Archean Star Resources Inc.
TSX VENTURE : ASP

Archean Star Resources Inc.

May 30, 2011 13:43 ET

Archean Star Resources Meets Gnaweeda 2nd Year Expenditure Requirement Early

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 30, 2011) - Archean Star Resources Inc. (TSX VENTURE:ASP) and its wholly owned subsidiary, Archean Star Resources Australia Pty Ltd (together "Archean" or the "Company") report that, with the completion of the 2nd phase of the Bunarra drill program and under the terms of the Option Agreement with Teck Australia Pty Ltd, ("Teck") it has met early the minimum second year expenditure requirement on the Gnaweeda Gold Project, Meekatharra, Western Australia, due October 30, 2011.

Under the terms of the Agreement whereby Archean can earn 100% of Teck's interest in the Gnaweeda Gold Project, the Company is required to spend a minimum AUD$750,000 per year on or prior to each anniversary of the Agreement for four years for a cumulative total of AUD$3,000,000. To date, the Company has spent a cumulative total of AUD$1,527,172.

Under the terms of the Underlying Agreement between Teck and Chalice Gold Mines Ltd ("Chalice"), as of February 2011, Chalice's interest in Gnaweeda has been diluted from 30% to 20.26%. Chalice elected not to participate in the funding for the 2010 – 2011 Joint Venture work program and has also elected to not participate in the 2011 – 2012 Joint Venture work program.

Archean Star Resources Inc. is a junior exploration company that, through its wholly owned subsidiary, Archean Star Resources Australia Pty Ltd, has entered into an Option Agreement, subject to a 75% back in right, to earn 100% of Teck Australia Pty Ltd's ("Teck") interest in Chalice Gold Mines Limited's Gnaweeda Gold Project in West Australia. Kent Exploration Inc. (TSX VENTURE:KEX) with approximately 10,000,000 shares or 35% of the outstanding common shares, is the controlling shareholder of Archean.

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 release have been reviewed and approved by Marvin A. Mitchell, a Qualified Person as defined by National Instrument 43-101.

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