Globestar Mining Corporation

Globestar Mining Corporation

January 17, 2008 06:30 ET

GlobeStar Mining Update on Nickel Exploration Program in Dominican Republic: Discovery of Two New Nickel Laterite Zones

TORONTO, ONTARIO--(Marketwire - Jan. 17, 2008) - GlobeStar Mining Corporation ("GlobeStar " or the "Company") (TSX:GMI) is pleased to announce initial exploration results from two new nickel bearing laterite zones at Corozal Ridge and Cuaba Quemada in the Dominican Republic (see map at Results include 21 metres grading 1.85 % Nickel from Corozal drilling and 2.2% Nickel from a channel sample in a pit at Cuaba Quemada.

Corozal Ridge

The Corozal Ridge nickel lateritic zone is located approximately 3.5 km east of GlobeStar's Cumpie Hill nickel deposit and 1.5 km west of the Company's Cerro de Maimon copper/gold project. GlobeStar first identified nickel laterite at Corozal from a shallow test pit which contained saprolite grading 1.8% nickel (see release of 12 October 2006). Drilling at the Corozal Ridge target began in mid-November 2007 on 50 meter centers. To date, 23 diamond drill-holes out of the programmed total of 30 holes have been completed and this press release discloses assay results of the first 7 holes. (see

Table 1. Corozal Ridge Drilling Program
Intercepts greater than or equal to 1% Ni cut-off
(Holes CM-LATD-172 to CM-LATD-179)
From To Width Ni Co
Hole (m) (m) (m) % %
CM-LATD-172 1.5 7.0 5.5 1.79 0.02
CM-LATD-173 0.0 6.7 6.7 1.90 0.03
CM-LATD-174 0.0 5.0 5.0 1.58 0.03
CM-LATD-174 8.0 11.5 3.5 1.31 0.02
CM-LATD-175 1.5 9.6 8.1 1.48 0.04
CM-LATD-176 0.0 4.0 4.0 1.28 0.03
CM-LATD-177 0.0 5.0 5.0 1.78 0.03
CM-LATD-178 2.0 23.0 21.0 1.85 0.04
CM-LATD-179 4.0 9.1 5.1 1.64 0.13

The compositing of the nickel grades in the individual holes was done using a nickel cut-off of 1% with a minimum intercept length of 1.5 meters and a maximum length of internal waste of 2 meters. The compositing was done across geological boundaries. As the nickel laterite deposits are essentially flat-lying, all widths given are true widths.

Cuaba Quemada

Cuaba Quemada is located within the optioned Elsa I concession, 18 km southeast of Cumpie Hill and 14 km southeast of GlobeStar's Cerro de Maimon project, about 75 metres from the Yamasa/Maimon public highway.

From the north face of the discovery pit at Cuaba Quemada a 1 metre channel sample from 2 metres to 3 metres depth returned 2.19% nickel and a further 1 metre channel sample from 3 metres to 4 metres returned 2.05% nickel. The pits bottomed in mineralization. Any estimation of the thickness of the lateritic profile will require drilling through the laterite into fresh bedrock.

These results represent the first on-ground exploration done on this area. The discovery is part of a systematic scout pitting and auger drilling program which is exploring from north to south along GlobeStar's 43 kilometer strike length of the nickel bearing peridotite belt. Cuaba Quemada is less than half way along the Company's nickel belt and over 20 kilometers to the southeast has yet to be mapped on the ground. In 2006 trial pitting by GlobeStar at Loma Prieta, 25 kilometres southeast of Cuaba Quemada, discovered 8 metres grading 2.2% nickel on the ridge top and channel samples in pits up to 1.73% nickel at the base of the ridge. (see release of October 12 2006).

GlobeStar is optioning Elsa 1, Loma Cambronal, La Parcela and Loma Bambara concessions under previously announced agreement with Energold (TSX-V. EGD). Under the terms of this agreement, GlobeStar can earn up to a 100% interest in any nickel laterite deposits within these concessions, which total approximately 116.6 sq. km (see release of 12 May 2006). GlobeStar is the operator and can earn an initial 75% interest by completing a US$900,000 work program and making payments of US$50,000 per year for three years, payable in cash or shares. GlobeStar has the right to scale back the work program to US$300,000 if it is discovered that there is potential for less than 5 million tonnes of nickel bearing laterite in the concession area. GlobeStar also has the right to purchase Energold's remaining 25% interest for a payment of US$500,000 in cash or shares, converting Energold's interest to a 2% net smelter royalty. Subsequently, GlobeStar may purchase 1% of Energold's NSR at any time for $1 million in cash or shares.

Pitting and Auger targets are selected after integrating slope analysis, EM/Mag geophysics and surface mapping. The discovery pit in Cuaba Quemada was dug by hand to a depth of 4 meters and halted in mineralization due to harder rock conditions. Results of meter-long channel samples taken in two opposite faces of the pit are detailed in Table 2.

Table 2. Assay results from pit at Cuaba Quemada
North Face South Face
From To Ni Co Ni Co
(m) (m) % % % %
0 1 0.95 0.102 0.75 0.082
1 2 1.23 0.165 1.20 0.137
2 3 2.19 0.035 1.68 0.068
3 4 2.05 0.038 2.01 0.031

The Company's nickel laterite program is achieving a series of milestones as exploration develops, and the mineralization is understood. From the full time debut of the program in March 2007 to the end of the 2007, 127 holes were completed at an average rate of 1 hole per 2.2 days. This rate of drilling is expected to continue in 2008. The drilling has resulted in the publication of a National Instrument 43-101 report at Cumpie Hill in December 2007, which will be updated to include the Loma Mala mineralization, with a target date for publication of February 2008.

Sample preparation and analyses

Samples from the Corozal Ridge drill cores were crushed at the ACME laboratory in Maimon, Dominican Republic and then pulverized at SGS laboratories, in Lakefield, Ontario. Pulps have been analyzed at SGS using tetraborate fusion XRF. Full QA/QC procedures were implemented, including the insertion of standards, duplicates and blanks. Check samples representing approximately 10% of all the samples will be sent to another international laboratory for analysis by XRF.

Channel samples from Cuaba Quemada were prepared and analyzed by XRF in the Falcondo (Xstrata) mine laboratory in the Dominican Republic. No QA/QC procedures were implemented for these analyses.

This news release was prepared by GlobeStar and the data validated by F. Roger Billington, P.Geo., Consulting Geologist, who is the designated independent Qualified Person as defined in NI 43-101 for GlobeStar's nickel laterite exploration program.

About GlobeStar

GlobeStar is a well-funded minerals exploration company, developing the permitted Cerro de Maimon copper/gold project in the Dominican Republic. Production from the 6 million tonne, high-grade open pit mine is currently expected in the summer of 2008. GlobeStar is exploring an extensive base and precious metals exploration portfolio in the Dominican Republic with over C$4.0 million committed to exploration during 2007 and early 2008.

Reader Advisory

The information in this news release may include certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward-looking statements. Assumptions made are subject to significant risks and uncertainties. Because of these risks and uncertainties and, as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although GlobeStar believes that the expectations reflected in its forward-looking statements are reasonable, we can give no assurances that the expectations of any forward-looking statements will prove to be correct. GlobeStar disclaims any intention, and assumes no obligation, to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise, except as required pursuant to applicable securities laws.

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