Alberta Star Begins Drilling Program at the Eldorado & Contact Lake IOCG and Uranium Projectsadmin
Alberta Star Development Corp. is pleased to announce that the Company has successfully mobilized a drilling rig, drilling equipment, drilling personnel and has commenced its 2008 drill program at its Eldorado & Contact Lake IOCG & uranium projects. The drilling crews are utilizing a single Boyles BBS-25A (71 Series) drilling rig which operates under the supervision of Foraco Drilling Ltd. (formally Connor’s Drilling Ltd.). The Company’s 2008 drill program is being supervised by Michael Bersch, Ph.D., Chief Geologist for the Company. Tim Coupland, President and CEO of the Company, commented, “With the Company’s successful completion of all property permitting and the commencement of our 2008 drill program, we can now expect to continue to drill until the early fall on a reduced exploration budget due to market conditions. The Company’s camp, personnel and supporting infrastructure are fully operational.” One helicopter is currently stationed at the project site. Great Slave/Sahtu Helicopters Ltd. will oversee the transport of the heli-portable drilling rig to the various drill locations being prepared on the project.
The Company anticipated the rapid escalation of fuel prices during the past year and was able to secure delivery and storage for all its 2008 Jet-B and diesel fuel needs in the fall of 2007. This has resulted in a significant fuel savings for the Company as well as a competitive advantage in forward planning and logistics over other mineral exploration companies working in the Northwest Territories. Soaring fuel prices and rising exploration costs continue to be of concern to exploration companies working in the north and the high costs have forced many companies to abandon their exploration projects or significantly reduce the exploration budgets to conserve their cash resources.
The Company currently has $20.2 million in cash that is fully liquid and held with a large Canadian commercial bank. The Company has no debt. The Company has reduced its exploration budgets due to the high price of fuel and to conserve cash. The Company’s strong high net-cash cash position during such severe equity market conditions has allowed the Company to review a number of business opportunities and strategic advanced stage property acquisitions. A number of these opportunities are currently under review.
The Company wishes to announce an additional 250,000 stock options have been granted to one of its officers in respect to its July 14, 2008 News Release. The Company granted an aggregate of 3,500,000 options of which 2,600,000 options were granted to officers, directors and consultants. Each option represents the right to purchase one common share of the company at a price of $0.35 per share for a period of three years under the Stock Option Purchase Plan previously approved by the Company’s shareholders and accepted by the TSX Venture Exchange.
THE ELDORADO & CONTACT LAKE IRON-OXIDE COPPER, GOLD, SILVER AND URANIUM PROJECTS
The Eldorado & Contact Lake Permit Areas are located on the east side of Great Bear Lake in Canada’s Northwest Territories. The permit areas are situated 470 kilometers north of the city of Yellowknife. The total size of the Eldorado & Contact Lake Permit area covers over 98,027.77 acres in size. The Eldorado & Contact Lake IOCG + uranium project areas include past producing high grade silver and uranium mines. This includes the Echo Bay Silver Mine which produced 23,779,178 ounces of silver and the Eldorado Uranium Mine which produced 15 million pounds of uranium and 8 million ounces of silver. Olympic Dam volcanic hosted hydrothermal iron-oxide copper, gold style of deposits are attractive targets for exploration and development due to their poly-metallic nature, high unit value and enormous size and grade tonnage potential. The Eldorado Mineral Belt which is situated in the Great Bear Magmatic zone, NT, has long been recognized by geologists, as one of the most prospective Iron oxide copper, gold, silver and uranium regions in northern Canada.
THE ELDORADO SOUTH IOCG & URANIUM CLAIMS
The Eldorado South project was recently permitted in July 2008 after a lengthy consultation process. Field crews are currently mapping and sampling the Eldorado South project area. The anomalous area of the Eldorado South IOCG & uranium claims includes several large radiometric anomalies of up to 3.5 kilometers long and suggests a potential near surface uranium target. These large uranium anomalies have never been explored nor drill tested and will be an important focus of exploration by the Company during its 2008 drill program. The airborne geophysical survey was conducted in July 2007 and consisted of 16,708 line-kilometers at 100 meter line-spacing and was completed under hot, sunny and dry weather conditions. The July 21, 2008 weekly spot price for uranium provided by the Ux Consulting Company LLC (www.uxc.com) was $64.50 US per pound.
ELDORADO & CONTACT LAKE & ELDORADO SOUTH – 5 YEAR CLASS “A” DRILLING PERMITS ISSUED-FULLY PERMITTED
In addition to the Eldorado South Permit approval the Company has been granted two amended five-year Sahtu Land & Water Board Class “A” Land Use Permits (Eldorado/Glacier Lake and Contact Lake) for long term diamond drilling at both the Eldorado & Contact Lake Projects. The Eldorado/Glacier Lake Permit (Permit No. SO5C-012) is valid until April 26, 2013 and the Contact Lake permit (Permit No. S05C-002) is valid until August 24, 2012. The Company has received full authorization for its third drill permit on its Eldorado South IOCG & uranium project (Permit No. SO7C-008). This permit is valid until July 13, 2013. This third “5-Year” drill permit application for Eldorado South IOCG & uranium project was submitted in April of 2007, requesting 15,000 meters of drilling per year, over a five-year period for a total of 75,000 meters. This permit includes the area of the newly discovered Eldorado South radiometric anomaly. This prospective IOCG & uranium target is being prepared for reconnaissance and detailed sampling, mapping and drilling.
ALBERTA STAR DEVELOPMENT CORP.
Alberta Star is a Canadian mineral exploration company that identifies, acquires and finances advanced stage mineral exploration projects in Canada. The Company is committed to creating long term shareholder value through the discovery of base and precious metals and uranium.
Investors are welcomed to contact Mr. Allan Feldman, the Company’s Investor Relations and Corporate Communications Specialist, for all corporate updates at (604) 948-9663. In Quebec contact Mario Drolet at MI3 Communications at (514)-904-1333.
ALBERTA STAR DEVELOPMENT CORP.
Tim Coupland, President & CEO
Contacts: Alberta Star Development Corp. Tim Coupland President and CEO (604) 681-3131 (604) 408-3884 (FAX)
Source: Alberta Star Development Corp.