VANCOUVER, British Columbia, Sept. 16, 2004 (PRIMEZONE) -- Tim Coupland, President and CEO of Alberta Star Development Corp. (ASX), listed on the TSX Venture Exchange and on the (OTCBB:ASXSF), is please to announce that it has intersected high grade Uranium mineralization in a recent drill program on its Longtom Lake Property in Canada's Northwest Territories. Drilling intersected:
-- 1.68% U3O8 over 1.0 metre at a down hole depth of 80 metres. This
Uranium intercept was part of a broader interval that returned
0.56% U3O8 over 3.0 metres.
-- 0.16% U3O8 over 1.0 metres was intersected at a depth of 51 metres
in the same hole.
Previous drill campaigns by Alberta Star, Tyhee Development Corp and the Central Electricity Board Exploration Ltd (CEGB) in 1986, have also intersected significant anomalous to high grade Uranium. Within a 300 metre radius of Alberta Star/Fronteer's new high grade discovery, eight historic drill holes intersected uranium mineralization with values ranging between:
-- 0.21% U3O8 over 0.6 metres at a down hole depth of 45 metres and -- 0.48% U3O8 over 1.5 metres at a down hole depth of 59 metres.
Based on recent drill hole results and historical results in the surrounding area, there are indications of a near surface uranium system, that has both size and high grade potential. The world average grade freom producing uranium mines is 0.15 percent U3O8.
Fronteer's summer 2004 drill program completed 2100 metres of drilling to test the copper-gold-silver-uranium targets based on surface mineralization, geophysical data and historic drilling results. Other significant results include:
-- 0.19% copper over 15 metres at a down hole depth of 37 metres -- 0.14% cobalt over 6 metres at a down hold depth of 185 metres
Fronteer has the option to earn a 75% interest in the Longtom Lake property from Alberta Star by paying $15,000 in cash and spending an aggregate of $500,000 on exploration over three years. Fronteer will be the operator of the program during the earn-in period. The agreement is subject to TSC Venture Exchange approval.
Alberta Star has adopted a strategy which will allow the company to focus largely on the exploration and development of the Longtom Property as a uranium asset, as part of a long term strategy to take advantage of the growth in the U.S. and world-wide electrical energy demand. This increasing demand is occurring at a time when mine supplies are dwindling and inventories are being depleted. Over the next decade, uranium supply is expected to fall short of demand and the current production shortfall is more than 300 million pounds. Spot uranium prices have risen from a cyclical low of $7.10 (U.S.) per pound in late 2000 to a recent 20 year-high. Based on Uranium's current spot price of $19.50/lb and its longer term price projections, Fronteer, as operator, will prepare a follow up drill and exploration program on the Longtom Property to explore and expand Uranium targets over the course of the next year.
ALBERTA STAR DEVELOPMENT CORPORAION
Alberta Star is a leading Canadian mineral exploration company that identifies, acquires, finances and develops advanced staged exploration properties throughout the North America. Alberta Star is primarily focused on the discovery of gold and base metals. It specializes on gold properties with strong data bases that are fully permitted and drill ready for purchase or option. Alberta Star's focus is to acquire properties where proper due diligence has indicated that there is a reasonable expectation of identifying and yielding a world-class deposit for its shareholders.
ALLAN FELDMAN-INVESTOR REALTIONS
Investors are welcomed to contact Mr. Allan Feldman, Alberta Star's In-house Investor Relations and Corporate Communications Specialist for all corporate updates at (604)948-9663.
For further information on Alberta Star, visit www.alberta-star.com
On behalf of the Board of Directors of ALBERTA STAR DEVELOPMENT CORP. Tim Copland, President & CED
Dr. Rick Valenta P. Geo of Fronteer Development Group is the qualified person for the Logntom Lake 10CG project.
This New Release includes certain "forward looking statements" with the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitations, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause Alberta Star's actual results to differ materially from those expressed or implied by such forward looking statements; changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.