 1.5 kilometres from L4+00N to L19+00N and across a width of 500 metres from 1+00W to 4+00E. The planned program will involve 4,400 metres of NQ diamond drilling in 22 holes. This program is budgeted at $500,000 and diamond drilling with two drill rigs is expected to commence by mid-September upon completion of the recently announced financing with Octagon Capital Corp. In preparation for the diamond drilling, infill induced polarization and detailed alteration mapping programs are currently under way over the Gold Mountain Zone.
A coincident regional exploration program will involve prospecting and reconnaissance geological mapping throughout the entire 17-kilometre length of the Silver King Porphyry unit. Preliminary prospecting carried out in conjunction with the recent program has already located an additional seven mineralized areas along the belt (see News Release dated July 24, 2001). Grab samples of the more promising exposures found at each location have returned gold grades comparable to and in some cases better than those that lead to discovery of the Gold Mountain zone.
Grid establishment and geochemical sampling will be completed over the entire length of the favourable Silver King Porphyry rock unit. Induced polarization geophysical surveys will then be completed over the best targets in order to fully define them for diamond drill testing. This regional exploration program is currently underway.
These two exploration programs will assist the Company with its objective of developing a gold deposit of major tonnage proportions.
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.
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