Vancouver — Positive results from the 2001 drill program has prompted Sultan Minerals (SUL-V) to study the economic prospects of both underground and open pit mining scenarios at its Gold Mountain zone on the Kena property near Ymir, British Columbia.
The Frank Lang-led junior hired Snowden Mining Industry Consultants to project a number of different scenarios based on different tonnage projections, varying gold grades and combination of underground and open pit mill feed. The study, expected to be complete in February, will include very preliminary production and operating costs, as well as a financial analysis of the projects economic potential.
Sultan plans on using the results to plan its next round of drilling.
Last year Sultan drilled 29 holes over a 1.4-km-by-500 metre coincidental geophysical and geochemical anomaly believed to be prospective for a large tonnage, open pittable gold resource. However, results received to date, show a high-grade gold-bearing structural zone confined to the east margin of the intrusive body within wide spread sub-economic gold mineralization
Four of the first five holes cut broad low-grade mineralization ranging up to 1.87 grams gold per tonne over 116 metres in hole 3. The style of mineralization suggested a gold-bearing porphyry, favourable for a large tonnage, open pit operation. Subsequent drilling hit sporadic intervals of low-grade mineralization with some holes yielding bonanza grade gold values over 2 metres width. The latest results are more indicative of a structural controlled style of mineralization, favourable for higher-grades but much lower tonnage.
Most of the high-grade intersections lie near the contact between the Silver King Porphyry and the Elise footwall volcanics with values occurring in either rock type. The highest gold grades came from hole 3 where a 1.23-metre interval returned 240 grams gold and hole 8, which yielded a 2-metre interval grading 172.1 grams gold. These holes were collared 125 metres apart covering a vertical depth of 40-to-190 metres.
Sultan has been running a geophysical survey in hopes of tracing the prospective contact zone for additional drilling.
Preliminary petrographic and alteration studies on the drill core indicated that the mineralization is consistent with a porphyry gold depositional setting. Initial metallurgical test work on two composite core samples show that the ore is not refractory with recoveries hitting 92-to-97% using cyanide leaching.
Seeing potential for additional mineralization, Sultan recently inked a deal to pick up the Cariboo, Princess and Cleopatra properties, which mark the northern extension of the Kena property. The Cariboo claims host similar alteration to the Gold Mountain zone with grab samples returning up to 5.5 grams gold.
The company can earn 100% of the properties by paying $51,500 over four years and issuing 200,000 shares. The vendor retains a 3% and 1.5% net smelter royalty on any gold/silver and other metal production, respectively. The completion of a feasibility study gives the claim owner an additional 200,000 shares.
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