|Thu Jan 8, 2009|
Sultan Minerals - Focussing On Metals Unaffected By The Commodities Crunch
|Vancouver, BC - Sultan Minerals Inc. (SUL-TSX-Venture) ("Sultan") is pleased to provide its shareholders with an annual project update and a summary of its plans for 2009. |
In 2008 Sultan focused on the exploration of its Jersey-Emerald Tungsten and Kena Gold properties. Both commodities tungsten and gold have been relatively unaffected by the recent commodities crunch.
The historic Jersey-Emerald tungsten and lead-zinc mine was formerly owned and operated by Placer Dome. The property was Canada's second largest tungsten producer and British Columbia's second largest lead-zinc mine. Subsequent exploration work by Sultan has identified substantial deposits of tungsten, lead-zinc and molybdenum mineralization. A NI 43-101 compliant scoping study was completed in May 2007. Highlights of the study include:
In September 2008, Sultan participated with Geoscience BC in a $542,000 Airborne Geophysical Survey centered on Sultan's 93-square kilometre Jersey-Emerald Property. The survey will provide information about the rocks deep underground and is expected to identify new exploration targets well beyond the limits of the seven historic mines on Sultan's extensive property. Results of the survey are expected to be available in the spring of 2009.
In December 2008 Sultan received a report on a 12-month aquatic environmental baseline study of its Jersey-Emerald property completed by Wardrop Engineering. The report notes that:
Kena Gold Property:
The 8,000-hectare Kena Gold Property is located in southeastern British Columbia, 60 kilometres northeast of the historic Rossland Mining Camp, BC's second largest gold camp. Some highlights of the property include:
In September 2008 an excavator trenching program tested a 2.5km long, copper-gold soil geochemical anomaly discovered three kilometres south of Sultan's Gold Mountain and Kena Gold Zones. Results of the program confirmed a broad zone of low-grade, porphyry style copper mineralization that will require further exploration (see news release of November 3, 2008).
Plans for 2009:
In 2009 Sultan will continue to focus on advancing the Kena Gold properties and the Jersey-Emerald properties.
The following programs are proposed:
In 2009 we foresee a commodities supply shortage leading to a spike in commodity prices.
In 2008 we saw the collapse of the enormous US credit bubble resulting in a credit crunch that has affected the entire world. The result has been a recession in North America and Europe resulting in metals consumption dropping to 58% of 2007 levels (G. Dirome, President AIM BC). Many large producing mines have cut production, high cost producers have been shutting down and most development projects have been shelved. In spite of these drastic measures metal prices have plummeted and metal stockpiles have ballooned. To a large extent this has been due to the release of metals from hedge funds that have been forced to sell their hoard of commodities into an already weakened market.
We believe these measures will result in a supply shortage leading to a recovery in demand and a spike in commodity prices beginning in late 2009. This shortage will come about due to infrastructure rebuilding in the developed countries and the continuation of rapid industrialization of the emerging markets, particularly the BRIC (Brazil, Russia, India and China) coun¬tries. The new US administration has also proposed infrastructure projects as part of their economic stimulus package.
One base metal that has been relatively unaffected by the commodities downturn has been tungsten. Over the past year the price of tungsten has remained relatively stable. As of December 10, 2008 the average price was $246/MTU for APT concentrate as compared with $245/MTU on December 19, 2007 (Metals Bulletin). Tungsten production is controlled by China with only one significant mine, North American Tungsten (with 3% of world production), providing tungsten concentrate for the western market.
Gold prices continue to see strength in recent months, despite the economic crisis, with recent levels at $850/oz. The outlook for gold is positive due to the amount of uncertainty prevalent in today's financial and political environment and the potential inflationary impact of the government planned stimulus packages.
Sultan Well-Positioned For 2009:
With its exceptional Tungsten and Gold projects Sultan's management believes your company is focused on the right commodities at the right time to survive and prosper from the current commodities crunch.
With approximately $2,000,000 in working capital in the treasury, Sultan is well financed to undertake the work programs planned for its projects.
For further information, please contact:
Marc Lee, Investor & Corporate Communications
Tel: (604) 687-4622 Fax: (604) 687-4212 Toll Free: 1-888-267-1400
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this News Release. This release was prepared by Sultan management and no regulatory authority has approved or disapproved the information contained herein. This news release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's filings that are available at www.sedar.com or the Company's website at www.sultanminerals.com.
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You can view the Next News Releases item: Wed Jan 21, 2009, Sultan Minerals Releases Updated NI 43-101 Tungsten Resource
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