All Star Minerals plc
LSE : ASMO

January 31, 2011 07:30 ET

Gilpas Radon Results and Progress Report

                                                                            
                                                                                             31/01/2011
        
                                                                              GB00B12T7004/GBP/PLUS-exn

                                       All Star Minerals plc
                              ("All Star Minerals" or "the Company")

                             Gilpas Radon Results and Progress Report

HIGHLIGHTS

    *        Radon  results from the Gilpas uranium project extend the highly anomalous zone  from
        c.6,000 square metres to c.8,000 square metres, and the general anomalous zone from 157,500 square
        metres to 230,000 square metres.
    
    *       Likely bedrock source of boulders hosting up to 29% uranium at Gilpas is now encompassed.
    
    *       Drilling programs for the Gilpas uranium project and the Samon uranium, thorium, and rare
        earth target submitted to the Swedish Mines Inspector.

    *        Drilling at Gilpas scheduled to commence in April with the objective of announcing  a
        maiden JORC indicated resource in the third quarter of 2011.

    *       Drilling at Samon scheduled to commence in May with the objective of understanding the
        bedrock geology and possible uranium, and rare earth mineralization.

    *        Further research at the Samon licence has identified a strong magnetic anomaly at the
        north of the licence over 750,000 square metres, host to a possible magnetite ore body. Further
        exploration work will commence in the coming weeks to define the extension of this magnetite
        target.


All  Star, the Swedish focused uranium and rare earth element exploration and development company,
is  pleased to report the results from its recent radon survey at the Gilpas uranium project,  and
to outline its plans for the development of its project portfolio.

THE GILPAS URANIUM PROJECT

The  Gilpas  uranium  project comprises two contiguous licences that cover a total  of  51  square
kilometres.  Gilpas  is  located  in the Arjeplogg Uranium District,  and  is  situated  in  close
proximity to the Pleutajokk (20km north-west) and Skuppesavon (25km north) uranium deposits,  both
of which have been interpreted to be epigenetic vein-type deposits.

In 1980-1981 two high-grade uranium mineralized boulders were discovered within close proximity of
each  other at Gilpas, both of which returned exceptionally high-grades of 29% (290,000 parts  per
million) uranium. All Star has focussed its exploration work on identifying the bedrock source  of
these  high-grade uranium boulders through undertaking three radon surveys using Alpha Track radon
detector cups, which have now resulted in the likely bedrock source being encompassed.

The  Company  has  used two cut-off readings from the radon gas surveys to delineate  the  bedrock
source  of  the  uranium mineralization. Using a high cut-off of 150 tracks per square  millimetre
(>150  t/mm2), nine anomalous zones have been defined, closely located and extending in  a  north-
west by south-east direction for c.500 metres, and totalling 8,000 square metres.

Significantly,  the  site of one of the boulders that returned a grade of 29% uranium  is  located
directly  at the southern tip of the southern-most zone running >150 t/mm2, whilst the second  29%
uranium boulder is located directly c.125 meters down-ice.

Using a lower cut-off reading from the radon gas surveys of >100 t/mm2 a general anomalous zone is
delineated covering c.230,000 square metres.

CONRAD WINDHAM, CHIEF EXECUTIVE OFFICER, SAID:

"We are delighted with the results returned from the radon surveys at Gilpas, and believe that  we
have  now  enclosed the bedrock source of the high-grade uranium boulders. Although radon  gas  is
mobile,  the thickness of the glacial till overlying the bedrock is only estimated at up  to  five
metres, which gives us a strong assurance that the anomalies returned from the radon surveying may
portray the bedrock uranium mineralization.

We  have submitted plans for an initial 500 metre drilling program at Gilpas to the Swedish  Mines
Inspector.  The  drill  program  will test 50 selected points to  the  bedrock/glacial  overburden
interface.  Where positive results are identified from onsite scintillometer readings  of  sampled
material, further diamond drilling of bedrock will be tested.

This  initial drill program will enable us to understand the grade of uranium we are  looking  at,
the  thickness of the mineralization, and, if sufficient positive results are obtained, enable  us
to report a maiden indicated JORC resource.

Our timetable is to receive permission to drill from the Mines Inspector during the first quarter,
with  drilling  to commence in April, and results and the maiden JORC indicated resource  reported
during the third quarter.

Our  knowledge of the Gilpas project gives us the confidence that it will prove to  be  a  company
maker.  Due to the uranium mineralization being at bedrock surface, coupled with the grade we  are
targeting,  the economics of the project could be superb. We look forward to keeping  shareholders
informed over the coming weeks of progress at Gilpas."

THE SAMON URANIUM AND RARE EARTH PROJECT

Samon  is  a  28  square  kilometre  licence, located 20 kilometres  north-west  of  the  Jokkmokk
municipality.  Recent  research  undertaken by the Company  suggests  that  the  licence  has  the
potential to host two completely separate deposits.

The  first  target  lies  at  the south of the licence in an area of high  radioactivity,  and  is
targeting uranium, thorium, and rare earth mineralization. To date, this target zone has hosted  a
boulder that has returned grades of 0.05% uranium and 3.5% thorium, as well as phosphates of  rare
earths,  including  cerium  and  yttrium. The target at the  south  of  the  Samon  licence  is  a
carbonatite.

Carbonatites  are  very  rare and unique rock types, which host most of  the  largest  rare  earth
element deposits in the world such as the Bayan-Obo mine in China, the largest rare earth mine  in
the world, and the Mountain Pass mine in California, America.

The  Company  has submitted a drilling program to the Mines Inspector of Sweden  with  a  view  to
undertaking  bedrock interface sampling, which will enable it to have a far clearer  understanding
of the bedrock geology and possible mineralization.

The  second  target  lies at the north of the licence where the Company has  discovered  a  strong
magnetic  anomaly  across a continuous area of 750,000 square metres, which it  believes  has  the
potential to host a magnetite deposit. Further work is planned to commence in the coming weeks  to
define the extension of this magnetite target.

CONRAD WINDHAM, CHIEF EXECUTIVE OFFICER, SAID:

"I  am  pleased that we will be commencing work on the Samon licence, and understanding more about
the geology of the two targets now identified at the licence."

The Directors of All Star are responsible for the contents of this announcement.

Dr  Jan  Ola  Larsson  (Fil. Kand, PhD, DIC) has reviewed and approved the  technical  information
contained  within  this  announcement in his capacity as a qualified person.  Dr  Larsson  is  the
Company's  Chief Geologist, and has over 30 years relevant experience within the natural resources
sector.

ENQUIRIES:

Company

All Star Minerals Plc
Conrad Windham, CEO
Telephone: 020 3130 0674
E-mail: c.windham@allstarminerals.com
Website: www.allstarminerals.com

Corporate Advisor

St Helens Capital Partners LLP
Duncan Vasey or Mark Anwyl
Telephone: 020 7368 6959

Contact Information

  • All Star Minerals plc