Resource Star Limited - ASX: RSL

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Description

Resource Star Ltd is a publicly-listed Australian company (ASX : RSL) that has interests in uranium and specialty metals exploration assets in the Northern Territory, in Tasmania, Western Australia and Malawi.

The Company's main projects are the 100%-owned Edith River Uranium Project in the Northern Territory; and a joint venture with Globe Metals & Mining (ASX : GBE) on the Machinga Niobium-Rare Earths Project in Malawi. Globe is managing the Machinga program, with input from Resource Star, and they are currently earning 20% equity through exploration expenditure. In a staged process Globe can earn up to 80% in the project by funding all activity up to and including a feasibility study.

Resource Star recently issued a Prospectus and completed a Public Share Offer in conjunction with Allegra Capital, to allow the Company to comply Chapters 1 and 2 of the ASX Listing Rules, and the Company relisted in February 2010. As of February 2010, the Top 20 shareholders owned 48% of the company, and the UK AIM-listed company Red Rock Resources plc is the major shareholder with 22%.

Edith River Project

Several uranium prospects were discovered in 1952 within the Lower Proterozoic Cullen Granite. 9 shallow shafts with cross drives were completed around this time. Sampled grades returned between 0.1% – 0.2% U3O8. The highly anomalous uranium grade is associated with shear/fault zones within the Cullen Granite. Extensive radiometric anomalies remain untested throughout the area with little historical exploration work follow up. The area is highly prospective for uranium mineralisation including unconformity, sandstone, quartz-pebble conglomerate and vein deposit types.

Daly River Road Project

One first and a number of second order radiometric anomalies are associated with sandstone units of the Pine Creek Area. The area shows potential to host unconformity-type uranium deposits. Although not the primary focus for current exploration, iron occurrences have been documented on the lease.

Marrakai

Untested radiometric anomalies are associated with the favourable lithologies and structures which have hosted uranium deposits in the Pine Creek region. The area shows potential to host unconformity-type uranium deposits as the radiometric anomalies are associated with sandstone lithologies. Primary exploration focus has previously concentrated on iron ore and gold mineralisation.

Hayes Creek South

The tenement is located near to the recent Thundelarra exploration discoveries documented uranium occurrences. The area is prospective for fault-related sediment-hosted uranium mineralisation. Splays off the Hayes Creek Shear are mapped to pass through EL24432, and is associated with a number of untested second order radiometric anomalies.

Celia Project

The lease is close to the former and current Rum Jungle mining areas where past mining has included uranium, base metals and gold. There is a magnesite occurrence on the tenement. This small lease on Aboriginal freehold land is currently in moratorium from exploration for up to 5 years, under the processes of the Aboriginal Land Rights Act.

Lake Barlee

In Western Australia, RSL is targeting shallow uranium occurrences on the Mt Alfred tenements, located in the Yilgarn region. RSL has applied for an exploration licence, E29/721, abutting the granted licence, E29/581. RSL has the uranium exploration rights over E29/581 through a co-existence agreement with new owner, Jupiter Mines Limited. The target is uranium in near-surface calcrete and in deeper sandy sediments where redox boundaries may occur. Uranerz (Australia) Pty Ltd identified uranium anomalies during shallow auger drilling around the edges of Lake Barlee in 1976, which returned results of up to 150 ppm U3O8.

Specimen Reef Project

The Specimen Reef Project consists of EL11/2005 situated in north-eastern Tasmania about 5km north-northeast of the Savage River Magnetite Mine. The tenement is subject to an agreement with Walkabout Resources Pty Ltd, who are planning an IPO based on a project in the area including EL11/2005. Walkabout will earn a 65% interest in the tenement by free carrying the first $10 million in expenditure, and RSL will retain 35%. The lease contains historic drilling reported to contain alteration zones and veining associated with the old Specimen Reef workings, and an intersection of 0.2m @ 910g/t Au in a quartz-carbonate-brannerite vein. Brannerite is a uranium mineral, but no uranium assays were performed. Walkabout believe that there is potential for IOCG-style copper-gold-uranium mineralisation in the area.

Woolgni Gold

The Edith River Uranium Project leases contain three gold prospects and are potentially prospective elsewhere for other gold occurrences. The tenements are situated near the southern extent of the Pine Creek Geosyncline, in the vicinity of the Pine Creek Shear which is thought to influence the distribution of gold mineralisation in the area. The historical Woolgni Goldfield is within the project area, along with two other nearby prospects, Tower and Copperfield South.

The gold mineralisation mined in the old Woolgni workings has not been closed off down dip and the limits and orientations of known high-grade shoots have not been tested. Drilling from the 1980s intersected multiple zones of mineralisation, not all of which were associated with quartz veining. At the Tower Prospect a gold anomalous zone of gossanous metasediments adjacent to the Pine Creek Shear Zone has never been drill tested. The Copperfield South Prospect contains low-grade gold mineralisation within an anticlinal formation, parts of which are interpreted to extend beneath recent alluvial cover, so potential exists for the discovery of further gold mineralisation at the prospect.

Machinga Project - Malawi

The Exclusive Prospecting Licence, EPL 0230/07, “Machinga”, covering an area of 378 sq km, is held by Eastbourne Exploration Ltd, a company fully owned by Retail Star Limited. The Machinga property is located just north of the old capital city of Zomba in south central Malawi.

The EPL encompasses a number of high priority targets for uranium exploration. Peak airborne radiometric anomalies are in the order of 10 to 12 times higher than background readings within these target zones. Exploration work by Resource Star has defined an area of some 2km x 500m that has outcrops anomalous in uranium, niobium, tantalum, zircon and rare earth elements; and there are indications that some degree of mineralisation may continue for as much as 7km. An extension to the lease area has been applied for to the south and east of the existing tenement.

Resource Star has entered into a joint venture with Globe Metals & Mining Ltd (ASX : GBE) to explore the Machinga Project. The unusual style of mineralisation is similar to their Kanyika Project, also in Malawi, and in addition to funding the exploration, potentially to feasibility study stage, they bring significant expertise in this style of deposit, and short term logistical benefits; and, in the event of development there will be construction, operational and marketing synergies. The agreement also provides for RSL having first right-of-refusal over an exploration joint venture over Globe's sandstone-hosted uranium Livingstonia Project, also in Malawi.

Chintheche Project - Malawi

The Chintheche Exclusive Prospecting Licence was granted to Red Rock Resources in June 2007 by the Government of Malawi. The application to transfer the licence to Retail Star Limited was approved by the Malawi Government in February 2008.

The Chintheche property covers some 210.9 km2 sq km and is situated immediately to the west of Lake Malawi about 240km north of the capital of Lilongwe. The 1987 report, “Interpretation of Airborne Geophysical Survey Results” by Paterson, Grant & Watson for the United Nations Development Programme, highlighted significant uranium anomalies for investigation. Subsequent review by Retail Star Limited confirmed that the anomalies are over both Basement Complex rocks and over younger clastic sediments that sit above and marginal to them. The younger sediments are prospective for roll front-style uranium mineralisation and the basement rocks for vein-style uranium-niobium-tantalum-rare earth mineralisation. Peak airborne radiometric anomalies are in the order of four times higher than background readings within the main target zone in the north east of the tenement.

Ilomba Hill Project - Malawi

At Ilomba Hill, in the far north-west of Malawi, niobium and uranium occurrences have been recorded in historical and academic work on an alkali syenite ring complex intruded into basement gneisses. Individual rock samples taken in the late 1950s returned analyses up to 7.5% Nb2O5. The project has geological similarities to the Machinga Project and will be explored in a similar, systematic way. The area was not covered by the regional airborne geophysical program in the 1980s.

Mine For

uranium, niobium, rare earth elements, iron ore, gold, base metals, magnetite, tantalum, zircon

Location of operation(s)

Northern Territory, Tasmania, Western Australia, Malawi

Address

Level 9, 440 Collins St
MELBOURNE, VIC, AUSTRALIA

Phone

(61 3) 9607 1322

Email

Website

www.resourcestar.com.au

Last Updated

10/02/2011