Abbastar Resources Corp.

Abbastar Resources Corp.

January 27, 2010 09:15 ET

Abbastar Provides Update on Talbot Lake Gold Project, Northern Ontario

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 27, 2010) - Abbastar Resources Corp. ("Abbastar" or the "Company") (TSX VENTURE:ABA) is pleased to provide an update on the Talbot Lake gold project (the "Project") located in northern Ontario. Abbastar has the right to earn a 100% interest in the Project from Denison Mines Inc., subject to a 2% NSR, upon expenditures of $7,000,000 over 8 years.

Since the New Year the Company has been very active choosing the appropriate contractors and organizing related logistics to carry out an aggressive 5000 metre drill program at Talbot Lake. Management has proposed a first phase program and budget which envisions a start date within the next 2-3 weeks and continuing for the next 3 months.

In conjunction with the drill program planning, Abbastar has also initiated communication with Eabametoong First Nation. The Company recognizes the importance of a mutually beneficial, co-operative and productive relationship on the traditional lands of the First Nation people. We also realize that mineral exploration must contribute to the benefit of all stakeholders involved. Abbastar looks forward to working cooperatively with the Eabametoong First Nation, other First Nations and local communities of the area on our Talbot Lake GOLD Project. The Company is focused and committed to Northwestern Ontario and has always accepted responsibility for strong community relations. Based on principals of trust, good faith and mutual respect, we look forward to building a strong relationship to realize the benefits and opportunities from the mineral exploration industry.

"The Company is extremely excited to get started on our first phase drill program at the high grade Talbot Lake gold deposit," commented John B. Good, President and CEO. "Given the strong market demand for gold, this project has become a very important and valuable asset in the growth of Abbastar."

The Talbot Lake gold project hosts the "Main Zone" gold deposit which was discovered by Placer Dome in 1985 and acquired by Denison Mines in 1998. It consists of an East-West striking and vertically dipping quartz vein containing visible gold, pyrite, chalcopyrite and sphalerite. Channel sampling by Denison yielded a weighted average grade of 13.8 g/t Au over a width of 3.3m. One channel over a width of 1.8m yielded a spectacular value of 120.0 g/t Au. The gold deposit extends for a depth of approximately 200m and remains open. The following are some significant drill hole intersections by Placer Dome from the "Main Zone"; 16.4 g/t Au over 7.6m, 37.2 g/t Au over 2.5m, 26.9 g/t Au over 2.9m, 7.5 g/t Au over 7.5m. (source: Resident Geologist, Ministry of Northern Development and Mines, Thunder Bay).

Exploration on the Talbot Lake gold Project is carried out under the supervision of Aubrey Eveleigh, P.Geo., qualified person under NI 43-101. Mr. Eveleigh has reviewed and approved this news release. The historical assays have not been verified and as such should not be relied upon. Abbastar plans to immediately complete an NI 43-101 Technical Report with respect to the Project.

On behalf of the Board,

John B. Good, President & CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Abbastar Resources Corp.
    Mr. John B. Good
    President & CEO
    (604) 537-0004
    Abbastar Resources Corp.
    Mr. Morgan Good
    Investor Relations
    (604) 715-4751