Archean Star Resources Inc.
TSX VENTURE : ASP

Archean Star Resources Inc.

April 06, 2012 15:37 ET

Archean Star Announces 0.5 Meters of 42.8 g/t Gold at Gnaweeda

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 6, 2012) - Archean Star Resources Inc. (TSX VENTURE:ASP) (the "Company" or "Archean") announces a 0.5 meter gold intersection grading 42.8 g/t Au in diamond drill hole TB008 that has recently been completed at the Turnberry gold prospect at the Gnaweeda Gold Project approximately 35 km northeast of Meekatharra, Western Australia.

Diamond drill hole TB008 encountered visible gold approximately 270 meters below surface and approximately 230 meters below a 5 meter intersection of 13.49 g/t Au (incl. 1 meter at 20.23 g/t Au) in hole GNRC008. TB008 is located approximately 100 meters north of diamond drill hole TB003, that intersected 3 meters of 8.27 g/t Au and hole GNRC009 that intersected 4 meters at 17.77 g/t Au (incl. 1 meter at 59.27 g/t Au). In addition TB008 is approximately 50 meters north of TB006 that encountered multiple gold intersections within an approximately 41 meter interval, with the highest grade reported being 2 meters at 10.58 g/t gold. To view the map, please go to http://www.archeanstar.com/images/2012Southernhotzone.jpg.

The highest gold grade reported in hole TB008 was a 0.5 meter intersection from 337 to 337.5 meters of 42.8 g/t Au. Due to the presence of visible gold, the assay procedure used was a Metallic Screen Fire Assay on a 1 kg sample. Selected results are tabulated below:

Hole TB008
Intersection in meters
Width Average Grade g/t Au
102.5 - 106.5 3 1.45
126.0 - 131.0 5 0.72
135.0 - 136.0 2 0.68
177.0 - 180.0 3 1.25
182.0 - .184.0 2 0.89
203.0 - 204.0 1 1.34
278.0 - 280.0 2 2.15
295.0 - 296.0 1 3.79
337.0 - 337.5 0.5 42.80

Gold mineralization has now been identified at various depths at the southern part of the Turnberry prospect from near surface to as deep as 270 meters, along a strike length of approximately 150 meters. Mineralization is open along strike and to depth. The 2.5 km long Turnberry prospect contains three distinct highly prospective gold bearing zones each with a potential length of approximately 500 meters.

Diamond drilling is planned at the Far East prospect where there is a strong correlation between significant gold anomalies with multiple intersections of several metres grading 5-10 g/t gold identified from historic RAB drilling, with a pronounced approximately 1 km long north-south Sub Audio Magnetics ("SAM") conductivity anomaly that is virtually coincident with the N-S trend of the gold anomalies. The correlation is especially pronounced in the north of the zone where the anomaly broadens east to west and where the gold anomalies are most abundant and stronger.

Images showing the SAM conductivity data and drilling data can be viewed on the Company's website at www.archeanstar.com/sam.jpg.

The approximately 170 sq km Gnaweeda Greenstone Belt is substantially under explored, with diamond drilling conducted on only two of its four identified gold prospects. Gnaweeda is located in the northeast of the highly prolific Murchison Greenstone Gold Belt and lies approximately 30 km northeast of the nearby 3.59 million ounce Meekatharra gold field that has historically produced approximately 4.5 million ounces of gold, and approximately 10 km south-east of the 329,000 ounce Andy Well gold project. The Murchison Gold Belt has historically reportedly produced over 18 million ounces of gold and where the most current gold resources reportedly identified during recent exploration and historical resource evaluations has increased from approximately 7 million ounces to approximately 10 million ounces during this past two years.

Subject to the approval of the TSX Venture Exchange ("TSX-V"), the Company has repriced 12,450,000 of the previously issued 13,000,000 warrants from $0.18 to $0.12, has amended the terms of the warrant from two years to three years and has deleted the forced conversion clause in the warrants. As insiders of the Company hold more than 10% of the warrants issued, (1,850,000) the insiders are only permitted to have repriced, on a pro-rata basis, 1,300,000 of the 1,850,000 warrants issued that are held by the insiders.

Subject to the approval of the TSX-V, the Company announces the grant of 2,625,000 incentive stock options to Officers, Directors, Employees and Consultants of the Company at a price of $0.075 each, exercisable for a period of five years from the date of grant, and has amended the price of 475,000 previously granted incentive stock options from $0.18 to $0.075, 1,000,000 previously granted incentive stock options from $0.15 to $0.075 and 350,000 previously granted incentive stock options from $0.10 to $0.075.

Archean Star Resources Inc. is a junior exploration company listed on the TSX Venture Exchange that is creating shareholder value by earning, through its wholly owned subsidiary Archean Star Resources Australia Pty Ltd., 100% of Teck Australia Pty Ltd's ("Teck") interest, subject to a 75% back in right, in Chalice Gold Mines Limited's Gnaweeda Gold Project in Western Australia. Teck's interest in the Gnaweeda Joint Venture is now approximately 86.5% as of the end of February 2012. The Company has now expended approximately AUD$2.8 million of the AUD$3 million required to earn 100% of Teck's interest in Gnaweeda. The Company's goal is to identify and develop a one million plus ounce gold resource at Gnaweeda.

This News Release has been prepared on behalf of the Archean Star Resources Inc. Board of Directors, which accepts full responsibility for its contents. The contents of this news release has been reviewed and approved by Dr. Clay Conway, P. Geol., a Qualified Person as recognized by National Instrument NI-43-101 and a director of the Company.

ON BEHALF OF THE BOARD

Graeme O'Neill, President

Neither the TSX Venture Exchange, nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), has reviewed, nor do they accept responsibility for, the adequacy or accuracy of this news release.

Contact Information

  • Archean Star Resources Inc.
    Graeme O'Neill
    President
    (604) 684-3394
    (888) 282-7763 (FAX)
    www.archeanstar.com