Urastar Receives TSX Venture Approval on El Jabali Property, Mulatos Gold Belt, Commences Drilling
April 30, 2012 - VANCOUVER, Canada - Urastar Gold Corp. (the "Company") (TSX-V:URS) (FSE: 3U3) (OTCQX: URNRF) reports that the TSX Venture Exchange has approved the El Jabali property agreement as reported below and as described in the Company's previous news releases of November 22, 2010, November 29, 2011 and February 16, 2012.
Under the February 14, 2012 amending agreement between Minerales de Tarachi S. de R.L. de C.V. (Benjamin Luis Lagarda Burgos), the Company and the Company's wholly-owned subsidiary Femiso Minerales De Sonora S. De R.L. de C.V. ('Femiso'), the Company acquired the option to earn a 100% interest, subject to a 3% Net Smelter Return Royalty, in the El Jabali property located in Shauripa, Sonora, Mexico.
To earn its interest the Company must pay US$1,975,000 and issue 120,000 common shares as follows:
-US$10,000 paid upon signing the letter of intent
-US$50,000 paid November 30, 2011
-US$40,000 paid December 31, 2011
-Issuance of 120,000 common shares upon Exchange acceptance
-Pay US$75,000 by November 30, 2012
-Pay US$150,000 by November 30, 2013
-Pay US$200,000 by November 30, 2014
-Pay US$1,450,000 by November 30, 2015
Femiso will have the right to acquire each 1% of the NSR for US$1 million exercisable until November 18, 2015.
El Jabali is a past producing gold property, consisting of 70 hectares located in east Sonora in the Mulatos gold belt. The property is located only six km west from Alamos Gold Inc.'s "Mulatos" gold-and silver-producing heap-leach mine.
The El Jabali claim covers the La Dura historic mine and several other small scale mines. The gold mineralization and geology at El Jabali is similar in character to the gold mineralization at the Mulatos Mine. Alamos Gold Inc., in a 2003 annual report identifies the El Jabali project as being part of the "The Los Bajios" mineralized trend which the report suggests has the potential to host another Mulatos size resource.
Mineralization occurs within silicified rhyodacite and is associated with vuggy silica alteration, and breccia with iron oxide (hematite and specularite). Native gold occurs along late-stage fracture coatings in the breccias and is locally associated with barite. Preliminary exploration by Urastar has returned values from trace to 30g/t Au in grab samples. Native gold has also been identified in outcrop on the southern extension of the La Dura mine trend.
The Company has commenced an 850m plus reverse circulation drill program designed to test for extensions of the historic La Dura mine as well as targets north and south on the La Dura mine trend.
Michael Collins, P.Geo., is the Company's qualified person with respect to the Company's El Jabali project, and has reviewed and approved this press release.
THIS NEWS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. THE TSX-VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release includes certain statements that express management's expectation or estimates of future performance and may be deemed "forward-looking statements". These forward-looking statements include plans, estimates, forecasts and statements as to management's expectations regarding exploration. These forward-looking statements involve assumptions, risks and uncertainties and actual results may vary materially. For these reasons shareholders should not place undue reliance on such forward-looking information.
United States residents are cautioned that some of the information that may be published by Urastar may not be consistent with United States Securities and Exchange Commission disclosure rules and may be materially different from what the Company is permitted to disclose in the United States and therefore United States residents should not rely on such information.
For further information, please contact:
Urastar Gold Corp. Adrian Robertson, P.Eng., President Tel: 604-682-2928
Copyright (c) 2012 Thenewswire.ca - All rights reserved.