Message #12 From:
Stock News Bot Date: November 28, 2005 03:40:00 AM
NVAS News Novastar Resources to Acquire 900 Acre Platinum Group Metals Concession in Alabama
NEW YORK--(BUSINESS WIRE)--Nov. 28, 2005--Novastar Resources, Ltd. (OTCBB:NVAS), a commercial mining firm engaged in the exploration of Thorium and Rare Earth Metals announced today that the company has come to an agreement to acquire 900 acres of mineral leases from CM Properties, an Alabama sole proprietorship. According to recent assays, there is evidence of Platinum Group Metals ("PGM's") as well as concentrations of both precious metals and Rare Earth Metals. Shareholders will be given regular updates as to the progress of both drilling and pilot recovery efforts.
This 900 acre PGM property will be tested via trenching, circulation drilling and core drilling. The Company intends to construct a pilot mill at this site (in Alabama) within the next six months. The pilot plant will enable the Company to begin production of concentrates and commence recovery of mineral assets during the drilling phase of the project. Field laboratory facilities will be constructed to aid in the preparation of samples at the pilot site. The company expects to generate revenues as production of PGM and Rare Earth Metals officially commences with the completion of the pilot plant.
"This property, located on the Piedmont Trend near the southern end of the Appalachian Mountain range holds some tremendous potential mineral resources and we believe that this will be an exciting opportunity for Novastar Resources", concluded Dr. Charles Merchant, Owner of CM Properties. "Drilling is the key to proving the total potential resource here and that drilling can occur as a companion to running the pilot operation in expanding the resource base," further stated Dr. Merchant.
Novastar Resources Ltd. has already identified industrial purchasers for future sales of Platinum Group Metals (PGM's). PGM's are used primarily in the jewelry and automotive industries. An industry insider indicated the market for PGM's should remain firm and steady for the foreseeable future.
In addition to the above-mentioned 900 acre lease, Novastar Resources has secured an option on 405 additional acres on an adjacent property. Complete terms and details of this acquisition transaction will be disclosed to shareholders on the upcoming filing of (Special Events) -Form 8K -.
Novastar Resources Ltd is a publicly traded company within the commercial mining sector and is a significant commercial mining source of Thorium, a naturally occurring nuclear energy more efficient and far less radioactive than Uranium. The company's stock is traded and quoted on the OTC Bulletin Board under the symbol NVAS. Further information is available on the company's website at www.novastarresources.com.
Safe Harbor Statement This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward looking statements may include the description of our plans and objectives for future operations, assumptions underlying such plans and objectives and other forward looking terminology such as "may," "expects," "believes," "anticipates," "intends," "expects," "projects," or similar terms, variations of such terms or the negative of such terms. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to significant economic and competitive uncertainties and contingencies beyond our control and upon assumptions with respect to the future business decisions which are subject to change. Accordingly, there can be no assurance that actual results will meet expectations and actual results may vary (perhaps materially) from certain of the results anticipated herein.
