VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 12, 2012) - Archean Star Resources Inc. (TSX VENTURE:ASP) ("Archean" or the "Company") is pleased to announce that, subject to the approval of the TSX Venture Exchange ("TSX-V"), it has entered into an Agreement (the "Agreement") with Chalice Gold Mines Limited ("Chalice") of Perth, Western Australia, to acquire Chalice's remaining 13.5% interest in the Gnaweeda Gold Project located at Meekatharra, in the highly prolific Murchison Gold District, Western Australia.
Under the terms of the Agreement between Archean and Chalice, and subject to the approval of the TSX-V, Archean is to pay five million (5,000,000) common shares of the Company to Chalice for all right, title, and interest Chalice has in the Gnaweeda Gold Project. Archean is in the process of earning 100% of Teck Australia Pty Ltd's, ("Teck") current 86.5% interest in Chalice's 170 sq. km Gnaweeda Gold Project.
Upon completion of the Agreement, and subject to the Company completing the remaining approximately AUD$300,000 of the required AUD$3,000,000 in property expenditures required to earn Teck's 86.5% interest in Gnaweeda, which is subject to Teck having a 75% back in right, Archean will hold a 100% interest in the Gnaweeda Gold Project.
Since commencing exploration at Gnaweeda, including diamond drilling on two major identified gold bearing zones, Turnberry and Bunarra, the Company has identified a number of high-grade gold occurrences. At the approximately 2.5 km long Turnberry prospect, along strike from prior high grade gold occurrences, visible gold grading 42.2 g/t Au over 0.5 meters was intersected at a depth of approximately 250 meters in drill hole TB008 and, 17 km to the south at the Bunarra prospect, an 18 meter intersection grading approximately 11.71 g/t Au was intersected at a depth of 115 meters in drill hole BN003.
Multiple gold intersections on the Far East gold prospect from prior rotary air blast ("RAB") drilling has not yet been followed up by diamond drilling. Several gold intersections with multiple meter gold intervals grading up to 7 g/t Au have been overlain on the approximately 1 km long anomaly identified in the recent SAM ('Sub-Audio Magnetotelluric') survey and show a positive correlation with the anomaly (http://www.archeanstar.com/sam.jpg).
The Gnaweeda Gold Project lies approximately 25 km north-east of Reed Resources Ltd's 3.3 million ounce Meekatharra Gold Project, projected to commence production late 2012, and approximately 10 km to the east of Doray Minerals Ltd's 329,000 ounce high grade gold project which is slated to commence production in early 2013. The town of Meekatharra is on Western Australia's Great Northern highway and has regularly scheduled flights from Perth.
Archean Star Resources Inc. is a junior exploration company that, through its wholly owned subsidiary, Archean Star Resources Australia Pty Ltd, has entered into an Option Agreement, subject to a 75% back in right, to earn 100% of Teck Australia Pty Ltd's interest in Chalice Gold Mines Limited's Gnaweeda Gold Project in West Australia. Kent Exploration Inc. (TSX VENTURE:KEX) with approximately 10,000,000 shares, or 22% of the outstanding common shares, is the largest shareholder of Archean.
This News Release has been prepared on behalf of the Archean Star Resources Inc. Board of Directors, which accepts full responsibility for its contents.
ON BEHALF OF THE BOARD
Graeme O'Neill, PresidentNeither the TSX Venture Exchange, nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), has reviewed, nor do they accept responsibility for, the adequacy or accuracy of this news release
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