HENDERSON, Nev., July 17, 2006 (PRIMEZONE) -- International Star, Inc. (OTCBB:ILST) today made public the details of the recent developments in the exploration and testing on the Detrital Wash and Wikieup properties in Mohave County, Arizona.
In January 2006, International Star, Inc., announced the signing of a Joint Venture with Resolve Capital, Inc., on the original 1,280 acres in the Detrital Wash, Mohave County, Arizona. In that announcement, ISTAR stated that one of the benefits of the Joint Venture was the ability to turn focus to the remaining properties held by the company. In the months following the signing, that has been the primary focus for International Star, Inc.
During February 2006, management of ISTAR began talks with a world-wide REIT organization with interests in investing in International Star, Inc., and in developing a long-term mining relationship between ISTAR and the organization. During due diligence performance on the organization, it was determined by management the proposed relationship with the organization would not be in the best interests of the ILST shareholders and negotiations were terminated. In the process of the discussions, however, ISTAR was introduced to two individuals, a chemist and a metallurgist, who have been researching and testing an extraction process specifically for the area where International Star, Inc., holds placer and lode claims.
Also in February 2006, management of ISTAR was introduced to an Arizona mining company who showed interest in working with the claims held by International Star, Inc., on the Wikieup property. Although it was determined that it was not in the best interest of the ILST shareholders to enter into a Joint Venture with the mining company, during the process management was introduced to Geologist Jim Nyrehn and a production facility in Flagstaff, Arizona, both of which were very interested in working with International Star, Inc., in the pursuit of extracting minerals from both Detrital Wash and Wikieup properties.
In a report submitted to International Star, Inc. by Geologist Jim Nyrehn dated April 1, 2006, Mr. Nyrehn states, "It is the opinion of this author that the International Star mineral properties located to the west of Wikieup, Arizona and at Detrital Wash in northwest Arizona could host ore-grade mineralization not previously recognized." Mr. Nyrehn also states, "The geology, structure and lithology all combine on the Wikieup property to indicate a tremendous exploration potential for precious and base metals. The property to date has apparently only been examined as a target for precious metals. The company's Detrital Wash property is an example of a property with potentially more value than anticipated. During a cursory evaluation of the eastern portion of the property, it was noted that several veins and structures, which appear to be mineralized, occur on the property with frequency."
ISTAR took the advice of Jim Nyrehn, and with his guidance, collected samples to be used with the new extraction process. After months of closely working with the chemist and metallurgist on the extraction process to be used on each property, it was determined the process was ready for testing in the production facility in Flagstaff, Arizona. Through weeks of testing on various types of samples from both Detrital Wash and Wikieup properties at the Flagstaff facility, an extraction process has been developed which is yielding consistent results on both properties. On July 10, 2006, Robert L. Wasiliew, BC Certified Assayer, and Philip V. Olivier, South African Certified Assayer, certified test results on two separate tests from the Detrital Wash property. One 150g test yielding 4.044 OPT (ounces per ton) of Gold (Au) and 0.127 OPT of Platinum (Pt), and the second 5 pound head ore test for Platinum (Pt) alone yielding 0.1259 OPT.
Testing at the Flagstaff facility is continuing, including bulk tests geared towards formulating the cost effectiveness of going into production at the Flagstaff facility as opposed to building a new facility closer to both properties, which is also under consideration by the ISTAR management team. The Flagstaff facility has shown great interest in continuing work with International Star, Inc. ISTAR management is currently undergoing the due diligence towards that possibility.
International Star will continue to pursue means to expand its exploration activities on both its Detrital Wash and Wikieup properties, either by seeking additional capital through loans or private placements of its securities or by possibly entering additional joint venture arrangements with one or more other, more substantial companies.
Although there are negotiations currently in progress, there are no arrangements in place to further fund the company at this time, and the outcome of the discussions with other entities cannot be predicted. If the company raises capital by selling its equity stock, the proportionate ownership of existing shareholders will be diminished.
As a side note, on May 23, 2006, Larry Stone, representing Star-Resolve Detrital Wash, LLC., requested an extension on the time constraints as specified in the Joint Venture Agreement with International Star, Inc. In response, on May 24, 2006, Denny Cashatt, stated, "In light of what has taken place over the past six months, I see no reason to extend this any further." The matter has since been referred to the corporate attorney.
NOTE: This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause the company's actual results to differ materially from forecasted results."
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