Alberta Star Development Corp.
TSX VENTURE : ASX
OTC Bulletin Board : ASXSF

Alberta Star Development Corp.

January 17, 2007 10:00 ET

Alberta Star Continues to Expand Its New Poly-Metallic IOCG Copper, Gold, Silver, Cobalt Discovery at the K2 Target Area at Contact Lake, NT

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 17, 2007) - Alberta Star Development Corp. (the "Company") (TSX VENTURE:ASX)(OTCBB:ASXSF) is pleased to report that the Company has received assays on a further four holes completing the Company's eight hole summer/fall 2006 preliminary drill program at the K2 discovery at Contact Lake, NT. The latest results from the K2 discovery follow the initial drill results from the first four holes which were released on December 14, 2006 whereby the Company announced that it had discovered a new large zone of hydrothermal and structurally controlled poly-metallic breccias that are enriched in copper, gold, silver and cobalt. The K2 target is located on the Contact Lake property, on the south side of Echo Bay. Completion of an additional four drill holes has confirmed and expanded the widespread poly-metallic mineralization at the K2 target. All eight drill holes reporting from a recently completed eight hole summer 2006 drill program intersected multiple zones of altered and highly mineralized breccias with disseminated and vein hosted copper, gold, silver, cobalt sulphide mineralization. All drill cores were prepared, bagged and sealed by the Company's supervised personnel and were transported by plane to Acme Analytical Laboratories Ltd. ("ACME") in Yellowknife, NT where they were crushed and pulped, and then transported to ACME's main laboratories in Vancouver, British Columbia for assaying. Acme is a fully registered analytical lab for analysis by ICP-MS and ICP-FA techniques.

Highlights from significant mineralized down hole intervals from the four new holes reporting, include 14.5 meters (47.85 feet) of .28% copper, 1.1 g/ton silver and .04% cobalt and 0.12 g/ton gold, 17.5 meters (57.75 feet) of .28% copper and 5.2 g/ton silver, 17.4 meters of .41% copper, 2.7 g/ton silver, .01% cobalt (including 0.5 meters 3.13% copper, 16.8 g/ton silver) 46.5 meters (153.45 feet) of .22% copper, 0.94 g/ton silver and 0.01 g/ton gold, 3 meters (9.9 feet) of .73% copper, 1.8 g/ton silver and .01% cobalt, and 1 meter (3.28 feet) of 3.19% copper.

The K2 target area is a new discovery in which significant IOCG style poly-metallic copper, gold, silver and cobalt mineralization was encountered in all eight drill holes in a preliminary drilling program along a 250 meter strike length to a vertical depth of 300 meters. The mineralized zone remains un-delineated and open at depth and along strike in both directions. The mineralized zone is part of a regionally extensive linear zone of phyllic, potassic, hematite and magnetite, magnetite-actinolite alteration zones, often appearing at surface as phyllic-potassic gossans. The mineralization occurs within the same suite of volcano-plutonic rocks that host other poly-metallic zones in the Eldorado & Contact Lake mineral belt, including the former El Bonanza Silver-Uranium (U-Ag) and the Eldorado Uranium (U-Ag-Cu-Co-Ni-Bi) mines.

The accompanying table gives a summary of drilling highlights and assay results returned from the balance of holes from an 8 hole program reporting from the K2 Target Discovery Zone at Contact Lake, NT.

K2 Discovery Zone -Drill Summary (Holes 5-6-7-8)



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DRILL HOLE RESULTS
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Interval Copper Silver Cobalt Gold
Drill Hole From To Length (Cu) (Ag) (Co) (Au)
CLK2-06-05 (m) (m) (m) (%) (g/ton) (%) (g/ton)
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2.5 56.5 54 0.2 1.08 0.03 0.08
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2.5 8.5 6 0.42 1.32 0.05 0.23
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2.5 17 14.5 0.28 1.1 0.04 0.12
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20 31 11 0.23 1.39 0.05 0.08
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27.5 30 2.5 0.53 3 0.13 0.24
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35.5 56.5 21 0.17 1.1 0.02 0.07
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43 46 3 0.21 1.65 0.03 0.5
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59 63 4 0.11 0.58 0.01 0.03
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152 153.7 1.7 0.14 0.72 0.06 0
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156.2 156.7 0.5 0.38 1.4 0.01 0
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190.5 191.5 1 0.04 2.9 0.05 0
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222 223.5 1.5 0.1 2.1 0 0
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226 227.5 1.5 0.21 4.7 0 0
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----------------------------------------------------------------
Interval Copper Silver Cobalt Gold
Drill Hole From To Length (Cu) (Ag) (Co) (Au)
CLK2-06-06 (m) (m) (m) (%) (g/ton) (%) (g/ton)
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20.5 20.8 0.3 1.21 1.2 0.01 0.1
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88 89 1 0.11 0.3 0 0
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90 93.6 3.6 0.24 0.57 0 0
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118.5 121.5 3 0.29 0.3 0 0
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123 124.5 1.5 0.1 0.2 0 0
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211 212 1 1.04 3.7 0 0
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269 270.5 1.5 0.14 0.4 0.01 0
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290 299 9 0.11 0.63 0.01 0
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304.4 309 4.6 0.29 1.46 0.02 0.02
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323.5 331 7.5 0.15 0.64 0 0
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338.5 340 1.5 0.24 2.8 0.01 0
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343 349 6 0.24 1.35 0.01 0
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356.5 359.5 3 0.39 1.45 0.02 0
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361 362.5 1.5 0.1 0.3 0 0
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368.5 371.5 3 0.14 0.6 0.01 0
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374.5 377 2.5 0.17 1.8 0.02 0
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397.2 402.3 5.1 0.34 0.68 0.01 0
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407.5 425 17.5 0.28 5.29 0.01 0.03
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407.5 411.5 4 0.64 5.89 0.01 0.05
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Interval Copper Silver Cobalt Gold Bismuth
Drill Hole From To Length (Cu) (Ag) (Co) (Au) (Bi)
CLK2-06-07 (m) (m) (m) (%) (g/ton) (%) (g/ton) (%)
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5 12.5 7.5 0.13 1 0.01 0
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24.5 25.5 1 1 5.6 0.04 0.2 0.11
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34 45.3 11.3 0.2 1.8 0.01 0.01
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51.5 52.5 1 0.26 0.9 0.01 0
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69.5 72.5 3 0.27 1.5 0 0
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86 103.4 17.4 0.41 2.7 0.01 0.01
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94.1 94.6 0.5 3.13 16.8 0.01 0.1 0.19
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104.4 108.9 4.5 0.15 1.1 0.02 0.03
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138 139 1 0.1 0.9 0.05 0
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168.4 170.9 2.5 0.18 2.5 0.03 0
-------------------------------------------------------------------------
191 196.5 5.5 0.18 4.8 0.01 0.05
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202 203 1 0.11 2.9 0.02 0
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242 245 3 0.17 7.7 0 0
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266 267.5 1.5 0.11 0.8 0 0
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323 326 3 0.27 1.9 0.01 0.1
-------------------------------------------------------------------------
347 348.5 1.5 0.12 2.3 0.03 0
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377 378.5 1.5 0.14 2.9 0 0
-------------------------------------------------------------------------

----------------------------------------------------------------
Interval Copper Silver Cobalt Gold
Drill Hole From To Length (Cu) (Ag) (Co) (Au)
CLK2-06-10 (m) (m) (m) (%) (g/ton) (%) (g/ton)
----------------------------------------------------------------
5.5 6.5 1 0.14 1.6 0 0
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17 54.5 37.5 0.2 1.26 0.01 0
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30.5 33.5 3 0.73 1.8 0.01 0
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71 83 12 0.18 1.53 0.03 0.06
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71 74 3 0.59 2.85 0.03 0.25
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93.5 140 46.5 0.22 0.94 0.03 0.01
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93.5 125 31.5 0.27 1.15 0.02 0
----------------------------------------------------------------
99.5 119 19.5 0.33 1.28 0.02 0.01
----------------------------------------------------------------
128 140 12 0.12 0.5 0.02 0.03
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150.5 155 4.5 0.25 0.47 0 0
----------------------------------------------------------------
162.5 182 19.5 0.22 0.67 0.01 0
----------------------------------------------------------------
162.5 170 7.5 0.35 0.98 0.01 0
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192.5 195.5 3 0.16 0.75 0 0
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203 204.5 1.5 0.11 0.7 0.01 0
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218 219.5 1.5 0.21 0.7 0 0
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287 288 1 0.18 2.2 0.03 0
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320 324 4 0.02 0.79 0.03 0
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381 382.5 1.5 0.51 8.9 0.03 0.1
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393 394.5 1.5 0.09 1 0.02 0
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465 473.7 8.7 0.11 3.09 0.04 0
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503 506 3 0.12 0.55 0 0.2
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510.5 516.5 6 0.16 1.23 0 0.1
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Metal values as at today's market price. Gold $624.90 US per ounce, Copper
$2.48 per pound, Silver $12.53 US per ounce, Cobalt $25.00 US per pound,
Zinc $1.71US per pound, Lead $0.71 US per pound, and Uranium $72.00 US per
pound as of January 16, 2007.

Note: True thickness has not been calculated for these holes.


The K2 mineralized breccia is open for drilling along strike for a presently undetermined length, and within a 200 to 300 meter wide horizon. This is the second large poly-metallic IOCG target zone that has emerged within the Eldorado & Contact Lake districts that are characterized by two to six different metals within a target horizon. The Company intends to conduct further drilling on the K2 Discovery Zone in 2007, to determine its potential as a significant poly-metallic bulk tonnage prospect.

K2 Target - Map and Drilling locations- may be viewed by clicking on the following link:

http://www.alberta-star.com/k2/index.html

Alberta Star President and CEO, Tim Coupland, commented, "Our drill results are continuing to confirm the poly-metallic nature of the K2 target areas mineralization and demonstrates the widespread distribution of Olympic Dam style IOCG & uranium associated mineralization in the Eldorado & Contact Lake districts. The Company has now reached another significant milestone by demonstrating the presence of gold within the K2 system." The Company has now successfully identified two new poly-metallic discovery zones based on its recently completed 2006 summer and fall drilling. The Company is currently preparing its newly emerging bulk tonnage targets for follow up exploration and drilling in 2007 to determine continuity and orientation of mineralization. Both the Mile Lake and K2 Discovery's remain open for expansion at depth and along strike. Another key component of the 2007 exploration program will be the selection of the uranium drill targets using the Company's newly acquired proprietary radiometric and VTEM datasets.

THE ELDORADO & CONTACT LAKE IRON OXIDE COPPER, GOLD, SILVER AND URANIUM PROJECTS

The Eldorado & Contact Lake Permit Areas are located on the east side of Great Bear Lake in Canada's Northwest Territories. The permit areas are situated 470 kilometers north of the city of Yellowknife. The total size of the Eldorado & Contact Lake Permit area covers over 51,473 acres in size. The Eldorado & Contact IOCG + uranium project areas include five past producing high grade silver and uranium mines. This includes the Echo Bay Silver Mine which produced 23,779,178 ounces of silver and the Eldorado Uranium Mine which produced 15 million pounds of uranium and 8 million ounces of silver. The Contact Lake Silver and Uranium Mine, Bonanza and El Bonanza Silver and Uranium mines and are included within the Company's land ownership package. Olympic Dam volcanic hosted hydrothermal iron-oxide copper, gold style of deposits are attractive targets for exploration and development due to their poly-metallic nature, high unit value and enormous size and grade tonnage potential. The Eldorado Mineral Belt which is situated in the Great Bear Magmatic zone, NT, has long been recognized by geologists, as one of the most prospective Iron oxide copper, gold, silver and uranium regions in northern Canada.

ALBERTA STAR DEVELOPMENT CORPORATION

Alberta Star is a Canadian mineral exploration company that identifies, acquires and finances advanced stage mineral exploration projects in Canada. The Company is committed to creating long term shareholder value through the discovery of base and precious metals and uranium.

ALLAN FELDMAN-INVESTOR RELATIONS

Investors are welcomed to contact Mr. Allan Feldman, Alberta Star's In-house Investor Relations and Corporate Communications Specialist, for all corporate updates at (604) 948-9663

ALBERTA STAR DEVELOPMENT CORP.

Tim Coupland, President & CEO

Dr. Hamid Mumim Ph.D., P.Eng. is the qualified person for the Eldorado & Contact Lake IOCG Projects.

These results have been prepared under the supervision of Dr. H Mumin, Ph.D., P.Eng, who is designated as a Qualified Person with the ability and authority to verify the authenticity of and validity of this data. All rock samples were analyzed by Acme Analytical Laboratories Ltd. ("ACME") in Vancouver B.C., Canada using ICP-MS and ICP-FA analysis techniques.

This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans" "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Although the Company 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 may differ materially from those in the forward-looking statements. Factors that could cause the 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 actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change. For further information investors should review the Company's filings that are available at www.sedar.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this News Release.

Contact Information

  • Alberta Star Development Corp.
    Tim Coupland
    President and CEO
    (604) 681-3131
    (604) 801-5499 (FAX)
    Website: www.alberta-star.com