|Tue Jan 3, 2012|
Sultan Minerals Signs Kena Property Agreement with Altair Ventures Ltd.
|Sultan Minerals Inc. (SUL-TSX-Venture) ("Sultan") is pleased to announce that, subject to regulatory approval, it has entered into an option agreement (the "Agreement") with Altair Ventures Inc. ("Altair") whereby Altair has an option to earn a 60% interest in Sultan's Kena Gold-Copper Property (the "Project") in British Columbia by completing $7,500,000 in Project related exploration expenditures over four years.|
The Project covers approximately 7,600 hectares of mineral claims located near Nelson, British Columbia and is comprised of the Kena Gold, Gold Mountain and Copper King showings together with the historic Euphrates and Gold Cup gold mines. The Gold Mountain and Kena Gold Zones have been partially tested with 16,500 metres of drilling in 116 diamond drill holes. A preliminary, NI 43-101 compliant, resource estimate (Giroux and Dandy, June 7, 2004) shows the two zones have a combined measured and indicated resource of 541,000 ounces of gold at an average grade of 0.68 g/t gold, using a 0.3 g/t cut-off grade. There is an additional inferred resource of 557,000 ounces of gold at the same grade and cut-off. The Gold Mountain and Kena Gold zones are both open along strike and at depth with excellent resource expansion potential.
The Altair Option has a term of 4 years commencing from December 30th 2011 (the "Effective Date). The Option will terminate and be of no further force and effect if by March 30, 2012 this letter agreement has not been finally accepted by the TSX Venture Exchange (the "TSXV Acceptance").
To exercise the Option and earn its (60%) interest in the Project, Altair will:
After Altair has earned its 60% interest in the Project, Altair may elect to extend the option (the "First Option Extension Notice") and earn a 70% interest in the Project by completing a Feasibility Report within 72 months following the Effective Date. If Altair completes a Feasibility Report within 72 months of the Effective Date, then Altair may elect to earn an additional 5% interest in the Project (the "Second Option Extension Notice"), making Altair's aggregate interest in the Project 75% by electing to continue funding all of the Project development expenditures up to the achievement of Commercial Production from the Project.
In addition to the other payments provided for in the agreement, Altair will make bonus payments to Sultan as follows:
Mr. Arthur G. Troup, President and CEO of Sultan Minerals Inc., said: "We are very pleased to have the support of Altair Ventures Inc. in advancing the exploration and development of the Kena Project. I believe that by entering into this agreement, the Project will be moved forward to possible production in an effective and efficient manner that will benefit the shareholders of both companies."
Sultan will retain approximately 550 hectares of claims and crown granted mineral claims adjacent to the northwest corner of the Kena Project. The retained property includes the recently acquired Daylight property, the Sand property and several adjacent historic gold mines.
President and CEO
For further information please contact:
Marc Lee, Investor and Corporate Communications
Tel: (604) 628-0519 Fax: (604) 628-0446
Email: firstname.lastname@example.org or email@example.com
For further information on Sultan's projects, visit www.sultanminerals.com.
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: Mon Jan 9, 2012, Sultan Minerals Announces Non-Brokered Private Placement
You can view the Previous 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 return to the main News Releases page, or press the Back button on your browser.