🕐28.03.11 - 03:27 Uhr

Eagle Star Minerals Takes Aim on Brazils Next Major Iron Ore Discovery






Eagle Star Minerals Takes Aim on Brazils Next Major Iron Ore Discovery

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Eagle Star Minerals (TSX-V:EGE) is about to kick off the next stage of exploration and development on its highly prospective iron ore deposit in one of the fastest growing, most economical iron ore producing regions in the world.

Eagle Star has started working away on high-potential exploration and development iron ore project in the heart of Brazils iron ore belt.

This belt is home to the highly economical iron ore projects known as Banded Iron Formations (BIF), which geological researchers at Amethyst Galleries say BIFs are, "As an ore of iron, BIF is king. The hematite and magnetite concentrations in BIF are much sought after by mining companies."

The company has identified multiple BIF outcrops within its sizeable Brazilian properties too.

The timing couldnt be much better either. Eagle Stars project advancement is coming at a time when the iron ore industry is booming again.

For example, Ferrexpo (LSE:FXPO), a BIF miner in Ukraine, recently reported a sixfold increase in earnings and stated: "In 2010 European steel mills recovered from the lows of the 2009 downturn while Chinese iron ore requirements continued to underpin world demand."

Major miner Anglo American (LSE:AAL) also officially announced its goal of doubling iron ore production by 2014, largely driven by growth in its Brazilian iron ore projects, to capitalize on steadily rising iron ore demand.

This combination has set the stage for Eagle Star, currently valued at $12 million, to generate a lot of attention in the weeks and months ahead.

The Right Place at the Right Time

Eagle Star has been pulling together everything to get itself in the right place at the right time.

Its flagship Angico Iron Ore Project covers more than 50,000 acres of mineral claims across five concessions in the heart of Brazils iron ore producing regions.

Three of the concessions host BIF outcrops visible at surface. These outcrops are similar to those located in Western Australias Hamersley Basin and Northern Brazils Archean Carajan Formation - two of the leading iron ore producing regions in the world. The BIF outcrops also stretch across an eight kilometer trend showing the significant size potential.

Early explorations results project have been consistent with other high-grade, large scale BIF iron ore mines too.

On January 18, 2011 Eagle Star reported the first exploration results from the Angico project including surface trenching and diamond drilling.

Surface trenching discovered 44.66% Fe2O3 across 39 meters (including 47.27% Fe2O3 across 32 meters) in Trench #1. It also discovered 48.72% Fe2O3 across 22 meters (including 51.98% Fe2O3 across 18 meters) in Trench #2.

Diamond drilling on the Angico Project further confirmed the size and grade of the iron ore contained on Eagle Stars concessions. The drill results included 21.69% Fe2O3 across 20 meters, 25.96% Fe2O3 across 20.45 meters, and 28.94% Fe2O3 across 32.3 meters.

Full exploration results from this round of exploration are contained in the companys news release here.

Eagle Star followed up those promising exploration results with even more. The company reported results from its third trench in the region on February 24, 2011.

Trench #3, which is approximately one kilometer north of Trench #1 and 900 meters north of Trench #2, returned 41.62% Fe2O3 across 27.5 meters

These results are a significant step out from the other trenches and confirm the significant size potential of the Angico Project.

Finally, Eagle Star is truly in the right place for iron ore because Brazil is the only leading iron ore producing country thats significantly increasing production.

The U.S. Geological Survey reports that Australia, China, and India (three of the four largest iron ore producers) increased their iron ore production a mere 4% last year. Brazils output (the worlds third largest iron ore producer) increased more than 23% over the same time period.

Clearly Brazil has the significant growth potential in iron ore and Eagle Star has assembled a management team with the experience in Brazil with proven ability to operate successfully in the country.

Share Structure:

Common Shares Outstanding: 46,712,085
Warrants Outstanding: 0
Options Outstanding: 3,325,000
Fully Diluted Shares Outstanding: 49,937,085
Market Value (@ 25 cents per share): $12.4 million
Cash Position: $1.5 million

Management

Eran Friedlander - President, CEO & Director - Strong business background with public (Intel, Strauss Elite) and private companies (GH Financials, FantIne Group) in Europe and in the Americas. Founding partner of public and private ventures active in the financial, natural resources and IT sectors.

Extensive experience in capital markets, business development, marketing and strategic planning.

LLB from Hebrew University, Jerusalem and MBA from ISG, Paris.

Balraj Mann - CFO & Director - Has over 29 years of experience in corporate finance, acquisitions and financial reporting.

Previous experience includes Senior Management position with Price Waterhouse Coopers. President, CFO and Director of several Canadian Public and Private Companies.

Chartered Accountant, Member British Columbia and Canadian Institute of Chartered Accountants, B.A. Commerce and Economics from Simon Fraser University, Vancouver, BC.

Jose Carlos Polonia - Project Manager Brazil & Senior Geological Advisor to the Board - Has 40 years of Brazilian geological experience including 30 years as senior geologist with the worlds top tier iron mining company - CVRD (Vale) and 3 years senior consultant to BHP Billiton in charge of evaluating iron ore projects and fostering buyer seller relationships with Nippon Steel.

With the first half of his career focused on research and studies and the second half focused on hands on management of mining operations Mr. Polonia is highly experienced in all aspects of iron (and related commodities) extraction - from exploration to production, at all major iron producing areas in Brazil.

B.Sc in geology from University of Rio de Janeiro, diplomas in advanced geology (US Geological Survey), geostatistica (University of Ouro Preto), mining economics (Brazilian Institute of Mining) and financial administration (UNA).

Bruno Figueiredo - Exploration Geologist - Participated in multiple exploration projects of leading Brazilian mining companies, including - Global Mine Exploration (GME4), Bahia Mining (BAMIN) and CVRD.

Highly experienced in the area of structural geology and detailed geological mapping of Iron Formations.

B.Sc in Geology from Bahia University - BRA. Currently in the process of completing M.Sc in Economic Geology at Bahia University - BRA.

Jose Almeida Dos Santos - Country Manager, Brazil - Has over 38 years experience as active geologist including 26 years in Petrobras as country manager Yemen, Libya and Bolivia.

Founding member and director of Starfish Oil & Gas, Founder and CEO of Coplex Brasil, Founder and CEO of Norse Brazil, Founder and CEO of BioEnergia & Recursos Naturals and General Director of Frigstad Offshore in Brazil.

B.Sc in Geology and MBA from University of Rio de Janeiro.

Joseph Bauer - Chairman of the Board - Has a wealth of business and operational experience gained through 40+ years in Engineering and Senior Management positions.

Employment record includes Olympia & York and the Canary Wharf Group.

B.Sc Engineering from the Technion Institute, Haifa, and MBA from York University, Toronto.

Mohan Vulimiri - Senior Advisor to the Board - 35 years experience in exploration and delineation of ore deposits with many junior and established mining companies.

Founder & Chairman of Frontier Pacific Mining Corporation (now amalgamated with Eldorado Gold), Founder & Chairman of San Fernando Mining Co. (discovered La Fortuna Gold deposit in Mexico) and Founder & Executive Chairman of Nortec Minerals Corp.

B.Sc. (Hons.) Applied Geology, from the Indian Institute of Technology, Kharagpur, and M.Sc. Economic Geology from the University of Washington, Seattle.

Dr. Zelia Cardoso de Mello - Senior Advisor to the Board - is a former Brazilian Minister of Economy, Finance and Planning. Also served as senior advisor on Brazilian business opportunities for Tokyo-based ORIX Corporation [IX - NYSE] and served on the board of advisors of New York-based Lily Pond Capital Management.

Extensive regional business knowledge and access to a network of high-profile contacts.

Completed each of her degrees at the School of Business and Economics at the University of S�o Paolo (USP), receiving her Ph.D. cum laude in 1981 and a Professor at USP until 1995.

The Bottom Line

Eagle Star Minerals (TSX-V:EGE) is in perfect position to capitalize on the iron ore reboom for a company with a market value of $12 million.

It has high-quality properties located in the heart of the worlds fastest growing iron ore production region in the world.

It has multiple known BIFs, the "Kings of iron ore," outcropping to the surface on its properties.

Early exploration results confirm the significant grades and quality consistent with the worlds other major iron ore discoveries.

It is also initiating another round of exploration work intending to further confirm and expand the known locations and grades of iron ore.

And it has the cash on hand, currently $1.5 million, to fund the entire round of exploration.

You can follow Eagle Star Minerals (TSX-V:EGE) development at

Sources:
Eagle Star Web Site
Banded Iron Formation quote
USGS Iron Ore
Ferrexpo quote and earnings
Anglo American iron ore growth

Click here to contact Eagle Star Minerals

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