news releaseNUSTAR RESOURCES INC.
#203 - 1318 56th Street, Delta, B.C.
V4L 2A4 Canada
604-943-3083
FOR IMMEDIATE RELEASE - APRIL 28, 2003
Delta, B.C. - The Company is very pleased to announce that it has completed negotiations for the acquisition by a Letter of Intent, dated April 28, 2003 that is to be followed by an Option to Purchase Agreement for the Chu molybdenite property. The property has a drill indicated resource of 135,000,000 tons with a grade of 0.08% molybdenite (MoS2) that contains a unit of 50,000,000 tons grading 0.10%+ MoS2. The Company's planned drilling program is targeting a resource of 300-400,000,000 tons of economic grade molybdenite.
The Chu property is situated in the Omineca Mining Division in central British Columbia. The property is comprised of 4 contiguous, located mineral claims, totaling 72 units. They cover an area of 4,448 acres. The location and access to the claim area is approximately 50 airmiles south-southwest of the Town of Vanderhoof, BC and ~66 miles by good road. Moderately gentle topography and good ground conditions are indicated by previous operators, reflecting positively in logistical considerations.
The molybdenum-bearing property was discovered by regional, reconnaissance geology and geochemistry in 1969 when parallel exploration programs were conducted in the Nechako plateau area by Rio Tinto Canadian Exploration and Asarco Ltd. The companies staked adjoining areas and proceeded to conduct more detailed work which evolved into shallow, small diameter core drilling programs, 4 holes, A1-A4=1,200 feet and 10 holes, B1-B10=1,030 feet, by Asarco and Rio Tinto, respectively. Rio Tinto subsequently forfeited their claims. Asarco retained and added some ex-Rio Tinto ground and entered into a joint venture (jv) with Armco Mineral Exploration Ltd., a subsidiary of Armco Inc. of Middletown, Ohio, USA in 1980 to explore the Chu property, with Armco as the operator. The jv conducted technical surveys and diamond core drilling during the period, 1980-82. They drilled 12 holes of BQ and NQ-size core totaling 16,380 feet during this period. A guesstimate of the total expenditures on the property during the period 1969-82 at current dollar value would be in the neighborhood of 1.0 - 1.5 million dollars plus.
From these exploration efforts has evolved a model of a hornfelsed-sediment hosted, northwest-southeast trending and steeply northeast dipping, quartz-stockwork containing consistent MoS2 values in long drill core intersections. Many of these zones exhibit grades in the range of 0.10%-0.12% MoS2. Drill intersections of molybdenite-bearing material are present and initial calculations by John Poloni, P.Eng., November, 2002 indicates a large, definitive zone of ~135,000,000 tons of 0.080% MoS2 that appears to contain ~50,000,000 tons of 0.10%+ MoS2. The mineralized structure is still open on both ends of its' strike length of 2,800 feet and downdip below its' present tested vertical depth of ~600 feet. The Company feels that there is a very good opportunity to increase the presently indicated resource.
There is a current molybdenite producer, Endako Mines operating ~ 50 airmiles to the north of the Chu property. Endako started operations in 1963 when Placer Development brought it on-stream. Their initial start-up reserves were published to be ~194 million tons of 0.14% MoS2. It is rumored that the present reserve of material at Endako may last for another year. The present grade going through the mill is thought to be ~0.077% MoS2 at a daily rate of ~27,000 tons. The current price of ferr. molybd. ref., National Post, Sect. IN1, Apr. 25/03 is quoted at ~$5.69 US/pound.
The Company sees a tremendous opportunity for its' shareholders by acquiring and undertaking this exciting project.
ON BEHALF OF THE BOARD
"James W. McLeod"
James W. McLeod/President/P.Geo.
Symbol: NTR
Exchange: TSX Venture Exchange
Phone: 604-943-3083
info@nustarresources.com
www.nustarresources.com