Eagle Star Minerals Corp.

Eagle Star Minerals Corp.

July 25, 2011 12:49 ET

Eagle Star Minerals Corp. Applies for New Phosphate and Potash Claims

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 25, 2011) - Eagle Star Minerals Corp., (TSX VENTURE:EGE)(PINK SHEETS:ELGSF)(FRANKFURT:E6R) ("Eagle Star" or "the Company") is pleased to announce that it has applied for the addition of 18 new mineral claims in the state of Piaui in Northeastern Brazil to the west and north of the Company's Ruth Phosphate Project. Of the 18 applied-for claims, one was found to contain additional phosphates while the remaining 17 have shown to contain potash rock.

Eagle Star's primary sampling process on the new claims was based on spacing of 3km and was focused on phosphate in a certain type of rock, followed up by a more general random sampling process over the entire area. Without a specific target, the random sampling process was carried out as a trial to determine the qualities of the claims, and positively returned indications of potash rocks. Phosphate and potash can sometimes be associated in the same area, but in different beds, as seen in deposits of glauconite in East Otago, New Zealand which can be found with phosphate rocks.

Sampling Results - Phosphates

The newest phosphate claim showed results of 9% P2O5 within an isolated point at similar levels to that observed on the Paes Landim block. Results of the Paes Landim block can be found on Eagle Star's website under the Ruth Phosphate Project.

Sampling Results - Potash

Preliminary field studies show high values of K2O coming from glauconite, which is a potash silicate mineral also known as potash rock. Glauconite contains between 4-8% potassium along with iron, magnesium and aluminum bound together with silica. It has mildly magnetic properties because of its iron content, which can be used to magnetically upgrade rock material to produce pure glauconite concentrates. The best results for K2O came from a white-green siltstone (glauconite), unlike the siltstones in the area known to host phosphate rock. All 12 sample results ranging between 4.04% and 6.19% of K2O were considered anomalous to potash. 6 results were located within the blocks previously claimed by Eagle Star and 6 in the new areas. The best result was detected near the town of São Luiz do Piaui following a rising sequence of K2O sample results from South to North of 1,07%-2,19%-3,51%-6,19% K2O. Since the sampling stopped at this last point, this tendency should suggest high values ahead. Following is a results table of samples taken in the newly claimed areas:

The rock samples were analyzed by SGS Geosol Laboratorios Ltda (SGS) located in Vespaciano, Minas Gerais State, Brazil.

Sample Type SiO2 Al2O3 Fe2O3 P2O5 K2O
61901 SMP 53.5 21.3 10.5 0.256 4.09
61902 SMP 52.4 22.8 9.56 0.349 4.07
61918 SMP 59.7 16.2 10.8 0.222 4.32
61920 SMP 60.7 16.1 10.9 0.178 4.16
61922 SMP 50.8 20.7 12 0.372 4.47
61789 SMP 34.5 6.33 29.2 9.316 1.6
61592 SMP 43.9 28 9.19 0.208 6.19

"In keeping with our drive to become a major producer of fertilizers to aid Brazil's agricultural demands, we are very pleased with the opportunity to add these potash and phosphate claims," says Eran Friedlander, President and CEO of Eagle Star Minerals. "Adding glauconite deposits to our previously acquired phosphate claims provides the company with an additional option to develop directly-applied fertilizer products that could be marketed to the local agricultural industry and beyond at a fairly fast, scalable and low cost manner."


Successfully used as a slow-acting potash fertilizer by direct application, glauconite was historically applied to agricultural fields during the First World War. Due to a shortage of supply in highly-soluble marine potash minerals from Germany, the major source of supply at the time, glauconite quickly rose in usage to meet the demands of the time.

Today, glauconite has had a comeback, evidenced by the number of glauconite projects worldwide, in Brazil in particular. In India within the states of Uttar Pradesh, Madhya Pradesh, Rajasthan and Gujarat, glauconite has recently been used with positive results. The best part of the deposits used showed 6% K2O, which matches that of Eagle Star's potential new claims.

Furthermore, in Brazil, Verde Potash PLC a fertilizer exploration and development company listed on the TSX Venture Exchange has released results of growing trials on a product they call ThermoPotash - a slow-release, non-chloride, multi-nutrient, fertilizer product sourced of potash-rich rock at their flagship Cerrado Verde project in the state of Minas Gerais. As per their release dated May 16, 2011.

"ThermoPotash results were up to 17% better than KCl, confirming its efficiency as a potash fertilizer and demonstrating the superiority of a slow release product. This is great news as it shows that thermo-potash products can compete as direct-spread fertilizers.

The potential for glauconite mining is twofold: On the one hand pure potassium salts can be produced, but on the other hand direct-spread fertilizer products can now be created easily and relatively cheaply in a kiln at around 800 deg C."

To the west of the Minas Gerais State in Brazil there are many ongoing K2O projects on rock formations similar to those found in the proposed Eagle Star K2O claims. In chosen targets, the grades vary from 4% to 10% of K2O, of which some of them are in advanced stage with a dense drilling program. While some of these companies solely focus on the Potash salt route, others, like Verde Potash, are following the thermal route as mentioned before.

Brazilian Fertilizer Needs and Market

Brazil's agriculural sector represents Γàô of its economy, 42% of exportation and 17.7 million jobs. Through an agricultural growth rate that outpaces growth in domestic fertilizer production, Brazil has moved into 5th in worldwide consumption of fertilizers and 2nd in importation. From 1990 to 2010, Brazil's proportion of imported raw materials for domestic fertilizer production has risen from 36% to 80%. Today, Brazil's reliance on potash imports account for 90% of supply.

Due to weather induced crop failures and demand growth from emerging economies, the fertilizer market has had an impact on food prices. Rising potash prices will put pressure on Brazil to grow its own domestic supplies. The federal government has pledged US$5 billion between 2010 and 2014 towards fertilizer development, and enlisted the help of giant Brazilian companies, Petrobras and Vale.

Where sources of P2O5 and K2O concentrations are inadequate for the production of processed soluble fertilizers, grounded raw phosphate rock and glauconite can be applied directly to the soil as an alternative source of fertilizer. Direct application of K2O in the form of glauconite has been tested positively in neighbouring Argentina, with the application of glauconitic sands providing an efficient and economic alternative source of potassium.

"Our goal is to seek a low-cost near-term production plan to bring fertilizers to the Brazilian market in an expedient fashion," says Eran Friedlander. "We are intrigued by the possibilities being put forth through the testing of directly-applied phosphates and glauconite as slow nutrients release fertilizer products."

Quality Assurance, Quality Control and Qualified Persons

SGS is a ISO14001:2004 and ISO 9001:2008 accredited laboratory. The samples were analyzed by fusion with lithium tetraborate-XRF for SiO2, Al2O3, Fe2O3, CaO, MgO, K2O, TiO2, P2O5 and MnO and retained moisture (LOI) by multi-temperature. The MnO results are negligible.

SGS inserts its own standards, blanks and duplicate samples. The results from these control samples indicate acceptable consistency of analysis.

This news release was reviewed and approved by Mohan R. Vulimiri, M.Sc., P.Geo, who is a qualified person under the NI 43-101 guidelines. Mr. Vulimiri is a member of the Eagle Star's Technical Advisory Board and he advises on all technical aspects with respect to the Company's various projects.

About the Company

Eagle Star Minerals Corp. is a Natural Resource company headquartered in Vancouver, British Columbia, focused on the acquisition, exploration and development of agromineral and base metal properties in North and South America. The Company's shares are publicly traded on the TSXv under the symbol EGE, on the OTC Pink Sheets under symbol EGLSF and on Frankfurt Stock Exchange under the symbol E6R.

On behalf of the Board of Directors


"Eran Friedlander"
Eran Friedlander, President

This press release contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performances or achievements of the Company to be materially different from the results, performances or expectations implied by these forward looking statements. Except in accordance with applicable securities laws, the Company expressly disclaims any obligation to update any forward-looking statements or forward-looking statements that are incorporated by reference herein. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.

The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of this news release.

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