|Tue Nov 29, 2005|
Sultan Minerals Third Quarter Review
Jersey-Emerald Tungsten and Molybdenum Property:
In August, Sultan Minerals Inc. ("Sultan") announced the discovery of a new molybdenum deposit on its 100% owned Jersey-Emerald property in British Columbia, Canada. The discovery was followed up with additional drilling and to date the mineralization has been investigated with 1,400 metres of underground drilling in 12 diamond drill holes. Molybdenum mineralization was intersected in all 12 holes and is comprised of a network of high-grade molybdenite bearing quartz veins that form a broad low-grade stockwork hosted within a granite intrusive body.
Highlights of the 12 hole program were Hole 2 which assayed 0.22% MoS2 over its entire 192 foot length, and Hole 3 which averaged 0.11% MoS2 over 495 feet. The 12 holes show the molybdenum-rich body to extend 1,000 feet north-south, 400 feet east-west and to a depth of 300 feet. The molybdenum mineralization appears to be bounded by the tungsten rich skarn, which lies to the east and above the favourable host granite, but remains open to the north, south, west and at depth.
The company's contractor, Advanced Drilling Ltd., of Surrey, BC, has moved a second drill on to the Jersey-Emerald property and a surface-drilling program is presently underway to investigate the potential for lateral extensions of the molybdenum mineralization.
Kena Gold Property:
In September 2005 Sultan discovered a zone of copper-silver mineralization on its Kena Gold Property while completing a program of reclamation blast-trenching. The mineralized exposure was prospected and sampled and the best grab sample taken from the new exposure assayed 2.48% copper and 165.0 grams per tonne silver. Seven metres of continuous chip sampling taken along the suspected strike of the showing returned an average grade of 1.71% copper and 61.0 grams per tonne silver.
The new discovery, is located near the historic Silver King Mine approximately 1,500 metres southwest of Sultan's Gold Mountain and Kena Gold Zones. In June 2004 Sultan filed a NI 43-101 Technical Report which detailed a preliminary resource calculations on the Gold Mountain and Kena Gold Zones. The Technical Report shows a combined resource of 24,000,000 tonnes containing 381,000 ounces of gold in the measured and indicated category with an additional 389,000 ounces in the inferred category. The resource has an average grade of 1.0 g/t using a cut off grade of 0.5 g/t gold and can be expanded with additional diamond drilling.
Sultan is presently completing an excavator-trenching program on the new copper-silver discovery. The trenching program will investigate the grade, width and strike continuity of the mineralization in order to assess the potential of the copper-silver deposit prior to planning further exploration and possible development of the Kena property.
Other Exploration Properties:
Stephens Lake Nickel Property, Manitoba:
BHP Billiton is currently earning in on this project and a winter drilling program is expected to continue in February 2006.
Coripampa 1 and 2 Gold and Silver Properties, Peru:
Surface sampling and geological mapping has been complete and Sultan is seeking a joint venture partner to help fund further property work.
Mr. Ed Lawrence, P.Eng, is managing the underground exploration program on the Jersey-Emerald Molybdenum Property, and Mr. Perry Grunenberg, P.Geo., of P&L Geological Services of Lac Le Jeune, BC, is Sultan's project supervisor and "Qualified Person" for the purpose of National Instrument 43-101, "Standards of Disclosure for Mineral Projects" for the Jersey-Emerald Molybdenum Property and the Kena Gold Property.
In the nine months ended September 30, 2005 ("fiscal 2005") Sultan incurred a loss of $430,152 ($0.01 per common share), compared to $513,017 ($0.01 per common share) in the nine months ended September 30, 2004 ("fiscal 2004"). Sultan had working capital of $203,539 as at September 30, 2005. Private placements completed during the nine months ended September 30, 2005, provided net proceeds of $532,880 to the treasury.
The loss for the three months ended September 30, 2005 ("Q3 2005") was $125,251 compared to $239,839 in the three months ended September 30, 2004 ("Q3 2004"). Stock-based compensation of $148,461 was the main contributor to the increase in expenses in Q3 2004, compared to $12,795 in stock-based compensation in Q3, 2005, which accounts for the difference between the two periods. Legal, accounting and audit decreased from $17,726 in Q3 2004 to $9,046 in Q3 2005. This decrease in accounting and legal was offset by an increase in office and administration from $15,814 in Q3 2004 to $22,890 in Q3 2005.
In fiscal 2005 operations used $247,085 compared to $320,726 in fiscal 2004. Cash expenditures on mineral property interests totalled $356,175 in fiscal 2005 compared to $203,743 in fiscal 2004.
Total expenditures made on mineral properties in fiscal 2005 including cash and share payments are as follows, with comparative figures for fiscal 2004 in brackets: Kena - $95,151 ($137,354), Coripampa Properties - $60,509 ($61,847), Stephens Lake - a $3,686 recovery (expenditure of $24,599), Willi claims - $Nil ($19,618) and the Jersey and Emerald properties - $251,550 ($9,153). The Willi claims were written off in fiscal 2005 for a total of $25,308.
During the nine months ended September 30, 2005, Sultan has completed three private placements for net proceeds of $532,880.
For further information on Sultan's projects, visit www.sultanminerals.com.
Arthur G. Troup, P. Eng., Geological
President and CEO
For further information please contact:
T.J. Malcolm Powell - Email: IR@langmining.com
Tel: (604) 687-4622
Fax: (604) 687-4212
Toll Free: 1-888-267-1400
No regulatory authority has approved or disapproved the information contained in this news release.
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