Thursday, 25 October 2012

Eagle Star Minerals says scout drilling at Bomfim to wrap up by the end of the month

Eagle Star Minerals Corp. (CVE:EGE) said today that it has started its scout-drilling program on schedule at its Bomfim agro-mineral project in Brazil. 
The company has initiated 500 metres of diamond drilling on targets selected by its technical team to examine areas that show the most potential to host "a large tonnage, commercial grade phosphate deposit", Eagle Star said. 
It added that around 15 to 20 diamond drill holes are expected, considering an average depth of no more than 30 metres due to "very little" overburden.
The mineral explorer plans to test the already known mineralization found on the property, while also providing "further evidence" that supports a geological model similar to that of the Itafos Arraias phosphate project - located 20 km to the south and owned by MbAC Fertilizers (TSE:MBC). 
The company acquired the Bomfim project at the end of June.
The remainder of the scout drilling program is expected to wrap up by the end of the month, with at least some partial results delivered, the company said. 
So far, Eagle Star said Thursday that as part of its due diligence, it has uncovered "many strong similarities" between Bomfim and MbAC's Itafos project, with respect to geological modeling, including high grade outcropping phosphorite bodies, and the proximity of a phosphorus source to the mineralization, among other items.
"The results from the preliminary work performed so far on Bomfim have given the team a great deal of confidence moving into this first phase of drilling," said the company's COO, and resident expert on phosphate, Dr. Jose Eloi Guimares Campos. 
"We believe that this drill program will lend a lot of credibility to our assertion that we are sitting on something very substantial here at Bomfim." 
Eagle Star said the region is considered to be the new phosphate belt of Brazil and has seen many majors claiming in this area such as MBAC, Vale (NYSE:VALE), Votorantim and Bungee. 
All exploration permits and licenses are already in place for Bomfim’s 30,922 hectares. An aggressive exploration program has been outlined, with the aim to define an NI 43-101 measured and indicated resource as soon as possible.
The main mineralization at Bomfim hosts outcropping phosphorite lenses, from where Eagle Star has sample results of up to 28% P2O5.
Eagle Star has been working to bulk up its position as a provider of agro-minerals ever since announcing a strategic shift in focus to Brazil phosphate exploration in February.
Brazil is one of the leading agrarian countries in the world. In addition to being the fourth largest consumer of agro-minerals, it is the second largest world importer of phosphate, a business that generates around $1.1 billion in sales annually for the country.                      
In August, Eagle Star completed an oversubscribed non-brokered private placement financing of $925,000. 

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