|Thu Oct 1, 2009|
Sultan Minerals Acquires Garnet Lead-Zinc Mine
October 1, 2009, Vancouver, BC - Sultan Minerals Inc. (SUL - TSX Venture) ("Sultan" or the "Company") is pleased to announce that it has entered into an agreement (the "Agreement") with Mr. Lloyd Addie and Mr. Robert J. Bourdon (the "Optionors") of Nelson, British Columbia to acquire 100% of the rights and interest in and to the Garnet Lead-Zinc Property (the "Property") comprised of five mineral claims, Tenure Numbers 544860, 544861, 607011, 607013 and 607015, located approximately five kilometres south of Salmo, British Columbia, Canada near the former Jersey Lead-Zinc Mine . The Agreement is subject to regulatory approval.
Under the terms of the Agreement, Sultan has an option to earn a 100% interest in the Property by making cash payments of $75,000 and issuing 500,000 common shares to the Optionors over four years. Upon fulfilling the cash payment and share issuance, Sultan shall acquire 100% right, title and interest in and to the Property subject only to a 3.0% Net Smelter Return ("NSR") royalty, payable to the Optionors and 200,000 common shares due on commencement of commercial production. Sultan shall, at its discretion, have the exclusive right to reduce the NSR to 1.0% by making a one-time payment of $1,000,000.00 to the Optionors exercisable within 90 days after commencement of commercial production. If at any time either of the Optionors wishes to sell or assign this interest in the NSR royalty in the Property the Optionors agree to give Sultan a 30-day right of first purchase to acquire such interest provided that the Optionors shall not thereafter offer their NSR royalty to a third party on terms more favourable than those offered to Sultan.
No common shares will be issued as bonuses, finder's fees or commissions in connection with this transaction. The common shares issued pursuant to the Agreement are subject to a hold period of four (4) months, plus one (1) day from the date of issuance.
The Garnet showing was initially staked in 1899 and later acquired by Cominco in 1927. In 1965 the Garnet Mine was put into production as part of Cominco's HB mining operation. The HB and Garnet mines closed in August 1978. As of December 31, 1978, the remaining measured and indicated reserves for the Garnet Mine were reported at 409,000 tons, at 0.1 per cent lead and 4.1 per cent zinc (Canadian Pacific Limited, Form 10-K, December 31, 1978).
The HB and Garnet mines produced a total of 6,656,101 tonnes of ore in 29 years between 1912 and 1978. Recovered from this ore were 29,425,521 grams of silver, 49,511,536 kilograms of lead, 260,431,646 kilograms of zinc, 2,019,586 kilograms of cadmium, 105,412 kilograms of copper and 6,159 grams of gold. (Energy, Mines and Resources Canada Mineral Bulletin MR 198, page 209).
Readers are cautioned that the grades, resource figures and production figures quoted in this release are historical in nature and were compiled before the implementation of NI 43-101 Standards for Disclosure of Mineral Projects.
A large database of historical mine records including mine plans, mine sections and geological maps are available with the property. Mr. Ed Lawrence, P.Eng., former Manager of Sultan's adjacent Jersey and Emerald Mines, will undertake a review of the historical mine records.
Sultan plans to explore for extensions to the historical mineralization on the property with geochemical and geophysical surveys. Mr. Perry Grunenberg, P.Geo., of PBG Geoscience of Kamloops, B.C., will supervise this work. Mr. Grunenberg is Sultan's project supervisor and "Qualified Person" for the purpose of NI 43-101, "Standards of Disclosure for Mineral Projects".
For further information on the Company's projects, visit www.sultanminerals.com.
Arthur G. Troup, P.Eng., Geological
President and CEO
For further information please contact:
Marc Lee, Investor and Corporate Communications
Tel: (604) 687-4622 Fax: (604) 687-4212 Toll Free: 1-888-267-1400
Email: email@example.com or firstname.lastname@example.org
This release was prepared by Sultan's management. Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 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 Sultan expects are forward-looking statements. Although Sultan 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 Sultan, investors should review Sultan's filings that are available at www.sedar.com or Sultan's website at www.sultanminerals.com.
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