Uranium Star Corp.
OTC Bulletin Board : URST

Uranium Star Corp.

September 26, 2007 10:11 ET

Uranium Star Acquires Option for a 50% Interest in Athabasca-Type Unconformity-Gold-Uranium-Copper-Mineralization Property

TORONTO, ONTARIO--(Marketwire - Sept. 26, 2007) - Uranium Star (OTCBB:URST)(FRANKFURT:YE5) is pleased to announce that it has entered into an Option and Joint Venture Agreement (the "Agreement") with Temex Corp. granting Uranium Star the option to earn a 50% undivided interest in Temex's 100% owned Merico Ethel and Yarrow gold-copper-uranium properties located in the Elk Lake area south-east of Timmins, Ontario.

Potential Athabasca-Type Unconformity-Associated Mineralization

The Merico Ethel property, situated near the northern margin of the Paleo-Proterozoic Huronian sedimentary basin, which has recently been recognized by the Geological Survey of Canada for its high potential to host "Athabasca-type" unconformity-associated mineralization (Jefferson et al., 2007), is also host to near-surface uranium mineralization and extensive areas of hematite alteration with grab samples yielding assays up to 1.56% U3O8 and 14.64% Cu. The property also hosts a variety of styles of mineralization including several narrow zones of high-grade, "Cobalt-type" vein systems containing copper, gold, silver, and cobalt mineralization, from which grab samples include assays of up to 22.35 g/t Au, 109.60 g/t Ag, and 23.68% Cu.

The Merico Ethel and Yarrow properties are situated around the margins of the Huronian sedimentary basin. In addition for their potential to host high grade Cobalt-type vein systems containing bonanza gold, silver, etc., Temex recognized the additional potential of the properties to host unconformity mineralization including Athabasca-type uranium deposits. Regional structures such as the Montreal River Fault have clearly influenced the location of mineralization on the Merico Ethel property, and fault reactivation has likely acted to offset the regionally extensive unconformity surface that separates the overlying Huronian sedimentary rocks from the Archean basement to produce excellent structural traps for oxidizing, mineralizing fluids carrying uranium, copper, and gold. The Montreal River Fault is spatially associated with the Archean-age Kidd Creek massive sulphide deposit, the Porcupine and Matachewan gold camps, and the Paleo-Proterozoic Cobalt silver camp.

Exploration and Immediate 3000 Metre Drill Program

A 3,000 metre diamond drill program will begin immediately to test several induced polarization ("IP") chargeability anomalies, including a large northeast trending anomaly with a strike exceeding 1,000 metres and width of up to 800 metres. The source of this IP anomaly is interpreted as a sulphide-related feature at or near the Proterozoic - Archean unconformity. Concurrent with the drill program, a field program consisting of additional line-cutting over the entire Merico property will be carried out, followed by an induced polarization/resistivity ("IP") survey, magnetometer survey, a detailed gravity survey and soil sampling. The IP/resistivity survey will further delineate those anomalies remaining open to expansion and definition and will also be extended to cover the area of the Sauve uranium-copper-gold occurrence located in the north-eastern portion of the property from which grab samples have yielded assays of up to 1.56% U3O8 and 14.64% Cu. Temex will manage the upcoming exploration program.

In order to earn a 50% interest in the properties, excluding the diamond rights, Uranium Star must pay Temex $50,000 on signing and complete $950,000 in exploration expenditures by June 30, 2008. Subject to completing the terms, Temex and Uranium Star will form a 50:50 Joint Venture to further explore the property. Temex retains any diamond rights.

Ian Campbell, President and CEO of Temex commented "We are very pleased to have a company such as Uranium Star working with us on this project and are very excited about the upcoming drill program. The Merico Ethel and Yarrow properties form an integral part of our Latchford Gold Project. They are situated in a very interesting geological environment undergoing new interpretations, thus offering up multiple possibilities for new discoveries."

Kirk McKinnon, President & CEO commented that the Company is very pleased to have underpinned our current portfolio with a quality project like the Merico Ethel Property which hosts the potential for high grade Uranium, Gold and Copper. Equally important Temex has positioned the property for an immediate drill program which provided added incentive for Uranium Star to complete this property deal. We are confident as well that the Temex management and staff possess the experience and knowledge necessary to implement and carry out this exploration program.

Underpinning Shareholder Value

While the Sagar Property in Northern Quebec remains the Company's primary Uranium and Gold exploration target, the addition of the Three Horses Property in Madagascar and now the Merico Ethel Property in Ontario continues to underpin shareholder value and mitigates the risk inherent in all exploration activities. The extensive exploration program at Sagar has been completed and a full report is pending. The company has made provision to ensure the camp at Sagar will be occupied throughout the shut-down period as the company prepares its next major exploration initiative for the Sagar Property.

Uranium Star has applied for and is awaiting Canadian reporting issuer status. Achieving this status is a significant step towards listing on a Canadian stock exchange. As an already NASDAQ listed company, Uranium Star will continue to pursue an additional listing on the TSX Venture Exchange.

Except for historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors effecting the Company's operations, markets, products and prices and other factors discussed in the Company's various filings with the Securities and Exchange Commission.

Contact Information

  • Uranium Star Corp.
    Kirk McKinnon
    President and CEO
    (416) 364-4986 or 1-800-818-5442
    Uranium Star Corp.
    Richard Schler
    Vice President and CFO
    (416) 364-4986 or 1-800-818-5442
    Website: www.uraniumstar.com