Desert Star Options the Red Top, Copper King and Copper Springs Projects in Arizona from Eurasian Minerals VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 09/04/13 -- Desert Star Resources Ltd. (TSX VENTURE:DSR) ("Desert Star" or the "Company") is pleased to announce that it has entered into three (3) option purchase agreements (the "Option Purchase Agreements"), each dated September 3, 2013 (the "Effective Date"), with Eurasian Minerals Inc. (TSX VENTURE:EMX)(NYSE MKT:EMXX) ("Eurasian" or "EMX") through its wholly owned subsidiary, Bronco Creek Exploration Inc. ("BCE"). Pursuant to the Option Purchase Agreements, Desert Star has three options (the "Options") to earn 100% interests (each subject to a 2.5% net smelter returns royalty granted to EMX upon Desert Star completing an Option) in each of the Red Top ("Red Top Project"), Copper King ("Copper King Project"), and Copper Springs ("Copper Springs Project") projects (collectively, the "Projects"). The Projects are located in the Superior and Globe-Miami copper districts in Pinal and Gila Counties, Arizona, United States. All three projects are high priority targets for porphyry copper mineralization and are road accessible year-round. "We are extremely pleased to be working with Eurasian Minerals on what we consider to be three very high quality copper exploration targets," stated Desert Star President and CEO, Vince Sorace. "The Superior and Globe-Miami copper districts are truly world class, and we are excited to be working in the same districts where veteran copper miners such as BHP Billiton, Rio Tinto, Freeport McMoRan, and KGHM International have operations." Red Top Project The Red Top Project consists of 148 unpatented federal lode mining claims covering 1,172 hectares, located 8.5 km from the town of Superior, Pinal County, Arizona, and is road-accessible year-round. The Red Top Project is situated 8 km northwest (Fig. 1) of the Resolution Copper Project, a joint venture project owned by Rio Tinto and BHP Billiton which is one of the world's largest undeveloped copper projects, containing 1,737 Mt @ 1.52% copper and 0.035% molybdenum. The Red Top Project is prospective for bulk tonnage supergene (oxide) and hypogene (sulphide) porphyry copper and molybdenum mineralization. The property contains an abundance of (oxidized) sulphides, and together with the style, size (greater than 350m of exposed strike length) and intensity of advanced argillic hydrothermal alteration (sericite with dickite and pyrophyllite), the zoned copper-molybdenum footprint (based on rock chip samples; greater than 1.5 km in length) and presence of favorable Laramide age porphyritic intrusions suggest that the Red Top Project represents a high level intact porphyry system. The Red Top Project has not been explored since the 1960s, and therefore no modern, systematic porphyry copper exploration has been conducted on the Project. Desert Star plans to conduct a targeted surface geological mapping program, surface alteration mapping using a Terraspec 4 High Resolution Spectrometer, and a deep penetrating induced polarization ("IP") geophysical survey in advance of a drilling campaign at the Red Top Project. Copper King Project The Copper King Project covers 1398 hectares and consists of 189 unpatented federal lode mining claims located approximately 4 km from the world-class Resolution Copper Project (Fig. 1) and the town of Superior. The Copper King Project is prospective for bulk tonnage supergene (oxide copper) and hypogene (sulphide) copper and molybdenum mineralization. Surface geology, copper and molybdenum metal zonation defined by surface rock sampling as well as a very large (1 km by 1 km) alteration zone suggest the Copper King Project represents the top and/or side of an intact porphyry system (Figs. 3A-B). Locally intense calc-silicate alteration of moderately inclined sedimentary wall rocks in addition to copper oxide and copper sulphide minerals present in both wall rocks and porphyritic intrusions may represent leakage from an intact but unexposed porphyry system (Fig. 3A). The only evidence of historic exploration present on the property are drill access roads which likely provided access to the nearby Silver King deposit (6.2 Moz Silver: short et al., 1943) in the mid-late 1970s. As with the Red Top Project, no modern systematic porphyry copper exploration has been conducted on the Copper King Project. Desert Star plans to conduct a targeted surface geological mapping program, surface alteration mapping using a Terraspec 4 High Resolution Spectrometer and a deep penetrating IP geophysical survey in advance of a drilling campaign at Copper King. Copper Springs Project The Copper Springs Project covers 2,175 hectares and consists of 241 unpatented federal lode claims and one (1) Arizona State lease. Certain of the surface rights overlying the mining claims are located on private lands, while other surface rights are administered by the National Forest Service. The project is located adjacent to US Highway 60 in Gila County, Arizona (Fig. 1). Existing infrastructure, including a smelter (Miami Mine - Freeport McMoRan), roads, power, and rail are located nearby the Copper Springs Project. The Copper Springs Project lies within the Globe-Miami Copper District (Fig. 1). The Globe-Miami Copper District contains a cluster of porphyry centers that have been dismembered by Tertiary normal faults. Dismembered ore bodies in the district include Pinto Valley (BHP Billiton), Cactus-Carlotta (KGHM International), Copper Cities (BHP Billiton), Miami-Inspiration (Freeport-McMoRan) and Old Dominion (historical mine now owned by BHP Billiton) (Figs. 1 and 4). Geological investigations including Tertiary fault reconstruction by the EMX technical team have provided a geological framework that has been used to vector toward fault-bound pieces of the dismembered porphyry copper deposits which are interpreted to lie concealed under post-mineral cover (Fig. 4). The Copper Springs area has been explored by several exploration companies prior to the late 1960s, including drill programs focused on the Azurite prospect (Fig. 4). Between December 2009 and January 2010, two holes were drilled (CSN-5 and CSN-6) for a total of 1,189 m, centered on the northeastern portion of the claim block, both of which failed to reach target depth. Drill hole CSN-5 was cut short due to budget constraints and drill hole CSN-6 was abandoned due to depth limitations of the mud rotary drill rig. Drill hole CSN-6 was cased to 512 meters and could be re-entered using core or reverse circulation ("RC") drilling methods. Desert Star plans to conduct a limited deep penetrating audio frequency magneto-telluric (AMT) survey capable of imaging bedrock to depths of 600 to 750 meters, which would then be used to establish targets for a drilling program. Terms of the Option Agreement To exercise each Option, Desert Star is required to: -- Issue 350,000 common shares in the capital of DSR (1,050,000 common shares in the aggregate) to EMX upon the TSX Venture Exchange approving such share issuances; -- Pay to EMX the following option payments in respect of each Option: -- upon the completion of 1,000 meters of drilling, $30,000; -- upon completion of a preliminary economic assessment, the value equal to 35,000 pounds of copper, which payment is treated as an advance minimum royalty ("AMR"); -- upon completion of a pre-feasibility study, the value equal to 50,000 pounds of copper, which payment is treated as an AMR; -- upon completion of a feasibility study, an amount equal to 0.25% of the value of each pound of copper up to 500 million pounds of copper and 0.05% of the value of each pound of copper greater than 500 million pounds of copper included as reserves in the feasibility study; -- upon the decision to develop a mine, the value of 175,000 pounds of copper, which payment is treated as an advance minimum royalty; -- upon commencement of commercial mining, the value of 250,000 pounds of copper, which payment is treated as an advance minimum royalty. -- Incur exploration expenditures on each of the Projects as follows: -- US$100,000 by the first anniversary of the Effective Date; -- an additional US$500,000 by the second anniversary of the Effective Date; -- an additional US$500,000 by the third anniversary of the Effective Date; -- an additional US$750,000 by the fourth anniversary of the Effective Date; and -- an additional US$1,000,000 by the fifth anniversary of the Effective Date and by each anniversary of the Effective Date thereafter until completion of a feasibility study. -- Pay to EMX the following AMR payments: -- the value of 20,000 pounds of copper on or before the first anniversary of the Effective Date; -- the value of 30,000 pounds of copper on or before the second anniversary of the Effective Date; -- the value of 40,000 pounds of copper on or before the third anniversary of the Effective Date; -- the value of 60,000 pounds of copper on or before the fourth anniversary of the Effective Date; -- the value of 70,000 pounds of copper on or before the fifth anniversary of the Effective Date; and -- the value of 80,000 pounds of copper on or before the sixth anniversary of the Effective Date and each anniversary thereafter of the Effective Date until commercial production commences on the Project. Desert Star may elect to pay cash to EMX in lieu of any shortfalls incurred in any period in which it is required to incur exploration expenditures, and may accelerate the schedule to make the option payments, incur exploration expenditures or make the AMR payments. Each of the AMR payments shall be set off against the 2.5% net smelter returns royalty payable to EMX upon a Project being brought into commercial production. Desert Star may purchase one-fifth of the royalty at any time before the twelfth anniversary of the Effective Date by paying to EMX $2,500,000. Qualified Person Dr. Alan J. Wainwright, Ph.D., P.Geo., 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 a consultant of the Company. To view Figs. 1 to 4 accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/896027.pdf About Eurasian Minerals Eurasian is a global gold and copper exploration company utilizing a partnership business model to explore the world's most promising and underexplored mineral belts. Eurasian generates wealth via grassroots prospect generation, strategic acquisition and royalty growth. About Desert Star Resources Desert Star Resources 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. Vince Sorace, President and CEO, Desert Star Resources For further information regarding Desert Star, please email email@example.com or visit our website at www.desertstar.ca. 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. 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 and actual results or realities may differ materially from those in forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from estimated results. Such risks and uncertainties include, but are not limited to, Desert Star's ability to raise sufficient capital to fund its obligations under the Option Purchase Agreements and earn-in such Options; changes in economic conditions or financial markets; the ability of Desert Star to obtain the necessary permits and consents required to explore and develop the Projects; 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 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. Contacts: Desert Star Resources Ltd. 604-628-5623 604-647-6613 (FAX) firstname.lastname@example.org www.desertstar.ca
Desert Star Options the Red Top, Copper King and Copper Springs Projects in Arizona from Eurasian Minerals
Press spacebar to pause and continue. Press esc to stop.