|Tue Nov 24, 2009|
Sultan Minerals Acquires Aspen Lead-Zinc-Silver Mine
|November 24, 2009, Vancouver, BC - Sultan Minerals Inc. (SUL -- TSX Venture) ("Sultan") is pleased to announce that it has entered into an agreement (the "Agreement") with Mr. Jack Denny and Mr. Fredric Critchlow (the "Vendors") of Salmo, British Columbia, to acquire 100% of the rights, title and interest in and to the Aspen Lead-Zinc-Silver Property (the "Property") comprised of seven mineral claims, Tenure Numbers 548440, 548464 -- 548467, 604689 and 665745 located approximately six kilometres southeast of Salmo, British Columbia, Canada and three kilometres north of Sultan's former HB Lead-Zinc Mine. The Agreement is subject to regulatory approval.|
Under the terms of the Agreement, Sultan has agreed to pay $10,000 and issue 100,000 common shares to the Vendors for the purchase of the Property. 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 1.0% Net Smelter Return royalty ("NSR"), payable to the Vendors. Sultan shall, at its discretion, have the exclusive right to reduce the NSR to 0.5% by making a one-time payment of $100,000 to the Vendors at any time up to and including the commencement of commercial production. If at any time the Vendors wishes to sell or assign their NSR, the Vendors have agreed to give Sultan a 60-day right of first purchase to acquire such interest provided that the Vendors shall not thereafter offer their NSR to a third party on terms less favourable to the Vendors than those offered to Sultan.
No common shares will be issued as bonuses, finder's fees or commissions in connection with this transaction. T he 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 Aspen property was discovered in 1896. Small scale production of high grade silver ore commenced in 1899 and continued intermittently until 1950. Over its 50-year life the mine produced 47,556 tonnes averaging 653.13 g/t silver, 4.76% lead and 0.02% zinc from 1,443 metres of underground workings.
The Aspen occurrence is believed to be a manto-type deposit hosted by the Reeves Limestone Member of the Lower Cambrian Laib Formation which is also host to the nearby Jersey, HB, Garnet and Reeves MacDonald lead-zinc mines. Three distinct stratabound, ore-bearing breccia horizons are recognized as follows: 1) the Upper Zinc horizon, 2) the Middle Silver horizon and 3) the Lower Lead-Zinc-Silver horizon. The zones have a general north-northwest trend and dip about 40 to 50 degrees northeast. The principal unit is the Middle Silver horizon which varies from 1 to 8 metres in thickness and has been traced for about 1,100 metres on surface.
Since closure of the mine in 1950 the deposit has been explored with 4,539 metres of surface and underground diamond drilling in 103 holes. This work showed a drill indicated resource of 36,280 tonnes at 3.16% zinc in the Upper Zinc Horizon and a measured and indicated resource of 61,289 tonnes at 234.8g/t silver in the Middle Silver horizon. (BC Geological Survey, Minfile, Detail Production Report Number 082FNW121).
Readers are cautioned that the resources quoted in this release are historical in nature and were compiled before the implementation of NI 43-101 Standards for Disclosure of Mineral Projects. Sultan plans to explore for extensions to the reported mineralization with geochemical and geophysical surveys.
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".
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
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: Wed Nov 25, 2009, Correction: Sultan Minerals Acquires Aspen Lead-Zinc-Silver Mine
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