Tuesday, 29 May 2012

Eagle Star Minerals claims new concession block at Ruth Project

Eagle Star Minerals (CVE:EGE) Tuesday announced its application the São Francisco Block, a new concession area within the Ruth Project.

The area was identified through a regional recognition program that was initiated based on the interpretation of results from trenching and systematic channel sampling at the Paes Landin block.

It is located less than 50 km to the northwest of the Paes Landin block and shares the same infrastructure of the other concession blocks, including close proximity to large agricultural centers and railroads.

"Our team is very pleased with the trenching results that have come back from our Paes Landin block to date. They demonstrate that we are indeed on track to identifying a phosphate deposit within the largest agrarian country in the world," stated Eagle Star's president and CEO Eran Friendlander.

"We are equally excited with the new addition of the Sao Francisco block. Our regional sampling results clearly demonstrate the logic behind the claiming of this new area. We now look forward to investigate in more detail the extensive outcrops we have identified on that block as part of our effort to select the best potential targets for a drilling campaign in Ruth."

Once the application is approved, the São Francisco concession block will be 100 percent wholly-owned and cover 25,749 hectares across 13 claims. The Ruth Project will constitute 65 tenements over 115,712 hectares (or 6 concession blocks).

At the Paes Landin (Salvador Target) trenching and sampling was carried out over different topographic levels. 214 samples in 12 trenches (238 linear meters) were opened with an excavator to create cuts up to two-meters depth.

The results suggest the presence of multiple mineralized packages based on a collection of positive channel sample results at different topographic levels.

Moreover, there are three main gaps within the potential packages that were not covered by trenching and systematic sampling (meter basis). Based on field evidence, it appears that the known mineralized packages may be linked and extend laterally.

The work performed at the São Francisco trenches also helped to identify the mineralized rock types (purple and grey siltstone) and suggested that by targeting other areas, with different deposition conditions Eagle Star could discover additional geological units with significant packages of mineralized material.

This realization led Eagle Star to perform a new regional exploration program focusing this time on different geological formations, where the mineralized rock types outcrop extensively and are visible as a result of road cuts.

The regional sampling program returned excellent results on different topographic levels and provided a strong technical case for claiming the São Francisco Block.

In light of these developments and based on these results, Eagle Star Minerals has decided to proceed with the next stage of exploration on the Ruth Project and is planning to carry out a more intensive systematic channel sampling program to assist diamond drill targeting.

During the next stage of exploration in Ruth, Eagle Star is planning to dig manual pits in the Paes Landin block to cover the gaps between the mineralized layers discovered in various trenches. This will give the company a better idea as to how thick these layers are, while selecting appropriate drill targets within the block.

In addition, the company is planning to perform extensive channel sampling on road cuts and outcrops in the São Francisco block to get more information on the minimum thickness of the visibly mineralized phosphate layers on that block.

Eagle Star Minerals is focused on the acquisition, exploration and development of agro-mineral properties in Brazil.

Over the past two years, Eagle Star Minerals has strategically grown its presence in Brazil and continues to focus on maximizing shareholder value by acquiring assets located in geological areas known for proven phosphate mineralization, coupled with good logistics in close proximity to agriculture.

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