BHP Billiton Selects Four Polar Star Properties for Joint Venture
/NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR DISSEMINATION IN THE
TORONTO, Aug. 26, 2013 /CNW/ - Polar Star Mining Corporation (TSX:PSR) ("Polar
Star" or the "Company") is pleased to announce that in line with the
conditions in the Definitive Agreement ("Agreement") signed between the
Company and BHP Billiton on 13 April 2012, BHP Billiton completed a
preliminary assessment of the 172,800 hectares of exploration land held by
Polar Star and has informed the Company of their decision to proceed with four
of the five blocks offered (First Option). In terms of acreage, this means
that BHP Billiton has decided to further its exploration efforts on
approximately 130,900 hectares of exploration ground owned by Polar Star.
-- BHP Billiton has invested in excess of the minimum commited
expenditure of US$1 million on the preliminary evaluation.
Ongoing results motivated an early drilling program on the
Lautaro property which commenced in July 2013.
-- The First Option allows BHP Billiton to earn a 51% interest in
each block, for which it solely funds US$3.5 million of
exploration expenditures (total commitment of US$14.0 million
over the four blocks being progressed under this First Option)
within 30 months commencing 13 August 2013.
-- Twenty meters of porphyritic intrusive was intersected in one
of the holes of the initial drill campaign on the Lautaro
-- Work continues on the selected blocks with a view to defining
drill targets either on a stand alone basis, or contiguous with
other BHP Billiton assets
Colin Bird, President and CEO stated: "We are pleased that BHP Billiton have
elected to continue with the majority of the projects and the diligent manner
in which they have carried out their initial work program. The first option
commitment is significant in financial terms demonstrating that BHP Billiton
share our confidence in the potential of our properties ".
The Properties are, in general, located south of Polar Star's 100% owned
Montezuma Property along approximately 360 kilometres of the Domeyko Fault
System in Northern Chile, commonly referred to as the Mega Porphyry Belt.
This regional fault system also hosts the Chuquicamata and Escondida mines.
During the evaluation phase all the properties were mapped and sampled.
However, the focus of the geophysics and drilling programs undertaken to date
have been in the properties of Lautaro, Domeyko, Redondo and Veronica, where
strong silica alteration and advanced argillic alteration lithocap indicate
the presence of possible buried porphyry copper systems.
Lautaro is the most advanced of the assets in terms of exploration undertaken
by BHP Billiton to date and is located on a NW - SE trend that hosts Lomas
Bayas mine. Surface geochemistry shows high values for gold, silver,
molybdenum, copper, lead and zinc associated with area of alteration/lithocaps
indicative of porphyry systems. Geophysics identified conductors within the
same areas. BHP Billiton commenced drilling of the target areas in July 2013.
Polar Star understands that the next asset that BHP Billiton may look to
advance under the current Agreement is the Domeyko project which is located 45
kilometres south of Mina Escondida. Joint venture meetings will be held
between BHP Billiton and Polar Star to discuss the work undertaken on all four
blocks during each quarterly period.
Under this First Option, BHP Billiton will earn a 51% interest in each block,
for which it solely funds US$3.5 million of exploration expenditures within 30
months of the date of selection. The total exploration expenditure
commitment required to earn a 51% interest in the four blocks selected is
therefore US$14.0 million.
Under the Second Option, which will involve the formation of a Joint Venture
company for each Block being progressed, BHP Billiton may earn up to an
additional 24% (to therefore reach up a 75% interest in each block) on the
basis that it solely funds up to an additional US$20 million of exploration
expenditures within 54 months of formation of the respective Joint Venture(s).
As such, to earn an additional 24% and to reach a total of a 75% interest in
all four blocks, BHP Billiton would be required to solely fund a total of
US$80 million of additional exploration expenditures under this second option,
such amounts to be in addition to any sums invested during this First Option
Colin Bird, is a qualified person under NI 43-101, and has reviewed and
approved the technical information contained in this press release.
About Polar Star Mining Corporation
Polar Star Mining Corporation ("PSR") is a TSX listed exploration and
development company with a focus on building shareholder value in Chile. The
Company's strategy is to use the cash flow from its' Chepica mine (primarily
gold) to fund, in part, the exploration program at its flagship Montezuma
property and toadvance our large portfolio of other world class projects in
Chile through joint ventures.
'signed' Colin Bird
President, Chief Executive Officer and Director
Colin Bird Chief Executive Officer Polar Star Mining Corporation.
Image with caption: "BHP Joint Venture (CNW Group/Polar Star Mining
Corporation)". Image available at:
SOURCE: Polar Star Mining Corporation
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-0- Aug/26/2013 16:57 GMT
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