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

Eagle Star Minerals Corp.

June 07, 2012 11:26 ET

Eagle Star Minerals Identifies Mineralized Phosphate Package of at Least 7 Meters in Thickness at Canabrava Block

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 7, 2012) - Eagle Star Minerals Corp. (TSX VENTURE:EGE)(PINKSHEETS:ELGSF)(FRANKFURT:E6R) ("Eagle Star" or "the Company") is pleased to announce that they have identified a mineralized phosphate package of at least 7 meters thickness within the Canabrava Block (Ruth Project).

The mineralization was identified through follow-up sampling of the best results obtained in the regional reconnaissance program announced in the Company's June 16th 2011 press release.

The area is located less than 20km to the north of Picos, the third largest city of Piauí State, Brazil. The area shares the same infrastructure as the other concession blocks of the Ruth Project, including close proximity to large agricultural centers and railroads.

The Canabrava Block is 100% owned by the Company and covers 23,169 hectares across 12 claims.

Regional results

The regional reconnaissance program carried out at the Canabrava Block generated 28 chip samples the results of which encouraged the team to perform channel sampling to identify possible presence of mineralized phosphate packages. Best chip sample results from the regional program are shown below:

POINT
ID
ELEV. SAMPLE ROCK
CODE
P2O5
(%)
SiO2
(%)
Al2O3
(%)
Fe2O3
(%)
CaO
(%)
K2O
(%)
BGR01B 269 80002 FOS 5.84 41.40 6.44 33.10 7.73 1.44
BGR01C 268 80003 SLT_B 4.97 36.20 8.44 32.30 6.70 1.53
BGR02A 298 80004 SLT_B 2.60 34.20 5.53 41.90 3.32 1.30
BGR02B 299 80005 SLT_B 3.62 37.90 7.33 35.00 4.43 1.49
Note: Although collected to be representative of the sampled unit, due to the nature of regional rock sampling they do not form specific widths and should be considered grab samples. Consequently, they may be to some degree selective and may not be representative of mineralized units.

Geology of Canabrava

Within the concession block are rocks of the Cabeças and Pimenteiras Formations. The identified mineralization is associated with a package of at least 7 meters thickness where seen on the surface at the upper contact of the Pimenteiras Formation and extends laterally over 13 kilometers. This package is also still open at depth and the Eagle Star team is currently in the process of outlining drill targets and detailing a systematic drilling campaign that will determine its extent at depth. The material is characterized by an intercalation of light colored siltstone (friable) and purple to brownish phosphorite (compact, hard, and dense). The phosphorite layers (total of 9 within the package) have a thickness varying from 10 to 20 centimeters totaling approximately of 1.5 - 2 meters.

To view channel sample taken from mineralized package please click on the following link: http://media3.marketwire.com/docs/EGE0607a.pdf

Results from follow up program and further work

A follow-up program based upon regional results generated 87 channel samples (1 meter average thickness) and 3 chip samples (phosphorite). Channel sampling was carried out over the 13 kilometers in which the package outcrops.

As shown by the first batch of results (49 pending results), the individual phosphorite layers vary in grade from 4.5% and reaching up to 12% P2O5 while the channel samples (phosphorite + siltstone) at 1 meter basis reached up to 3.8% P2O5.

Analytical work was conducted by SGS Geosol Laboratórios Ltda. in their Vespasiano facility in Brazil. SGS Geosol is an ISO certified laboratory and as part of the SGS group of laboratories is widely recognized as an expert in geochemical analysis and assaying.

Due to the significant differences in hardness, density and P2O5 content between the phosphorite and the siltstone, Eagle Star will carry out tests to verify the possibility of separating the material in the early stages of beneficiation and as a means to facilitate upgrading of the ore. Technological tests will also be performed to verify the possibility of using the siltstone as natural fertilizer (see image: http://media3.marketwire.com/docs/EGE0607b.pdf).

POINT
ID
ELEV. SAMPLE
ID
SAMPLE
TYPE
ROCK
CODE
SAMPLE
WIDTH
(m)
P2O5
(%)
SiO2
(%)
CaO
(%)
K2O
(%)
CBG01 279 80209 Channel Rit_M 1.00 1.73 22.00 1.68 1.05
CBG03 280 80218 Channel Rit_M 1.30 1.72 53.70 2.09 2.09
CBG08 290 80228 Channel Rit_M 1.00 3.82 44.50 5.28 1.67
CBG08 290 80233 Chip FOS - 12.41 27.90 15.80 1.09
CBG08 290 80234 Chip FOS - 8.05 38.20 9.96 1.37
CBG08 290 80235 Chip FOS - 4.47 42.00 5.07 1.45
CBG05 297 80243 Channel Rit_M 1.00 1.84 45.00 2.52 1.99
CBG05 297 80244 Channel Rit_M 1.00 1.61 57.90 2.12 2.05
CBG04 327 80236 Channel Rit_M 1.00 2.00 48.80 2.54 1.69
CBG04 327 80238 Channel Rit_M 1.00 1.60 46.60 1.96 2.05
CBG06 240 80245 Channel Rit_M 1.00 1.69 22.30 2.11 1.42
Note: RIT_M represents mixed material of phosphorite and siltstone.

In parallel, the company intends to continue field work by way of pit opening to obtain comparative results to the channel sampling. The material excavated will be bulk sampled at every meter and channel samples from each wall of the pit will be collected to verify the existence of lateral continuation of P2O5 content.

Solubility tests over the phosphorite are to be conducted by the certificated METAGO laboratory in Goiânia, Goiás state.

Conclusions

The results obtained from the first batch of analysis and the possibility of upgrading the material has encouraged Eagle Star to commence preliminary separation experiments, as well as solubility tests of the phosphorite. While the separation process should reduce resources, it will also increase considerably, the grade and homogeneity of the material fed to the beneficiation plant.

"A mineralized package of this size, containing grades of up to 12% and extending laterally over a long distance (13 kilometers long), could be significant especially when considering its proximity to the main agricultural districts of Brazil. Assuming we are able to prove the feasibility of the proposed separation process then we might just have in our hands a very lucrative opportunity from an economic standpoint. We are very excited," commented Dr. Guimarães Campos, Eagle Star's expert on phosphate and a member of the Company's board.

John Harrop, P.Geo, FGS, of Coast Mountain Geological Ltd., a qualified person under NI 43-101, reviewed and approved the technical disclosures of this press release on behalf of the Company.

About the Company

Eagle Star Minerals Corp. is a publicly listed company focused on the acquisition, exploration and development of agro-mineral properties in Brazil. Over the past two years, Eagle Star Minerals has strategically grown its' presence in Brazil and continues to focus on maximizing shareholder value by acquiring assets located in geological areas known for proven phosphate mineralization, coupled with good logistics in close proximity to agriculture.

The Company's shares are publicly traded on the TSX Venture Exchange under the symbol EGE, on the OTC Pink Sheets under the symbol ELGSF and on Frankfurt Stock Exchange under the symbol E6R.

On behalf of the Board of Directors

EAGLE STAR MINERALS CORP.

Eran Friedlander, President

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

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