UraStar Signs LOI to Aquire Blackpoint Gold-Silver Project in Nevada's Battle Mountain-Eureka District
July 15 2011 - 7:57AM
Marketwired
UraStar Energy Inc. ("UraStar" or "the Company") (TSX VENTURE:
URS)(OTCQX: OTCM)(FRANKFURT: 3U3) announces that it has signed a
Letter of Intent ("LOI") to purchase a 100% interest in the
BlackPoint Gold-Silver Project located in the Battle
Mountain-Eureka Gold Trend of Nevada from Mosquito Consolidated
Gold Mines Limited (TSX VENTURE: MSQ)(OTC: MQCMF) ("Mosquito"). The
Project consists of 896 acres and is located 7 kilometers north of
the town of Eureka, Nevada as set out on a location map which can
be found at www.urastarenergy.com
The area surrounding Blackpoint has numerous prolific Gold
deposits with the Ruby Hill Gold Mine located to the southwest, and
the historic Alligator Ridge Gold Mine to the east.
Pursuant to the LOI, UraStar can earn a 100% interest in
Blackpoint by making the following payments consisting of cash and
shares over a 5 year period (subject to TSXV approval):
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Time Cash (USD) Payments Common Shares
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On Signing LOI $25,000.00 Nil
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At Closing $225,000 250,000 shares
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Year 1 from Closing $350,000 250,000 shares
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Year 2 from Closing $ 1,000,000 250,000 shares
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Year 3 from Closing $ 1,500,000 250,000 shares
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Year 4 from Closing $ 2,500,000 250,000 shares
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Year 5 from Closing $ 4,400,000 250,000 shares
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TOTALS $10,000,000 CASH PAYMENTS 1,500,000 SHARES
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The property has a long history dating back to 1864. Available
records indicate production between 1933 and 1941, from the near
surface zones on the property, grading 400 gms Ag/ton to 3,700 gms
Ag/T (12 to 108 ounces per ton) which was sent to a mill located at
McGill, Nevada. More recent work in 1971 concentrated on surface
sampling and several short drill holes looking at the continuity of
the higher-grade silver portions of the deposits. Table 1 lists
some of the historic intersections from the 1971 drill program.
These intersections are historic and the Qualified Person has been
unable to fully verify the results and thus these results should
not be relied upon.
Table 1: Historic Intersections from shallow drilling at
Blackpoint.
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hole hole hole zone zone zone Ag zone zone Ag grade
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name length length name top thickness grade top thickness gms/T
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feet meters feet feet oz/t meters meters gms/T
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Sl-2 112 34.14 Condor 28 84 1.83 8.53 25.60 62.74
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SL-3 112 34.14 Condor 32 60 2.26 9.75 18.29 77.49
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SL-7 84 25.60 Condor 28 27 6.64 8.53 8.23 227.66
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SL-6 200 60.96 Condor 36 24 2.06 10.97 7.32 70.63
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SL-17 88 26.82 Condor 0 52 2.04 0.00 15.85 69.94
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SL-18 300 91.44 Condor 52 24 2.41 15.85 7.32 82.63
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SL-22 120 36.58 Condor 44 16 1.22 13.41 4.88 41.83
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Eagle
ER-7 136 41.45 Ridge 12 74 2.13 3.66 22.56 73.03
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Eagle
ER-4 200 60.96 Ridge 44 84 1.34 13.41 25.60 45.94
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Eagle
ER-16 108 32.92 Ridge 40 24 1.14 12.19 7.32 39.09
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Eagle
ER-17 180 54.86 Ridge 64 18 1.40 19.51 5.49 48.00
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Eagle
TRENCH 20 6.10 Ridge 0 20 21.00 0.00 6.10 720.01
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ER-9 136 41.45 Dot 80 20 11.53 24.38 6.10 395.32
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ER-3 160 48.77 Dot 96 32 1.46 29.26 9.75 50.06
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ER-11 100 30.48 Dot 24 76 4.04 7.32 23.16 138.52
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TRENCH 50 15.24 Dot 0 50 7.10 0.00 15.24 243.43
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No other assays are reported, although gold, copper, lead and
zinc mineralization has been described.
Charles (Bill) Reed, a director of Urastar and co-founder of
Paramount Gold and Silver Corp (NYSE: PXG) stated "Urastar is very
pleased to have aquired the Blackpoint Project in the most profilic
Gold-Silver district in the world. An aggressive drill program will
be commenced shortly to test targets and build a compliant
resource."
Examination of the surface geology shows Blackpoint hosts a
silica-sericite (or "low-sulfidation") epithermal silver-gold
system with extensive silica-sericite alteration, high-grade silver
bearing veins, stockwork and breccia and scattered gold values.
This style of mineralization is typical of that found at the active
and historic mines in the area. The property is divided into two
distinct halves by an east west orientated structure with the
Condor zone in the north and the Eagle Ridge and Dot zones in the
south. All the previous work was centered around the silver
mineralization with no work done in looking for the gold bearing
part of the system that may be located more towards the centre or
at depth of the peripheral silver zones.
Geological work completed in 2007 by Mosquito determined that
the property had not been properly explored. The presence of
asymmetrical alteration zones, the large east-west orientated
structure offsetting the mineralized zone and the presence of fall
out breccias to the southwest, all indicate an unrecognized
southwest plunge to the system. Additional detailed mapping
confirmed a significant increase in the intensity and thickness of
the silicification toward the central area. This resulted in the
previous drill programs failing to explore the main exploration
targets beneath the exposed silica breccia zone.
Urastar will begin an aggressive exploration program of detailed
surface mapping, sampling and drilling to define and test these
highly prospective, previously unexplored exploration targets,
concentrating on finding the gold bearing portion of the system at
depth, while continue to develop the near surface silver
mineralization.
Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., a Qualified Person
pursuant to National Instrument 43-101, has prepared the technical
information contained in this news release.
About UraStar Energy Inc.
UraStar Energy Inc. is a mining exploration and development
company focusing on gold and silver exploration in Nevada, USA and
in Mexico's Sierra Madre gold belt targeting areas containing
former producing properties. The Sierra Madre Gold Belt is one of
the richest gold belts in the world hosting several world class
mines and many major recent discoveries.. For more information,
please visit www.urastarenergy.com
The TSX Venture Exchange and its regulation service provider has
not reviewed or approved the contents of this release.
Contacts: UraStar Energy Inc. Thomas J. Kennedy, CEO
604-682-2928 604-685-6905 (FAX) www.urastarenergy.com Launch IR
Matthew Harrington 613-882-7467
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