Today, Desert Star Resources (DSR:TSXV) quietly announced that they had begun the first steps in exploration on their recently acquired southwest US assets. The company completed geological mapping and sampling at its Copper King project located in the prolific Laramide belt of Arizona. The mapping and sampling have identified diorite porphyry dikes which intrude Apache Group statigraphy and diabase sills which looks similar to that seen at Rio Tinto and BHP’s large and high-grade Resolution copper-molybdenum project.
We spoke with Desert Star’s Daniel MacNeil (Project Acquisition and Development) by phone this afternoon and he tells us, “there are two main takeaways from the release today, one, we have begun the exploration permitting process on our projects which is a significant milestone and, two, we have initiated the first steps in defining drill targets on the projects.”
The company has undergone a significant change in focus over the past year with large-potential prospect acquisitions, name change, board and management changes and financings. Recently they closed a ~$1 million raise at $0.18.
Mr. MacNeil told us that “the plan is to complete geophysical and geological mapping and surveys on the projects including Oro which should take us into the fall at which point we should have our permits and targets defined for drilling.”
Desert Star announced in the release that they expect to conduct an additional mapping campaign at Copper King and Red Top in March, 2014.
With the prospects that they have, the company is likely to find a joint venture partner for one, all or some of their assets. This could happen prior to gaining exploration permits, but it would seem rational for it to be after. The company is also more than capable of drill testing these targets themselves.
Also at their Oro project in New Mexico, Mr. MacNeil and Dr. Alan Wainwright (Desert Star’s Chief Geologist) reexamined historic core data and believe they have identified a large copper porphyry target below intense porphyry-style alteration exposed at surface. They shared their excitement about this potential during our last interview and again, Mr. MacNeil reiterated that by phone today.
Shares are up over 175% from their summer lows:
Disclaimer: Author has a financial interest in Desert Star Resources and the company is an advertiser, therefore the article is not to be considered unbiased and fully independent. Please read Desert Star Resources Ltd.’s Cautionary Statement Regarding Forward-Looking Statements’s carefully.