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Eagle Star Minerals Corp

Mining Companies - Metals Companies

User Rating: / 3

Junior Explorer: Fe, Phosphates

Eagle Star Minerals Corp is focused on the acquisition, exploration and development of mineral properties in North and South America.  Eagle Star has amassed a strategic land base of approximately 130,000 hectares (nearly 320,000 acres) in Northeastern Brazil that feature high-grade phosphates and banded iron formations. Eagle Star's Piaui Ruth Phosphate Project and Piaui Angico Iron Project are both located within the state of Piaui which is known for its rapidly growing agricultural productivity and high-potential iron deposits. By developing fertilizer-grade phosphates and iron ore, Eagle Star is capitalizing on behalf of its shareholders on the needs of a surging economy.  The Company is listed on the Toronto Venture Exchange under the symbol (EGE) and OTC under (ELGSF).

Annual Trading Range .095- 0.35

Trading on 29 June 2011 @ .22

Share Structure

S/O 46.7M

Warrant 0

Options 2.2M

FD 49.7M


Q2 2011

Cash and Equivalents 685K

ST Liabilities 537K


Cash Burn Rate 411K

Quarterly Loss (.009)

Financing since Q1 Report:

Feb 4, 2011

Eagle Star Minerals Announces Exercise of Warrants



Located 50 km away from the town of Sao Raimundo Nonato in the state of Piaui, North East Brasil, Angico iron ore project covers more than 120,000 acres of mineral claims in 5 concession areas. The area of Sao Raimundo Nonato is semi-arid. The climate is hot and dry, with minimum temperatures of 18 °C and maximum temperatures of 36 °C. The average annual rainfall is around 600 mm, and January-February-March is the rainy season.

The topography of the area is dominated by (i) tabular surfaces (low plateaus and summits) and (ii) elevations (mountains and hills). The geology in the area comprises of magnetite, hematite, martite, specularite and ferríferous amphiboles in metamorphozed layers.


All three main concession blocks – Cavaleiro, Serrinha and Serra do O feature Banded Iron Formations (BIF) outcrops similar to iron formations in the Hamersley basin of Western Australia and in the Archean Carajan Formation of Northern Brasil. The BIF is hosted in metamorphosed sequences of biotite schist, micaceous quartzite, gneiss and migmatite all of Archean age. At certain areas, BIF occurrences are traceable on the surface for almost 10km.


Infrastructure in the area is good – All concession areas are accessible by local road system, a nearby (60 km away) railroad line is currently under construction, three major sea ports – Salvador, Recife and Fortaleza are only 500 km away and a new, local airport at Sao Raimundo Nonato can serve aerial transportation.

Under the terms of the Earn In Agreement signed on February 2010, Eagle Star will acquire 55% of the project by performing a 3 stages exploration work program valued at 4 million USD. Furthermore, the company is committed to make gradual payments of 2.5 million USD to seller (250,000 USD as a down payment and 750,000 USD and 1,500,000 USD at the end of stage 2 and 3 of the project). Once exploration program is completed, Eagle Star will have the option to acquire the remaining 45% of the project.

Eagle Star commenced exploration work on the property in July 2010. First exploration stage consisted of line cutting, geological mapping, ground magnetometry survey, chip sampling, trenching and 500m of scout drilling. Results to date confirm:

- Substantial BIF outcrops and trends on all three main concession blocks along lengthy extensions (up to 8 km on Cavaleiro block alone based on partial mapping of the area)
- Major magnetic anomalies coincident with BIF outcrops and trends
- Significant mineralization at depth and along strike
- Average iron grades range between 26% (Serra do O), 33% (Serrinha) and 52% (Cavaleiro) Fe2O3.
- Especially good quality iron (low in silica) on Cavaleiro Block.

Exploration Update:

Jan 18, 2011 Results up to 44.66% Fe2O3 across 39 metres Angico Iron Project, North Eastern Brazil

Feb 24, 2011 Eagle Star announces a third trench returned 41.62% Fe2O3 across 27.5 metres, Cavaleiro Block - Angico Iron Project, North Eastern Brazil

Apr 27, 2011 Eagle Star Minerals Completes Stage 1 Exploration at its Anfico Iron Exploration Project and Commences Stage 2


Centrally located within the state of Piaui and near the cities of Picos and Eliseu Martins, Eagle Star’s 100%-owned Piaui Ruth Phosphate project covers 80,000 hectares (nearly 200,000 acres) across 41 mineral claims in a favourable geological environment, believed to host a large phosphate deposit. Located within 200km from Eagle Star’s Angico Iron Project, this phosphate project is also less than 250km from the Balsas Agricultural Center.

The area houses a large soy growing industry including a 69,218km2 area that

crosses two states, and is responsible for the production of over 2.3 million tonnes of soya beans. The region is semi-arid with a hot and dry climate, ranging from minimum temperatures of 18 °C to maximum temperatures of 36 °C. The average annual rainfall is around 600 mm, and January-February-March is the rainy season.


Sedimentary rocks, dubbed the Parnaiba Basin, cover the central regions of Piaui. The northern and southern parts of the state are covered by igneous rocks, and to date, most exploration licenses for P2O5 in Piaui focues on areas where geological information was readily available. Previous data primarily focused on these north and south igneous regions, through a gamma-spectromeric survey performed by CPRM – a government agency.

Global phosphate mining activity shows that the commodity can be derived from two different kinds of geological settings: sedimentary and igneous. Sedimentary deposits provided most of the world’s production (nearly 80-90%) while igneous deposits have been the source for 10-20%. The Parnaiba Basin has all the paleological components necessary to host a large P2O5 deposit; namely marine cold waters sediments, low sedimentation rates and concretionary sediments.

This survey work was performed outside of the central region of Piaui, where Eagle Star Minerals’ claims are located. Early sampling by Eagle Star and an arms-length geological team have confirmed the assertion the Parnaiba ’s sedimentary content. Eagle Star plans to commence next stage of exploration effective immediately, including mapping, systematic chip sampling and drilling.

Early sampling performed by Eagle Star and an arms-length geological team in the central sedimentary region has confirmed their assertion that the Parnaiba ’s sedimentary basin has the perfect geological environment to host a large, high-quality phosphate deposit.

Due to the extremely large target area, Eagle Star had to perform a wide sampling program of artificial outcrops near the existing road network. Though the thickness of these rocks in many outcrops is more than 12m, the sampling team could only initially take samples of 3m due to vertical slope. This included 222 samples covering a 200km x 20km area. Results from the sampling defined three different anomalous regions, including the principal anomalous zone of 180km2 and returned values of 2-22% phosphorus and a second zone covering 340km2 with results of 3-10%.


The Piaui Ruth project’s area has excellent infrastructure consisting of roads, water reservoirs, power lines and a future railroad to be completed by the year 2013. In addition, Piaui state has a large agricultural base that includes soy plantations. With demands coming from nearby consumers, the accessible local markets will most likely consume all future phosphate production and reduce transportation and marketing costs.

June 16, 2011 Eagle Star Minerals Corp. acquires mineral concessions with high phosphate potential in the Parnaiba Basin, state of Piaui, North East Brazil

July 28, 2010 Eagle Star Minerals Corp. Files NI 43-101 report on Investmine Iron Property, North Eastern Brazil


President, CEO & Director

Strong business background with public (Intel, Strauss Elite) and private companies (GH Financials, FantIne Group) in Europe and in the Americas . Founding partner of public and private ventures active in the financial, natural resources and IT sectors.

Extensive experience in capital markets, business development, marketing and strategic planning.

LLB from Hebrew University, Jerusalem and MBA from ISG, Paris.

CFO & Director

Over 29 years of experience in corporate finance, acquisitions and financial reporting.

Previous experience includes Senior Management position with Price Waterhouse Coopers. President, CFO and Director of several Canadian Public and Private Companies.

Chartered Accountant, Member British Columbia and Canadian Institute of Chartered Accountants, B.A. Commerce and Economics from Simon Fraser University, Vancouver, BC.

Project Manager Brazil &
Senior Geological Advisor to the Board

40 years of Brazilian geological experience including 30 years as senior geologist with the world's top tier iron mining company - CVRD (Vale) and 3 years senior consultant to BHP Billiton in charge of evaluating iron ore projects and fostering buyer seller relationships with Nippon Steel.

With the first half of his career focused on research and studies and the second half focused on hands on management of mining operations Mr. Polonia is highly experienced in all aspects of iron (and related commodities) extraction - from exploration to production, at all major iron producing areas in Brazil.

B.Sc in geology from University of Rio de Janeiro, diplomas in advanced geology (US Geological Survey), geostatistica (University of Ouro Preto ), mining economics (Brazilian Institute of Mining) and financial administration (UNA).

Exploration Geologist

Participated in multiple exploration projects of leading Brazilian mining companies, including - Global Mine Exploration (GME4), Bahia Mining (BAMIN) and CVRD.

Highly experienced in the area of structural geology and detailed geological mapping of Iron Formations.

B.Sc in Geology from Bahia University – BRA. Currently in the process of completing M.Sc in Economic Geology at Bahia University – BRA.

Chairman of the Board

Wealth of business and operational experience gained through 40+ years in Engineering and Senior Management positions.

Employment record includes Olympia & York and the Canary Wharf Group.

B.Sc Engineering from the Technion Institute, Haifa, and MBA from York University , Toronto .

Senior Advisor to the Board

35 years experience in exploration and delineation of ore deposits with many junior and established mining companies.

Founder & Chairman of Frontier Pacific Mining Corporation (now amalgamated with Eldorado Gold), Founder & Chairman of San Fernando Mining Co. (discovered La Fortuna Gold deposit in Mexico) and Founder & Executive Chairman of Nortec Minerals Corp.

B.Sc. (Hons.) Applied Geology, from the Indian Institute of Technology, Kharagpur, and M.Sc. Economic Geology from the University of Washington, Seattle.

Senior Advisor to the Board

Former Brazilian Minister of Economy, Finance and Planning. Also served as senior advisor on Brazilian business opportunities for Tokyo-based ORIX Corporation [IX – NYSE] and served on the board of advisors of New York-based Lily Pond Capital Management.

Extensive regional business knowledge and access to a network of high-profile contacts.

Completed each of her degrees at the School of Business and Economics at the University of São Paolo (USP), receiving her Ph.D. cum laude in 1981 and a Professor at USP until 1995.




News Releases

June 16, 2011 Eagle Star Minerals Corp. acquires mineral concessions with high phosphate potential in the Parnaiba Basin, state of Piaui, North East Brazil

Apr 27, 2011 Eagle Star Minerals Completes Stage 1 Exploration at its Anfico Iron Exploration Project and Commences Stage 2.

Mar 1, 2011 Former Finance Minister Of Brasil And An Ex-vale Senior Geologist Join Eagle Star Minerals’ Newly Formed Advisory Board

Feb 24, 2011 Eagle Star announces a third trench returned 41.62% Fe2O3 across 27.5 metres, Cavaleiro Block - Angico Iron Project, North Eastern Brazi

Feb 4, 2011 Eagle Star Minerals Announces Exercise of Warrants

Jan 18, 2011 Results up to 44.66% Fe2O3 across 39 metres Angico Iron Project, North Eastern Brazil


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