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CORPORATE UPDATE: A SUMMARY OF 2011 AND OUTLOOK FOR 2012
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Not for distribution to United States wire services or dissemination in the
United States
January 6, 2012
Corporate Update: A Summary of 2011 and Outlook for 2012
Looking back at 2011 provides a chance to reflect on the transformation that
has taken place at Polar Star.
At the beginning of last year, we were
focused on developing our flagship property Montezuma.
Now one year later, the Company has:
completed a diamond drill program at Montezuma;
refurbished and restarted the Chpica mine; and
commenced the farm-out of non-core properties.
Montezuma: New Target Discovered
At Polar Stars flagship property Montezuma, a 20.000 meter diamond drill
campaign was completed in April.
In July, additional geophysics was
performed at Zone B to test the previously intercepted enriched sulphide
zone.
Since then, the program has focused on gaining a better insight into
the structure and dynamics of the faulting and thrusting encountered.
The
program confirmed that the mineralized porphyry fragments caught up in the
thrust zones is derived from a source to the west of the completed drilling.
The revised structural interpretation, based on a review of the drill core,
surface mapping and geophysics, has outlined a new large area of alteration
that has previously not been drilled.
This exciting new target zone will be
the focus of the 2012 drill program.
Chpica in Production
The Company has also advanced the Chpica mine, which was originally
announced at our Annual Shareholders Meeting in May.
Our timing could not
have been better.
With the capital markets in turmoil and gold prices
climbing to new all-time highs, the Chpica mine, a source of cash flow and
low capex, will allow the Company to minimize the risk of dilutive
financings while still allowing us to advance our future growth plans.
In
November we conducted a detailed review of our options for concentrate sales
and selected Empresa Nacional de Minera (Enami) as they offered Polar
Star the best available terms.
Enami is a Chilean state owned enterprise
that manages various mining interests, and refines and smelts copper and
gold from Chiles small- and medium-scale miners.
Its main role is to
promote Chiles small and midsize mining sector by carrying out toll milling
and processing, and granting credit at favourable rates to companies.
The
gold/copper concentrate Chpica produced was shipped to the Ventanas smelter
in December and initial cash receipts were received later in the month.
With
startup expenses now behind us, Polar Star will focus on operational
efficiencies and increasing sales at the Chpica mine.
Joint Venturing Non-Core Properties
With our focus committed to Montezuma and Chpica, the Company has entered
into joint ventures with three new partners.
Most notable was the
announcement of an exclusive option agreement on 172,600 hectares of our
property portfolio with BHP Billiton, one of the worlds largest mining
companies.
The Company also entered into joint ventures with RedQuest
Capital Corporation and Kairos Capital Corporation on our Los Azules,
Fortuna and Nancagua properties, respectively.
These three transactions
account for approximately half of Polar Stars property inventory and
re-affirm the quality and attractiveness of our portfolio.
We believe our
joint efforts will benefit all shareholders.
Outlook for 2012
During 2012, we will build upon the milestones achieved last year.
At
Montezuma we have a new drill campaign planned.
Our Chpica mine will see
increased operation efficiency and sales, and we look forward to working
together with our new joint venture partners to develop Polar Stars world
class property portfolio.
On behalf of Polar Stars management and the Board of Directors, I would
like to thank all shareholders for your continued support.
We look forward
to sharing a successful 2012 with you.
Doug Willock
President and CEO
Forward-Looking Statements
This news release may contain forward-looking statements based on
assumptions, uncertainties and managements best estimates of future events.
Actual events or results could differ materially from the Companys
expectations and projections.
Investors are cautioned that forward-looking
statements involve risks and uncertainties.
Accordingly, readers should not
place undue reliance on forward-looking statements.
When used herein, words
such as "anticipate", "will", "intend" and similar expressions are intended
to identify forward-looking statements.
For a more detailed discussion of
such risks and other factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements, refer to Polar Stars filings with Canadian securities
regulators available on www.sedar.com or the
Companys website at
www.polarstarmining.com.
About Polar Star
Polar Star Mining Corporation (TSX: PSR) is an emerging exploration company
with a focus on building value in Chile through discovery and development.
Its flagship property, Montezuma, covers 40 kilometres of the West Fault and
the cross-cutting Esperanza Fault system and is located between Codelcos
Radomiro Tomic - Chuquicamata - Ministro Hales (formerly known as Mansa
Mina) group of copper-molybdenum porphyry deposits, and Antofagasta PLCs El
Tesoro - Esperanza - Polo Sur group of copper-gold porphyry deposits.
Contact Information
Adam Rochacewich, CFO
Tel: (416) 368-3496
Email:
www.polarstarmining.com