UNB News Release
United Bolero options Bald Butte to First Star
United Bolero Development Corp (TSX-V:UNB)
Shares Issued 18,745,116
Last Close 3/2/2005 $0.24
Thursday March 03 2005 - News Release
Mr. William Morton reports
BOLERO OPTIONS BALD BUTTE PROPERTY TO FIRST STAR
United Bolero Development Corp. has signed a letter of intent with First Star Resources Inc., in which First Star has the right to earn a 50-per-cent working interest in Bolero's Bald Butte molybdenum property in southwestern Montana. Terms include a down payment of $160,000 (U.S.), a first-year anniversary payment of $100,000, subsequent annual payments of $200,000 up to a total of $5-million and the issuance of one million shares of First Star Resources in five increments of 200,000 per year. First Star agrees to contribute $1.5-million (U.S.) for development work and maintenance fee payments before cost sharing starts. The 3-per-cent net smelter return (NSR) is payable as to 1 per cent to Cyprus Gold Exploration Corp. and 2 per cent to the property vendors (a group of Montana individuals).
Tonnage calculations on the Bald Butte property by Gulf Mineral Resources Co. (historical, not NI 43-101 compliant) using a pit design with a 0.06 per cent Mo cut-off grade, indicated the presence of 131 million tons of mineralized material grading 0.077 per cent Mo at a stripping ratio of 2:1 (waste to ore).
In the 1960s, the area became of interest for its molybdenum potential. Amax and then Mine Finders explored the property until Gulf Mineral Resources acquired it in 1976. Gulf conducted a continual evaluation of the deposit from 1976 through 1982, culminating in feasibility studies. Work conducted by Amax and Gulf include geological, geophysical and geochemical surveys, trenching, sampling, 54,103 feet of surface diamond drilling, and extensive costing and feasibility studies.
Bald Butte is a quartz vein stockwork hosted molybdenite deposit, located approximately three miles south west of the historic Marysville gold mining district of Montana. The Bald Butte area was also an active gold producing area and numerous claims were brought to patent in the 1880s. The option agreement includes a total of 22 patented claims, comprising approximately 350 acres, and an area of interest with radius of 0.5 mile from the property boundaries. The company has acquired through staking an additional 10 claims (contiguous to the property and included in the area of interest provision) to cover possible extensions of significant mineralization.
The Bald Butte project is easily accessible by existing roads, a rail siding is within eight miles, the Butte-Mullan power line crosses a portion of the property, and two existing flotation mills, MRI (53,000 TPD) and Phillipsburg (3000 TPD), are both within 80 miles.
L.J. Bardswich, PEng (Ontario), is the qualified person for purposes of National Instrument 43-101. Mr. Bardswich prepared the technical information contained in this news release.
United Bolero management stresses that reports completed to date (historical reports) on the Bald Butte deposit are not in compliance with National Instrument 43-101. The historical reports on the Bald Butte project have not been reviewed in detail by, nor prepared by, a qualified person as defined by NI 43-101; therefore the Bald Butte deposit cannot be defined as a proven or probable resource or reserve at this time and the company cautions investors in relying on historical estimates and statements.
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