Polar Star Mining Corporation

Polar Star Mining Corporation

April 24, 2008 12:31 ET

Polar Star to Acquire Chepica Copper-Gold Mine in Chile

TORONTO, ONTARIO--(Marketwire - April 24, 2008) - Polar Star Mining Corporation (TSX VENTURE:POS)(PINK SHEETS:POSRF) ("Polar Star" or the "Company") announces the signing of an agreement whereby Polar Star will acquire an 85% ownership interest in the Chepica Copper-Gold Mine, Mill and 1,440 hectares of associated mining properties for cash payments totalling approximately US$5.1 million, pending successful due diligence. Polar Star has the option to make such payments over a 12 month period. This acquisition adjoins Polar Star's wholly owned Corinto and Batuco claims. These claims plus the Chepica Mine property total 16,640 hectares in the Pencahue District, Region VII, Chile on which prior exploration by other companies has defined 15 high grade gold and copper-gold zones. The Chepica Mine is scheduled to go into production during the third quarter of this year and will produce a copper-gold concentrate.


- Fully permitted high grade copper-gold mine currently being readied for production within 3-4 months

- Planned initial production of 300 tonnes per day increasing to over 500 tonnes per day by mid 2009

- Aggressive program of diamond drilling and underground exploration planned.

- The curren mine plan covers less than 10% of the known strike length of the four main copper-gold bearing structures.

- SRK Consulting retained to independently qualify the due diligence review and supervise the resource expansion program with a view to preparing a NI 43-101 compliant report


The Chepica Mine property, located 225 kilometers south of Santiago, near the city of Talca, covers the Cerro Chepica high grade copper-gold mining district. It is readily accessible by paved and good gravel road from the city of Talca 20 kilometers to the east.

Property Geology

The Chepica, Corinto and Batuco properties cover a NE-SW trending roof pendent of Cretaceous volcanics, subvolcanic porphyry bodies and sediments within Cretaceous granodiorite. Extensive gold and copper mineralization in the form of epithermal to high level mesothermal veins, pipes and disseminations occur throughout this roof pendent and are generally associated with the sub-volcanic porphyries and healed fault zones. The Chepica Mine property covers at least four silicified and sericitised fault zones varing from 5-30 metres wide and traceable from 300 metres to over 1 kilometer in length.


Gold and copper occur both with banded chalcedonic quartz veins, sheets and stockworks containing disseminated pyrite +/- chalcopyrite and associated with phyllic alteration or colloform banded ferruginous multistage breccia veins and sheets containing pyrite, chalcopyrite, galena and sphalerite associated with sericite - clay alteration containing limonite, hematite and goethite.

Exploration History

Regional exploration by Noranda and others in the early to mid 1990's including geological mapping, stream and soil geochemistry, defined several open ended zones associated with N-NW trending silicified structures on the Chepica Mine property. From early 2001 to late 2003 the current owners with the aid of Chile's state-owned mining company Empresa Nacional de Mineria ("ENAMI") geologists and engineers conducted surface trenching, about 500 lineal metres of drifting, crosscutting and raising on the Chepica No.1 and No.2 "veins". From this work 12 run of mine bulk samples bulk of about 300 tonnes each from the Chepica No.1 and 8 similar samples from the Chepica No.2 were shipped to local plants for processing. Head grades from the Chepica No.1 samples ranged from 1.4-2.4% copper, 0.3-12.2 g/t gold, 7.8-28 g/t silver with a weighted average of 1.6% copper, 3.0 g/t gold and 16g/t silver. Head grades from the Chepica No.2 samples ranged from 2.2-3.2% copper, 2.5-3.4 g/t gold, with weighted average of 2.5% copper and 3.0 g/t gold. (Note that none of the samples from Chepica No.2 were analysed for silver).

NI 43-101 Report

Polar Star has retained the services of SRK Consulting's Santiago office to qualify the due diligence review and prepare a National Instrument 43-101 compliant report on the Chepica Mine acquisition.

Qualified Person

Mr. Terence Walker, M.Sc., P.Geo., is the qualified person within the meaning of National Instrument 43-101. Mr. Walker has reviewed the contents of this news release.

About Polar Star

Polar Star was created to acquire advanced stage exploration properties focusing on gold, copper-gold and uranium. The Corporation's material assets include 17 projects in Chile which are 100% owned covering approximately 136,000 hectares.

Forward-Looking Statements

The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. Accordingly, readers should not place undue reliance on forward-looking statements. For a more detailed discussion of such risks and other factors, refer to Polar Star Mining Corporation's filings with Canadian securities regulators available on www.sedar.com or the Company's website at www.polarstarmining.com.

Share Capitalization:

Shares Outstanding: 31,303,698 as at April 10, 2008.

Business Television Feature:

Polar Star was selected and featured on Business Television in early March 2008. If you missed the show, please click on the link below to watch the full-feature. http://www.b-tv.com/i/videos/PolarStar.wmv.

The Toronto Stock Exchange Venture has not reviewed and does not accept responsibility for the adequacy or accuracy of this release and the information contained herein.

Contact Information