Thursday, 21 June 2012

Eagle Star Minerals increases claim area at Canabrava

Eagle Star Minerals Corp. (CVE:EGE)(PINKSHEETS:ELGSF) said Thursday it has increased its land package in the Canabrava block at its Ruth project in Brazil by 17,509 hectares - 11 claims - in light of its most recent discovery.

The Canabrava block at Ruth now covers 40,678 hectares across 23 claims.

Earlier this month, Eagle Star found a mineralized phosphate package of at least 7 metres in thickness at Canabrava which was still open at depth and contained grades of up to 12 per cent phosphate.

"The results of the chemical and metallurgical tests should help us to better understand the commercial value of this discovery prior to proving its size by way of drilling," stated Dr. Eloi Guimaraes, an  in  and  of Eagle Star board member and phosphate mineralization expert.

"The more information we have on the physical attributes of the mineralization, the better positioned we are to determine how important elements such as cut off grades, extraction approach and choice of production method will affect the profitability of a mining operation in Canabrava."

The company also said it has started chemical and metallurgical tests on selected samples from the mineralized package to determine the most cost effective process to extract, beneficiate and produce economic grade of P2O5 from the mineralized package for commercial use.

The results from the tests will provide further, vital information concerning the composition and solubility of the phosphate in the mineralized package with clear implications on production methods and future costs.

Upon receipt of positive results, Eagle Star intends to commence a drill program that will enable it to prove the extent of mineralization in the form of an NI 43-101 resource calculation while further investigating the most attractive production methods and procedures from an economic standpoint.

The decision to add new areas to the Canabrava block was based on positive evidence collected through fieldwork and additional geological mapping pointing to continuation of the identified mineralized package beyond the originally claimed areas. The majority of the newly claimed landmass is covered by a 1 to 3 meter quaternary coverage suggesting that the mineralized package was not affected by erosion.

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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