All Star Minerals plc
LSE : ASMO

November 12, 2013 02:00 ET

Acquisition of New Project

12 November 2013
                                                 
                                                 
                                       ALL STAR MINERALS PLC
                                   ("All Star" or "the Company")


                                    ACQUISITION OF NEW PROJECT


All Star is pleased to announce that it has acquired a new project in North-West Queensland called
The Big One. The cost of the acquisition is Aus$150,000, of which Au$10,000 has been paid to date,
with the balance of Au$140,000 payable upon the satisfaction of conditions precedent being met  by
the vendor pertaining to the sale of The Big One.

LOCATION

The  Big  One  is  a  copper  project  with a mining lease covering  320  acres  in  North-Western
Queensland.  The  project is located in a region with an abundance of base  metal  mineralisation,
being  approximately 100 kilometres North-West of Glencore's Mount Isa Mines and  approximately  20
kilometres South-East of CST Mining Group's Lady Annie copper mine, as well as a number  of  other
operating mines and deposits.

GEOLOGY

The  Big  One  is  situated on a North-East striking fault structure, which lies  subparallel  and
approximately  11  kilometres from the Mount Gordon Fault Zone. The deposit  lies  in  the  Myally
Subgroup  within  the  dolomitic,  feldspathic sandstones and siltstones  of  the  Upper  Lochness
Formation  and  the  feldspathic  quartzites and sandstones  of  the  Whitworth  Quartzite.  Fault
structures stand proud as hills above the lower lying unfaulted sediments.

The outcropping mineralisation at The Big One is predominantly copper lode within vesicular basalt
of  a  fault gouge. The dominant copper mineralisation is malachite, whilst chalcocite and azurite
are also present.

HISTORY

In  1997, 4,000 tonnes were mined at an average copper grade of 4% through rough selection of ore.
However, mining was ceased due to the average cost of production being around US$2,000 per  tonne,
which resulted in the operation breaking even.

KNOWN RESOURCE

Historic drilling of 29 holes to an average depth of around 18 metres below surface has determined
that 59,000 tonnes of copper bearing ore is in-situ. Based on a conservative copper grade of 2.2%,
being  the average grade from the drilling programme - at least 1,298 tonnes of ore are  in  place
(non-JORC), which at a price of US$7,000 per tonne equates to an in-situ value of US$9 million for
the known copper content of the ore body.

Post  analysis of the 29 holes, it was determined that the higher grade portions of the lode  were
located  to  the Eastern end of the deposit, where no drilling had taken place. As a  result,  the
directors of the Company are confident that the known ore body should average at least 4%  copper,
in  line  with  what  rough  selection of ore achieved from production in  1997.  Should  this  be
confirmed  then the in-situ value of the known copper content of the ore body would, at  a  copper
price of US$7,000 per tonne, be worth US$16.52 million.

Of  further significance, copper mineralisation was present at the greatest depth drilled, and  it
is  believed  a  potential leached zone exists below the known supergene.  In  addition,  a  large
gossanous  outcrop  is  located  a couple of hundred metres from the  outcropping  mineralisation.
Gossans  can  be  the  upper and exposed part of an ore deposit, and is an  additional  target  to
potentially  expand  the resource, along with drilling to depth to target  the  potential  leached
zone.

From  its analysis to date, the Company is confident that the deposit is considerably larger  than
what is shown from past exploration.

PLANNED DEVELOPMENT

Prior  to the signing of the purchase contract, All Star has been working alongside a local mining
contractor who, following a site visit, has confirmed that production of the known resource at The
Big One can commence within six months of completing the acquisition.

Discussions have also been held with the General Manager of Mount Cuthbert Copper Refinery who has
indicated a willingness to purchase all ore produced subject to various terms and conditions.

All  Star is now in the process of developing a Plan of Operations that will be submitted  to  the
Queensland Department of Mines for approval. It is anticipated that approval will take two  months
following submission. Once this plan is approved minor remediation work will be undertaken to  the
local road network ahead of production start-up.

A  mobile  plant  will be put in place at the mine site to ensure that the copper bearing  ore  is
crushed to an acceptable size. At a later stage the Company will examine the feasibility of adding
further enhancements to the plant that will enable it to produce a higher quality product, thereby
minimising transport costs and providing the company with a higher net return.

COMMENTING, TOMAS NUGENT, CHAIRMAN, SAID:

"We  believe  that this could prove to be a game changing opportunity for All Star.  We  recognise
that  there has been a shift in investor thinking over recent years to wanting to see evidence  of
production and cash flow, rather than regular cash calls to progress exploration projects. The Big
One  should  ensure  that  All Star moves from being a grass roots exploration  company  to  being
profitable  over  the  coming  months. This will ensure that it can self-finance  its  exploration
opportunities, but also expand its portfolio of producing assets."

CONRAD WINDHAM, CHIEF EXECUTIVE OFFICER, ADDED:

"We  are  delighted to have secured this opportunity for All Star. We have long  been  seeking  to
acquire a near-term producing asset such as The Big One, and this opportunity ticks all the  boxes
for us, in particular having an attractive known resource and being in close proximity to a number
of profitable mining operations.

The  immediate objective is now to complete the acquisition of The Big One and submit the Plan  of
Operations to the Queensland Department of Mines for approval.

In  addition to The Big One we are also assessing other high-grade copper deposits in the vicinity
of The Big One.

We  are  very  much  of  the belief that the addition of approved mining leases  with  near  ready
production potential could prove to be a transformational acquisitions for the Company."

The Directors of the Company accept responsibility for the contents of this announcement.

ENQUIRIES:

All Star Minerals plc
Tomas Nugent, Chairman
Conrad Windham, CEO
01366 500722

Corporate Adviser

Peterhouse Corporate Finance Limited
Guy Miller / Mark Anwyl
Telephone: 020 7220 9796

Contact Information

  • All Star Minerals plc