PRESS RELEASE
September 6, 2007
Uranium Star Acquires
Madagascar Property
Executes Plan to
Underpin Company with Additional Assets
Uranium Star Corp.
(OTCBB:URST) is
pleased to announce an addition to its property portfolio. The flagship Sagar
Property in Northern Quebec will be joined by the Three Horses Property in South-Central
Madagascar. The company has signed an agreement with Madagascar Minerals to
acquire a 75% interest in the Three Horses Property in Madagascar which covers
an area of approximately 180 square kilometers for a cash payment of
seven-hundred & sixty-five thousand US dollars ($765,000 USD), the issuance
of one million two-hundred & fifty thousand (1,250,000) URST common shares
and five-hundred thousand (500,000) URST common share purchase warrants
exercisable at $1.00 per share for a period of 24 months from date of issuance.
Madagascar Minerals is a private land-holding company.
Madagascar: Up and
Coming Mining Jurisdiction
Uranium Star believes
Madagascar represents an excellent opportunity for mineral exploration. The
African island nation is the beneficiary of a great deal of geological
diversity from the time of its formation. Madagascar’s current political
regime has been stable, supportive of business and encouraging to foreign
investment. The government was recently re-elected and has five years remaining
in its mandate. Madagascar’s mining laws are fixed and have been
consistently upheld by the local government and legal system. Other mining
companies that have been early movers in Madagascar include Rio Tinto, Sherritt
and Alcan. Rio Tinto and Sherritt are currently developing separate projects
that require capital expenditures in excess of US$1 billion.
The Three-Horses
Property
The Three Horses
Property is located south of Majescor’s Besakoa volcanogenic massive sulphide
property which has displayed distinct mineralization and alteration associated
with VMS deposits. It is believed that the Three Horses Property is a southern
strike extension of the same stratigraphy that hosts the Besakoa VMS
mineralization.
Uranium Star has
contracted Fugro Airborne Surveys Limited to commence a helicopter borne AEM -
magnetometer survey on the Three Horses Property starting at the end of
September 2007. It is expected that the survey will take 4-6 weeks to complete
with results received before the end of the year. A field crew, headed by Taiga
Consultants of Calgary, is currently mobilizing to the property to start
regional geological mapping and geochemical work as well as examine known
gossan mineralization on the property.
The Three Horses
Property displays extensive gossan outcroppings at surface and has as part of its
attractiveness similarities to Nevsun Resource’s Bisha Project in
Eritrea. F. William Nielsen, P. Geo., the V.P. of Exploration for Nevsun, is a
director of Uranium Star. He played an integral roll in Bisha’s discovery
and advancement to the feasibility stage of development. Uranium Star has been
able to retain the same exploration team that was instrumental in advancing the
world class Bisha project to feasibility.
An initial
examination of one part of the Three Horse Property revealed several large
areas covered with gossanous boulders which are believed to overlie massive
sulphide mineralization. At Bisha, in Eritrea, the gossanous material contained
appreciable amounts of gold which overlay an extensive supergene enriched
copper zone which itself overlay zinc rich massive sulphides. It is anticipated
that a similar weathering regime in Madagascar may produce similar styles of mineralization
at the Three Horse Property.
Underpinning
Shareholder Value
While the Sagar
Property in Northern Quebec remains the Company’s primary Uranium and
Gold exploration target, the addition of the Three Horses Property in
Madagascar underpins shareholder value and mitigates the risk inherent in all
exploration activities. A full exploration program is being completed at Sagar
this fall which will be followed up with another full-scale program when
analysis of results is complete.
Other Operators in
Madagascar
Sherritt is one step
closer to mining nickel on the Eden like island of Madagascar after completing a
US$2.1 billion debt financing deal. This is one of the largest project finance
agreements ever completed in the mining industry, and is particularly
impressive given the current lending climate. The probable reserves are
estimated to be in the 125 million tonne range, grading 1.04% nickel and 0.099%
cobalt with an estimated life of 27 years at planned production rates. Sherritt
plans to spend about $3 billion in total to develop the project which is
located near the Port of Toamasina on the west coast of Madagascar with a
target completion date of 2010.
Rio Tinto plans to
spend about $1 billion to develop a titanium project located near Port Daphne on
the east coast of Madagascar.
Alcan is currently in
the process of evaluating a bauxite/aluminum project which is potentially another
large mining project on the island of Madagascar.
About the Company
Uranium Star Corp. is
a rapidly emerging uranium exploration company with assets in Northern Quebec
and Arizona. Its shares are traded on the OTCBB under the symbol URST, as well
as the Frankfurt Exchange under the symbol YE5. The Company continues to focus
on high priority property acquisition and exploration in order to underpin and
augment the company’s current property holdings.
Uranium Star has
applied for and is awaiting Canadian reporting issuer status. Achieving this status
is a significant step in listing on a Canadian stock exchange. As an already
NASDAQ listed company, Uranium Star will continue to pursue an additional
listing on the TSX Venture Exchange.
Except
for historical information contained herein, the matters discussed in this
press release are forward-looking statements that involve risks and
uncertainties, including but not limited to economic, competitive, governmental
and technological factors effecting the Company's operations, markets, products
and prices and other factors discussed in the Company's various filings with
the Securities and Exchange Commission.
CONTACT INFORMATION
The Buick Group
Jon Ruby
Toll Free: 1-877-748-0914
Email: jruby@buickgroup.com
or
Uranium Star Corp.
Kirk McKinnon
President and CEO
(416) 364-4986 or 1-800-818-5442
or
Uranium Star Corp.
Richard Schler
Vice President and CFO
(416) 364-4986 or 1-800-818-5442
www.uraniumstar.com
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