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Uranium Star Confirms 21 Kilometre Trend of Significant Vanadium Mineralization in Madagascar; Identifies Third Vanadium Trend in Northern Area

Posted at 3:33 p.m. on January 1, 2008

Uranium Star Corp. (OTCBB:URST) (FRANKFURT:YE5) is pleased to announce it has identified a 21 kilometre trend that hosts significant amounts of vanadium on its Three Horses Property in Madagascar.  This north-south trend almost stretches the entire length of the Property.  The Company has since verified the existence of a third vanadium trend located 1 kilometre to the west of the initial discovery in the northern area of the Property.

21 Kilometre Vanadium Trend Confirmed

Soil sample results from the southern mineralized zone confirm at least a 1900 metre strike length with indications that the mineralized structure continues to the north. Values of up to 2710 parts per million (ppm) vanadium have been returned in soils. A land satellite imagery study indicates that the anomalous vanadium trend can be traced over the entire 21 kilometre length of the Property. This is represented by colour-depicted alteration trends using various spectral bands.

The airborne electromagnetic (AEM) survey flown late in 2007 displays an obvious zone of low resistivity that can also be extrapolated along the entire length of the property. Within this zone, the AEM survey has defined dozens of high quality electromagnetic anomalies that are interpreted to be caused by graphite. The AEM was able to clearly penetrate through a thin laterite cap that is located over a 2.5 kilometre extent of the vanadium trend. This is located in the west central part of the Property.
Horizontal loop EM surveys on the Property have confirmed the AEM anomalies, clearly defining that the southern mineralized trend and the most eastern vanadium trend are one extensive trend that can be interpreted over a length of at least 21 kilometres.

Third Vanadium Trend Discovered

Drilling and subsequent XRF analysis of selected core samples have defined a third zone of potential mineralization located parallel to and approximately 1 kilometre west of the initial northern vanadium trend discovery announced in the Company’s news release of November 18th, 2008. The initial grab sample results from both areas, confirmed by ALS Chemex, have identified vanadium values over the detection limit of 10000 ppm, or 1.7% V2O5 equivalent.

Recently acquired airborne radiometric data obtained from the Madagascar Government (using 500 metre line spacing) clearly indicates that the three vanadium trends have a coincident uranium (eU) signature. Uranium Star’s ground radiometric surveys have confirmed this anomalous radioactivity.

As with the northern area, field analysis utilizing the Innov-X Systems X-50 mobile XRF unit was conducted on core samples obtained from this target area, and has indicated the presence of significant values of vanadium.  Based on the vanadium mineralization identified on the southern area through XRF analysis, there appears to be a vanadium-rich trend with a strike length greater than 1900 meters.  The field results from the southern area target have also yet to be verified with assay results. Core samples have been sent for analysis to ALS Chemex’s ISO 9001:2000 and ISO 17025:2005 accredited laboratories in Vancouver, B.C, Canada.

Regional Stream Sediment Sampling Identifies Additional Vanadium Trends

Geochemical analysis by ALS Chemex has been recently received for a regional stream sediment sampling program completed earlier in the year. The analysis identifies 5 additional vanadium-rich trends over strike lengths of 5.2 km, 4.6 km, 3.5 km, 2.2 km and 2.0 km respectively. These newly identified trends have received no additional work, and indicate that vanadium mineralization is everywhere on the Three Horses Property.
The vanadium mineralization is hosted by graphitic quartzofeldspathic gneiss, some of which contains appreciable amounts of sulphides, in relatively close association with marble units. Some of the better surface exposures are gossanous. Known vanadium deposits world wide do not feature any immediate analogies. It may be that Uranium Star has discovered a new variety of vanadium deposit that has yet to be documented.

The Company is awaiting assays from its recently completed drill program, which concluded largely due to the beginning of the rainy season in Madagascar. The drill has been stored on the Property in anticipation of a more extensive exploration program, which will commence in the early Spring of 2009, commensurate with the conclusion of the rainy season. Work currently being conducted includes mineralogy to specifically identify the style of vanadium mineralization. It is anticipated that this will be followed by preliminary metallurgical work to determine what recoveries can be obtained from this unique style of vanadium deposit.

About Vanadium

Vanadium currently trades between $10.00-$11.00 per pound (where 1% of vanadium oxide (V2O5) equals 22 pounds).  It is a rare, strategic metal used for production of
high-strength low-alloy (HSLA) steels and titanium alloys.

China and the USA are the largest individual consumers of vanadium, each accounting for close to 20% of the world market.  World production only totals about 100,000 tons a year. Current primary producers in South Africa are all operating at full capacity.

Commercial use stems from HSLA steels offering the ability to reduce the weight and tonnage of steel required compared to ordinary low-carbon steels because of higher yield and tensile strengths.

Ferrovanadium (FeV) is an iron alloy with a high proportion of vanadium (containing anywhere from 35% to 80% percent vanadium). 

Close to 90% of ferrovanadium is used in high performance steels for:

  • Construction (building frames, bridges, etc.)
  • Pipelines
  • Automobile and Rail tools, parts
  • Aerospace
  • Batteries

To learn more about Vanadium and the Three Horses Property, please visit our website at www.uraniumstar.com.

About the Property

Uranium Star’s Three Horses Property, located in south-western Madagascar, displays mineralization and alteration styles often associated with volcanogenic massive sulphide (VMS) deposits.  These deposits can host significant quantities of copper, zinc, lead and precious metals.  With the serendipitous discovery of vanadium, the Company has focused its full attention to quantifying the potential size and economic value of the deposit.

In the latter part of 2007, Uranium Star conducted a combination DIGHEM V multi-frequency electromagnetic and high sensitivity cesium magnetometer airborne  survey on its Three Horses Property, and  dozens of priority exploration targets were identified.

Craig Scherba, P.Geol., of Taiga Consultants Ltd. is the Exploration Manager and is
supervising Uranium Star’s exploration activities on the Three Horses, Madagascar Property.

For more information, please visit our website at www.uraniumstar.com

Or contact:
 
Brent Nykoliation

Vice President of Business Development
Uranium Star Corp.
Toll Free: 800.818.5442 or 416.364.4911
Email: bnykoliation@uraniumstar.com

or

J. A. Kirk McKinnon, President and Chief Executive Officer
Richard Schler, Chief Operating Officer  & CFO

 

WARNING: The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein.


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