TSX-V: MDV
VANCOUVER, Feb. 13 /CNW/ - Megastar Development Corp. (TSX-V: MDV) is
pleased to announce that it has entered into an option agreement to acquire
100% interest in a total of 46 mineral claim units located in the Omineca
Mining Division, British Columbia, approximately 280 kilometres
north-northwest of Mackenzie, B.C., Canada. These claims are situated in the
emerging world class Gataga-Akie SEDEX zinc/lead/silver camp in the Omineca
mining district of British Columbia, northeast of Williston Lake.
The claims under option cover 185 square kilometers and include
5,630 meters of active zone in the favourable late Devonian Gunsteel shales
that host the recent new discovery by Mantle Resources Inc. (TSX-V:
MTS)/Ecstall Mining Corp. (TSX-V: EAM) on Ecstall's Akie property. Several of
the Megastar's claim units are located in close proximity to the historical
Akie deposit where recent drilling program by Mantle Resources discovered a
significant new zone of thick, high-grade SEDEX-style zinc-lead mineralization
- most recent drill hole results released over the past three months include
17.93 m of 17.22% Zn (hole No. 1), 26.7 m of 11.95% Zn, 2.74% Pb (hole No. 2)
and 19.2 m with 8.71% Zn, 1.83% Pb.
The Company's claims cover part of the highly prospective Gunsteel shale
formation in the regionally extensive, world-class Kechika trough SEDEX zinc
basin of Northern British Columbia. The Kechika trough is geologically similar
and comparable in size and economic potential, to the Red Dog basin of Alaska,
where Teck-Cominco operates and controls the world's largest zinc/lead mine.
The two major Sedex zinc-lead deposits in the southern portion of the Kechika
trough are Ecstall's Akie and Teck-Cominco-Korea Zinc's Cirque, which lies
approximately 18 kilometres north of Akie.
The newly acquired claims, dubbed the SEDEX Zinc Project, contain six
known mineral occurrences documented by the B.C. Geological Survey of which
the following four contain bedded barite as present on the Ecstall's Akie
discovery. In addition, two have reported significant Zn and Pb values:
1. SIKA, AIKIE-SIKA - barite mineralization occurs at several
localities and may have a possible strike length of 7 kilometres
within the Road River Group turbidites and within the Upper
Devonian shales of the Earn Group (Gunsteel Formation). Upper
Devonian Gunsteel Formation shales (lower Earn Group) host nodular
to almost massive barite and a 30-centimetre thick massive pyrite
horizon.
2. ERN - two areas of barite, sphalerite, and galena mineralization
(the Ern East and West zones) are hosted within massive
pyrite-healed dolomite-quartzite breccias. The turbidites were
deposited into a basin in which exhalative activity was occurring.
A 0.35-metre chip sample from the West zone assayed 8.0% Zn and
only very minor lead (Assessment Report 14012).
3. DEL - a horizon of bedded barite (the West zone) occurs within
Upper Devonian shales of the lower Earn Group (Gunsteel Formation).
4. DEL EAST - bedded barite and galena (the "Main Zone") is hosted in
a horizon of shales within the Silurian siltstone unit of the Road
River Group. The mineralization, 25 metres in width, contains a
0.35 metre section that grades 6.6 % Pb (Assessment Report 14177).
Under the terms of an arms length option agreement between Megastar and
747080 B.C. Ltd. (the "Optionor") and subject to regulatory approval, the
company will earn a 100% interest in the SEDEX Zinc project as follows:
Upon regulatory approval and execution of a formal option agreement
Megastar will pay to the Optionor CDN $110,000 and 500,000 shares in the
capital of Megastar with a standard four-month hold period as follows:
Cash Payments
(1) $20,000 upon execution of the option agreement (paid);
(2) an additional $20,000 upon TSX Venture Exchange acceptance for
filing ("Exchange Acceptance");
(3) an additional $30,000 within one year of Exchange Acceptance;
(4) an additional $40,000 within two years of Exchange Acceptance
Share Issuance
(1) Issue 500,000 common shares in its capital to the Optionor within
ten days of Exchange Acceptance.
The Optionor retains a 2% NSR and grants Megastar the right to purchase
1% of the NSR at any time for the sum of $1,000,000.
A finder's fee in connection with the above described acquisition will be
paid in accordance with the policies of the TSX Venture Exchange.
ON BEHALF OF THE BOARD OF DIRECTORS
"DUSAN BERKA"
Dusan Berka, P.Eng.
President & CEO
