|Wed Aug 8, 2007|
Sultan Acquires Additional Surface Rights at Jersey-Emerald Tungsten-Molybdenum Property, B.C.
|Vancouver, B.C. - August 8, 2007 - Sultan Minerals Inc. (SUL-TSX-V) ("Sultan") is pleased to announce that it has entered into a purchase agreement (the "Agreement") with Steve Okipnak (the "Seller") of Calgary, Alberta to acquire 100% of the rights, title and interest in the surface rights to twenty two (22.0) acres of land (the "Property") overlying part of the Jersey Claim Group located near Salmo, British Columbia.|
Mr. Arthur G. Troup, President and CEO stated "We are aggressively taking the necessary steps to advance the known molybdenum, tungsten and lead-zinc deposits at our Jersey-Emerald mine. With this recent land acquisition, Sultan now owns more than 1,100 acres of surface rights over the proposed mine site including the access portals to the known deposits and the future mill site as proposed by Wardrop Engineering in the May 23, 2007, Technical Report."
The Okipnak Property overlies the conveyor tunnel that transported ore from the former Jersey Lead-Zinc Mine and the access tunnel to the former underground crusher chamber in the historic Emerald Tungsten Mine. The Property is crossed by the access roads to the proposed future mill site.
Under the terms of the Agreement, Sultan has agreed to make a one-time cash payment of $18,100 and issue 30,000 common shares to the Sellers for the purchase of the Property. The Agreement is subject to regulatory approval.
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 Jersey-Emerald property is host to the historic Emerald Tungsten Mine, Canada's second largest tungsten mine and the former Jersey Lead-Zinc Mine, which was British Columbia's second largest lead-zinc producer.
On May 23, 2007, Sultan filed a National Instrument 43-101 compliant Technical Report for the Jersey-Emerald Property, which was prepared by Wardrop Engineering Inc. The study identifies a potentially commercial tungsten operation at current prices. Sultan is presently progressing with its 50 drill hole exploration program on the Dodger and East Emerald tungsten and molybdenum zones. If successful, the program will significantly expand the size and grade of the deposits and substantially improve the economics of the project.
Assays for the first nineteen holes of this drill program were released on June 6 and July 18, 2007. The nineteen holes were drilled to test the Dodger Tungsten and Molybdenum zones. Four of the holes carried wide intersections of bulk-tonnage-grade molybdenum mineralization. The holes demonstrate excellent grade and lateral continuity to a zone that remains open in all directions. Drill-hole JM07-04 was the highlight of the four holes. This remarkable hole assayed 0.10% molybdenum (MoS2) over a core length of 548.0 feet and averaged 0.04% MoS2 over its entire 1,529 foot length. The hole contained several higher grade sections including 0.28% MoS2 over 79.9 feet, 0.23% MoS2 over 43.0 feet and 1.81% MoS2 over 9.9 feet.
Exploration is currently ongoing on the property. Excavator trenching is tracing out the northern extensions of the Jersey Lead-Zinc and East Emerald Tungsten Zones where diamond drilling will commence in mid-August. Surface drill pads are being prepared well in advance of drilling in order to facilitate drill moves. Underground cavity monitoring surveys are being run in the historic Jersey Lead-Zinc Mine. The cavity monitoring survey accurately outlines the previously mined ore deposits in order that the location of the remaining lead-zinc mineralization in these deposits may be precisely determined.
Mr. Ed Lawrence, P.Eng., former Manager of the Jersey and Emerald Mines, is managing the ongoing exploration programs. Mr. Perry Grunenberg, P.Geo., of PBG Geoscience of Kamloops, B.C., is Sultan's project supervisor and "Qualified Person" for the purpose of NI 43-101, "Standards of Disclosure for Mineral Projects".
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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 & Corporate Communications
Tel: (604) 687-4622 Fax: (604) 687-4212 Toll Free: 1-888-267-1400
Email: firstname.lastname@example.org or email@example.com
Linda Armstrong, Vice President
CHF Investor Relations
Phone: (416) 868-1079, Ext. 229
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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