Archean Star to Acquire Rice Lake Manitoba Greenstone Gold Belt Properties
January 21,2012
Archean Star Resources Inc., ASP: TSX-V, ("Archean" or the "Company") reports that it has entered into indicative proposals to enter into two agreements to acquire a 100% interest in fourteen claims totalling approximately 2,662 hectares (26.62 sq/km)in the Rice Lake Greenstone Gold Belt, in south-eastern Manitoba. The claim groups either abut, or are otherwise bordered by San Gold claims or claims optioned by San Gold, located to the south-west of, or to the north-east of, the San Gold Rice Lake gold mine.
The Manitoba Rice Lake Greenstone Gold Belt lies approximately 80km to the west of the Red Lake Gold Camp and approximately 150km to the north of Winnipeg, MB and shares many geological similarities with the Ontario's Red Lake Greenstone Gold Belt.
The Johann claim group consists of four contiguous claims and is immediately to the north of San Gold's "Hinge Zone", that has recently been drilled, and to the west of the historic "Jeep Mine", that San gold has optioned from Wildcat Exploration Limited ("Wildcat") . In prior news releases San Gold has reported significant gold interesctions in drill holes approximately 1 km south of the Johann claims.
The Beverley claim group consists of 9 contiguous and one separate claim that lie west south-west of the San Gold mine and south of the Mike Power claims that San gold has optioned from Wildcat. Wildcat reports that San Gold has advised it has commenced a diamond drill program on the Mike Power property, that abuts or borders the Beverley claims.
On the now Beverley 10 claim, in an historic assessment report filed with the Manitoba Department of Mines, Resources and Environmental Management, 23 rock samples were taken between 1974 and 1976 over an approximately 33 meter section of a quartz vein striking south-west to north-east in the approximate center of the claim and were submitted for assay.
Of these rock samples, four assayed in excess of 1 oz/t Au, namely 4.26 oz/t, (143.6 g/t) 3.98 oz/t, (136.43 g/t) 2.57 oz/t (88.1 g/t) and 1.84 oz/t (63.08 g/t), seven samples assayed between 0.3 oz/t Au and 1.0 oz/t Au, namely 0.87 oz/t, (29.82 g/t) 0.64 oz/t, (21.94 g/t) 0.62 oz/t, (21.25 g/t) 0.58 oz/t (19.88 g/t) 0.41 oz/t, (14.05 g/t) 0.31 oz/t, (10.63 g/t) 0.30 oz/t (10.28 g/t) of the balance of the sample, four samples graded between 0.14 oz/t AU to 0.30 oz/t Au, namely 0.28 oz/t (9.6 g/t) 0.18 oz/t (6.17 g/t) 0.16 0z/t) 95.48 g/t) and 0.14 oz/t ( 4.8 g/t) while the remainder graded less than 0.1 oz/ton (3.42 g/t)
The terms of the proposals for the Johann claims are:
· the payment of $40,000, as to $20,000 upon the singing of the Agreement and $20,000 payable on or before six months of the signing of the Agreement and;
· subject the approval of the TSX Venture Exchange, 150,000 common share of the Company, payable as to 75,000 common shares upon signing the Agreement and 75,000 Common shares on or before six months from signing the Agreement and;
· a work commitment over two years from the signing of the Agreement as to $150,000 during the first year of the Agreement and $150,000 during the second year of the Agreement.
The proposal calls for a 2% NSR, of which the entire 2% can be purchased for $1,500,000 within two years of the anniversary of the Agreement.
The terms of the proposals for the Beverley claims are:
· the payment of $150,000, as to $37,500 upon the singing of the Agreement, $37,500 payable on or before six months of the signing of the Agreement and $75,000 payble on or before the first anninversary of the agreement, and;
· subject the approval of the TSX Venture Exchange, 300,000 common shares of the Company, payable as to 150,000 common shares upon signing the Agreement and 150,000 Common shares on or before the first anniversary from signing the Agreement, and;
· a work commitment over two years as to $250,000 during the first year of the Agreement and $250,000 during the second year of the Agreement.
The proposal calls for a 2% NSR, of which the entire 2% can be purchased for $1,500,000 within two years of the anniversary of the Agreement.
The Company has paid to each of the vendors a non-refundable deposit of $5,000, that will be applied to the claims payment upon the signing of the Agreement(s). Finders fees may be payable in accordance with the policies of the TSX Venture Exchange.
In an Research Report dated September 2006 by analyst John Lee of Goldmau, Rice Lake is compared to the Red Lake Mining Distric of Ontario and the Report conclusions are that the Rice Lake Gold Belt, with historic production in excess of 2,000,000 ounces of gold is a vastly under-explored greenstone gold belt with the potential to host high-grade gold deposists on a par with the major gold districts of North America. Judging by the recent bonanza gold discoveries recently announced by Bison Gold and the ongoing results reported by San Gold in their recent
news releases, the Company is of the opinion that the Rice Lake Gold Belt is now being recognized as a significant gold exploration district.
