November 4, 2009, Vancouver, BC - Sultan Minerals Inc. (
SUL - TSX Venture) ("Sultan") is pleased to announce that the TSX Venture Exchange has accepted for filing documentation of an option agreement dated September 22, 2009, between Sultan and Lloyd Addie and Robert J. Bourdon of Nelson, British Columbia. Under the terms of the option agreement (the "Agreement"), Sultan may acquire 100% interest in the Garnet Lead-Zinc Property (the "Property"), comprised of five mineral claims, located approximately five kilometres south of Salmo, British Columbia, Canada.
Sultan may earn a 100% interest in the Property by making cash payments of $75,000 and issuing 500,000 common shares to the Optionors over four years. Upon fulfilling the cash payment and share issuance, the 100% right, title and interest in and to the Property will be subject only to a 3.0% Net Smelter Return ("NSR") royalty, payable to the Optionors and the issuance of 200,000 common shares due on commencement of commercial production. Sultan may reduce the NSR to 1.0% by making a one-time payment of $1,000,000.00 to the Optionors within 90 days after commencement of commercial production. For further details please refer to Sultan's news release dated Oct.1, 2009.
The Garnet Mine was acquired by Cominco in 1927 and in 1965 was put into production as part of Cominco's HB mining operation. The combined HB and Garnet mining operation was historically British Columbia's third largest lead-zinc mine. The mine produced a total of 6,656,101 tonnes (7,337,095 tons) of ore at an average grade of 4.1% Zn, 0.8% Pb and 4.8 g/tonne Ag. (BC Geological Survey, Detail Production Report, MINFILE). The mine closed in August 1978. As of December 31, 1978, the remaining measured and indicated reserves for the Garnet Deposit were reported at 409,000 tons, at
0.1 per cent lead and 4.1 per cent zinc (Canadian Pacific Limited, Form 10-K, December 31, 1978).
Readers are cautioned that the grades, resource figures and production figures quoted in this release are historical in nature and were compiled before the implementation of NI 43-101 Standards for Disclosure of Mineral Projects.A large database of historical mine records including mine plans, mine sections, drill logs and geological maps was acquired with the property. Mr. Ed Lawrence, P.Eng., former Manager of Sultan's adjacent Jersey and Emerald Mines, is presently undertaking a review of the historical mine records.
Sultan is presently completing a program of geochemical sampling and a magnetometer geophysical survey on the Garnet property to explore for extensions to the historical lead-zinc mineralization. The two surveys will also explore the adjoining, recently acquired, HB Mine (please refer to Sultan's News Release of October 29, 2009).
Mr. Perry Grunenberg, P.Geo., of PBG Geoscience of Kamloops, B.C., will supervise the geochemical and geophysical programs. Mr. Grunenberg 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 and Corporate Communications
Tel: (604) 687-4622 Fax: (604) 687-4212 Toll Free: 1-888-267-1400
Email:
mlee@sultanminerals.com or
info@sultanminerals.com
