|Thu Dec 6, 2001|
Sultan Options Five Claims Adjacent To The Kena Property
|Sultan Minerals Inc. (SUL-cdnx) is pleased to report that it has entered into an option agreement with Mr. Tom Cherry of Nelson, British Columbia, dated November 20, 2001, to acquire the Cariboo, Princess and Cleopatra properties located adjacent to and contiguous with its Kena Property, north of the community of Ymir in south-eastern British Columbia. The Agreement is subject to regulatory approval.|
The Properties optioned from Mr. Cherry consists of 5 claim units (115 hectares). The terms of the option are that Sultan must make total cash payments of $52,500 and issue 200,000 common shares to Mr. Cherry over a four-year period from the date of regulatory approval of the Agreement. In exchange for the above cash and share payments, and at the end of the four year payment period, Sultan will have the exclusive right and option to earn 100% interest in the Properties, subject only to royalties payable to Mr. Cherry, of 3.0% net smelter returns ("NSR") from production of gold and silver, 1.5% NSR 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 NSR from Mr. Cherry for $1,000,000 upon commencement of commercial production.
The Cariboo claims overlie an extensive alteration zone similar in nature to that of Sultan's Gold Mountain Zone. These alteration zones are associated with bodies of Silver King intrusive as are the Gold Mountain Zone anomalies. Three lithogeochemical grab samples taken by Sultan from the Cariboo claims have returned gold assays of 1.5, 2.5 and 5.5 g/t gold from the alteration zone. The claims are contiguous with the Kena Property and the Kena grid has now been extended to the west over the Cariboo claims. An induced polarization survey will commence immediately in preparation for diamond drill testing.
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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