Alberta Star arranges flow-through financing

Alberta Star Mining (ASC-A) has proposed a private placement of up to 1 million flow-through shares at 20 cents each.

Proceeds will be used to cover exploration expenditures incurred on the Mazenod Lake/Squirrel Lake property in the Northwest Territories, 170 km northwest of Yellowknife.

The company is currently conducting a summer field program on the property in search of polymetallic mineralization. The property block is approximately 17 km long and 7 km wide, and covers 13,270 ha of ground situated between the Sue-Dianne and Nico projects of Fortune Minerals.

Alberta Star is using data from a multi-parameter airborne geophysical survey, as well as geological field work carried out by the Geological Survey of Canada, to target areas for prospecting, ground geophysical surveys and geological mapping programs.

Alberta Star’s involvement in the project began in May 1998, when it acquired the right to earn a 60% interest in an option held by partners Moss Resources (MRS-T) and Xemac Resources (XEM-M), which entitles them to earn a 100% interest in the property from a unit of Australian major WMC.

Last year, Moss and Xemac drill tested the Nod copper showing on the property with four holes totalling 2,069 ft. The holes encountered anomalous copper mineralization, with one hole averaging 0.1% copper over a 204-metre length. Higher-grade intervals averaged 0.95% copper over 9.4 metres and 2.21% copper over 2.9 metres.