Sultan Minerals and Altair Gold Terminate Option Agreement on the Kena Project in Southeastern B.C.
Vancouver, BC / TNW-ACCESSWIRE / December 5, 2014 / Sultan Minerals Inc. (TSX-V: SUL) ("Sultan") announces that the Option Agreement ("the Agreement") with Altair Gold (TSX-V: AVX) ("Altair") allowing Altair to acquire a 60% stake in the Kena Project located in southeastern British Columbia has been mutually terminated. Under the terms of the Agreement which commenced December 30th, 2011, Altair would have had to spend up to $7,500,000 in exploration expenditures and pay Sultan $2,400,000 cash and 2.67 million shares of Altair as Option Payments over a six year period.
Sultan and Altair have mutually made the decision to terminate the Agreement as a result of the difficult funding environment within the resource sector. Sultan would like to thank Altair for their work and efforts in advancing the Kena Project during the term of the Joint Venture. During this time, Altair conducted an extensive $1.35 million exploration drill program and increased the gold resource on the Kena property significantly. Sultan wishes Altair success in all their future endeavours.
About Kena Property
The Kena Gold-Copper Project covers approximately 7,600 hectares of mineral claims located near Nelson, British Columbia and is comprised of the Kena Gold, Gold Mountain and Copper King showings together with the historic Euphrates and Gold Cup gold mines. In April 2013 an updated NI43-101 resource estimate was prepared for the Kena Project by Gary Giroux, P.Eng, MASc. a qualified person who is independent of Sultan and Altair. The updated resource estimate shows a measured plus indicated resource of 25.28 million tonnes containing 490,000 ounces of gold averaging 0.60 g/t Au and an additional inferred resource of 90.44 million tonnes containing 1,399,000 ounces Gold averaging 0.48 g/t Au, using a 0.30g/t Au cutoff. The mineralization remains open along strike and at depth. (April 11, 2013, News Release).
The Project forms part of the larger Kena Property which includes the Daylight Property comprised of approximately 550 hectares of claims and crown granted mineral claims located adjacent to the northwest corner of the Kena Project. The Daylight Property includes four historic gold mines. Sultan's recent trenching and sampling programs on the Daylight Property has located the four historic mines and discovered four new zones of significant gold mineralization (please see News Release of October 21, 2014).
For further information on the Company's projects, visit www.sultanminerals.com.
Arthur G. Troup, P.Eng., Geological
President and CEO
For further information please contact:
Marc Lee, Investor and Corporate Communications
Tel: (604) 628-0519 Fax: (604) 628-0446
Email: mlee@sultanminerals.com or info@sultanminerals.com
This release was prepared by Sultan's management. Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that Sultan expects are forward-looking statements. Although Sultan believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Sultan, investors should review Sultan's filings that are available at www.sedar.com or Sultan's website at www.sultanminerals.com.
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