Star Minerals Group Ltd. Appoints Barr Engineering to Complete PEA Report on Hoidas Lake Rare Earth Joint Venture
March 3, 2014 (Source: Marketwired) — 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
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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%*|
|* 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.|
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.
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%.
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.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>