|Mon Nov 7, 2011|
Sultan Minerals Acquires 100% Interest In Historic Daylight Gold Mine, British Columbia
|November 7, 2011 Vancouver, BC - Sultan Minerals Inc. (SUL - TSX Venture) ("Sultan") is pleased to announce that it has entered into an agreement (the "Agreement") with Ms. Janet Wirth (the "Optionor") of North Vancouver, British Columbia to acquire the remaining 12.5% of the rights and interest in the Daylight Claim Group, comprised of 8 crown grants, Tenures L248, L686, L901, L902, L907, L3251, L14699, L14700 (the "Property") located at UTM coordinates 5,475,000N and 478,300E near Nelson, British Columbia, Canada. The Agreement is subject to regulatory approval.|
The Daylight showing is located 14.4 kilometres south of Nelson, and just northeast of the historic Silver King mine. The Daylight Crown Granted Claims were staked in 1900. Production commenced in 1937, and continued intermittently until 1949. Mineralization comprised of pyrite and chalcopyrite with associated tetrahedrite and free gold occurs in a number of quartz veins and lenses up to 0.91 metres wide within a wide shear zone that strikes 340 degrees and dips 45 degrees west. The zone is accessed by a number of historic adits and workings over a strike length of 1.5 km. Recorded production from the property totals 3,582 tonnes with a grade of 3.52 grams per tonne gold and 27.74 grams per tonne silver and 1.06% copper.
The Daylight property occurs along the west margin of Sultan's Kena Gold property approximately 1.5 km west of the Kena and Gold Mountain gold zones. The two zones have a NI43-101 measured and indicated resource of 381,000 ounces of gold and an additional inferred resource of 389,000 ounces of gold. The deposits have an average grade of 1.0 g/t gold using a cut-off grade of 0.50 g/t.
Under the terms of the Agreement, Sultan shall have the exclusive right to acquire the remaining undivided 12.5% interest in the Property by making cash payments of $7,500 and issuing 25,000 common shares within a one year period upon receipt of Regulatory Approval of this Agreement. No common shares will be issued as bonuses, finder's fees or commissions in connection with this transaction. 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.
Sultan acquired the initial 87.5% interest in the Daylight Claim Group from various Optionors (including Ms. Janet Wirth) in 2002. (Please see news release of October 2, 2002). By completing this agreement, Sultan will have acquired 100% interest in the Daylight Claim Group.
In exchange for the above cash and share payments, Sultan will have the exclusive right and option to earn 100% interest in the Properties subject only to royalties payable to the Optionors of 3.0% net smelter returns ("NSR") from production of gold and silver and 1.5% NSR from the production of other metals and the issuance of an additional 200,000 common shares to the Optionors upon completion of a positive feasibility study recommending commercial production on the Property.
Sultan will have the right to reduce the NSR to 1% from the production of gold and silver and 0.5% from the production of other metals by payment of $1,000,000 upon or prior to the commencement of commercial production.
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:
Marc Lee, Investor and Corporate Communications
Tel: (604) 628-0519 Fax: (604) 628-0446
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.
You can view the Next News Releases item: Tue Nov 29, 2011, Sultan Minerals Signs Letter of Intent with Tunxsten Resources to Develop the Jersey Emerald Property, British Columbia
You can view the Previous News Releases item: Tue Sep 13, 2011, Sultan Applies for Drill Permit for Kena Gold Property, BC.
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