TORONTO, ONTARIO–(Marketwire – Sept. 24, 2008) – Polar Star Mining Corporation (TSX VENTURE:POS) (“Polar Star” or the “Company”) announces an exploration update on its Montezuma copper porphyry and Chepica Copper-Gold Mine projects.
– Old workings, geological and geochemical surveys define a highly prospective belt 2-5 km wide by 30 km long centred on the West Fissure Fault System.
– A large I.P. Chargeability/Resistivity anomaly 1 to 1.6 kilometres wide, 12 kilometres long, extending to depths of at least 300 to 350 metres has been identified by the ongoing geophysical survey within this belt, along with several other Chargeability/ Resistivity anomalies (see attached Montezuma Project map).
– Property consists of 43,200 hectares, and is located 30 km due south of Codelco’s Chuquicamata Mine and Smelter Complex.
– Covers 25 km of the West Fissure Fault System and associated splays, which hosts many large porphyry copper deposits including Chuquicamata (see attached Codelco North Division map) and Escondida.
– 28 diamond drill holes completed to date on the Chepica No.1 Vein system covering 270 metres of strike and to 150 metres depth (see attached Chepica No.1 Vein map). Drill results are expected to be released during the fourth quarter. Drilling on Chepica No.2 vein system has commenced.
– The system demonstrates good continuity and contains at least 3 strong veins with widths from 3 metres to over 20 metres.
– A mill has been installed on site and commissioning has commenced to produce a copper – gold concentrate.
The Montezuma Project
The Montezuma Project consists of a contiguous group of 100% owned exploration concessions staked by Polar Star. As noted above, the West Fissure Fault System is well known for the exceptional size of its deposits. The Chilean Mine Handbook reported that in 2007 the BHP/RTZ owned Escondida Mine produced 1.5 million tonnes of copper and had copper reserves of 4.3 billion tonnes at an average grade of 0.81% Cu. The Corporacion Nacional del Cobre’s (“Codelco”) El Norte Division, which includes Chuquicamata, reported production of 0.9 million tonnes of copper, reserves of 2.3 billion tonnes and an average grade of 0.79% Cu during the same period.
The Montezuma Project is located in the Sierra Limon Verde oxide copper mining district and is readily accessible by paved and good gravel road from the city of Calama, 20 kilometers to the north. The project consists of three groups of exploration concessions; Montezuma, Topater and Limonal totaling 43,200 hectares staked and owned 100% by Polar Star.
The Property lies within the central sub-zone of the main Chilean porphyry belt and covers approximately 25 km of strike of the West Fissure Fault System and associated sub-parallel and NW-SE cross- cutting ancillary faults. The hills of Sierra Limon Verde which cover the Limonal, north and west half of the Montezuma claims generally expose the same group of metamorphosed Paleozoic intrusive, volcanic and sedimentary rocks that host the Chuquicamata porphyry copper deposits. The rest of the Montezuma claims and most of the adjacent Topater claims are covered by pediment gravels derived from the local hills.
Polar’s geological and geochemical surveys to date have identified several large areas of leached, hematite stained and sulphate rich caps containing minor amounts of copper wad and chrysocola developed along and lateral to the West Fissure Fault System where it strikes through the northern claims of the Montezuma group and within the Topater group, quartz-tourmaline-copper-gold veins and stockworks of the type commonly found peripheral to porphyry systems.
There are no public records of mining or exploration activity in the property area. There are however three groups of old drill holes of unknown origin in the central and southern part of the Montezuma property along the projection of the West Fissure Fault System. Cuttings from a number of these holes show propylitic to phyllic alteration assemblages containing disseminated and veinlet pyrite plus minor chalcopyrite and bornite.
On-going Induced Polarisation-Resistivity surveys along a belt some 6-7 kms wide covering the trace of the West Fissure Fault System and adjacent N-NNE trending splays and cross faults have detected several anomalies. The main anomaly, which is entirely covered either by a sulphate cap or pediment gravels is 1.2 – 1.6 kilometres wide, to date is over 12 kilometres long and extends to depths of 300-350 metres. It straddles the West Fault to the south but to the north follows two sub-parallel cross faults which trend NNE towards the copper bearing veins and stockworks.
The Chepica Mine
Polar Star currently owns a 10% equity interest in the Chepica Mine and will purchase a further 5% for 150 million Chilean Pesos (approximately US$282,000) on or about September 26, 2008. Polar Star has the right to acquire the remaining 85% of the Chepica Mine by making cash payments totalling 2.7 billion Chilean Pesos (approximately US$ 5.1 million) by June 20, 2009, pending successful completion of its final due diligence review.
This Chepica Mine acquisition adjoins Polar Star’s wholly owned Corinto and Batuco claims. These claims plus the Chepica Mine property total 16,640 hectares in the Pencahue District, Region VII, Chile on which prior exploration by other companies has defined 15 high grade gold and copper-gold zones (see attached Talca Property map). The Chepica Mine is currently being commissioned to achieve a planned initial production of 200 tonnes per day increasing to over 500 tonnes per day by mid 2009. The Mine will produce a copper-gold concentrate.
The Chepica Mine property, located 225 kilometres south of Santiago, near the city of Talca, covers the Cerro Chepica high grade copper-gold mining district. It is readily accessible by paved and good gravel road from the city of Talca 20 kilometres to the east. See Polar Star’s news release of April 24, 2008 for additional information.
Mr. Terence Walker, M.Sc., P.Geo., is the qualified person within the meaning of National Instrument 43-101. Mr. Walker has reviewed the contents of this news release.
About Polar Star
Polar Star was created to acquire advanced stage exploration properties focusing on gold, copper gold, and uranium. The Corporation’s material assets include 20 projects in Chile, which are 100% owned and cover approximately 146,112 hectares. HudBay Minerals Inc. owns 3,860,605 shares of Polar Star (approximately 9.9% of the outstanding shares of the Company, as at July 8, 2008).
The statements made in this news release may contain forward- looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company’s expectations and projections. Accordingly, readers should not place undue reliance on forward-looking statements. For a more detailed discussion of such risks and other factors, refer to Polar Star Mining Corporation’s filings with Canadian securities regulators available on www.sedar.com or the Company’s website at www.polarstarmining.com.
Shares Outstanding: 39,241,098 as at September 24, 2008.
Business Television Feature:
Polar Star was selected and featured on Business Television in early March 2008. If you missed the show, please click on the link below to watch the full-feature http://www.b-tv.com/i/videos/ PolarStar.wmv.
To view the Montezuma Project map, please visit the following link: http://media3.marketwire.com/docs/montezuma.pdf
To view the Codelco North Division map, please visit the following link: http://media3.marketwire.com/docs/Codelco.pdf
To view the Chepica No.1 Vein map, please visit the following link: http://media3.marketwire.com/docs/Chepica.pdf
To view the Talca Property map, please visit the following link: http://media3.marketwire.com/docs/Talca.pdf
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