Archean Star Announces Option to Earn 80% Lease Interest on Historic Monitor Copper, Gold Mine, Silver Valley, Idaho
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 1, 2012) - Archean Star Resources Inc. ("Archean" or the "Company") (TSX VENTURE:ASP) reports it has entered into a Letter Agreement to acquire an Option to earn an 80% interest in a Mining Lease on the historic Monitor Copper, Gold Mine in Shoshone County, Idaho ("Monitor" or "Monitor Mine"). The historic Monitor Mine is located approximately 30 km (17 mi) ESE from the town of Wallace, Idaho, in the historic and highly prolific Coeur D'Alene Mining District, where over 1.1 billion ounces of silver, 8.3 million tons of lead, 3.3 million tons of zinc, 207,000 tons of copper and 529,000 ounces of gold have reportedly been produced from steeply dipping narrow veins, some of which extend from surface outcroppings to a mile or more deep.
History of Monitor Mine
Historic production records from past underground exploration and development work at the Monitor Mine reported that 1,562 tons were shipped to the Tacoma smelter in the early 1900's with average reported smelter returns of 14.92% copper, (298.3lb/ton), 23.6 g/t silver (0.76 opt Ag) and a reported average of 8.64 g/t Au (0.278 opt/Au) with a reported high gold value of 68.43 g/t Au (2.2 opt/Au). Mineralization at Monitor is reported to occur primarily as deep, continuous, high-grade vein systems, with shoots of Bornite and high-grade Chalcopyrite with values of from 7.46% up to 30% Cu and variable widths between 3 m (10 ft.) and 6 m (20 ft.) along with gold values to up to 68.43 g/t Au and anomalous silver values.
Historic development work on the Monitor Mine included a 213 meter (700 ft.) shaft and approximately 300 m (1,000 ft.) of development crosscuts and drifting over five levels.
Adjacent to the Monitor Mine and approximately 300 m (1,000 ft) NW of the Monitor shaft and at 80 m (240 ft) lower elevation, lies the Richmond Mine adit. The Richmond vein, that strikes N68E, is projected to intersect the Monitor vein approximately 480 m (1,600 ft) WNW from the Monitor shaft. Historic assays from the Richmond vein, that reportedly has a similar widths of 3 meters (10 ft.) and grades as the Monitor vein, are reported as approximately 12% Cu, 34.1 g/t Ag (1.1 opt Ag) and between 3.7 g/t - 10 g/t Au (0.12 opt to 0.3 opt Au).
During the great Idaho fire of 1910 all above ground infrastructure was destroyed and both the Monitor and Richmond mines ceased production never to reopen. Work recommenced on the Monitor in the late 1920s when an approximate 1.5 km drive was constructed that reportedly intersected the 3 meter (10 foot) wide Monitor vein approximately 300 meters (1,000 ft.) below, and 600 meters (2,000 ft.) west of the Monitor shaft. Work reportedly ceased during the great depression after which the mine workings were never re-opened. Historic mine production was reportedly limited to developmental ore from the drifts and some stoping above the 200 level.
District wide trends within adjacent properties in the Coeur D'Alene Mining District, such as the Galena Mine and the Lucky Friday Mine, indicate mineralized veins with widths between 3 meters to 10 meters extend to as deep as 6,100 ft.
The Company advises that all grades reported are historic in nature, are not NI 43-101 compliant and a qualified person has not done sufficient work to classify historical estimates as a current mineral resource. The Company is not treating any historical estimates as a current mineral resource and any historical estimates should not be relied upon.
In order for the Company to earn an 80% interest as per the terms of the Agreement, and subject to the approval of the TSX Venture Exchange ("TSX-V"), the Company must pay $25,000 in cash, incur property expenditures of US$2.1 million over three (3) years and issue three (3) million common shares of the Company; one (1) million common shares upon signing, one (1) million common shares on the first anniversary of the Agreement and one (1) million common shares on the second anniversary of the Agreement.
The Company has engaged Dr. G. E. Ray, Ph.D. P.Geol to conduct a NI 43-101-Compliant Report on the Monitor Property. Dr. Clay Conway, Ph.D. P. Geol., a qualified person and a director of the Company will be heading up the concurrent exploration program on the Monitor Property.
The Company reports that Mr. Jeff Williams has resigned as a director of the Company, and the Company would like to thank him for his contributions during this past year. Mr. Williams will remain as a consultant to the Company.
The Company advises that the proposed purchase of the Chalice interest in Gnaweeda has been cancelled.
Archean Star Resources Inc. is a junior exploration company that, through its wholly owned subsidiary, Archean Star Resources Australia Pty Ltd, has entered into an Option Agreement, subject to a 75% back in right, to earn 100% of Teck Australia Pty Ltd's interest in Chalice Gold Mines Limited's Gnaweeda Gold Project in West Australia. Kent Exploration Inc. (TSX VENTURE:KEX) holds approximately 10,000,000 shares, or 18% of the outstanding common shares.
This News Release has been prepared on behalf of the Archean Star Resources Inc. Board of Directors, which accepts full responsibility for its contents. The contents of this news release have been reviewed and approved by Dr. Clay Conway, P. Geol., a Qualified Person as defined by National Instrument NI-43-101 and a director of the Company.
ON BEHALF OF THE BOARD
Graeme O'Neill, President
FOR FURTHER INFORMATION PLEASE CONTACT:
Archean Star Resources Inc.
(888) 282-7763 (FAX)