Eagle Star Minerals Corp. announced that it has received approval from the National Mining Agency of Brazil (DNPM) of its application for 39 mineral claims covering an area of 80,000 hectares in the centre of the state of Piaui – Northeast Brazil. The concessions are located in areas with extensive phosphate potential.

The Phosphate occurrences are associated with the Pimenteiras shale formation located within the Parnaiba Basin. An arms-length party which includes Brazilian geologists has recognized this geological environment as having the potential for the occurrence of large scale phosphate and potash mineralization and has approached Eagle Star for the land acquisition.
 
They carried out very detailed reconnaissance litho-geochemical rock chip channel sampling of the Pimenteiras formation outcrops for locating phosphate mineralization in the Parnaiba Basin. Over 222 samples were collected in an area measured 200 kilometers by 60 kilometers.
 
Most of the samples were collected from outcrops along the main road or nearby access roads. The distance between the samples was variable and was consequence of local conditions, but on an average samples were collected every 3 kilometers. Each sample corresponds to a channel, perpendicular to the layers or bedding. The length of each was variable and averages 3 meters.

Brazil is one of the world’s major agricultural producers. Agriculture represents one third of its economy, 42% percent of it is export based and is responsible for 17.7 million jobs (ANDEF, 2004). However, most of the soil in the countryside lacks Phosphorus (P), Potassium (K) and Nitrogen (N) and there are no economic viable deposits of sulphur.

As the production of fertilizers has not followed the development of agriculture and livestock farming, the country became the 4th major importer of fertilizers and 2nd major importer of phosphate, accounting for 51% of the phosphorous utilized in the country.
 
In 2006, Brazil imported US$ FOB 1.170 billion in phosphate. This dependency is anticipated to increase continuously unless new domestic sources are found. Therefore any locally produced phosphate from new mines will be consumed locally in Brazil.

The project 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 which includes soy plantations.

Therefore any phosphate production will be consumed by local markets. Eagle Star plans to commence next stage of exploration effective immediately. This will include mapping, systematic chip sampling and drilling.

22nd June 2011