Astron Resources Corporation

Astron Resources Corporation

August 16, 2006 16:11 ET

Astron Acquires Advanced Stage Copper Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 16, 2006) -


Astron Resources Corporation (TSX VENTURE:ARC) ("Astron") is pleased to report that it has completed the acquisition of 100% of the outstanding common shares of 607792 British Columbia Ltd. ("607792 BC") in exchange for an aggregate of 17,180,000 common shares of Astron and 4,800,000 special warrants. Each special warrant entitles the holder to acquire one common share of Astron for no additional consideration for a period of 10 years from the closing. An aggregate of 14,516,800 of these common shares and the 4,800,000 special warrants are subject to escrow restrictions in accordance with the rules of the TSX Venture Exchange. Astron also issued 300,000 common shares to Pacific International Securities Inc. as a finder's fee in respect of the acquisition of 607792 BC.

In addition, Astron has completed a concurrent brokered private placement (the "Financing") through Pacific International Securities Inc. (the "Agent") raising gross proceeds of $5,000,000 by the issuance of 5,000,000 units (the "Units") at a purchase price of $1.00 per Unit. Each Unit consists of one common share ("Common Share") of Astron and one non-transferable share purchase warrant ("Warrant"). Each Warrant is exercisable to acquire one common share ("Warrant Share") at an exercise price of $1.50 per share until August 15, 2008. Astron also paid the Agent a corporate finance fee of $10,000 plus GST, a commission of $113,422 paid in cash and 286,578 Units having the same terms as those distributed under the Financing, and 400,000 compensation options that are exercisable into 400,000 common shares of the Company at an exercise price of $1.05 per share until August 15, 2008. All of these securities are subject to a four month hold period expiring on December 16, 2006.

Completion of the acquisition has also resulted in the reconstitution of Astron's board of directors as follows: Brian Kirwin, Giulio T. Bonifacio, Joe Kircher, Foster Wilson and Dwayne Yaretz.

The common shares of Astron are expected to commence trading on Tier 2 of the TSX Venture Exchange under the trading symbol ARC on August 17, 2006.

Pumpkin Hollow Copper Development Property

The principal asset of 607792 BC is a 100% interest in the Pumpkin Hollow Copper Development Property located in Northwestern, Nevada, one hundred miles southeast of Reno. The Pumpkin Hollow property hosts substantial porphyry related copper-iron skarn resources. Recently, a NI 43-101 compliant resource estimate for the advanced-stage development property was completed by an independent engineering firm, Gustavson Associates of Boulder, Colorado.

At a 0.2% cutoff, Gustavson estimated a measured and indicated copper resource of 2.7 billion pounds, in addition to an inferred copper resource of 3.4 billion pounds described as follows:

grade Contained Cu Iron Grade
Classification Tons % (lbs) %

Measured and Indicated 312,063,000 0.44 2,752,000,000 12.3
Inferred 454,021,000 0.37 3,396,000,000 8.2

The resources are located on patented mining claims within a contiguous 7 square-mile land package held by 607792 BC, comprised of patented and unpatented claims. Locally, grades of copper exceed 4% and magnetite grades are over 70%. For example previous drilling on the East and E2 deposits have returned values of 4.47% copper over a true width of 90 feet (USX hole KM18), and 4.2% copper over a true width of 115 feet (USX hole KM44); and in the Northwest deposit, USX hole USS44 returned 4.54% copper over a true width of 173 feet.

Pumpkin Hollow has a well-documented history with over 590,000 feet of drilling completed by several major mining companies including U.S. Steel Corporation ("USX"), Anaconda Copper Corporation, Conoco, Inc. and Cyprus Metals Exploration Corporation. In addition, the project benefits from various levels of historic mine design, metallurgical evaluations and baseline studies that have been completed.

The copper deposits are chalcopyrite-rich magnetite bodies amenable to a mix of open-pit and underground mining methods. Metallurgical testing has given very favorable results with 85% copper recoveries. Based on preliminary examination of the data a by-product of gold, silver and molybdenum is anticipated. The property is accessible by paved road and is located on flat to gently rolling terrain. Pumpkin Hollow is uniquely positioned in an area with excellent infrastructure including power on the property, natural gas supply and railroad siding within 8 miles, and a reliable local labor force.

Development Plan

The focus of Astron's development efforts will be work programs designed to enhance the property's economics, in advance of moving the project into feasibility during 2007. Property development work planned over the next six months is estimated to cost U.S. $1.5 million and will include:

- Data Reconstitution: Consisting of re-assaying previously drilled samples for gold, silver and molybdenum, which for the most part were not assayed in previous drilling programs. The addition of a gold silver and/or a molybdenum credit to the resource estimate would enhance project economics;

- Fill in & Step-out Deposit Drilling: A total of 30,000 feet of drilling is planned. The drilling program will upgrade the classification of resources by shortening the distance between existing drill holes. Step-out drilling will test the potential for additional mineralization in areas down dip and along strike of the known resources that are either under-drilled or completely un-tested; and,

- Baseline Data Collection: This Program will complement the drilling program and consist of metallurgical, hydrological and geotechnical programs to support both permitting and economic studies.

Exploration Plan

Pumpkin Hollow is located in a copper district that is known to host over 16 billion pounds of copper. Several opportunities for resource expansion within Astron's extensive land package have been identified and will be systematically tested. These currently include:

- Significant potential between the high grade East and E-2 deposits in areas of apparent continuity that have not been drill tested;

- Areas between the North and Northwest, and the North and South deposits have not been thoroughly drill tested. The potential to expand the North deposit exists in both directions, potentially connecting the North and South deposits into one. Also, the northwest flank of the South deposit contains an untested magnetic high;

- The northwest flank of the Southeast deposit possesses the possibility of hosting a copper-rich zone of mineralization similar to the hanging wall zone of the South deposit; and,

- Several significantly anomalous surface gold occurrences to the south and west will be drill tested.

The qualified person who is responsible for the preparation of the technical information in this news release is Gregory French, CPG #10708, a Qualified Person as defined in Canadian National Instrument 43-101. Rounding of tons as required by reporting guidelines may result in small apparent differences between tons, grade and contained copper.

About Astron

Astron is a base metal company engaged in the acquisition and development of copper deposits located in the United States. Astron is advancing its Pumpkin Hollow Copper Development Property in Nevada which currently has a measured and indicated copper resource of 2.7 billion pounds, in addition to an inferred copper resource of 3.4 billion pounds.

Astron has 27.0 million shares outstanding and is well financed with no debt. For additional information about Astron please visit our website at


Giulio T. Bonifacio, Director

The information contained herein is not for publication or distribution into the United States. This news release is for informational purposes only and is not intended, and should not be construed, as an offer of securities for sale into the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state laws.

The TSX Venture Exchange has neither approved nor disapproved of the contents of this news release.

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