I don't know who wrote this but it is very concise and informative.

Regards, Muffles

The Facts:

* It seems that every really good discovery in the mining industry
gets litigated. If it's litigated, it's good!
* The prize in this case is the Mary March
gold-silver-zinc-copper-lead discovery, located in Newfoundland, east of the
former producing Buchans Mine. The Buchans Mine produced 16.2 million
tonnes over 56 years averaging 14.50% zinc, 7.56% lead, 1.33% copper, 126
g/t silver and 1.37 g/t Au.
* Mary March is in the same package of rocks - the Buchans Group -
that was mined at the Buchans Mine proper. The Buchans Group has been
demonstrated to host large tonnage, high grade deposits, and long-life
mines.
* Mary March is considered by knowledgeable people in the industry
among the best undeveloped properties in eastern Canada.
* Canstar has the right to earn a 50% interest in Mary March from U.S.
mining major Phelps Dodge, and also has a Right of First Refusal on the
remaining 50% owned by mining giant Falconbridge.
* The four Mary March discovery holes were drilled by Phelps Dodge in
1999 & early 2000.
* Phelps had at that time obtained, from then-owner Noranda, the right
to earn a 50% interest in Mary March. Noranda is now part of Falconbridge.
Some years ago Phelps opted to stop all exploration activity in Canada, and
optioned their 50% share in Mary March to a Canstar predecessor company.
* The Mary March discovery was not publicized at the time because this
property was not considered 'material' to either giant Noranda or
PhelpsDodge (that is, given their huge size, news of the find couldn't be
expected to move their stock price.) Therefore neither Noranda or Phelps
issued a news release and the larger public never became aware of the find.
* Moreover, the Mary March discovery was made in the depths of a major
recession in the mining industry which didn't end until 2003. In 1999-2000,
everyone was focused on "dot-coms", not rocks!
* The Mary March discovery holes ran some spectacular grades including
0.91m at 660g/tAg, 12.2g/tAu, 16.8%Zn, 5.44%Pb, and 0.18%Cu. Also 20.6m at
3.02%Zn, 0.13%Cu,1.08%Pb, 72.40g/tAg. Also 9.33m at 10.33%Zn, 0.66%Cu,
1.62%Pb, 118.1g/tAg, 4.1g/tAu. Also 2.41m at 1.84%Zn, 0.10%Cu, 0.71%Pb,
98.6g/tAg, 1.63g/tAu.
* Word of the discovery got out through the mining grapevine and
within months the Voisey's Bay tycoon (Vinland) came in and attempted to claim jump
over the core discovery areas (about 10%) of the Mary March property. The
tycoon claims that some 103(!) years ago, a previous holder of logging
rights to the property did not do what they were supposed to do to earn the
mineral rights to the property.
* The tycoon's attempts to claim jump were rejected by the Province's
Mineral Claims Recorder on the basis of solid evidence demonstrating that
the lands in question were not open for staking.
* The tycoon then filed a grievance with the Mineral Rights
Adjudication Board (a quasi-legal body) asking that the Mineral Claims
Recorder's decision to refuse their applications for Map Staking Licences be
overturned.
* In a perplexing ruling handed down December 17, 2003, the Board
ruled against the Province and the legitimate title holders.
* Shortly thereafter, on January 8, 2004, the Province filed an appeal
on behalf of the Mineral Claims Recorder before the Supreme Court of
Newfoundland and Labrador, Trial Division.
* The case is being led by the Provincial Government, Falconbridge and
Phelps - Canstar is tagging on their coattails.
* The dispute and the length of time it is taking to resolve it is an
embarrassment to the Government, but pressure is building and it will get
worked out - soon.
* The betting is that Canstar is very likely to win it.


And one other thing: Shareholders in Messina Minerals did very
well in 2005 when their stock ran to over four dollars from ten cents in the space of a couple of months. Why the excitement? Their 'Boomerang' VMS discovery in December 2004, which is located more or less at the opposite end of Red Indian Lake from Canstar's Mary March property. The deposit type at Boomerang is identical to Mary
March, as is the mix of metals (copper, gold, silver, zinc, lead) found in
it, but it should be noted that Mary March contains significantly higher
gold and silver values than the ore at Boomerang. In fact, some
knowledgeable insiders at Canstar's competitor Messina have suggested that
Canstar's Mary March discovery could, if mined, be not a base metal mine
with gold and silver credits, but in fact a precious metals mine with base
metal credits! Shareholders should also note that Canaccord Capital was the
key financier behind Messina Minerals with Boomerang. Canaccord went home
very happy from the experience. In August 2004, guess who bought into
Canstar in the depths of the summer doldrums?? Canaccord. Not just
"Canaccord", but the very brokers at Canaccord who financed Messina's run
from 10 cents to $4.15!