Vancouver, B.C., July 23, 2015. Desert Star Resources Ltd. (TSX-V: DSR) (“Desert Star” or the “Company”) is pleased to announce that the Company and Eurasian Minerals Inc. have signed amendment agreements for both the Red Top and Copper King projects (the “Projects”) by which the parties have agreed to extend the time by which Desert Star is required to incur exploration expenditures and make AMR payments under the September 13, 2013 option agreements, as amended (the “Option Agreements”). The exploration expenditure requirements and AMR payments that were required to be completed and paid by the second anniversary date of the Option Agreements are now due 6 months following the parties’ receipt of written approval from the US Forest Service regarding permitting for drilling of the Projects (the “New Expenditure Date”). Each of the third and subsequent anniversary expenditure requirements and AMR payments due under the Option Agreements (as disclosed in Desert Star’s September 4, 2013 news release) will now fall annually on the anniversary of the New Expenditure Date.
Desert Star and Eurasian Minerals continue to work diligently with the US Forest Service towards the issuance of the drill permits for the Red Top and Copper King projects. “We have been subject to lengthy procedural delays, but remain optimistic that we will receive our drill permits in the near future. We are fully prepared to quickly mobilize and commence drilling once permits are received, as our drill contractor has been selected and base of operations and drill core facilities have been secured” stated Vince Sorace, President & CEO of Desert Star.
In addition, Desert Star has recently completed a preliminary rock sample analytical program designed to determine the age of porphyry dikes associated with the Copper King hydrothermal system. Two strongly-altered quartz diorite porphyry dikes were analysed by uranium-lead (zircon) dating techniques at the University of British Columbia. The interpreted Late Cretaceous (Laramide) rock ages obtained at Copper King are similar (within analytical uncertainty) to published uranium-lead (zircon) ages for intrusions associated with the nearby Ray, Resolution and Magma copper systems.
The Company will also be extending the maturity date of $495,000 of convertible notes from September 9, 2015 for one year to September 9, 2016, as agreed between the Company and the holders of the notes. The conversion terms and interest rate will remain the same as disclosed in the Company’s September 9, 2014 news release. The extension of the maturity date and underlying convertible securities is subject to the approval of the TSX-V.
About the Red Top Project
The Red Top project consists of 192 unpatented federal lode mining claims covering 1,463 hectares, located 8.5 km from the town of Superior, Pinal County, Arizona, and is road-accessible year-round. The Red Top project is situated 8 km northwest of the Resolution Copper Project, a joint venture project owned by Rio Tinto and BHP Billiton, and one of the world’s largest undeveloped copper projects. The Red Top project is under option from Eurasian Minerals Inc. (TSX-V: EMX; NYSE MKT: EMXX). The Company cautions that it is not implying that it will obtain the same or similar results at its Red Top project as the Resolution Copper Project.
About the Copper King Project
The Copper King project covers 1,438 hectares and consists of 189 unpatented federal lode mining claims located approximately 5 kilometers from the world-class Resolution Copper Project and the town of Superior. The Copper King project is prospective for bulk tonnage copper and molybdenum mineralization. Alteration zonation and surface geology suggest that the Copper King target represents the side and/or top of a tilted, intact porphyry system. The Copper King project is under option from Eurasian Minerals Inc. (TSX-V: EMX; NYSE MKT: EMXX). The Company cautions that it is not implying that it will receive the same or similar results as the Resolution Copper Project.
Daniel MacNeil, MSc PGeo, a Qualified Person as defined by National Instrument 43-101, has read and approved all technical and scientific information contained in this news release. Mr. MacNeil is the Company’s Vice President, Exploration.
About Desert Star
Desert Star is a Vancouver-based mineral exploration company focused on the identification, acquisition and development of copper and gold projects located in top-tier mineral belts in the southwestern United States that contain significant historical production, existing mining infrastructure and an established mining culture.
President and CEO, Desert Star Resources Ltd.
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.
This news release contains certain statements that may be deemed “forward-looking statements”. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although Desert Star believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, are subject to risks and uncertainties, and actual results or realities may differ materially from those in the forward-looking statements. Such material risks and uncertainties include, but are not limited to, Desert Star’s ability to raise sufficient capital to fund its obligations under its property option agreements, to maintain its mineral tenures and concessions in good standing, to explore and develop its projects, to repay its debt and for general working capital purposes; changes in economic conditions or financial markets; the ability of Desert Star to obtain the necessary permits and consents required to explore, drill and develop the projects and if obtained, to obtain such permits and consents in a timely fashion relative to Desert Star’s plans and business objectives for the projects; the general ability of Desert Star to drill test its projects and find mineral resources; if any mineral resources are discovered or acquired, the Company’s ability to monetize any such mineral resources; and changes in environmental and other laws or regulations that could have an impact on the Company’s operations. Forward-looking statements are based on the reasonable beliefs, estimates and opinions of Desert Star’s management on the date the statements are made. Except as required by law, Desert Star undertakes no obligation to update these forw