NR: Massive Sulfide Potential Nevada Star Resource Corp. Uncovers Massive Sulfide Potential at the MAN Alaska Canwell Complex
Monday April 24, 9:00 am ET
SEATTLE, WASHINGTON--(MARKET WIRE)--Apr 24, 2006 -- Nevada Star Resource Corp. (TSX VENTURE:NEV.V - News)(OTC BB:NVSRF.OB - News) ("Nevada Star") announces encouraging results from studies of integrated drilling, geology, geochemistry and geophysical data generated since 1997 for the Canwell ultramafic-mafic intrusive complex in the MAN Alaska Area 2 Ni-Cu-PGE Project, south-central Alaska.
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Analysis of the historical INCO and Nevada Star databases for the Canwell area revealed significantly better drill hole intercepts and more and higher grade massive sulfide showings than previously released.
Drill Results
INCO and Nevada Star intersected massive sulfides in three diamond holes drilled on the Canwell Complex. CAN-003, the northernmost hole drilled by INCO in 1998 intercepted one metre of massive sulfides at 100 metres depth. The hole was planned to test a strong electromagnetic anomaly modelled to be at 60 metres deep. The intercept is on the contact between wehrlite and underlying gabbro and contains sheared magnetite and pyrrhotite. Assays indicate grades of up to 0.12% Ni, 0.01% Cu, 0.140 g/t pt and 0.080 g/t Pd. The massive sulfide intercept is overlain and underlain by zones of sheared and altered rocks at least 10 metres thick with up to 10% magnetite and sulfides in the rock matrix and clasts with sulfide seams (veins). Assays indicate 1 metre intervals contain grades of up to 0.24% Ni, 0.05% Cu, 0.270 g/t Pt and 0.108 g/t Pd.
CAN-DH-06, drilled 1 km southeast of CAN-003 at the North Odie showing by Nevada Star in 2002, intercepted 5.5 metres of disseminated sulfides from 121 metres depth. Weighted average grades for the intercept are 0.51% Ni, 0.12% Cu, 0.02% Co, 0.110 g/t Pt, 0.080 g/t Pd, 0.050 g/t Au and 0.82 g/t Ag. The drill hole ended in mineralized rock.
CAN-005, drilled 1 km east of North Odie on Canwell Ridge by INCO in 1998, intercepted a 4 metre thick interval of faulted dunite with massive sulfide clasts from 87 metres deep. Assays results indicate that a 2 metre thick interval contains 0.43% Ni, 0.04% Cu, 0.370 g/t Pt and 0.208 g/t Pd. The hole was planned to test for high-grade surface mineralization at depth.
Surface Showings
In addition to the high-grade Ni-Cu-PGE showings at Canwell Ridge and North Odie, three more surface showings have been recognized at Canwell than previously reported. The first showing, mapped by INCO approximately 300 metres south of the North Odie showing, was called Odie. The mineralization is high-grade massive sulfide internally within the Canwell Complex. Median assay values for 4 samples are 3.92% Ni, 0.79% Cu, 0.781 g/t Pt, 2.481 g/t Pd, 0.071 g/t Au and 6.69 g/t Ag. The Odie showing has yet to be drill tested, in contrast to the lower-grade North Odie showing (see CAN-DH-06 above), located a few hundred metres to the north, downslope and adjacent to the basal contact.
A second showing has been recognized at East Canwell, a few hundred metres east of the main high-grade showings at Canwell Ridge. East Canwell is mainly disseminated sulfides, but samples of massive sulfides have returned assay values of up to 6.69% Ni, 2.29% Cu, 2.818 g/t Pt, 3.508 g/t Pd, 2,580 g/t Au and 11.4 g/t Ag. Median assay values for 8 samples are 1.07% Ni, 0.71% Cu, 1.100 g/t Pt, 1.310 g/t Pd, 0.260 g/t Au and 2.75 g/t Ag. East Canwell has yet to be drill tested.
A third showing, mapped by INCO approximately 500 metres northwest of North Odie was called Upper Glacier. The mineralization is low-grade disseminated and located adjacent to the basal contact of the Canwell Complex. Median assay values for 3 samples are 0.33% Ni, 0.06% Cu, 0.052 g/t Pt, 0.071 g/t Pd 0.022 g/t Au and 0.23 g/t Ag. Upper Glacier has yet to be drill tested.
Significance
The mineralized drill intercepts and the additional sulfide showings have major significance in exploration at Canwell and elsewhere on the MAN Alaska Project. The results further highlight the potential for a major massive Ni-Cu-PGE sulfide deposit. Indeed, the Odie and East Canwell showings and the CAN-003 and CAN-005 intercepts represent 3 outstanding massive sulfide targets for drill testing. Such low tenor drill intercepts as in CAN-003 and CAN-005 are common at the margins of ore shoots in nickel sulfide mining camps elsewhere globally and evidently can be detected by UTEM survey techniques, even in areas of moderate relief.
Altogether, the known surface showings and drill intercepts define a mineralized zone measuring up to 4000 metres long x 300 metres wide by 120 metres deep (base of drilling) within the Canwell Complex. Less than 1500 metres of drilling has been completed on this trend, the longest hole of which is only 220 metres deep, and none of the 20 holes were down-hole surveyed by EM. Consequently, Canwell should be one of the top-ranking Ni-Cu-PGE sulfide projects presently available for joint venture anywhere.
Bill Stone, Ph.D. and P.Geo. is the qualified person responsible for the technical information contained in this release.
About the MAN Alaska Project
Nevada Star Resource Corp.'s 2,072 square km (800 square mile) MAN Alaska Project Area is located 270 km (160 miles) southeast of Fairbanks and 400 km (250 miles) northeast of Anchorage. Exploration by Nevada Star began in 1995 in this large area, which is characterized by extremely high nickel (up to 15.4% Ni) and precious metals (up to 170 g/t Pt+Pd+Au+Ag) concentrations in surface samples.
Exploration results to date on the MAN Alaska Project indicate potential for significant discoveries of nickel, platinum-group elements, gold and copper.
The MAN Alaska Project consists of three areas: two nickel-copper (PGE) project areas (Area 1 and Area 2) and one copper-gold project area (Area 3). The project areas are accessible from two paved highways. View the project maps at https://www.nevadastar.com/s/MANProject.asp?Reportid=60154 for a breakdown of the project areas.
Area 1, the Fish Lake-Dunite Hill project area is presently under joint venture with Anglo American Exploration (USA), Inc. (AAEUS). AAEUS is part of the Anglo American group, a global leader in the mining and natural resource sector. Under the terms of the joint venture agreement, AAEUS can earn a 51 percent interest in the southern portion of the MAN Alaska property by spending a total of $12 million USD by 2008. AAEUS has the right to increase their interest by an additional 19 percent by completing a positive feasibility study, at its expense, and an additional 5 percent by arranging production financing for both AAEUS and Nevada Star.
Areas 2 and 3 are being explored exclusively by Nevada Star and are available for Joint Venture.
Nevada Star Resource Corp. is a mineral exploration company that uses advanced technology to search for metals that are in high demand world-wide. In addition to the Alaska property, Nevada Star currently has projects in Nevada and Utah. The Nevada and Utah properties are in joint partnership with Round Mountain Gold and Western Utah Copper Company, respectively. Both properties are scheduled to go into production in 2006-2007. For more information, including maps, photos and project descriptions, visit www.nevadastar.com.
This release was prepared by management of Nevada Star Resource Corp. who take full responsibility for its contents.
Neither the TSX Venture Exchange nor the NASD OTC Bulletin Board have reviewed or accept responsibility for the adequacy of this news release.