Clean metallurgy at Kena

Vancouver — Despite the fact that only seven holes have been drilled into the Gold Mountain zone, the favourable style of the mineralization has prompted Sultan Minerals (SUL-V) to intensify exploration efforts over the promising Kena gold property near Nelson, B.C.

Petrographic and alteration studies on the limited drill core have not only confirmed that the mineralization is consistent with a porphyry gold depositional setting (known for large-tonnage deposits), but also that it contains very low values of contaminants such as arsenic, cadmium and lead.

Initial metallurgical test work on two composite core samples show that the ore is not refractory. Recovery rates hit 92-97% using cyanide leaching.

The company has spotted an additional 21 new drill sites to test the extent of the gold mineralization over an area measuring 1.5 km by 500 metres.

So far, drilling has covered a 200-by-300-metre portion of Gold Mountain, a gold-in-soil anomaly that measures 2.1 km by 900 metres.

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. However, the structures hit were running up the core axis, suggesting that the hole was drilled in the downdip direction of the mineralization.

Collared 50 metres south of the first three holes, hole 6 cut 124 metres grading 0.62 gram gold per tonne. Included in this broad zone were several higher-grade sections. These included the final 2 metres of the hole, which ran 9.1 grams gold from 130 metres down-hole.

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.

Some 300 metres to the south, at the southern edge of the coincidental geophysical anomaly, hole 7 cut 0.55 gram gold over 68 metres from 12 metres down-hole. Included in this section was a 22-metre interval grading 1.04 grams gold.

Having sold 2 million shares to Octagon Capital for 16 each, Sultan is now selling 2 million units at 15 each. The company expects the financing to close shortly and plans to have two rigs turning by mid-September.

In the meantime, Sultan is continuing with its regional prospecting and mapping program over the entire 17-km-long Silver King porphyry unit.