VANCOUVER, Feb. 11 /PRNewswire/ -- First Star Resources Inc. (TSX-V: FS) (the "Company") is pleased to announce it has signed a letter of agreement with Q-Gold Resources Ltd.'s wholly owned subsidiary (Q-Gold) dated February 10, 2011 (the "Letter Agreement"). Under the terms of the Letter Agreement, the Company may earn a 43% interest in the McKenzie Grey Vein claims on the Nipigon property, located in northwest Ontario, Canada.
The McKenzie Grey property, covering a total of 1,143.2 acres, is located near the historic (1890's) gold camp of Mine Centre. Q-Gold recently announced the results of its 2010 drilling program on the McKenzie Grey property (see Q-Gold's news release of January 26, 2011).
Upon approval of the TSX Venture Exchange, the Company will pay $25,000 to Q-Gold. In addition, the Company will make payments totalling $800,000 and incur expenditures of $3,150,000 over a four-year period. The property is subject to prior net smelter return royalties of 2.5% to 3%.
This Agreement is subject to TSX Venture Exchange approval. First Star and Q-Gold share common directors.
About First Star Resources Inc.
First Star Resources is a junior exploration company focused on gold exploration in the world famous Tintina Gold belt in Alaska. The Tintina Gold belt hosts major gold deposits and several mines, such as: Fort Knox Mine-3.7 million oz gold, the Donlin Creek deposit 33.5 million oz. gold, the Livengood deposit, 8.1 million oz gold, White Gold deposit 1.4 million oz gold (recently taken over by Kinross Gold Corp), and the Pogo Mine 5.6 million oz gold, which is adjacent to one of First Star Resources' key targets for this year, and the WP property. International Tower Hill (ITHT) spent millions of dollars on the WP and LMS properties which they optioned to First Star Resources after they made their discovery at Livengood. Both of these properties have well defined gold targets. First Star Resources recently completed drilling on the LMS, property and now is in the planning stages for its work programs set for early 2011.
ON BEHALF OF THE BOARD John Campbell CEO Visit the Company's website, http://www.firststarresources.com/ FOLLOW US ON: My Space, Twitter and Facebook DISCLAIMER
Forward-looking statements relating to future events or future performance and reflecting First Star Resources or beliefs regarding future events include, but are not limited to, statements with respect to completion of the private placement and related matters. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of First Star Resources to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in First Star Resources' interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at http://www.sedar.com/. Although First Star Resources has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements.
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First Star Resources Inc.
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