Megastar Development Corp.
TSX VENTURE : MDV
FRANKFURT : M5Q

Megastar Development Corp.

July 11, 2007 03:05 ET

Megastar Discovers New High Grade Gold Zone at Simkar

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 11, 2007) - Megastar Development Corp. (TSX VENTURE:MDV)(FRANKFURT:M5Q), reports that assays from 5 more holes have now been received from drill testing on the south zone at the past producing Simkar.

"We believe we are tapping into a new high-grade gold system at Simkar", states Dusan Berka, President of Megastar. "The current drill program demonstrates that the system hosts some very high grades intersected in close proximity to underground workings. This new system can certainly fast-track our corporate goal of re-opening the high-grade gold mine." Mr Berka adds "high-grade narrow-vein deposits have been successfully mined in the Abitibi for 100 years and have triggered the birth of many larger mining companies such as Dome Mines and Teck Corp. Current Quebec Government incentive programs also add to the ongoing success of the already world-renowned mining camp."

High-grade zones were intersected in holes 04 - 05 and 09. These three holes, on strike over approximately 350 meters, were designed to test the continuity of known mineralized zones at depth (East Zone and C Zone). All three holes successfully intersected the targeted mineralized zones at depth, thus confirming the continuity of the gold bearing structures.

Furthermore, a new series of high-grade veins were also intersected in the upper part of these three holes. These new high-grade veins are located approximately 50 meters south of the Shear Zone, which hosts the East and C Zones, and appear to be part of a network of high-grade tension veins. Similar veins have been documented to occur in the near vicinity of the A and B Zones, and now, the company appears to have intersected a new network of these narrow high-grade tension veins south of the southernmost structure that was mined previously. Certainly, more work will be undertaken to test this model.

SKR-07-06 was designed to test the East Zone, approximately 150 meters east of DDH SKR-07-05 (140.00 g/t Au over 0.50 m), at a down hole depth of approximately 100.5 meters the hole intersected 0.65 g/t over 1.0 m. All assays are reported uncut and over core sample lengths and therefore do not represent true width;

SKR-07-07 was designed to test the B Zone on section 7850 and at a down hole depth of 193.5 meters intersected 6.68 g/t Au over 1.5 m and at 247.5 meters returned 1.4 g/t Au over 1.5 m;

SKR-07-08 was also designed to intersect the B Zone and at a down hole depth of 187.5 meters intersected 4.72 g/t Au, over 1.5 m and at 195.5 meters returned 33.9 g/t Au over 1.0 m;

SKR-07-09 intersected a new zone of high-grade gold mineralization at a down hole depth of 39.7 meters and returned 31.0 g/t Au over 0.50 m core length. Another intersection at 70.5 meters returned 2.28 g/t Au over 1.5 m;

SKR-07-10 at 24.5 meters returned 2.27 g/t Au over 0.3 m, and at 52 meters down hole intersected 2.0g/t Au over 1.5 m, and at 73.4 meters returned 3.79 g/t Au over 0.4 m, and at 119.6 meters returned 1.24 g/t Au over 1.4 m;

SKR-07-11 successfully intersected the "B" Zone at a down hole depth of 206 meters and returned a weighted average grade of 2.25 g/t Au over 4.5 m as follows:



SKR-07-11 206 207.5 454219 1.5 1.58
SKR-07-11 207.5 209 454220 1.5 4.14
SKR-07-11 209 210.5 454221 1.5 1.03


Further results from drill testing, on the north zone (SKR-12-13-14) to test a previously identified geophysical anomaly (P-14), are pending and the company will provide assay results as soon as they are available.

Certified standards and blanks are inserted by the company into the sample stream and introduced at 20 sample intervals. All core samples are assayed by ALS Chemex using the standard fire assay method on a 30-gram portion. Core intervals containing visible gold are assayed using the metallic sieve method in order to minimize the nugget effect. ALS Chemex standard operating procedures require the analysis of quality control samples (reference materials, duplicates and blanks) with all sample batches. As part of the assessment of every data set, results from the control samples are evaluated to ensure they meet set standards determined by the precision and accuracy requirements of the method.

Mr. Martin Bourgoin, B.Sc., P. Geo. who is a qualified person as defined under National Instrument 43-101, has reviewed and approved the contents of this news release.

ABOUT MEGASTAR DEVELOPMENT CORP.

Megastar Development Corp. is an emerging resource company engaged in the acquisition, exploration and development of mineral properties in Quebec and British Columbia. Megastar is listed on the TSX Venture Exchange under the trading symbol "MDV" and on the Frankfurt Stock Exchange under the trading symbol "M5Q".

To review the latest news, projects, and company updates, investors and shareholders are invited to visit the Company's website at www.megastardevelopment.com.

ON BEHALF OF THE BOARD OF DIRECTORS

Dusan Berka, P. Eng. President & CEO

This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

Contact Information

  • Coal Harbor Communications
    Dale Paruk
    (604) 662-4505 or Toll Free: 1-877-642-6200
    (604) 662-4547 (FAX)
    Email: dale@coal-harbor.com
    or
    Megastar Development Corp.
    Dusan Berka
    President & CEO
    (604) 683-6648
    (604) 683-1350 (FAX)
    Website: www.megastardevelopment.com