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BHP Billiton Selects Four Polar Star Properties for Joint Venture

BHP Billiton Selects Four Polar Star Properties for Joint Venture 
/NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR DISSEMINATION IN THE 
UNITED STATES/ 
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. 
Highlights: 


    --  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
        property.
    --  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 
period.

Qualified Person

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. 
Email:info@polarstarmining.com www.polarstarmining.com

Image with caption: "BHP Joint Venture (CNW Group/Polar Star Mining 
Corporation)". Image available at:  
http://photos.newswire.ca/images/download/20130826_C8165_PHOTO_EN_30118.jpg

SOURCE: Polar Star Mining Corporation

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/August2013/26/c8165.html

CO: Polar Star Mining Corporation
ST: Ontario
NI: MNG VNT 

-0- Aug/26/2013 16:57 GMT


 
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