Star Minerals Group Ltd. Appoints Barr Engineering to Complete PEA Report on Hoidas Lake Rare Earth Joint Venture
March 03 2014 - 9:26AM
Marketwired
Star Minerals Group Ltd. Appoints Barr Engineering to Complete PEA
Report on Hoidas Lake Rare Earth Joint Venture
SASKATOON, SASKATCHEWAN--(Marketwired - Mar 3, 2014) - Star
Minerals Group Ltd. ("Star" or the "Company") (CSE:SUV)(CNSX:SUV)
today announced it has appointed Barr Engineering Co. ("Barr") to
complete the Preliminary Economic Assessment ("PEA") report for the
Hoidas Lake Joint Venture Project.
Under an Option and Joint Venture Agreement, Star has the right
to acquire a 25% participating interest in the Hoidas Lake Project
by funding and completing a PEA report in respect of the Hoidas
Lake Project within two years. Upon successfully completing the PEA
and acquiring a 25% participating interest, Star will have the
right to acquire an additional 26% participating interest, for a
total 51% participating interest, in the Hoidas Lake Project, by
funding and completing a "bankable" feasibility study in respect of
the Hoidas Lake Project within four years of acquiring the initial
25% participating interest in the Hoidas Lake Project.
Barr, with over 700 employees and offices in the US and Canada,
provide engineering and environmental consulting services globally.
They have been involved with the Hoidas Lake Rare Earth project
since 2009. Barr have advised that completion of this report is
expected in 2014, subject to no unforeseen circumstances.
Hoidas Lake Rare Earth
Project Highlights
The following information on the Hoidas Lake project is taken
from the NI43-101-compliant Technical Report "Update to
Resource Estimate on the Hoidas Lake Property, Saskatchewan
Canada" prepared by Barr Engineering Co. and dated January
31st, 2014:
Current Mineral Resource Estimate
The mineral resource estimate is for the JAK Zone only, and is
based on four separate drill programs comprising 120 diamond drill
holes totalling 15,223 metres. Results are for ordinary kriging
methodology using a total rare earth element ("TREE") cut-off grade
of 1.5 wt%.
Category |
Tonnes |
TREE Wt% |
TREO Wt%* |
Measured |
963,808 |
2.142 |
2.568 |
Indicated |
1,597,027 |
1.958 |
2.349 |
Total |
2,560,835 |
2.027 |
2.431 |
|
|
|
|
Inferred |
286,596 |
1.784 |
2.139 |
* Total Rare Earth Oxide ("TREO") Wt% is
calculated by the Qualified Person for this news release based on
the TREE Wt% estimated in the Barr report. |
Distribution
While Hoidas Lake is classified as a "light" rare earth element
deposit, it is unique among light rare earth deposits in that it
contains a much higher proportion of neodymium and praseodymium
("NdPr") than is typical to such deposits. Hoidas Lake is
approximately 27% NdPr by proportion compared to 16% NdPr at a
deposit like Mountain Pass. NdPr is critical to the permanent
magnet industry which is the main driver for rare earth demand and
as such the economics of Hoidas Lake are not as influenced by the
supply and demand for cerium and lanthanum, the two rare earth
elements that often make up more than 80% of the total rare earth
content of a light rare earth deposit, and the two with the lowest
prices.
Metallurgy
The latest metallurgical test work on the Hoidas lake project
was carried out by the Guangzhou Research Institute for Non-Ferrous
Metals ("GRINM") in Guangzhou, China. The combined
beneficiation/metallurgical test work has successfully produced a
rare earth rough concentrate as well as a phosphate concentrate.
This test work was followed by further hydrometallurgical test work
that produced a mixed rare earth carbonate and phosphate fertilizer
both of which are saleable products. These products can be further
separated to higher value rare earth and fertilizer products.
Overall rare earth recovery to the mixed rare earth carbonate stage
is 70.33%, and phosphate recovery to the production of phosphate
fertilizer is 92.5%.
Exploration Potential
While the bulk of the work on the Hoidas Lake project area has
focussed on the JAK Zone, the property covers over 30 known rare
earth mineralized showings, over approximately 10 kms of strike
length. Since 2004, limited surface work and drilling has been
carried on several of these showings, mainly in the Nisikkatch and
Hoidas South areas confirming the presence of rare earth elements.
Mapping and exploration carried out in 2012 produced several new
mineralized showings. West and northwest of the JAK Zone, four new
showings were discovered in an area called the Western Amphibolite
Body and several new showings in an area called the 800N Zone.
Surface grab samples from these newly discovered showings assayed
from 1.58% TREE to 16.17% TREE and P2O5 assays of up to 40%. New
showings were also discovered in the Hoidas South area.
Star President and CEO Jim Engdahl says, "We are excited to get
re-engaged with this project, as Star management and our consulting
team are very familiar with this property and understand its
significant economic potential and importance to the rare earth
supply chain outside China, in particular neodymium for permanent
magnets. The attributes of the Hoidas Lake deposit rank it with the
best of rare earth deposits globally and the continued discovery of
additional mineralized zones point to what I'm confident will prove
to be a very significant resource."
The Company's Qualified Persons, Gary Billingsley, CA, PEng,
PGeo, a Director of the Company, and Baodong Zhao, Ph.D., M.Eng.,
P.Eng., a consultant to the Company, have reviewed and verified the
contents of this news release.
About Star Minerals Group Ltd.
Star is a Canadian-based junior exploration company focused on
the acquisition and development of strategic resource properties on
a worldwide basis.
Star trades on the CSE (formerly CNSX) under the symbol
"SUV".
For more information, please visit our website at
www.starminerals.ca.
Forward Looking Statements
This news release contains certain statements which constitute
forward-looking statements or information ("forward-looking
statements"). Such forward-looking statements are subject to
numerous risks and uncertainties, some of which are beyond Star's
control, including the impact of general economic conditions,
industry conditions, volatility of commodity prices, currency
fluctuations, competition from other industry participants, stock
market volatility and the ability to access sufficient capital from
internal and external sources. Although Star believes that the
expectations in its forward-looking statements are reasonable, they
are based on factors and assumptions concerning future events which
may prove to be inaccurate. Those factors and assumptions are based
upon currently available information. Such statements are subject
to known and unknown risks, uncertainties and other factors that
could influence actual results or events and cause actual results
or events to differ materially from those stated, anticipated or
implied in the forward looking information. As such, readers are
cautioned not to place undue reliance on the forward looking
information, as no assurance can be provided as to future results,
levels of activity or achievements. Other factors that could
materially affect such forward-looking statements are described in
the risk factors in the most recent management's discussion and
analysis that is available on the Company's profile on SEDAR at
www.sedar.com. Readers are cautioned that the foregoing list of
factors is not exhaustive. The forward-looking statements contained
in this document are made as of the date of this document and,
except as required by applicable law, Star does not undertake any
obligation to publicly update or to revise any of the included
forward-looking statements, whether as a result of new information,
future events or otherwise. The forward-looking statements
contained in this document are expressly qualified by this
cautionary statement.
Star Minerals Group Ltd.Jim
Engdahl306-664-3828306-244-0042info@starminerals.cawww.starminerals.ca
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