Sultan Minerals steps up moly search at Jersey-Emerald

Vancouver Reacting to market demand, Sultan Minerals (SUL-V, SLMLF-O) is stepping up its search for molybdenum mineralization at its Jersey-Emerald property in southeastern British Columbia.

Since it acquired the exploration rights in 1993, tungsten has been the prime exploration target for Vancouver-based Sultan. Thats because the 9,500-hectare property near Salmo, once ranked as Canadas second largest tungsten mine before it shut down in 1973.

But lately, strong molybdenum prices has prompted Sultan to go after molybdenum mineralization that lies in granite rock beneath the former tungsten mine workings.

When the Northern Miner toured the property recently Sultan, had outlined 500,000 tonnes of indicated and inferred molybdenum resources within the workings of the former Dodger mine.

But in an effort to expand that resource, the company has launched a 5-hole program to see exactly where the molybdenum mineralization is located. Depending on the results of that program, the company would then conduct further drilling in a bid to come up with a resource estimate.

The market wants molybdenum, said Sultan President Art Troup.

In a recent press release outlining its activities, Sultan said the underground workings occur over an area of two-square-kilometres, providing excellent access to the margins of the recently identified molybdenum deposit.

However, Troup said he hopes to develop the tungsten first and use the cash flow to continue the search for molybdenum.

Sultan currently holds a 100% stake in the original Jersey-Emerald claims, subject to an advance annual royalty payment of $50,000 scheduled to commence on Oct. 20, 1999, and an aggregate 3% net smelter return royalty due to the property vendors.

Sultan can reduce the NSR royalty to 1.5% by making a payment of $500,000 and issuing 50,000 common shares.

On April 2, Sultan shares rose 9 to 33 on the TSX Venture Exchange. Sultan is targeting molybdenum amid speculation that the introduction of a quota system in China, and the impact that this could have on the market.

About 400 million pounds of molybdenum were produced last year, with tight supplies making the market sensitive to supply disruptions and continuing price pressures.

China is a major supplier of the metal, which is used primarily as a hardening agent in the production of stainless steel. China contributed about 17% of global supply in 2006, and topped the world in reserves, according to published reports.

Other key suppliers are the United States, and South America, where molybdenum is a byproduct of copper mining.

Sultan is a member of the Lang group of companies, headed by 81-year-old financier Frank Lang.