The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
FS: TSX-V
President and CEO: Bill Wishart
Vice President Exploration: Karsten Eden
First Star Resources Inc. is exploring West Pogo and LMS, two gold properties in the vicinity of Sumitomo Metal Mining Co. Ltd.'s Pogo Mine in Interior Alaska.
The junior signed an option agreement with International Tower Hill Mines Ltd. to earn up to a 100 percent interest in the properties, and in August Tower Hill rolled these assets into a new junior exploration company, Corvus Gold Inc. (See Corvus Gold).
West Pogo is situated 2.8 miles, or 4.5 kilometers, west of the Pogo Mine, LMS can be found about 25 miles, or 40 kilometers, to the southwest of the high-grade gold operation.
The junior kicked off its 2010 exploration of the LMS claims in September with a 1,500-meter drill program targeting the expansion of an NI 43-101-compliant inferred resource of 5.86 million metric tons averaging 0.89 g/t gold.
The junior is also testing the extent of high-grade gold trends previously intersected in the zone, but never clearly defined.
A previous drill intersection into this vein system cut 1.8 meters averaging 713.1 g/t gold, though 5 to 30 g/t gold are more typical.
Testing a new geological model, the company intersected the structure that carries the high-grade gold in the initial two holes drilled.
Though assays are still pending at the time this report, Corvus President Russell Myers said this is the first time a model has predicted the location of the structures.
First Star has the ability to earn an initial 55 percent interest in LMS by paying Corvus US$280,000 and spending US$3.5 million on exploration of the property over three years with the ability to increase its interest to 100 percent, subject to royalty, through further exploration or by producing a 2-million-ounce gold resource at LMS.
In a similarly structured deal, First Star can earn a 55 percent interest in West Pogo by paying US$250,000 and spend US$2.8 million on exploration.
The company can become sole-owner, subject to royalty, by spending an additional US$2 million by the end of 2015, or by producing a resource of one million ounces of gold.
The West Pogo prospect, consisting of 4,670 acres of State of Alaska mining claims, represents a high-grade intrusion-related vein system gold target.
Exploration by Tower Hill encountered Pogo-style mineralization as well as other high-grade gold without the geochemical signatures of the ore being mined by its neighbor.
First Star focused its 2010 exploration on mapping these vein structures.
This year's budget is about C$1 million for the two properties.
Cash and short-term deposits: C$338,774 (at June 30, 2010)
Working Capital: C$226,590 (at March 31, 2010) (C$1.7 million private placement closed July 12, 2010)
Market Capitalization: C$3.27 million
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