Archean Star Resources Inc.
TSX VENTURE : ASP

Archean Star Resources Inc.

March 29, 2012 12:32 ET

Archean Star Announces Positive Sam Survey Results at Gnaweeda

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 29, 2012) - Archean Star Resources Inc. (TSX VENTURE:ASP) (the "Company" or "Archean") announces that it has recently completed an approximately 10 sq km Sub-Audio Magnetics ("SAM") Survey over five separate locations at the Gnaweeda Gold Project approximately 35 km northeast of Meekatharra, Western Australia.

The SAM survey was conducted over the Bunarra, Turnberry, St. Annes, Far East and Archernar prospects. The Company has received interpretations of the approximately 2 sq km Bunarra survey and the 1 sq km Far East survey.

At Bunarra, the survey has identified two pronounced north-northwesterly striking high conductivity zones over a strike length of approximately 1.5 km, with a number of lesser pronounced zones lying to the west and northwest. Gold mineralization hosted in gabbro, with grades as high as 110 g/t, has been identified by diamond drilling in the approximate center of the eastern high conductivity zone. Due to the proximity and similarity of the two parallel high conductivity zones, the Company believes there is strong potential for gabbro hosted gold along strike in both high conductivity zones.

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

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

High conductivity zones are also evident in the Turnberry, St. Annes and Archernar prospects. The SAM surveys identify important geological features at depth and a pronounced offset of a high conductivity zone is noted at the southern end of the Turnberry zone, which is indicative of a structural discontinuity.

High grade gold intersections have been drilled in three prior identified approximately 500 m long highly prospective zones within the approximately 2.5 km greater Turnberry prospect. The Company is awaiting assays from its most recent diamond drill hole, Turnberry TB008, where a 28 m strongly mineralized interval with visible gold was intersected at a depth between 325 m to 353 m.

The approximately 170 sq km Gnaweeda Greenstone Belt is located in the northeast of the highly prolific Murchison Greenstone Gold Belt and is substantially under explored, with diamond drilling conducted on only two of the four identified gold prospects, and has the potential to host similar size gold deposits to the nearby Meekatharra gold field that has historically produced approximately 4.5 million ounces of gold. Recently, Reed Resources Ltd., an ASX listed company, has updated its reported resources from approximately 3.29 million ounces of gold to 3.59 million ounces of gold and reports that mining operations are projected to commence in late 2012. The Murchison Gold Belt has historically reportedly produced over 18 million ounces of gold and during this past two years the gold resources reportedly identified during recent exploration and historical resource evaluations have increased from approximately 7 million ounces to approximately 10 million ounces.

The Company has accepted the resignation of Mr. Michael England as director of the Company and would like to thank Mr. England for his long-standing support to the Company.

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 have been reviewed and approved by Dr. Clay Conway, P. Geol., a NI 43-101 Qualified Person 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