Vancouver — Junior
From a local prospector, the company acquired the Great Western property, which marks the northwestern extension of the Gold Mountain zone. In return, Sultan must pay $45,000 and issue 200,000 shares over three years. The vendor retains a 5% net smelter return royalty on any gold production and 1.5% on any other mineral production; he will also receive an additional 200,000 shares once a feasibility study is complete.
The property hosts a 600-by-300-metre gold-in-soil anomaly, which may link up with the a second anomaly, measuring 2.1 km by 650 metres. The two zones are separated by a 300-metre interval that was not sampled. Sultan has launched a soil geochemical survey to close this gap.
Northwest of the Gold Mountain zone, Sultan has gained the Tough Nut project in return for agreeing to pay $120,000 and issue 200,000 shares over four years.
Previous work on this property outlined a 1,300-by-400-metre gold-in-soil anomaly overlying a 600-metre portion of the favourable Silver King intrusion.
Sultan is tying up ground ahead of results from a third round of drilling over the Gold Mountain porphyry target.
At the nearby Kena property, the junior aims to test the extent of the gold mineralization over an area measuring 1.4 km by 500 metres. So far, drilling has tested part of a 2.1-km-by-650-metre zone, where geochemical and geophysical anomalies coincide. Holes 1 through 3 were collared from the same drill pad and returned up to 106 metres grading 1.16 grams gold. Moving 120 metres to the east, hole 4 hit 58 metres grading 1.21 grams gold from 28 metres down-hole, including a 2-metre section that ran 16.3 grams gold.
Collared 50 metres south of the first three holes, hole 6 cut 124 metres grading 0.62 gram gold. Included in this broad zone were several higher-grade sections, including the final 2 metres of the hole, which ran 9.1 grams gold from a down-hole depth of 130 metres.
Hole 5, which was the first hole of the second round of drilling, was collared 50 metres west of the initial holes and returned 134 metres grading 1.1 grams gold.
On the southern edge of the coincidental geophysical anomaly, some 300 metres to the south, hole 7 cut 0.55 gram gold over 68 metres from 12 metres down-hole. Included in this section was a 22-metre interval of 1.04 grams gold.
Preliminary petrographic and alteration studies on the drill core confirm that the mineralization is consistent with a porphyry gold depositional setting (known for large tonnage deposits) and that it contains low values of contaminants such as arsenic, cadmium and lead. Initial metallurgical tests on two composite core samples show that the material is not refractory, with recoveries ranging from 92% to 97% using cyanide leaching.
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