Urastar Energy Inc.
TSX VENTURE : URS

Urastar Energy Inc.

November 08, 2010 11:27 ET

Urastar Options Major Gold Property in Sonora, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 8, 2010) - Urastar Energy Inc. ("Urastar") (TSX VENTURE:URS) announces the option to acquire the El Antimonio property in Mexico (the "Property"). El Antimonio is a major gold-antimony exploration property, consisting of 4,000 hectares located in northwest Sonora in the heart of the Mojave-Sonora Megashear.

The Property is located close to significant gold and silver producing heap leach mines including the Newmont Mining Corporation and Fresnillo PLC's La Herradura Gold Mine and Capital Gold's El Chanate Mine (see location map at www.Urastarenergy.com). El Antimonio has produced placer gold and antimony from gravel derived from numerous reported vein occurrences. Currently, local prospectors are recovering small amounts of gold nuggets from those gravels.

In a signed Letter of Intent, Urastar can earn a 100% interest in the El Antimonio by making the following option payments over a 5 year period:

TIME CASH PAYMENT
On signing
On approval of TSX Venture Exchange
US$10,000.00
US$40,000.00
Twelve month anniversary US$75,000.00
Twenty-four month anniversary US$75,000.00
Thirty-Six month anniversary US$150,000.00
Forty-Eight month anniversary US$200,000.00
Sixty month anniversary US$1,450,000.00
TOTAL US$2,000,000.00

In addition the owners will retain a 3% net smelter return ("NSR") royalty on the Property subject to the right of Urastar to purchase each 1% of the NSR (namely a 1% NSR) for $1,000,000.00 for five (5) years after signing. The Letter of Intent is subject to TSX Venture Exchange approval.

Urastar is excited about the work program on this excellent exploration property. The exploration target will be a bulk mineable gold deposit centered on one or more of the previously mined vein areas coupled with a new discovery. The potential is deemed excellent due to the presence of extensive zones of alteration and fracturing, the development of mineralized veins over a large area, and the fact that previous mining activity stopped at the water table and where overburden concealed the veins. The widespread fracturing and alteration of sedimentary rocks suggest potential for disseminated-style mineralization

Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., is a designated Qualified Person pursuant to National Instrument 43-101 and prepared the technical information contained in this news release. 

About Urastar Energy Inc.

Urastar Energy Inc. is a mining exploration and development company focusing on gold exploration in Mexico's Sierra Madre gold belt targeting areas containing former producing properties. The Sierra Madre Gold Belt is one of the richest gold belts in the world hosting several world class mines and many major recent discoveries. For more information, please visit www.Urastarenergy.com

THIS NEWS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. THE TSX-VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This news release includes certain statements that express management's expectation or estimates of future performance and may be deemed "forward-looking statements". These forward-looking statements include plans, estimates, forecasts and statements as to management's expectations regarding exploration. These forward-looking statements involve assumptions, risks and uncertainties and actual results may vary materially. For these reasons shareholders should not place undue reliance on such forward-looking information.

United States residents are cautioned that some of the information that may be published by Urastar may not be consistent with United States Securities and Exchange Commission disclosure rules and may be materially different from what the Company is permitted to disclose in the United States and therefore United States residents should not rely on such information.

Contact Information

  • Elston Johnston
    President
    604-682-2928
    or
    Dean Hanisch
    Investor Relations
    613-612-6060