Uranium Star Corp.
OTC Bulletin Board : URST
FRANKFURT : YE5

Uranium Star Corp.

February 04, 2009 08:00 ET

Uranium Star's Assay Results from Three Horses Property in Madagascar Indicates World Class Vanadium Potential

TORONTO, ONTARIO--(Marketwire - Feb. 4, 2009) - Uranium Star Corp. (OTCBB:URST)(FRANKFURT:YE5) announces it has received assay results from the 31 hole diamond drill program conducted on its Three Horses Property in Madagascar.

Vanadium was intercepted on the north and south zones of the Property. In total, 13 holes intercepted significant vanadium mineralization. Four holes were drilled in the northern area of the Property, where a vanadium-rich trend with a strike-length of 800 metres (Mainty Area) was indentified, and nine holes were drilled in the southern area of the Property (Jaky Area) where a vanadium-rich trend with a 1900 metre strike-length was identified.

Vanadium mineralization is open along strike and at depth in all zones identified to date.

The following initial assay results indicate the potential for a world class vanadium deposit. Future drilling needs to determine the full extent of the discovery given that vanadium mineralization is currently open along strike and at depth for all identified zones.

Highlights of Assays

The following is a summary of the highlights of the assays from the northern area of the Property (Jaky Area) and the southern area (Mainty Area).

Vanadium is generally considered to be economic between 0.25% and

-----------------------------------------------------------------

0.5% V2O5.

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Jaky Area

- Hole TH-08-24 encountered 0.85% vanadium-oxide (V2O5) over 56.4 metres, including 0.96% V2O5 over 42.6 metres.

- Hole TH-08-27 encountered 0.4% V2O5 over 44.2 metres, including 0.77% V2O5 over 13.7 metres.

- Hole TH-08-02 encountered 0.37% V2O5 over 42.7 metres, including 0.44% V2O5 over 12.2 metres.

- Hole TH-08-29 encountered 0.38% V2O5 over 36.6 metres, including 0.56% V2O5 over 12.2 metres.

Mainty Area

- Hole TH-08-14 encountered 0.4% V2O5 over 79.3 metres, including 0.61% V2O5 over 19.8 metres.

- Hole TH-08-13 encountered 0.4% vanadium-oxide (V2O5) over 64.0 metres, including 0.51% V2O5 over 13.4 metres.

- Hole TH-08-11 encountered 0.41% vanadium-oxide (V2O5) over 21.3 metres, including 0.51% V2O5 over 15.2 metres.

Summary Detail of Assay Details



----------------------------------- -----------------------------------
Hole Depth in Metres Hole Depth in Metres
Inter- V V2O5 Inter- V V2O5
From To val ppm % From To val ppm %
----------------------------------- -----------------------------------
TH-08-01 103.6 121.9 18.3 1762 0.31 TH-08-01 106.7 115.8 9.1 2400 0.43
----------------------------------- -----------------------------------
TH-08-02 67.1 109.7 42.7 2069 0.37 TH-08-02 67.1 79.2 12.2 2478 0.44
----------------------------------- -----------------------------------
TH-08-11 33.5 39.6 6.1 2218 0.40 TH-08-11 61.0 76.2 15.2 2833 0.51
TH-08-11 54.9 76.2 21.3 2269 0.41 -----------------------------------
----------------------------------- TH-08-12 30.6 33.5 2.9 4507 0.80
TH-08-12 30.6 33.5 2.9 4507 0.80 TH-08-12 45.7 61.0 15.2 2244 0.40
TH-08-12 45.7 61.0 15.2 2244 0.40 TH-08-12 86.9 109.7 22.9 2659 0.47
TH-08-12 88.4 109.7 21.3 2699 0.48 -----------------------------------
TH-08-13 76.2 98.5 22.3 1684 0.30 TH-08-13 38.5 44.2 5.7 2253 0.40
TH-08-13 100.6 164.6 64.0 2226 0.40 TH-08-13 61.0 69.8 8.8 2043 0.36
----------------------------------- TH-08-13 109.7 120.4 10.7 2842 0.51
TH-08-14 3.0 5.6 2.6 1920 0.34 TH-08-13 126.8 140.2 13.4 2746 0.49
TH-08-14 12.2 51.8 39.6 1960 0.35 -----------------------------------
TH-08-14 51.8 91.4 39.6 2530 0.45 TH-08-14 38.1 48.8 10.7 2349 0.42
----------------------------------- TH-08-14 71.6 91.4 19.8 3412 0.61
TH-08-24 4.6 61.0 56.4 4744 0.85 -----------------------------------
TH-08-24 73.2 82.3 9.1 2103 0.38 TH-08-24 15.2 57.9 42.7 5355 0.96
----------------------------------- -----------------------------------
TH-08-25 30.5 48.8 18.3 2370 0.42 TH-08-25 30.5 45.7 15.2 2423 0.43
----------------------------------- TH-08-25 100.6 103.6 3.0 2570 0.46
TH-08-26 9.1 36.6 27.4 2283 0.41 -----------------------------------
TH-08-26 62.5 73.2 10.7 1858 0.33 TH-08-26 13.7 27.4 13.7 3470 0.62
----------------------------------- TH-08-26 67.1 73.2 6.1 2990 0.53
TH-08-27 4.6 48.8 44.2 2239 0.40 -----------------------------------
TH-08-27 65.5 82.3 16.8 2216 0.40 TH-08-27 15.2 29.0 13.7 4310 0.77
TH-08-27 146.3 155.4 9.1 2002 0.36 TH-08-27 70.1 82.3 12.2 2838 0.51
----------------------------------- TH-08-27 146.3 150.9 4.6 2720 0.49
TH-08-31 15.2 51.8 36.6 2114 0.38 -----------------------------------
----------------------------------- TH-08-31 27.4 33.5 6.1 2230 0.40
TH-08-31 36.6 48.8 12.2 3128 0.56
-----------------------------------


Ground geophysical and geochemical surveying indicates that the Jaky area is at least 3500 metres in strike length, while the Mainty area is at least 2500 metres in strike length. As the Mainty and Jaky areas are on strike, and separated by 15 kilometres of untested, potentially vanadium-bearing ground (Manga Area), the Three Horses Property has the potential to host a vanadium-rich horizon 21 kilometres in length.

The Company's initial exploration program targeted both VMS and gold. The focus shifted to vanadium as the drill holes continued to intercept large, high-grade intersections. It is important to note that there still remains a VMS target of significance, as the Company intersected a highly potential VMS zone, characterized by acid-altered rock typically found in close association with massive sulphide mineralization.

The Company's original drill strategy did not focus on a vanadium discovery. Exploration at this point was well into the rainy season and had to be halted, and consequently the Company was not able to fully outline the size potential of the vanadium mineralization. However, the limited amount of drilling completed to date quantified high-grade vanadium over large intersections.

Significance of This Discovery

Supply is limited - world production only totals about 100,000 tons a year and current primary producers in South Africa are all operating at full capacity. Demand for vanadium is dominated by steel production, which represents more than 90% of all vanadium usage.

Vanadium is a relatively unknown, yet very strategic and increasingly important metal. It is used in the production of high-quality, metal alloys, like high-strength steel, because of its property as an active grain refiner and as a strong anti-oxidant and can impart strength, hardness and wear resistance to steels.

The main uses of vanadium touch a myriad of industries:

- Aerospace - titanium alloys and heat resistant steels

- Air, car and rail - aircraft engines & airframe materials, auto and rail parts

- Renewable energy - Wind and solar power, hybrid and electric car parts

- Pipelines

- Batteries

The vanadium industry is rapidly growing in lock-step to advancements in technology, and new uses are continually being discovered for the metal. Since the production and use of high-strength steels is growing faster than other steels, vanadium usage in steel is often increasing faster than overall steel production.

China and the USA are the largest individual consumers of vanadium, each accounting for close to 20% of the world market. For some time now, analysts and economists agree that China will be the driving force behind the demand for commodities as it continues to invest in infrastructure.

The Company believes that China will be the primary consumer for this discovery. It should be noted that China has global expertise in both sourcing and investing in vanadium.

A November 2008 Financial Post article reports that China is on the verge of a vast boom in construction, announcing a stimulus plan to spend a massive US$586-billion on a series of infrastructure projects aimed at propelling the country's economy through the global downturn. The details of the plan include building 100,000 kilometres of oil and gas pipelines, building 60 airports, and creating 17,000 kilometres of new subway and light-train rail lines. New rail projects alone are estimated to require 20 million tons of additional demand for steel. The plan also calls for US$60-billion for increased power generation. Coincidently, every investment item mentioned above has a direct correlation to the demand for vanadium.

Mineralogy and Metallurgy

A petrographic-electron microprobe analysis has been completed on a suite of core samples to specifically identify the vanadium mineralogy. Vanadium was found to occur in these samples in a wide array of minerals, with most of the vanadium found associated with silicate and oxide receptor minerals. The Company is in the process of beginning preliminary metallurgical work to determine what recoveries can be obtained from this unique vanadium discovery.

Other Drilling

The Property was originally targeted for base metal (13 drill holes) and gold (5 drill holes). No significant massive sulphides or gold mineralization was intercepted during the program, but hole TH-08-05 intercepted stringer mineralization of 0.4% zinc over 4.3 metres indicating the potential for base metal mineralization. Additionally, Holes TH-08-20 through 22 intercepted acid-altered rock typically found in close association with massive sulphide mineralization. Due to technical limitations, these holes could not be completed to target depth, so different drill equipment will be employed during the upcoming program to test the area.

Next Steps

The Company is eager to return to the Property as the recently completed drill program was concluded early, due to the beginning of the rainy season in Madagascar.

The next phase of exploration drilling will be more extensive, and is planned for the Spring of 2009, commensurate with the conclusion of the rainy season.

A drill program of 30 to 40 holes, approximating 8,000 metres will be undertaken to ascertain widths of the vanadium-rich trends and confirm that vanadium mineralization extends across the entire 21 kilometre vanadium-rich trend. To date, every hole put into the trend has confirmed vanadium mineralization. From these results, the Company will be able to begin to estimate the potential size of an economic deposit.

About the Property

Uranium Star's Three Horses Property, located in south-western Madagascar, displays mineralization and alteration styles often associated with volcanogenic massive sulphide (VMS) deposits. These deposits can host significant quantities of copper, zinc, lead and precious metals. With the serendipitous discovery of significant vanadium mineralization, the Company has focused its primary attention to quantifying the potential size and economic value of the deposit.

Craig Scherba, P.Geol., of Taiga Consultants Ltd. is the Exploration Manager and is supervising Uranium Star's exploration activities on the Three Horses, Madagascar Property.

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.

SEDAR: 00025651E

Contact Information

  • Uranium Star Corp.
    Brent Nykoliation
    Vice President of Business Development
    (416) 364-4911 or Toll Free: 800-818-5442
    Fax: (416) 364-2753
    bnykoliation@uraniumstar.com

    Uranium Star Corp.
    J. A. Kirk McKinnon
    President and Chief Executive Officer
    (416) 364-4911 or Toll Free: 800-818-5442
    Fax: (416) 364-2753

    Uranium Star Corp.
    Richard Schler
    Chief Operating Officer & CFO
    (416) 364-4911 or Toll Free: 800-818-5442
    Fax: (416) 364-2753
    www.uraniumstar.com