Globestar Mining Corporation

Globestar Mining Corporation

February 25, 2008 09:00 ET

GlobeStar Mining Corporation: Update on Mineral Resource Estimate for Cumpie Hill Nickel Laterite Project in the Dominican Republic

TORONTO, ONTARIO--(Marketwire - Feb. 25, 2008) - GlobeStar Mining Corp. (TSX:GMI) ("GlobeStar" or the "Company") is pleased to announce the completion of a technical report, compiled in accordance with Form F1 of National Instrument 43-101 ("NI 43-101"), that discloses an update to the company's Cumpie Hill nickel laterite project resources with the incorporation of a new resource estimate for the Loma Mala Sector.

The Loma Mala sector forms the western mineralized part of the Cumpie Hill nickel laterite project. (see An Inferred Resource of 0.7 million tonnes ("Mt") grading 1.5 % nickel ("Ni") was estimated in the Loma Mala sector at cut-off grade of 1.0 % Ni by Snowden Mining Industry Consultants Inc. ("Snowden") (see Table 1, below).

The mineral resource estimate for the total Cumpie Hill Nickel laterite project including the estimate for the Cumpie Hill sector (see press release of November 29, 2007) and the new estimate for the Loma Mala sector (see above) is an Indicated Resource of 3.0 Mt grading 1.49 % Ni and an Inferred Resource of 3.2 Mt grading 1.5 % Ni, both estimated at a cut-off grade of 1.0% Ni. At a cut-off grade of 0.9 % Ni, the Indicated Resource is 3.4 Mt grading 1.43 % Ni and the Inferred Resource is 3.7 Mt grading 1.4 % Ni (see Table 2).

GlobeStar continues its program to expand nickel resources in the Dominican Republic. The Company will investigate all metallurgical and mining options to maximize shareholder value with the nickel resource.

GlobeStar discovered nickel at Loma Mala in December 2006 (see press release of February 9, 2007) and finished a regular-spaced drilling program in September 2007. The mineral resource estimate for Loma Mala was generated by Snowden, and is based on the results of 30 HQ-sized drill holes, nominally spaced on 71 m centres and completed between December 2006 and September 2007 ( The Cumpie Hill project is adjacent to the Falcondo nickel laterite mine and 8 kilometers from Falcondo's nickel smelter.

Summary of the Mineral Resource Estimates:

Table 1
Loma Mala Sector February 2008 Mineral Resource Estimate

Cut-off Tonnage Ni Co Fe2O3 SiO2 MGO
Classification (%Ni) (Mt) (%) (%) (%) (%) (%)
Inferred 0.8 1.0 1.3 0.05 25.5 37.0 19.4
0.9 0.9 1.4 0.05 25.2 37.4 19.2
1.0 0.7 1.5 0.05 24.4 38.1 19.6
1.1 0.6 1.6 0.05 23.4 38.8 20.1
1.2 0.6 1.6 0.05 22.8 39.3 20.4
1.3 0.5 1.7 0.05 22.8 39.2 20.5
1.4 0.4 1.8 0.05 22.3 39.8 20.7

Table 2
Cumpie Hill Nickel Laterite Project February 2008 Mineral Resource Estimate
(Cumpie Hill and Loma Mala Sectors)

Cut-Off Tonnage Grade Contained Ni
Classification (% Ni) (Mt) (% Ni) (kt)

Indicated 0.8 3.7 1.38 51
0.9 3.4 1.43 49
1.0 3.0 1.49 45
1.1 2.6 1.55 41
1.2 2.3 1.61 37
1.3 2.0 1.67 33
1.4 1.7 1.72 30

Inferred 0.8 4.1 1.3 53
0.9 3.7 1.4 52
1.0 3.2 1.5 48
1.1 2.7 1.5 41
1.2 2.3 1.6 37
1.3 2.1 1.6 34
1.4 1.7 1.7 29

Details of mineral resource estimation methods, parameters, and assumptions used for Loma Mala will be described in the NI 43-101 technical report, which will be released and filed to SEDAR shortly. A summary of these methods, parameters, and assumptions is provided below:

- Mineral resources which are not mineral reserves do not have demonstrated economic viability.

- The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

- It is uncertain if further exploration will result in upgrading the Inferred mineral resource to an Indicated or Measured mineral resource or the Indicated mineral resource to a Measured Resource category.

- Reported mineral resources have been rounded and this may have resulted in minor discrepancies.

- The most likely cut-off grade for this deposit is not known and will need to be confirmed by the appropriate economic studies.

- The mineral resources were estimated by ordinary kriging into three-dimensional block models that identify the limonite, soft serpentine, hard serpentine, and serpentinized peridotite horizons within the laterite profile.

- Sample preparation was undertaken at the Falcondo Mine Laboratory, Dominican Republic and at ACME Laboratory in Maimon, Dominican Republic.

- The majority of the samples were analysed by SGS Lakefield, Canada. A small proportion were analysed by the Falcondo Mine Laboratory, Dominican Republic.

- Full quality assurance and quality control procedures were implemented for the samples analysed by SGS Lakefield, including the insertion of standards, duplicates, and blanks.

- Bulk density factors from measurements by GlobeStar on core samples from individual lithological horizons of the Loma Mala sector were applied to the estimates of resource tonnage.

- A mineral resource confidence classification scheme has been applied for reporting the estimates that reflects the requirements of NI 43-101, and the CIM Definition Standards.

The data were validated by F.R. Billington, P.Geo., Consulting Geologist and A.M. Trueman, P.Geo., Divisional Manager of Snowden, both Qualified Persons as defined under NI 43-101. The mineral resource estimates were prepared by A.M. Trueman, an independent Qualified Person as defined in NI 43-101.

The NI 43-101 technical report detailing the total mineral resource estimates in the Cumpie Hill nickel laterite project, to be released, is co-authored by F.R. Billington and A.M. Trueman.

Cumpie Project Future Steps

In late 2007, GlobeStar obtained from the Dominican Republic Secretaria de Estado de Medio Ambiente y Recursos Naturales (SEMARENA) the terms of references to complete the environmental studies required to obtain the licence to exploit the nickel resources from Mining Block C1. Currently an external environmental consultant is undertaking these studies. GlobeStar plans to embark on a comprehensive evaluation of the best processing options for the Cumpie Hill project.

Current Status of Nickel Laterite Exploration in the Dominican Republic

Drilling at the Corozal ridge continues. The Corozal Ridge nickel lateritic zone is located approximately 3.5 kilometers east of GlobeStar's Cumpie Hill nickel deposit and 1.5 kilometers west of the Company's Cerro de Maimon copper/gold project. Drilling at the Corozal Ridge target began in mid- November 2007 on 50 meter centers. GlobeStar disclosed results of the first seven holes, including one hole with 21 meters grading 1.85 % Nickel (see press release of January 17, 2008). The original area of Lateritic soil development has been extended after detailed mapping and drilling, and 30 new holes have been added to the original 30-hole program. To date 35 holes have been completed and 25 additional holes are currently scheduled.

A number of targets for scouting drilling have been selected south of Corozal covering the central zone of GlobeStar 43 kilometer ultramafic belt.

This news release was prepared by GlobeStar and reviewed by F. Roger Billington, P.Geo., Consulting Geologist, who is the designated independent Qualified Person as defined under NI 43-101 for GlobeStar's nickel laterite exploration program.

GlobeStar will have an exhibit at the PDAC Mining Conference (March 2-5, 2008) located in the Metro Toronto Convention Centre - South Building, Toronto, Ontario, Canada. Please come and visit us at Booth #2142.

About GlobeStar

GlobeStar Mining Corp. is a well-funded minerals exploration company, developing the permitted Cerro de Maimon copper/gold project in the Dominican Republic. Production from the 6 million tonne, high-grade open pit mine is currently expected to start in the summer of 2008.

Reader Advisory

The information in this news release may include certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward-looking statements. Assumptions made are subject to significant risks and uncertainties. Because of these risks and uncertainties and, as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although GlobeStar believes that the expectations reflected in its forward-looking statements are reasonable, we can give no assurances that the expectations of any forward-looking statements will prove to be correct. GlobeStar disclaims any intention, and assumes no obligation, to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise, except as required pursuant to applicable securities laws.

Contact Information