Nov 23 2010
Urastar Energy Inc. (TSX VENTURE:URS) announces the option to acquire the Jabali Gold Mine Project in Mexico.
Jabali is a major gold exploration property, consisting of 70 hectares located in east Sonora in the Sierra Madre Gold Belt.
The property is located only 6 km from the Mulatos Gold and Silver producing heap leach mines currently owned and operated by Alamos Gold (TSX:AGI). Jabali has produced gold from small scale operation since first being discovered by Jesuit priests in 1635. Recent surface chip sampling in the area of the old workings by geologist Dr Matt Ball are currently being analyzed. An exploratory work program is currently being prepared.
In a signed Letter of Intent, Urastar can earn a 100% interest in the Jabali Gold Project by making the following option payments over a 5 year period:
In addition, underlying owners will retain a 3% NSR royalty on the Property subject to the right of Urastar to purchase each 1% of the NSR (namely a 1% NSR) for $1,000,000.00 for five (5) years after signing. The Letter of Intent is subject to TSX Venture Exchange approval.
Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., is a designated Qualified Person pursuant to National Instrument 43-101 and prepared the technical information contained in this news release.
Source: Urastar Energy Inc.