Vancouver, B.C., April 5, 2016.Desert Star Resources Ltd. (TSX-V: DSR) (“Desert Star” or the “Company”) provides a corporate update on exploration plans at Red Top as well as ongoing project generation, acquisitions and dispositions.
Red Top Drill Project
The Company is waiting to receive a go-ahead decision from the U.S. Forest Service approving the Red Top drill program. The approval is expected in the coming weeks. Due to current market conditions, Desert Star plans to option out the Red Top project. Securing a partner will allow the Company to reduce exposure to exploration risk and associated drill expenditures, while retaining significant exposure to potential exploration success.
“Desert Star is an exploration company that prides itself in technical excellence in project generation. Desert Star’s model of acquisition and drill-testing requires a strong project pipeline.” stated Vince Sorace, the Company’s CEO. “Having completed drill-testing of the Copper-King project, Desert Star will now move quickly to close on several additional project acquisitions.”
Generative Program and Acquisitions
The Company is currently evaluating multiple new projects for acquisition, including more advanced-stage projects to add to the Company’s portfolio.
In addition to evaluating new projects for acquisition, Desert Star has been working on an extensive generative program focused in the Southwest USA. The Southwest USA is one of the world’s premier copper provinces and the region hosts some of the world’s largest, highest grade porphyry copper systems and related deposits. Geological understanding of the region is relatively well-developed, as is mining infrastructure. The Company believes the region remains under-explored, as much of the exploration capital left the state in the mid-1990s in favour of copper programs abroad.
The Desert Star Porphyry Copper Deposit (“PCD”) generative program has leveraged high-quality regional GIS datasets (geology, geophysics, geochemistry, satellite imagery, land status, and infrastructure), which have largely become available in the past 15 years, some as recent as the last 3 years. GIS-based attrition criteria drastically reduce the available surface area to that which may potentially host a PCD that could be drill-tested quickly, and may be favourable for development of a large mine. The ability to be pragmatic in acquisition and exploration is what sets Desert Star apart from many of its peers.
Thirty high-priority PCD target areas (Figure 1) have been identified by the company in this region to-date, and each is located in favourable land tracts characterized by the following:
- Underlain by outcropping, prospective geology (no covered targets).
- Presence of multiple copper occurrences/historic mines.
- Unencumbered by 3rd party mining claims and located on BLM, state or private land only.
Figure 1. Thirty high-priority PCD target areas
Initial field reconnaissance campaign has yielded success with one of the first areas visited – an early-stage target area characterized by the following:
- Target is located near a large, high-grade Laramide age PCD.
- Favorable alteration (chlorite-epidote ± sericite) and development of quartz vein stock works within a large, open-ended footprint – measuring at least 850 x 750 meters.
- High-grade structurally-controlled copper oxide (up to 3.8% Cu) at surface (approx. 700 meters strike) in favorable host rocks.
- Favourable land status; no population or commercial activity pressure; gentle topography and good road access.
- Potential for 100% ownership by Desert Star.
Ongoing work will continue towards further identification and evaluation of the regional targets. The Company will be seeking partners to continue to evaluate the regional targets as well as potential option partners for specific projects of interest.
Upon detailed review of drill results, the Company has decided to terminate its option agreement on the Copper King project, as it believes no further work is warranted.
Alan Wainwright, PhD PGeo, a Qualified Person as defined by National Instrument 43-101, has read and approved all technical and scientific information contained in this news release. Dr. Wainwright is the Company’s Chief Geologist.
About Desert Star
Desert Star is a Vancouver-based mineral exploration company focused on the identification, acquisition and development of copper and gold projects located in top-tier mineral belts in the southwestern United States that contain significant historical production, existing mining infrastructure and an established mining culture.
President and CEO, Desert Star Resources Ltd.
For further information regarding Desert Star, please email firstname.lastname@example.org or visit our website at www.desertstar.ca.
Cautionary Note Regarding Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain statements that may be deemed “forward-looking statements”. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although Desert Star believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, are subject to risks and uncertainties, and actual results or realities may differ materially from those in the forward-looking statements. Such material risks and uncertainties include, but are not limited to, Desert Star’s ability to raise sufficient capital to fund its obligations under its property option agreements, to maintain its mineral tenures and concessions in good standing, to explore and develop its projects, to repay its debt and for general working capital purposes; changes in economic conditions or financial markets; the ability of Desert Star to obtain the necessary permits and consents required to explore, drill and develop the projects and if obtained, to obtain such permits and consents in a timely fashion relative to Desert Star’s plans and business objectives for the projects; the general ability of Desert Star to drill test its projects and find mineral resources; if any mineral resources are discovered or acquired, the Company’s ability to monetize any such mineral resources; and changes in environmental and other laws or regulations that could have an impact on the Company’s operations. Forward-looking statements are based on the reasonable beliefs, estimates and opinions of Desert Star’s management on the date the statements are made. Except as required by law, Desert Star undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.