Archean Star Resources Inc.
TSX VENTURE : ASP

Archean Star Resources Inc.

January 23, 2012 09:00 ET

Archean Star to Acquire Rice Lake Manitoba Greenstone Gold Belt Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 23, 2012) - Archean Star Resources Inc. (TSX VENTURE:ASP) ("Archean" or the "Company") reports that it has entered into indicative proposals to enter into two agreements to acquire a 100% interest in fourteen claims totalling approximately 2,662 hectares (26.62 sq/km) in the Rice Lake Greenstone Gold Belt in south-eastern Manitoba. The claim groups either abut, or are otherwise bordered by San Gold claims or claims optioned by San Gold, located to the south-west of, or to the north-east of, the San Gold Rice Lake gold mine.

The Manitoba Rice Lake Greenstone Gold Belt lies approximately 80km to the west of the Red Lake Gold Camp and approximately 150km to the north of Winnipeg, MB, and shares many geological similarities with Ontario's Red Lake Greenstone Gold Belt.

The Johann claim group consists of four contiguous claims and is immediately to the north of San Gold's "Hinge Zone", that has recently been drilled, and to the west of the historic "Jeep Mine", that San gold has optioned from Wildcat Exploration Limited ("Wildcat") . In prior news releases San Gold has reported significant gold interesctions in drill holes approximately 1km south of the Johann claims.

The Beverley claim group consists of 9 contiguous and one separate claim that lie west south-west of the San Gold mine and south of the Mike Power claims that San gold has optioned from Wildcat. Wildcat reports that San Gold has advised it has commenced a diamond drill program on the Mike Power property, that abuts or borders the Beverley claims.

On the now Beverley 10 claim, in an historic assessment report filed with the Manitoba Department of Mines, Resources and Environmental Management, 23 rock samples were taken between 1974 and 1976 over an approximately 33 meter section of a quartz vein striking south-west to north-east in the approximate center of the claim and were submitted for assay.

Of these rock samples, four assayed in excess of 1 oz/t Au, namely 4.26 oz/t, (143.6 g/t) 3.98 oz/t, (136.43 g/t) 2.57 oz/t (88.1 g/t) and 1.84 oz/t (63.08 g/t), seven samples assayed between 0.3 oz/t Au and 1.0 oz/t Au, namely 0.87 oz/t, (29.82 g/t) 0.64 oz/t, (21.94 g/t) 0.62 oz/t, (21.25 g/t) 0.58 oz/t (19.88 g/t) 0.41 oz/t, (14.05 g/t) 0.31 oz/t, (10.63 g/t) 0.30 oz/t (10.28 g/t) of the balance of the sample, four samples graded between 0.14 oz/t AU to 0.30 oz/t Au, namely 0.28 oz/t (9.6 g/t) 0.18 oz/t (6.17 g/t) 0.16 0z/t) 95.48 g/t) and 0.14 oz/t ( 4.8 g/t), while the remainder graded less than 0.1 oz/ton (3.42 g/t).

The terms of the proposals for the Johann claims are:

  • the payment of $40,000, as to $20,000 upon the singing of the Agreement and $20,000 payable on or before six months of the signing of the Agreement; and
  • subject to the approval of the TSX Venture Exchange, 150,000 common shares of the Company, payable as to 75,000 common shares upon signing the Agreement and 75,000 Common shares on or before six months from signing the Agreement; and
  • a work commitment over two years from the signing of the Agreement as to $150,000 during the first year of the Agreement and $150,000 during the second year of the Agreement.

The proposal calls for a 2% NSR, of which the entire 2% can be purchased for $1,500,000 within two years of the anniversary of the Agreement.

The terms of the proposals for the Beverley claims are:

  • the payment of $150,000, as to $37,500 upon the singing of the Agreement, $37,500 payable on or before six months of the signing of the Agreement and $75,000 payble on or before the first anninversary of the agreement; and
  • subject the approval of the TSX Venture Exchange, 300,000 common shares of the Company, payable as to 150,000 common shares upon signing the Agreement and 150,000 Common shares on or before the first anniversary from signing the Agreement; and
  • a work commitment over two years as to $250,000 during the first year of the Agreement and $250,000 during the second year of the Agreement.

The proposal calls for a 2% NSR, of which the entire 2% can be purchased for $1,500,000 within two years of the anniversary of the Agreement.

The Company has paid to each of the vendors a non-refundable deposit of $5,000 that will be applied to the claims payment upon the signing of the Agreement(s). Finder's fees may be payable in accordance with the policies of the TSX Venture Exchange.

In an Research Report dated September 2006 by analyst John Lee of Goldmau, Rice Lake is compared to the Red Lake Mining District of Ontario and the Report conclusions are that the Rice Lake Gold Belt, with historic production in excess of 2,000,000 ounces of gold, is a vastly under-explored greenstone gold belt with the potential to host high-grade gold deposists on a par with the major gold districts of North America. Judging by the recent bonanza gold discoveries recently announced by Bison Gold and the ongoing results reported by San Gold in their recent news releases, the Company is of the opinion that the Rice Lake Gold Belt is now being recognized as a significant gold exploration district.

Subject to the approval of the TSX Venture Exchange, the Company has extended the expiry of 5,060,334 warrants due to expire January 29, 2012 to April 29, 2012.

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 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 22% 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. This news release has been reviewed by Dr. Clay M. Conway, Ph.D., 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