Uranium Star Corp.
OTC Bulletin Board : URST

Uranium Star Corp.

November 28, 2007 08:45 ET

Uranium Star Updates Sagar Exploration Status; Outlines 2008 New Property Exploration Plans

TORONTO, ONTARIO--(Marketwire - Nov. 28, 2007) -

Uranium Star Corp. (OTCBB:URST)(FRANKFURT:YE5) is pleased to provide an update on 2007 exploration activities and plans for 2008.

With the fiscal year ending on June 30, 2007, exploration in 2007 saw the Company focused on a major exploration program on the Sagar Property in Northern Quebec. The Company was very fortunate in adding two new excellent exploration projects during the year (Madagascar and Timmins, Northern Ontario). The strategy of adding these properties was to underpin the company with strong projects and this required a full year of looking at and vetting over 50 properties. Sagar remains the key project for the Company as we move exploration planning rapidly ahead on all projects.

Uranium Star is very pleased to announce that it has been granted a "Non-reporting Issuer" status by the Ontario Securities Commission, which means that shares held by Canadians can be traded freely. Going forward, the Company is working to have its shares listed on the TSX Venture Exchange, which will involve re-incorporating from Nevada to Minnesota.

Sagar Property - Key Exploration Property

The Company is still awaiting assay results from the exploration on the Sagar Property. Taiga Consultants (Craig Scherba P.Geo.) is preparing this in-depth report. Of particular note, this report will follow the prescribed NI 43-101 format and will be used as the core report for the Company's listing initiative on the TSX Venture Exchange. This process is well underway under the management of the law firm Fraser Milner Casgrain. Uranium Star is targeting a first quarter 2008 listing on the TSX Venture Exchange.

The exploration program in the Sagar Property has been a significant undertaking and the Company is very pleased with the exploration progress made to date. The Company has extended the exploration program to follow up work on some of the highly prospective targets identified during the program. This extension has been prompted in part by the nature of the encouraging drill intersections discovered to date. A number of intersections, over 10's of meters, displaying similar alteration (sodic and hematitic) to that found in the famous mineralized Mistamisk boulders have been made. Attempts are being made to follow these structurally related alteration zones with the drills to ultimately intersect the potential source of the uranium and gold mineralized boulders. In fiscal 2008, the Company has budgeted an incremental $4,000,000 to fund its exploration program in Sagar.

Madagascar Property

On August 22, 2007, the Company acquired a 75% interest in the Three Horses Property in South Central Madagascar which covers an area of approximately 180 square kilometres.

The Company believes Madagascar represents an excellent opportunity for mineral exploration. The African island nation is the beneficiary of a great deal of geological diversity from the time of its formation. Madagascar's current political regime has been stable, supportive of business and encouraging to foreign investment. The government was recently re-elected and has five years remaining in its mandate. Madagascar's mining laws are fixed and have been consistently upheld by the local government and legal system. Other mining companies that have been early movers in Madagascar include Rio Tinto, Sherritt and Alcan. Rio Tinto and Sherritt are currently developing separate projects that require capital expenditures in excess of US$3 billion.

The Three Horses Property displays extensive gossan outcroppings at surface and has as part of its attractiveness similarities to Nevsun Resource's Bisha Project in Eritrea. William Nielsen, P.Geo., the V.P. of Exploration for Nevsun, is a director of Uranium Star. He played an integral roll in Bisha's discovery and advancement to the feasibility stage of development. Uranium Star has been able to retain the same exploration team that was instrumental in advancing the world class Bisha project to feasibility.

An initial examination of one part of the Three Horses Property revealed several large areas covered with gossanous boulders which are believed to overlie massive sulphide mineralization. At Bisha, in Eritrea, the gossanous material contained appreciable amounts of gold which overlay an extensive supergene enriched copper zone which itself overlays zinc rich massive sulphides. It is anticipated that a similar weathering regime in Madagascar may produce similar styles of mineralization at the Three Horses Property.

The Three Horses Property is located south of Majescor's already discovered Besakoa volcanogenic massive sulphide property, which has displayed distinct mineralization and alteration associated with VMS deposits. It is believed that the Three Horses Property is a southern strike extension of the same stratigraphy that hosts the Besakoa VMS mineralization.

The Company has contracted Fugro Airborne Surveys Limited to commence a helicopter borne AEM-magnetometer survey on the Three Horses Property starting at the end of September 2007. It is expected that the survey will take 4-6 weeks to complete with results received before the end of the year. A field crew, headed by Taiga Consultants of Calgary, is currently mobilizing to the property to start regional geological mapping and geochemical work as well as examine known gossan mineralization on the property.

Timmins, Northern Ontario - Potential Athabasca-Type Unconformity-Associated Mineralization

The Company entered into an Option and Joint Venture Agreement with Temex Resources Inc. to earn a 50% undivided interest in Temex's 100% owned Merico Ethel and Yarrow gold-copper-uranium properties located in the Elk Lake area south-east of Timmins, Ontario.

The Merico Ethel property, situated near the northern margin of the Paleo-Proterozoic Huronian sedimentary basin, which has recently been recognized by the Geological Survey of Canada for its high potential to host "Athabasca-type" unconformity-associated mineralization (Jefferson et al., 2007), is also host to near-surface uranium mineralization and extensive areas of hematite alteration with grab samples yielding assays up to 1.56% U3O8 and 14.64% Cu. The property also hosts a variety of styles of mineralization including several narrow zones of high-grade, "Cobalt-type" vein systems containing copper, gold, silver, and cobalt mineralization, from which grab samples include assays of up to 22.35 g/t Au, 109.60 g/t Ag, and 23.68% Cu.

The Merico Ethel and Yarrow properties are situated around the margins of the Huronian sedimentary basin. In addition to their potential to host high grade Cobalt-type vein systems containing bonanza gold, silver, etc., Temex recognized the additional potential of the properties to host unconformity mineralization including Athabasca-type uranium deposits. Regional structures such as the Montreal River Fault have clearly influenced the location of mineralization on the Merico Ethel property, and fault reactivation has likely acted to offset the regionally extensive unconformity surface that separates the overlying Huronian sedimentary rocks from the Archean basement to produce excellent structural traps for oxidizing, mineralizing fluids carrying uranium, copper, and gold. The Montreal River Fault is spatially associated with the Archean-age Kidd Creek massive sulphide deposit, the Porcupine and Matachewan gold camps, and the Paleo-Proterozoic Cobalt silver camp.

A 3,000 metre diamond drill program will begin immediately to test several induced polarization ("IP") chargeability anomalies, including a large northeast trending anomaly with a strike exceeding 1,000 metres and width of up to 800 metres. The source of this IP anomaly is interpreted as a sulphide-related feature at or near the Proterozoic-Archean unconformity. Concurrent with the drill program, a field program consisting of additional line-cutting over the entire Merico property will be carried out, followed by an induced polarization/resistivity ("IP") survey, magnetometer survey, a detailed gravity survey and soil sampling. The IP/resistivity survey will further delineate those anomalies remaining open to expansion and definition and will also be extended to cover the area of the Sauve uranium-copper-gold occurrence located in the north-eastern portion of the property from which grab samples have yielded assays of up to 1.56% U3O8 and 14.64% Cu. Temex will manage the upcoming exploration program.

The Company recognizes that the challenges going forward are many and complex but the opportunities and rewards are also great. The Company is very confident as it enters fiscal 2008 with its planned exploration objectives.

Bill Nielsen, P.Geo., Director, is the designated qualified person for the technical information contained in this press release.

WARNING: The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein.

Contact Information

  • Uranium Star Corp.
    Brent Nykoliation
    Director of Business Development
    Toll Free: 1-800-818-5442 or (416) 364-7024
    Email: bnykoliation@uraniumstar.com
    Website: www.uraniumstar.com
    Uranium Star Corp.
    Kirk McKinnon
    President and CEO
    Toll Free: 1-800-818-5442 or (416) 364-7024
    Uranium Star Corp.
    Richard Schler
    Vice President and CFO
    Toll Free: 1-800-818-5442 or (416) 364-7024