Sultan Minerals Expanding Tungsten and Molybdenum Resource at Its Jersey-Emerald Property, BC
VANCOUVER, BRITISH COLUMBIA–(Marketwire – July 22, 2008) – Sultan Minerals Inc. (TSX VENTURE:SUL)(FRANKFURT:RZN) (“Sultan”) is pleased to report continued exploration and resource assessment of tungsten and molybdenum on its Jersey-Emerald molybdenum and tungsten property (the “Property”), located near Salmo, BC. Diamond drilling is currently underway on the Property. Sultan has contracted Giroux Consultants Ltd. (“Giroux”) of Vancouver, British Columbia to complete an updated resource estimate on the tungsten mineralization.
The 2008 summer drilling program is underway on the Property. This 5000-foot (1500m) drill program will provide infill sampling within the expansive East Emerald Tungsten zone. The current program has completed 3 drill holes to date, with an additional 6 to 8 drill holes planned.
The East Emerald Tungsten zone was previously intersected in historic drilling during exploration and development of the Property up to 1972, and by Sultan in 2006 and 2007. The East Emerald zone extends northward from the historic Emerald Tungsten mine, and lies above and to the east of previously mined areas in the Emerald, Feeney, and Invincible Tungsten Mines. Interpretation of the historic and recent drilling indicates two mineralized bodies. Drill core analyses within these mineralized zones indicate elevated grades of WO3 over significant widths.
The drill hole database for the Property has been updated to include all of the historic and recent drill holes that intersect the East Emerald Tungsten target. Geologic interpretations of the tungsten bearing zones have been digitized in Gemcom-Surpac (6.3) software to allow for preliminary resource evaluation. Sultan has contracted Giroux to complete a resource calculation based on this new geologic interpretation for the East Emerald Zone. As well, the drill hole database indicates that there is potential for remnant tungsten mineralization immediately surrounding the historic Emerald Mine, which historically produced 734,000 tons of 0.93% WO3. This potential tungsten resource will also be included in the Giroux evaluation.
Exploration for tungsten on the Property is continuing toward the goal of outlining a resource that meets the requirements for production. These requirements were summarized in the Wardrop scoping study completed for Sultan in 2007 (see news release of May 23, 2007). The study recommended that exploration continue to further strengthen the tungsten and molybdenum resources, and move those resources toward feasibility. Since the time of the Wardrop study in early 2007, Sultan has completed approximately 55,000 feet of drilling in 94 drill holes on the Property in an effort to further delineate tungsten, molybdenum and lead-zinc resources.
The current preliminary resource estimate for tungsten of 2,510,000 tonnes grading 0.379% WO3 was evaluated from the East Dodger and Invincible mine areas. With the addition of the Emerald Mine remnant material, and East Emerald tungsten zone, the total tungsten resource is expected to improve dramatically.
The NI 43-101 compliant mineral resource estimate for the East Dodger and Invincible areas, which was completed by Giroux on November 20, 2006, is summarized below:
——————————————————————– — ______________________________________________________________Pounds of Tungsten Resource__________ Cutoff__________Tons____ WO3%__________ WO3 ——————————————————————– — Measured______________________0.15____ 1,200,000____0.379____ 9,096,000 ——————————————————————– — Indicated____________________ 0.15____ 1,310,000____0.365____ 9,563,000 ——————————————————————– — Measured Plus Indicated______ 0.15____ 2,510,000____0.372____18,674,000 ——————————————————————– — Inferred______________________0.15____ 1,200,000____0.397____ 9,607,000 ——————————————————————– —
This assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized. The following assumptions were made to develop this preliminary assessment:
– Geological mineralization is continuous between drill holes;
– Existing mine workings have been digitized from previous mine plans and accurately account for the material previously mined out of the orebody; and
– The financial evaluation was determined using an economic cutoff grade of 0.233% WO3.
Sultan recently completed a 12-hole underground drill program within the East Dodger Molybdenum zone. These drill holes investigated the western extension of the zone where high-grade molybdenum intersections were encountered in previously reported drill holes JM07-04, JM07-16, JM07-17 and JM07-18 (see news release of July 18, 2007). The recent drill results confirm the previously reported molybdenum intersection showing a series of high-grade molybdenum rich quartz veins within an extensive low-grade molybdenum stockwork.
Results of the first 5 drill holes were presented in a news release dated June 23, 2008. Three drill holes were drilled from a single collar located in an underground haulage tunnel situated beneath the Jersey Lead-Zinc Deposit. The holes were collared 500 feet west of the East Dodger Molybdenum Zone where molybdenum mineralization was previously intersected in 21 diamond drill holes over an area measuring 3,200 feet north-south by 400 feet east- west. Complete results from the underground drill program are currently being tabulated and will be provided in a subsequent release.
Mr. Perry Grunenberg, P.Geo., of PBG Geoscience from Kamloops, BC, is Sultan’s project supervisor and “Qualified Person” as defined by NI 43-101, “Standards of Disclosure for Mineral Projects”. Mr. Ed Lawrence, P.Eng., former Manager of the Jersey and Emerald Mines under Placer-Dome, oversees all on-going diamond drilling programs for Sultan.
For further information on Sultan’s projects, visit www.sultanminerals.com.
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 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.
Arthur G. Troup, P.Eng., Geological, President and CEO
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