VANCOUVER, June 30 /CNW/ - Abbastar Resources Corp. ("Abbastar" or the "Company") (TSX-V: ABA) is pleased to announce the completion of the 17-hole First Phase drill program on the Talbot Lake gold project located in northern Ontario, approximately 50km northeast of Pickle Lake. The last eight drill holes were testing geological/geophysical targets other than the known East and Main zone gold deposits to possibly discover additional gold bearing zones on the property. Hole No. 13 intersected a new gold zone on the west side of the folded Banded Iron Formation (BIF) with an intersection of 3.2 g/t Au over 0.3m. The remaining seven holes returned no significant values. The area in and around this fold nose has proved to be very important spatially to the alteration and gold mineralization discovered to date. Future exploration efforts will focus drilling in this fold nose area as well as prospecting on the newly acquired ground to the southwest.
The best intersection from this first phase program was hole No. 3, drilled into the Main gold Zone, which yielded 9.8 g/t Au over 4.7m from 233.8 to 238.5m within silicified mafic volcanics with 80% quartz veining, and locally 15 to 20% pyrrhotite, 6 to 8% pyrite and 2 to 3% chalcopyrite. Within this same drill hole several samples prior to intersecting this Main Zone contained significant gold values and would give a wider weighted average of 2.8 g/t Au over 21.0m from 217.5 to 238.5m.
"Our first phase drill program at Talbot Lake was successful in defining significant gold grades on the Main and East gold deposits similar to historical drilling by Placer Dome," commented Donald Gordon, President and CEO. "We are presently evaluating all the data and formulating the plan for the next phase of exploration."
The Talbot Lake gold project hosts the "Main Zone" gold deposit which was discovered by Placer Dome in 1985 and acquired by Denison Mines in 1998. It consists of an East-West striking and vertically dipping quartz vein containing visible gold, pyrite, chalcopyrite and sphalerite. Channel sampling by Denison yielded a weighted average grade of 13.8 g/t Au over a width of 3.3m. The gold deposit extends for a depth of approximately 200m and remains open. The following are some significant drill hole intersections by Placer Dome from the "Main Zone"; 16.4 g/t Au over 7.6m, 37.2 g/t Au over 2.5m, 26.9 g/t Au over 2.9m, 7.5 g/t Au over 7.5m. (source: Resident Geologist, Ministry of Northern Development and Mines, Thunder Bay). Exploration on the Talbot Lake gold project is carried out under the supervision of David Hunt, P.Geo. (QP - NI43-101). The historical assays have not been verified and as such should not be relied upon. Abbastar has the right to earn 100% interest from Denison Mines Corp, subject to a 2% NSR, upon expenditures of seven million dollars over eight years.
Exploration on the Talbot Lake gold project is carried out under the supervision of David Hunt, P.Geo., qualified person under NI 43-101. This news release has been reviewed and approved by David Hunt, P.Geo. and Aubrey Eveleigh, P.Geo. both qualified persons under NI 43-101. Mr. Hunt has been engaged to complete a NI 43-101 Technical Report for the Company.
Mr. Aubrey Eveleigh has resigned as a director and officer of the Company, but is available on a short term consulting basis through Eveleigh Geological Consulting Inc., for the Talbot Lake Gold Project.
Abbastar has 20,274,412 common shares outstanding.
On behalf of the Board,
President & CEO
The statements used in this Press 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 forward-looking statements and expectations.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE ABBASTAR RESOURCES CORP.
For further information: For further information: please contact Mr. Donald Gordon, President & CEO, at (604) 658-2040 or Mr. David Goldman, Investor Relations at (416) 487-0132. To learn more about Abbastar Resources Corp. (TSX-V: ABA), please visit www.abbastarresources.com