Eagle Star Minerals Corp.: Letter from the President
VANCOUVER, BRITISH COLUMBIA, Dec 27, 2012 (Menafn - MARKETWIRE via COMTEX) --Eagle Star Minerals Corp. (pinksheets:ELGSF)(frankfurt:E6R) -
Dear shareholders,
2012 has been a challenging year for the mining industry, yet despiteall difficulties, along with your support, Eagle Star has continuedto position itself as a rising force within the thriving fertilizersector of Brazil. While some companies have chosen the route ofeasing on exploration, we have decided to push forward as hard aspossible, convinced that even in these difficult times we have acompelling business opportunity worth developing. By adding strongtechnical expertise to our team, strategically increasing our landinterests and meeting all of our exploration goals, Eagle Star is nowset for significant achievements and ultimately a successful 2013.
The greatest credit to our progress this past year goes to our teamof geologists headed by Dr. Jose Guimaraes Campos - Director andChief Operating Officer (COO) of the company. A professor of geologyfrom the University of Brasilia, Dr. Campos is widely known in Brazilfor his expertise in sedimentary phosphate deposits. On top ofbringing with him a wealth of technical knowledge necessary toexplore for phosphate in Brazil, Dr. Campos was able to utilize hispast experience with phosphate projects such as Itafos (now owned andoperated by MbAC) to develop a genetic model that is the core of ourexploration program. It's on the basis of this model that we havebeen successful in discovering significant phosphate mineralizationat our Bomfim project area. Dr. Campos has now taken a leave ofabsence from the University of Brasilia to oversee, full time, thedevelopment of our Bomfim project.
To insure continued progress and success in the coming year we haverecently enlisted the help of two metallurgic engineers with specificknowledge of phosphate: Dr. Lino Freitas - a metallurgic engineerwith over 35 years work experience, 25 of which was spent in the ValeCenter of Technology developing beneficiation processes, and CarlosPerucca - a mineral processing engineer with wealth of experiencegained through years of employment by the likes of Agrium and AMEC.Both Dr. Freitas and Mr. Perucca are expected to greatly benefitEagle Star as it looks to move Bomfim into production as soon aspossible.
Our Bomfim Agro-Mineral Project, which we acquired in late June of2012, seems to possess all the technical merits that could turn itinto a very valuable phosphate deposit. In just a short six months ofoperation and with only few of our numerous high potential targetsexplored by way of drilling and/or pit opening, we have alreadydiscovered significant phosphate mineralization.
At Bomfim Hill, initial mapping has exposed an area of 1500m x 600min size covered in high-grade phosphorite outcrops. It was thendecided to open a series of systematic test pits as this methodenables our team to get the best possible sense of the extent of thehigh-grade mineralization at depth. What followed next is extremelyrare within Brazil as we have intercepted in multiple pits high-gradematerial (in some pits higher than 19% P2O5) at or close to surfaceand this mineralization still remains open at depth (meaning that incertain pits we know mineralization is more than 5 meters thick). Thediscovery of a high-grade zone within Bomfim adds significant valueto our portfolio. High-grade phosphorite could be easily transformedinto fertilizer for direct application at a very low cost. Our teamis already exploring for the fastest and financially most attractiveavenue to take this into production. With Bomfim located right at thecenter of the "Cerrado" region of Brazil, an enormous fertilizermarket is right here at our doorstep and Eagle Star is now positionedto take advantage of it to the great benefit of our shareholders. Inparallel, we will continue with our pit and trench opening worktowards a goal of delineating a NI 43-101 resource report within Q1of 2013 at the D1 target (Bomfim Hill).
From day one, Eagle Star had envisioned a strategy of developing aportfolio of highly potential phosphate opportunities across thefertilizer deficient nation of Brazil. Results in the RuthAgro-mineral Project demonstrate that we have achieved just that thisyear. Located in probably one of the best jurisdictions in terms offertilizer production - the state of Piaui (the fastest growingagricultural state in Brazil yet having no local supply ofphosphate). With power, water and transportation all readilyavailable, Ruth has all the ingredients necessary for the developmentof a successful mining operation. At the Canabrava Block, largeexposures of a mineralized sub surface by way of outcrops, erosionand a very limited overburden attracted us to pursue furtherexploration that led to the discovery of a substantial phosphatepackage averaging 7 meters in thickness with a strike in excess of 30kilometers. The package itself is unique in its make up: a highlymineralized hard dense sandstone (8-12% P2O5) is intercalated with alower grade soft pliable siltstone (1-3% P2O5) These verydistinguished physical attributes make separation of the sandstonefrom the siltstone simple, cost effective and financially beneficialsince post separation, both materials will have commercial use. Thelow-grade phosphate material (rich in many nutrients beneficial tothe soil) is currently being tested in a live environment as anatural fertilizer for direct application. The high-grade material,through beneficiation would be sold as standard fertilizer material.Because the volume is so apparent at Canabrava, the focus is now ondeveloping the metallurgic flowsheet with the help of our twometallurgic engineers. Preliminary solubility, separation andbeneficiation tests have already returned positive and once a processfor concentration is reached, we believe Canabrava will become one ofthe largest sedimentary phosphate deposits within Brazil in arguablyits most strategic location.
An exciting year remains ahead of us with many analysts forecasting2013 to be the year for phosphate investment. This commodity,traditionally overlooked by investors, has been gaining increasedattention lately. Being part of a very limited group of publiclytrading phosphate companies with focus on the largest agrariancountry in the world - Brazil, Eagle Star is well positioned to takeadvantage of increased interest in this sector. Already now, with M&Aactivity gripping our sector at valuations much higher than shareprices would otherwise suggest (for example the recent acquisition ofRio Verde by B&A at significant premium to market price) it becomesincreasingly apparent to professional investors that our company isextremely undervalued. By continuing with the aggressive explorationprogram planned for Bomfim in 2013, while advancing additionalchemical and metallurgical testing at Canabrava, the company will beable to reach important milestones and unveil significant valuethroughout the coming year. This will ultimately benefit you, ourshareholder, whose investments, patience and belief allowed thecompany to develop thus far.
I wish you a happy, healthy and prosperous 2013.
Sincerely,
Eran Friedlander, President & CEO
Eagle Star Minerals Corp.
Contacts:
Eagle Star Minerals Corp.
Patrick Brandreth
Senior Manager, Corporate Development
1-604-282-7157
patrick@eaglestarminerals.com
www.eaglestarminerals.com
SOURCE: Eagle Star Minerals Corp.
mailto:patrick@eaglestarminerals.com
http://www.eaglestarminerals.com
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