Alberta Star Development Corp.
TSX VENTURE : ASX
OTC Bulletin Board : ASXSF

Alberta Star Development Corp.

June 05, 2006 14:36 ET

Alberta Star Mobilizes its Drills to the Contact Lake IOCG & Uranium Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 5, 2006) - Alberta Star Development Corp. (the "Company") (TSX VENTURE:ASX)(OTCBB:ASXSF) is pleased to announce that the Company is successfully mobilizing its drills and drilling equipment to the Company's Contact Lake Project. The Company has contracted the services of Connor's Drilling Ltd. and drill crews are expected to arrive and commence drilling of the 2006 diamond drilling program at the Company's Contact Lake and Eldorado IOCG and uranium projects in Canada's NWT. (the "Project), by June 9, 2006. Three Boyles BBS-25A drills are being mobilized to the Project. The Company has contracted the services of Mr. John Camier B.Sc. (Specialist), M.Sc., a principal of South Bay Exploration Ltd., a geological services company of Brandon, Manitoba, to supervise the Company's 2006 diamond drilling program at the Contact Lake and Eldorado IOCG and uranium projects in Canada's Northwest Territories. Tim Coupland, President and CEO, stated, "We can now expect to drill non-stop until late fall, we are on budget and approximately three weeks ahead of schedule with the 2006 Drilling Program due to unusually warm spring season. The Company's camps and supporting infrastructure are now fully operational. We have completed construction of our two base camps, field crews are finalizing the last of the target grids and helicopter air support supplied by Great Slave Helicopters is on site. The Company has secured delivery of all its immediate fuel needs for drilling prior to recent rate increases in fuel prices." Drilling will commence shortly on its high priority IOCG and uranium drill targets at Contact Lake. The Company has targeted 5 strongly anomalous zones with several secondary anomalies within the intensely altered target areas at Contact Lake. The Company is now permitted for over 40,000 meters of diamond drilling in the Contact lake and Eldorado IOCG & uranium districts and has received permission to drill from the Chief Inspector of Mines.

DRILLING 15,000 METER DRILL PROGRAM - CONTACT LAKE IOCG & URANIUM PROJECT

A recently completed interpretation report by Dr. Hamid Mumin of Brandon University, covering the various geophysical data sets and available geological information relating to the Contact Lake property recommended the execution of a comprehensive exploration program for 2006. The 2006 Drilling Program includes additional ground and airborne geophysics such as localized Induced Polarization/Resistivity (IP/Res) geophysics over selected portions of the high-amplitude magnetic anomalies, mapping, line-cutting followed by a comprehensive 15,000 meter drill program at Contact Lake, targeting the high-priority areas. The 2006 Drilling Program provides that the scheduled holes will be drilled to an average depth of 200-500 meters per-hole using a Boyles 25A.

ELDORADO URANIUM BELT - 5 YEAR CLASS "A" DRILLING PERMIT ISSUED-FULLY PERMITTED

The Company has been granted a five year Sahtu Land & Water Board Class "A" Land Use Permit for diamond drilling on the Eldorado IOCG Project. The diamond drilling permit is valid until April 26, 2011. The Company is the only mineral exploration company in over 10 years to receive a Class "A"-5 Year drill permit in the Great Bear Lake Sahtu Dene Land settlement area for mineral exploration and diamond drilling. Alberta Star is fully permitted for over 25,000 meters of diamond drilling in the Sahtu Dene Land Settlement Area at the Eldorado Project.

CONTACT LAKE - 5 YEAR CLASS "A" DRILLING PERMIT ISSUED - FULLY PERMITTED

The Company has been granted a five year Sahtu Land & Water Board Class "A" Land Use Permit for diamond drilling on the Contact Lake Project. The diamond drilling permit is valid until August 24, 2010. Alberta Star is the only mineral exploration company in over 10 years to receive a Class "A"-5 Year drill permit in the Great Bear Lake Sahtu Dene Land settlement area for mineral exploration and diamond drilling. The Company is fully permitted for 15,000 meters of diamond drilling in the Sahtu Dene Land Settlement Area at Contact Lake.

CONTACT LAKE & ELDORADO IRON OXIDE COPPER, GOLD, SILVER AND URANIUM PROJECT

The Contact Lake & Eldorado projects are located on the east side of Great Bear Lake in Canada's Northwest Territories. The projects are situated 670 kilometers north of the city of Yellowknife. The total size of the Contact Lake & Eldorado project and surrounding area is over 51,473.96 acres in size. The Company's mineral tenure in the Eldorado Mineral Belt covers hundreds of known or recorded silver, copper, cobalt, rare earth elements, and uranium occurrences in Proterozoic rock that correlate with rock of other IOCG deposits worldwide (Olympic Dam in western Australia, Kiruna Belt of Sweden). The Eldorado IOCG Project area includes two past producing high grade silver and uranium mines, the Echo Bay Silver Mine which produced 23,779,178 ounces of silver and the Eldorado Uranium Mine which produced 15 million pounds of uranium and 8 million ounces of silver. The Contact Lake Mine is a former past producer of silver and high-grade uranium. The five past producing silver and uranium mines include the Echo Bay Silver Mine, Eldorado Uranium Mine, Contact Lake Silver and Uranium Mine, Bonanza and El Bonanza Silver and Uranium mines and are now included within the Company's land package ownership. The Company is the first mineral exploration company in 75 years to successfully stake, acquire and permit one entirely contiguous land package in this mineral rich region of the Northwest Territories. The Contact Lake and Eldorado Uranium Belt have long been recognized by geologists, as one of the most prospective Iron oxide copper, gold, silver and uranium regions in northern Canada. The current June 5, 2006 spot price for Uranium is now $43.00 US per pound, Copper $3.48 per pound and Gold $641.00 per ounce.

ALBERTA STAR DEVELOPMENT CORPORATION

The Company is a Canadian mineral exploration company that identifies, acquires, finances advanced stage exploration projects in Canada. Alberta Star is focused in the discovery of base and precious metals and uranium.

ALLAN FELDMAN-INVESTOR RELATIONS

Investors are welcomed to contact Mr. Allan Feldman, In-house Investor Relations and Corporate Communications Specialist, for all corporate updates at (604) 948-9663.

ALBERTA STAR DEVELOPMENT CORP.

Tim Coupland, President & CEO

Dr. Hamid Mumim Ph.D., P.Eng. is the qualified person for the Contact Lake project.

This News Release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve that involve various degrees of risk. The following are important factors that could cause Alberta Star's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this News Release.

Contact Information

  • Alberta Star Development Corp.
    Tim Coupland
    President and CEO
    (604) 681-3131
    (604) 801-5499 (FAX)
    www.alberta-star.com