All Star Minerals plc
LSE : ASMO

December 21, 2011 02:00 ET

Acquisition of three resources companies, Australia

                                                                         GB00B12T7004/GBP/PLUS-exn
                                                                                  21 December 2011

                                       All Star Minerals plc
                            ("All Star" or the "Company") (PLUS: ASMO)
                                                 
                        Acquisition of three resources companies, Australia

All  Star Minerals today announces the acquisition of 100% of Circle Resources Pty Ltd ("Circle"),
Jodo Gold Pty Ltd ("Jodo"), and Blue Doe Gold Pty Ltd ("Blue Doe") for A$535,000.

HIGHLIGHTS

Transaction overview

*       Acquisition  of 100% of Circle Resources Pty Ltd ("Circle"), Jodo Gold Pty  Ltd  ("Jodo"),
        and Blue Doe Gold Pty Ltd ("Blue Doe")for A$535,000

*       Acquisition brings seven projects in Queensland, Australia, covering a total of 518 square
        kilometres prospective for gold, silver, copper, phosphate and uranium mineralisation

Outlook
        
*       Assets  to  be  separated  into three distinct corporate entities  with  dedicated  expert
        management and funded through a public market listing

*       Blue  Doe,  Eagle Hawk, and Edward projects currently in the process of being  transferred
        into Blue Doe Gold Pty ahead of public market fundraising in 2012
        
*       Objective  to  utilise  group  expertise  of  finance  and  resource  delineation  to  the
        exploration and development of geologically distinct, separate, quoted companies

        
Conrad  Windham, CEO of All Star Minerals, commented: "We look forward to progressing  a  distinct
group  of precious, base and strategic commodities located on the east coast of Australia  through
three  separately  quoted  entities. All Star will oversee the  initial  stages  of  director  and
professional  appointments to the new corporate entities. We believe that retaining  major  equity
holdings  in  three  quoted  companies will create substantial  value  for  the  Company  and  its
shareholders."


All  Star Minerals has acquired Circle Resources Pty Ltd, Blue Doe Gold Pty Ltd, and Jodo Gold Pty
Ltd, for the cash sum of A$535,000 (five hundred and thirty five thousand Australian dollars),  of
which A$435,000 has been paid at completion, and the balance of A$100,000 is payable by the end of
January 2012.

Circle  Resources owns seven licences in Queensland, Australia, of which five are prospective  for
gold  and silver deposits, and two are prospective for phosphate and uranium mineralization.  Blue
Doe Gold and Jodo Gold have been acquired for the purpose of transferring projects currently owned
by Circle.

The Company is restructuring the assets from each company into distinct synergetic groups. Phase 1
of  this  process is to bring together the Blue Doe, Eagle Hawk, and Edward projects, being  gold,
silver  and  copper  assets  located in close proximity. It  is  the  intention  of  All  Star  to
operationally  staff  and  seek required funding for exploration in the  publicly  listed  vehicle
owning these three projects. The remaining assets, outlined below, will be incorporated into other
quoted  vehicles  for  independent funding. All assets are located in Queensland,  Australia,  and
include commodities such as gold, silver, copper, phosphate and uranium.

THE PROJECTS OWNED BY CIRCLE ARE AS FOLLOWS:

BRILLIANT BRUMBY (gold, silver) - The Brilliant Brumby tenement covers 50.4 square kilometres, and
lies  within  the Pentland District of Queensland. The project area is centred over a  prospective
portion of the Pentland District that includes several historic mines that have recovered precious
metals (gold and silver) from shafts and adits, and advanced prospects that have received sporadic
exploration over the past 25 years. The Brilliant Brumby Mine's total recorded production was  790
ounces from 950 tons of ore.

Mineralization  at  the  Brilliant Brumby Mine is hosted by quartz veining  trending  north-south.
Reconnaissance  and sampling around and to the south of the Brumby working located more  workings,
along  with  a mineralized quartz zone displaying similar characteristics to those at  the  Brumby
Mine.  Sample  results  from this zone (1-1.5 metres x 300 metres) were  anomalous,  ranging  from
0.11g/t to 4.96 g/t gold, and averaging 0.95 g/t gold.

The  Surprise  Mine  located near the northwestern boundary of the tenement  is  a  prospect  that
appears  not  to  have been worked for many years. The workings are of limited strike  extent  but
alteration  exists  over a reasonable width, in the order of 50 metres. The  alteration  zone  was
found to carry 0.16 g/t gold, the quartz 1.07 g/t gold.

- The above information is extracted from a Competent Persons Report prepared by I2M Associates in
March 2011.

BLUE  DOE (gold, silver, copper) - The Blue Doe project area is centered over the most prospective
portion  of  the  Mingela region and includes several polymetallic (silver-bismuth-lead)  historic
mines and advanced prospects which have received extensive exploration over the past 40 years.

There   has   been   the  discovery  and  historical  mining  of  polymetallic  gold-silver-copper
mineralization occurrences both within and around the Blue Doe licence area. The larger historical
deposits  include  Grass Hut (from 1887-1910), which produced 68 kg (2,398 ounces)  of  gold  with
grades of 34 g/t, and Mount Sulphide (from 1934-1940), which produced 1.86 kg (65 ounces) of  gold
with grades up to 29.06 g/t, and 21.21 kg (748 ounces) of silver with grades up to 331.4 g/t.

Within  a  short vicinity of the Blue Doe licence, several other discoveries have been  made.  The
Welcome  prospect has a shallow pit resource of about 250,000 tonnes @ 3.0 g/t gold  estimated  by
North  Queensland Resources. The 1988 announcement by Gold Mines of Kalgoorlie Ltd of an indicated
open  pit resource of 0.63 million tonnes grading 3.1 g/t gold at Althea/Christian Kruck, just  to
the south west of the Blue Doe licence attests to the importance of this area.

More  recent  exploration testing this style of mineralization targeted deposits  surrounding  the
Alex  Hill Shear Zone. Darlrymple Resources held the majority of its tenure directly to the  south
of  the Blue Doe licence and targeted the Alex Hill Shear Zone as a source of gold mineralization.
The  fact  that good occurrences have been discovered within the Blue Doe licence along  the  Alex
Hill  Shear  Zone suggests a very prospective area for gold and related mineralization within  the
Ravenswood Granodiorite Complex to the south.

- The above information is extracted from a Competent Persons Report prepared by Terrasearch.

EAGLE  HAWK  (gold) - Eagle Hawk is a project located in the heart of the Blue Doe  licence  area.
Eagle  Hawk  is  situated on a major East-West trending fault that is interpreted  to  link  Mount
Success  to  the  west  with  Mount Sugarloaf to the east. Each target area  is  characterised  by
numerous sub parallel quartz-carbonate veins with associated clay, chorite and sericite alteration
haloes.  Elevated gold values (2 - 9 g/t) were returned from several of these veins.  One  visible
gold sample was collected returning values of 197.5 g/t. In general the veins located have surface
expression indicating widths of up to 1 metre and maximum strike lengths of 150 metres.

- The above information is extracted from a Competent Persons Report prepared by Terrasearch.

THE ESA AND OVERFLOW - TOGETHER "PLAIN CREEK" (phosphate and uranium) - The Plain Creek project is
situated  in  the  northern part of the Drummond Basin near its margin to the Anakie  Inlier.  The
project covers a total of 226.8 square kilometres. Limited exploration work has been undertaken at
Plain  Creek to date, although one notable anomalous zone has been identified through a rock  chip
sample  having returned a grade of 48,400 parts per million ("ppm") phosphorous, 580 ppm  thorium,
910  ppm  uranium, 2,570 ppm strontium, and 210 ppm lanthanum. A scintillometer reading  of  5,200
counts per second was recorded at the site.

- The above information is extracted from a Competent Persons Report prepared by Terrasearch.

WISHBONE  (polymetallic,  gold,  silver) - The Ukalunda District,  which  is  encompassed  by  the
Wishbone  project, lies at the northern end of the Anakie Metamorphics, which is bounded  by  deep
seated  structures along which much of the Drummond Basin gold mineralization is located. Ukalunda
is  characterised  by  widespread shows of mineralization; a situation  shared  with  many  mining
districts that host major ore bodies. This suggests that the geological setting is permissive  for
a  major  ore  body to be present in the district. The larger historical deposits are the  Sunbeam
Mine,  which  produced 600,000 ounces of silver with grades of up to 37 kg/tonnes, the  Carrington
silver  bismuth mine, and the Pyramid lead silver mine. The Wishbone project area is centred  over
the  most  prospective portion of the Ukalunda District and includes several polymetallic (silver,
bismuth,  lead)  historic mines and advanced prospects which have received  extensive  exploration
over the past 30 years.

- The above information is extracted from a Competent Persons Report prepared by Terrasearch.

EDWARD  (gold,  silver,  copper)  -  The Edward project is located  62  kilometres  south-west  of
Townsville  and 55 kilometres north-east of Charters Towers, and is accessible from  the  Flinders
Highway.  Edward covers ground that is considered prospective for gold and base metal exploration,
and  which  was worked for gold during the 1930's. The project is located in the far north-eastern
part of the Ravenswood Batholith, which has yielded in excess of 280 tonnes of gold, 45 tonnes  of
which  has  been produced since 1974. Edward has a number of historical prospects, one  of  which,
Humes  Workings, includes a vertical intrusive mineralised pipe. Between 1930-1934 Humes  Workings
has  recorded  production  of 3.53kg of gold and 0.8kg of silver from  29  tonnes  of  ore.  Other
historical  sites  are in the Mount Norman area, and include Mine Creek, Little Flower,  and  Slip
Rail.

The Directors of All Star are responsible for the contents of this announcement.

Enquiries:

ALL STAR MINERALS PLC
Conrad Windham, CEO
Telephone: 020 3130 0674
E-mail: c.windham@allstarminerals.com
Website: www.allstarminerals.com

CORPORATE ADVISOR
St Helens Capital Partners LLP
Duncan Vasey or Mark Anwyl
Telephone: 020 7368 6959

BROKER
SVS Securities plc
Ian Callaway or Alex Mattey
Telephone: 020 7638 5600

FINANCIAL PR
Threadneedle Communications
Beth Harris/Laurence Read
Telephone: 020 7653 9850

Contact Information

  • All Star Minerals plc