FAIRSTAR RESOURCES LIMITED - ASX: FAS

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Description

FairStar Resources has current projects in iron ore, gold, base metals and uranium.

KURNALPI-RANDALS PROJECT

The Kurnalpi-Randals Project is located south east of the old Kurnalpi mine workings about 95 km north east of Kalgoorlie, in the Coolgardie Mineral Field in Western Australia. The Kurnalpi area has a history of gold mining, which available records indicate has produced in excess of 580 kg gold (18,650 ounces) from 14,292 tonnes at an average grade of 40.4 g/t gold. During the reporting period for the annual report, exploration work was carried out on Halfway Hill and Colour Dam prospects.

Steeple Hill Iron Ore Project

The Lindsay Dam tenement area and environs have previously been explored for nickel and base metals in the early 1970s, after which time the majority of exploration in the area focused on gold. In May 2008, Fairstar's Exploration Manager began researching the presence of banded iron formations (BIFs) in the area. Further data search and enquiry on the potential presence of an "iron resource" in the tenement area was then carried out.

On receiving Government approval the Company will plan an extensive exploration programme, which will include further rock chip sampling, additional confirmatory work through the acquisition and analysis of available geological and regolith mapping, airborne magnetic and radiometric survey and a first pass of 10,500m drilling (10,000m RC and 500m diamond), sampling and analysis program. The Company's aim will be to confirm a JORC resource estimation in due course.

Kurnalpi North (Halfway Hill Prospect)

The Halfway Hill Prospect is located 3 km north west of the old Kurnalpi town site and forms part of exploration licence E28/465. Geological mapping of the exploration licence and environs by the Geological Survey of Western Australia along with aeromagnetic and air photographic interpretation by the Company's geologists suggests the presence of favourable host rocks and structures bearing gold mineralisation.

An airborne magnetic-radiometric survey is planned for the project area to assist in selecting new drill targets for a 5300 metre drill program (5000 RC percussion and 300m diamond) along 30 holes to test deep extensions of gold mineralisation at the Area 9, Halfway Hill and Jones Find prospects. The drill program will follow on, and provide further confirmatory data, to a highly successful 2008 drilling campaign at the Kurnalpi-Randalls Project.

Kurnalpi East (Colour Dam-Anti Dam Prospects)

The Colour Dam-Anti Dam Prospects are located 8 km south east of the old Kurnalpi townsite and cover lands of five tenements (E28/699, P28/789, P28/958, P28/993, and P28/994). At Colour Dam, the basic volcanic and volcaniclastic rocks are intensely altered to quartz-sericite-carbonate and pyrite is in association with quartz-sulphide vein arrays developed within shear zones associated with gold mineralisation. In addition to the exploration potential of the Kurnalpi-Randalls Gold Project, the Company has a stockpile of about 5,000 tonnes of material at the Colour Dam Prospect, excavated by an earlier tenement holder, which contains around 2.5 g/t of gold.

Fairstar's drilling in the area has intersected anomalous values of copper, lead and zinc and copper flakes have also been observed in the stockpiles surrounding the Colour Dam pit. The feasibility of heap leaching the stockpile material for gold, and the possible extraction of other metals, will be examined over the coming months. Detailed mapping and channel sampling of the Colour Dam pit faces to understand the pit geology, structure, and mineralisation is also planned.

Kurnalpi South

The prospect area is extensively covered by colluvium and laterite and is largely underlain by a northerly striking sequence of ultramafic, mafic to intermediate volcanics and intruded by dolerite to gabbroic dykes and sills. The Avoca Shear, which is believed to have acted as a major conduit for gold containing mineralising solutions in the area, traverses to the west of the Area 9 Prospect. Additionally, late stage, northeast trending secondary shears traverse the prospect and environs in the Kurnalpi Area, and these are considered to have directed the hydrothermal gold bearing fluids suitable for forming of shear hosted-quartz vein array style gold deposits. This view is supported by abandoned gold mine workings, which are mainly aligned (north east) along these faults/shear zones and at intersections between these structures.

In addition to these geological observations, Area 9's potential is further strengthened by the high-grade gold intersections obtained by previous explorers in the area:

* Two 3m intersections @ 7 and 14.2 g/t gold in drillhole KRC 13, 7m @ 11.5 g/t gold in drillhole KRC 24, 11m @ 10.9 g/t gold in drillhole KRC 32, and 2m @ 19.6 g/t gold in drillhole KRC 55.
* Additionally, the gold mineralisation at the Prospect is open at depth along dip and to the northwest.

Duchess of York Gold and Base-Metals Project

The Duchess of York Project covers land across prospects P25/1856 to P25/1858 and is located at about 70 km south east of Kalgoorlie in the Bulong District of the East Coolgardie Mineral Field of WA. More than 80 per cent of the project area is covered with colluvium. Recent study of available information suggests that the Project has the potential to host a reasonable size gold resource - both near surface (0-50 metres) and at depth, exceeding 100 metres. To unearth sub-surface geology and structures of the Project area an airborne magnetic-radiometric survey over the Project areas is scheduled to be flown in conjunction with Kurnalpi-Randalls magnetic-radiometric survey.

SPINIFIX WELL PROJECT

The Spinifex Well Project comprises four tenements (E37/793, E37/749, E37/760, and E37/800) and is located in the Mount Malcolm District of the Mount Margaret Mineral Field in WA, about 70km north of Leonora and 250km north of Kalgoorlie. Access from Leonora is by way of the major Leonora-Nambi main road.

The Project covers a substantial portion of a large magnetic granodiorite complex on the eastern side of the Bundarra Batholith. Previous explorers have identified a number of gold anomalies hosted within quartz veins. However, these anomalies have only been tested with limited drilling; insufficient to evaluate their potential.

Over the years, previous explorers have carried out geochemical sampling of the vein quartz float and obtained high-grade (>30 g/t Au) gold values (see map). Since acquiring the Project, Fairstar has collected and analysed in excess of 400 geochemical samples of termite and ant nests. Further, study of airborne magnetics data from the area has defined several drilling targets. During the 2009 exploration campaign 2,000m of RAB drilling along 40 holes, over 6 targets is planned see target map.

MOUNT PADBURY PROJECT

The Mount Padbury Project covers a relatively unexplored area of the Murchison Mineral Field where uranium mineralisation has been found in calcrete deposits developed within intermittently flowing tributaries of the Murchison and Talga Rivers. The Mount Padbury Project comprises Exploration Licences E51/1147 and E51/1150 and is located near the town of Meekatharra, WA about 700 km north of Perth. Access to Mount Padbury tenements from Meekatharra is by way of the Meekatharra-Mount Clere Road, which passes from south to north through the centre of the area.

The style of uranium mineralisation observed in the Project area and the hardpan covering the known mineralisation, makes a normal uranium exploration approach (airborne radiometric survey followed by drilling) difficult. Moreover, rock exposures within the Project area are poor; being less than 1% over much of the area. The Project area falls in the Wajarri Yamatji indigenous heritage area. To advance exploration work further, several attempts were made to meet with the Wajarri Yamatji Working Group (WYWG) during the report period to plan a Heritage Survey over a 4km2 area at E51/1147, with Discovery Pit 1 in the centre (Plate 14). This survey is deemed essential for planning exploration activities (drilling, trenching, rock chip sampling, etc.) in the area.

The presence of shear hosted carnotite mineralisation suggests that there may be other setting(s) in the Project area that may contribute to an increase in the project's potential prospectivity. Accordingly, over the Heritage Surveyed area an on-ground radiometric survey (with reading on a 100m by 50m pattern) for the concentration and trends of Potassium (K), Uranium (U) and Thorium (Th), using a hand held scintillometer is planned. After locating the broader outline of uranium anomalies in the surveyed area, detailed studies on different scales to narrow down the areas for drilling will be carried out, and the targeted areas will be drill tested.

Mine For

gold, iron ore, uranium, lead, zinc

Location of operation(s)

Western Australia

Address

3/136 Main St
OSBORNE PARK, WA, AUSTRALIA

Phone

(61 8) 9242 5111

Email

Website

http://www.fairstarresources.com/

Last Updated

7/4/2011