Mr. Vince Sorace of Desert Star reports
AGREEMENT EXTENSIONS AND CORPORATE UPDATE
Desert Star Resources Ltd. and Eurasian Minerals Inc. have signed amendment agreements for both the Red Top and Copper King projects, by which the parties have agreed to extend the time by which Desert Star is required to incur exploration expenditures and make AMR payments under the Sept. 13, 2013, option agreements, as amended. The exploration expenditure requirements and AMR payments that were required to be completed and paid by the second anniversary date of the option agreements are now due six months following the parties' receipt of written approval from the U.S. Forest Service regarding permitting for drilling of the projects. Each of the third and subsequent anniversary expenditure requirements and AMR payments due under the option agreements (as disclosed in Desert Star's Sept. 4, 2013, news release) will now fall annually on the anniversary of the new expenditure date.
Desert Star and Eurasian Minerals continue to work diligently with the U.S. Forest Service toward the issuance of the drill permits for the Red Top and Copper King projects.
"We have been subject to lengthy procedural delays but remain optimistic that we will receive our drill permits in the near future. We are fully prepared to quickly mobilize and commence drilling once permits are received, as our drill contractor has been selected, and base of operations and drill core facilities have been secured," stated Vince Sorace, president and chief executive officer of Desert Star.
In addition, Desert Star has recently completed a preliminary rock sample analytical program designed to determine the age of porphyry dikes associated with the Copper King hydrothermal system. Two strongly altered quartz diorite porphyry dikes were analyzed by uranium-lead (zircon) dating techniques at the University of British Columbia. The interpreted Late Cretaceous (Laramide) rock ages obtained at Copper King are similar (within analytical uncertainty) to published uranium-lead (zircon) ages for intrusions associated with the nearby Ray, Resolution and Magma copper systems.
The company will also be extending the maturity date of $495,000 of convertible notes from Sept. 9, 2015, for one year to Sept. 9, 2016, as agreed between the company and the holders of the notes. The conversion terms and interest rate will remain the same as disclosed in the company's Sept. 9, 2014, news release. The extension of the maturity date and underlying convertible securities is subject to the approval of the TSX Venture Exchange.
About the Red Top project
The Red Top project consists of 192 unpatented federal lode mining claims covering 1,463 hectares, located 8.5 kilometres from the town of Superior, Pinal county, Arizona, and is road accessible year-round. The Red Top project is situated eight km northwest of the Resolution copper project, a joint venture project owned by Rio Tinto and BHP Billiton, and one of the world's largest undeveloped copper projects. The Red Top project is under option from Eurasian Minerals Inc. The company cautions that it is not implying that it will obtain the same or similar results at its Red Top project as the Resolution copper project.
About the Copper King project
The Copper King project covers 1,438 hectares and consists of 189 unpatented federal lode mining claims located approximately five kilometres from the world-class Resolution copper project and the town of Superior. The Copper King project is prospective for bulk-tonnage copper and molybdenum mineralization. Alteration zonation and surface geology suggest that the Copper King target represents the side and/or top of a tilted, intact porphyry system. The Copper King project is under option from Eurasian Minerals Inc. The company cautions that it is not implying that it will receive the same or similar results as the Resolution copper project.
Daniel MacNeil, MSc, PGeo, a qualified person as defined by National Instrument 43-101, has read and approved all technical and scientific information contained in this news release. Mr. MacNeil is the company's vice-president, exploration.
We seek Safe Harbor.
© 2023 Canjex Publishing Ltd. All rights reserved.