Sultan expands Gold Mountain anomaly

Vancouver — At its Kena property, north of Ymir, B.C., Sultan Minerals has expanded a gold-in-soil anomaly 1,200 by 600 metres.

Soil sampling on the Gold Mountain grid previously defined highly anomalous gold values in soils samples taken over a distance of 2 km. Recent sampling has extended this anomaly to 3.3 km.

The core of the original coincident geochemical and geophysical anomaly is typically 700 metres wide. The new results indicate that the gold-in-soil anomaly doubles in width, to 1,400 metres, along strike to the north.

The anomaly extends across the Great Western claim group, which Sultan recently acquired from a local prospector. The Great Western property marks the northwestern extension of the Gold Mountain zone. Sultan agreed to pay $45,000 and issue 200,000 shares over three years for the property. 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. Results from infill soil sampling are pending.

Since diamond drilling suggests that gold mineralization is associated with gold-in-soil anomalies and coincident high-chargeability and high-resistivity geophysical values, Sultan has committed to additional geophysical work. An induced-polarization survey will span 15 line km over the newly outlined geochemical extension of the Gold Mountain zone.

Meanwhile, soil sampling has been completed over the southern extent of the Silver King porphyry host rock. The soil grid covers about 14 km of the porphyry, and results are expected by mid-month.

To date, Sultan has drilled 22 holes into the Gold Mountain zone of the Kena property. Assays are still pending for the last 11 holes, and an additional 11 have been permitted for the current phase of drilling.

The Silver King porphyry is a plagioclase porphyritic stock that has undergone various phases of alteration, from propylitic and siliceous to potassic and argillic. Mineralization consists of disseminated and fracture-filling pyrite, and lesser quantities of chalcopyrite, malachite, magnetite and specular hematite. Gold-copper mineralization in the volcanics is usually associated with brecciation, silicification and potassic alteration. Associated minerals include pyrite, chalcopyrite and finely disseminated magnetite.

Kena is a 30-minute drive from Nelson and boasts excellent infrastructure. Power, gas and rail lines pass through the project area, as does a major highway. The property is also serviced by logging roads.