Doublestar-Standard combo approved

Vancouver – Shareholders have given the nod of approval for Standard Mining (SDM-T) to become a wholly-owned subsidiary of Doublestar Resources (DRS-V).

The move comes with Standard Mining under review by the Toronto Stock Exchange (TSE) because of its low market capitalization. The junior is hopeful that a combined entity may solve this problem if Canada’s major bourse accepts Doublestar for listing. The TSE recently extended the suspension review until Oct. 15.

The share swap deal gives Standard shareholders one share of Doublestar for each five shares held.

Both companies feel that the potential of sequenced mine development of their projects may attract the financing required to move forward. Combining their accounting, legal and audit expenses would also reduce costs.

Standard Mining holds the Damoti Lake gold property in the Northwest Territories and the Zopilote gold property in Honduras. Doublestar holds 31 properties in British Columbia, including the advanced Sustut copper-silver deposit.

The companies envision developing Sustut first, followed by Damoti Lake and Zopilote.

Located 33 km south of the Kemess gold-copper mine in north central BC, the Southeast zone on the Sustut property hosts a total resource of 5.9 million tonnes averaging 1.87% copper and 6.11 grams per tonne silver. That resource splits up into 4.2 million tonnes grading 1.94% copper and 6.35 grams silver in the measured category and 1.7 million tonnes at 1.68% copper and 5.4 grams silver indicated and inferred.

Discovered in the early 1970’s, prior drilling consisted of 17,200 metres and outlined an indicated mineral resource of 23 million tons grading 1.11% copper in three deposits. The Southeast deposit contains the highest grade, and was therefore the company’s first drill target. According to Doublestar, the deposit is relatively shallow and environmental base line testing has been positive.

Doublestar acquired 11 properties, including Sustut, late last year in a deal with Falconbridge (FL-T).