June 13, 2012 – VANCOUVER, Canada – Urastar Gold Corp. (“Urastar” or the “Company”) (TSX-V:URS) (FSE: 3U3) (OTCQX: URNRF) announces drilling results for 805m reverse circulation, “RC” drill program on the El Jabali property including several intercepts of near surface high-grade gold. The El Jabali Gold project is located in the prolific Sierra Madre Gold Belt approximately 7 km from Alamos Gold’s flagship Mulatos Gold Mine (see location map at www.Urastargold.com) and only 1.5 km from Urastar’s La Juliana project (see news release dated 10 April 2012). The program was designed to test for extension of the La Dura gold mineralization, north of the open pit and south on the El Jabali Mine Trend.
New assay highlights include (see also Table 1 below):
North of the La Dura Mine:
- 59 m grading 1.462 g/t Au from 7.6 to 67.1 m
- Including 24 m at 3.324 g/t Au from 13.7 to 38.1 m
- 112.8 m grading 0.432 g/t Au and from 0 to 112.8 m
- Including 12.2 m at 1.155g/t Au from 51.8 to 64 m
Mine trend south
- 13.7 m grading 1.173 g/t Au from 19.8 to 33.5 m
- 53.3 m grading 0.396 g/t Au and from 4.6 to 57.9 m
President Adrian Robertson comments, “The results we’ve had in the Mulatos area, both at El Jabali and La Juliana, demonstrate the presence of high grade, near surface gold mineralization at both of these properties. I believe these results coupled with our close proximity to both Alamos Gold and Agnico-Eagle’s Mulatos operations present an excellent opportunity for Urastar shareholders.”
Urastar completed an 805m reverse circulation drill program in May 2012 with a total of 10 drill holes, 2 of which were abandoned and twinned in order to reach the target depth. While difficult ground conditions prevented half of the drill holes from reaching their target depth, only 2 of the 8 holes failed to intersect significant gold mineralization. Table 1 below summarizes the results from the drill program.
Table 1 Significant drill results
|Hole_id||From (m)||To (m)||Length (m)||Au g/t||Zone|
|LJB-12-1A||0.0||35.1||35.1||0.482||north of Pit|
|LJB-12-1B||0.0||112.8||112.8||0.432||north of Pit|
|LJB-12-2A||6.1||35.1||29.0||0.167||north of Pit|
|LJB-12-2B||12.2||41.1||29.0||0.218||north of Pit|
|LJB-12-03||7.6||67.1||59.4||1.462||north of Pit|
|including||19.8||22.9||3.0||4.275||(Mine trend south)|
|LJB-12-05||no significant intercepts||Did not reach target depth||Mine trend south|
|LJB-12-06||4.6||57.9||53.3||0.396||Mine trend south|
|LJB-12-07||21.3||32.0||10.7||0.662||Mine trend south|
|LJB-12-08||no significant intercepts||Did not reach target depth||West fault|
The 70 hectare El Jabali claim covers the La Dura historic mine and several other small scale mines and is located in east Sonora in the Mulatos gold belt. The property is located only 7 km west from Alamos Gold Inc.’s “Mulatos” gold- and silver-producing heap-leach mine. 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.
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, through its wholly owned subsidiary Femiso Minerales De Sonora S. De R.L. de C.V. (“Femiso”) has the option to earn a 100% interest, subject to a 3% Net Smelter Return Royalty, in the El Jabali Property located in Suhauripa, Sonora, Mexico as described in Urastar’s press release dated April 30, 2012.
All drill samples from the La Jabali 2012 Stage I drilling program was analyzed at ALS Chemex, Hermosillo, Mexico utilizing a ICP41 41-element analytical package with AUAA23 Fire Assay finish for gold on all samples. Gold overlimits were reassayed with an AUGRAV21 finish and check assays were conducted with ACME Laboratories using a primary sample split from material stored at site. All RC samples were split on-site at the El Jabali drill sites and shipped to ALS Chemex, Hermosillo, Mexico where samples were sorted and crushed to appropriate particle size (pulp) and representatively split to a smaller size for shipment to ALS Chemex’s Vancouver analysis facility. A comprehensive system of standards, blanks and field duplicates was implemented in the 2012 exploration program (regional/diamond drilling) and is analyzed as chemical assay data becomes available. Michael Collins, P.Geo,, is the Company’s qualified person with respect to the Company’s El Jabali and La Juliana projects, and has reviewed and approved this press release.
For further information, please contact:
Urastar Gold Corp.
Adrian Robertson, P.Eng., President
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.