MORE NEWS!First Star, MacMillan sign Colima option deal
2005-03-30 13:25 ET - News Release
See News Release (C-FRS) First Star Resources Inc
Mr. Bill Wishart of First Star reports
FIRST STAR OPTIONS MINERAL PROPERTIES IN MEXICO
First Star Resources Inc. has signed an option agreement with MacMillan Gold Corp., whereby First Star has the right to earn a 50-per-cent working interest in MacMillan's Alpha, Beta and Gamma claims (hereafter collectively known as the Colima joint venture claims) in Colima state, Mexico, and any newly acquired claims within a defined area of influence.
First Star will be the operator and may earn a 50-per-cent interest in the option properties by financing exploration expenditures of $1-million (U.S.) and granting up to one million common shares of First Star common stock to MacMillan. The cash and shares are due in installments. The first 250,000 shares are to be issued within 10 days of regulatory approval and up to a maximum of 250,000 shares on each of the first-year, second-year and third-year anniversaries of signing the letter of intent. The first-year, second-year and third-year anniversary shares will be capped to a maximum of $100,000, $125,000 and $150,000, in value of shares, respectively. First Star is required to have spent $100,000 (U.S.) by the end of the first year, $300,000 (U.S.) by the end of the second year, $600,000 (U.S.) by the end of the third year and $1-million (U.S.) by the end of the fourth year. The cost to acquire additional claims within the defined area of influence may be financed from the expenditure commitments. A finder's fee of 10 per cent is payable to Al-Munir Kambar in accordance with TSX Venture Exchange policy.
The claims cover two types of targets. The Alpha and Beta claims cover disseminated and veinlet gold systems in skarns and stockworks in metavolcanic rocks. The Gamma claim covers a skarn with copper and disseminated porphyry-type copper and silver which was previously developed and mined by Japanese interests (prior to the Second World War). Host rocks are diorite porphyry and siliceous marbles. The claims recently became available after being covered by speculative claims for several years. MacMillan has reviewed historic data, compiled regional geological and mineral occurrence data, and conducted preliminary field observations which led to the acquisition of these claims shortly after they became available. They were selected for their disseminated gold and/or copper potential, based on previous work by the Consejo de Recursos Minerales and undocumented mining and prospecting activities by Japanese and Mexican interests.
David Bending, PGeo, vice-president of exploration for MacMillan, is a qualified person under the meaning of Canadian National Instrument 43-101, and is responsible for the technical content of this news release.
Bill Wishart, president and chief executive officer of First Star, commented, "Upon an initial review of the historical data, which includes extensive sampling and limited drilling, we consider these prospects to offer excellent opportunity for major precious metal and copper discoveries." As part of the company's evaluation process, it will review all available data on the claims and provide a summary report of the properties when completed.
We seek Safe Harbor.