Eagle Star Minerals Corp.
TSX VENTURE : EGE
FRANKFURT : E6R
PINK SHEETS : ELGSF

Eagle Star Minerals Corp.

January 18, 2011 09:16 ET

Eagle Star Minerals Corp.: Results Up to 44.66% FE2O3 Across 39 Metres, Angico Iron Project, North Eastern Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2011) - Eagle Star Minerals Corp. (TSX VENTURE:EGE)(PINK SHEETS:ELGSF)(FRANKFURT:E6R) ("Eagle star" or "the Company") - Further to its news release dated June 10, 2010 Eagle Star is pleased to provide an update on the recently completed first stage exploration work program at its Angico Iron project in the State of Piaui, North East Brazil. The following work has been completed to date:

  • Ground magnetic survey was completed over specific outcrop areas in the Serra do Cavaleiro (Cavaleiro), Serra do Ó (Serra) and Serrinha blocks.
  • Detailed geological mapping with chip and channel sampling across Banded Iron Formation outcrops ("BIF") in the Serra do Cavaleiro, Serra do O and Serrinha blocks.
  • Trenching on the Serra do Cavaleiro (Cavaleiro) block and scout diamond core drilling consisting of 500 metres (7 holes) was performed on the Serrinha and Serra do Ó blocks.

Excellent results were obtained from systematic chip sampling in two trenches on the Cavaleiro Block. Sampling was carried out at 2 (two) metre continuous intervals across (perpendicular) BIF. The results from the two trenches are as follows:

  Trench 1 44.66% Fe2O3 across 39 metres including 47.27% Fe2O3 across 32 metres
  Trench 2 48.72% Fe2O3 across 22 metres including 51.98% Fe2O3 across 18 metres

Detailed individual assays for the trenches are listed below:

Trench 1

Sample length (m) Width (m) Fe2O3% P2O5% S% SiO2% grade x width Fe2O3%
0 to 2 2 37.66 0.03 <0.001 58.89 75.32  
2 to 4 2 42.12 0.03 <0.001 53.35 84.24  
4 to 6 2 42.27 0.02 <0.001 53.20 84.54  
6 to 8 2 40.71 0.03 <0.001 54.23 81.42  
8 to 10 2 41.99 0.03 <0.001 53.46 83.98  
10 to 12 2 43.62 0.04 <0.001 52.65 87.24  
12 to 14 2 44.84 0.03 <0.001 51.13 89.68  
14 to 16 2 45.90 0.03 <0.001 51.19 91.80  
16 to 18 2 47.85 0.02 <0.001 49.37 95.70  
18 to 20 2 55.10 0.02 <0.001 41.24 110.20  
20 to 22 2 60.61 0.03 <0.001 35.42 121.22  
22 to 24 2 55.35 0.03 <0.001 41.42 110.70  
24 to 26 2 44.53 0.02 <0.001 52.38 89.06  
26 to 28 2 49.62 0.03 <0.001 45.74 99.24  
28 to 30 2 51.92 0.04 <0.001 42.78 103.84  
30 to 32 2 45.80 0.03 <0.001 47.16 91.60  
32 to 34 2 44.10 0.03 <0.001 50.31 88.20  
34 to 39 5 30.77 0.03 <0.001 60.78 153.85  
               
2 to 34 32.00         1512.66 47.27
0 to 34 34.00         1587.98 46.71
0 to 39 39.00         1741.83 44.66

Trench 2

Sample length (m) Width (m) Fe2O3% P2O5% S% SiO2% grade x width Fe2O3%
0 to 2 2 51.90 0.05 <0.001 43.73 103.80  
2 to 4 2 48.83 0.04 <0.001 48.13 97.66  
4 to 6 2 55.50 0.04 <0.001 40.03 111.00  
6 to 8 2 53.42 0.04 <0.001 41.91 106.84  
8 to 10 2 50.98 0.04 <0.001 45.49 101.96  
10 to 12 2 50.04 0.04 <0.001 44.52 100.08  
12 to 14 2 52.62 0.04 <0.001 42.34 105.24  
14 to 16 2 53.28 0.04 <0.001 41.38 106.56  
16 to 18 2 51.29 0.04 <0.001 44.99 102.58  
18 to 20 2 38.29 0.03 <0.001 58.79 76.58  
20 to 22 2 29.80 0.03 <0.001 61.25 59.60  
               
0 to 18 18.00         935.72 51.98
0 to 22 22.00         1071.90 48.72

The iron mineralization trend sampled by the trenches has been traced for at least 8 kilometres on the Cavaleiro block. The geophysical magnetometer surveys and geological mapping with distinctive lack of resistant outcrop suggest the iron formation to be relatively lacking in large percentage of silica. More trenching, large core diamond drilling and/or reverse circulation drilling is required to trace this mineralized trend. The true thickness of the iron formation is not known as the trenches did not completely cross the entire formation. Another trench 50 metres to the south cut at least 50 metres of the iron formation. Systematic chip and channel sampling is being carried out in this trench.

"We are very excited about the results to date from the Cavaleiro block suggesting the presence of very substantial, good grade iron oxide mineralization on our main block covering over 60% of our concessions' area. The work carried out to date focused on as little as 30% of the block's area and demonstrates that the identified iron formation extends at least 8 km in length. Moving forward we intend to delineate the Banded Iron Formation (BIF) with more trenching and large core or reverse circulation drilling to further enhance and to start proving the immense potential of Cavaleiro," commented Eran Friedlander, President and CEO of Eagle Star.

Scout drilling was performed to test the BIF outcrops at depth on the Serra do Ó block and on the Serrinha block. The drilling was designed to decipher the structural deformation fabric of the BIF on the different blocks as well as test the magnetometric anomalies. Drilling intersected BIFs with significant Fe2O3 (iron oxide) mineralization in 4 of the 7 holes. The BIF core samples contain higher percentage of silica than the one sampled on Cavaleiro. Detailed mapping with structural controls is therefore required to target hidden BIFs in areas with lack of resistant BIF outcrops to locate BIFs not resistant to weathering and oxidation. These hidden BIFs will have relatively higher grades than those intersected in drilling. The results from the limited amount of drilling are as follows:

Block Zone Drill Hole From To Width Fe2O3%
Serra do Ó Morro do Ó DDH-2 44.60 m 64.60 m 20.00 m 21.69
Serra do Ó Serra 3 DDH-3 22.50 m 49.60 m 27.10 m 21.14
    including 39.15 m 49.60 m 14.45 m 25.32
Serrinha Morro Alto DDH-5 17.60 m 38.05 m 20.45 m 25.96
Serrinha Serrinha 1 DDH-6 0 m 32.30 m 32.30 m 28.94
    Including 0 m 24.70 m 24.70 m 32.41

The above assay data shows that significant iron mineralization is present in the Serra do O and Serrinha 1 zones as well. Systematic trenching and further large core and/or reverse circulation drilling is required on trends to properly delineate the grade and thickness of the iron formation especially in areas with lack of outcrops.

"It is clear from the size perspective, resource potential and the results presented today that in the next exploration stage our main focus will be the Cavaleiro block whilst we continue detailed mapping and sampling on the other two blocks," added Mr. Eran Friedlander President and CEO of the Company.

This news release was reviewed and approved by Mohan R. Vulimiri, M.Sc., P.Geo., who is qualified person under the NI 43-101 guidelines. Mr. Vulimiri is the senior advisor to the Company with respect to the Company's Angico Iron project.

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 mineral properties in North and South America. The Company's shares are publicly traded on the TSXv under the symbol EGE, Frankfurt Stock Exchange under the symbol E6R.F and on the OTC Pink Sheets under the symbol ELGSF

On behalf of the Board of Directors

EAGLE STAR MINERALS CORP.

Eran Friedlander, President

Forward Looking Statements

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events such as: (a)the likelihood that the property has commercial quantities of iron oside; (b) that the iron formation in certain zones does not have significant percentage of silica; (c) the incremental upside can be significant; and (d) the work program set out can and will be conducted by Eagle Star. Such forward-looking information can include statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of Eagle Star. Risks include our ability to raise financing, geological information resulting in changed plans for exploration, our ability to contract equipment and labor, current economic conditions and iron prices, the state of mineral exploration and mineral prices in general, political risk of having the properties in Brazil and the likelihood that despite promising results of sampling no commercially viable quantities of minerals occur on our properties. These risks and uncertainties could cause actual results and Eagle Star's plans and objectives to differ materially from those expressed in the forward-looking information. Except as required by law, Eagle Star assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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