CSRNF - Canstar Acquires the Hermitage Property Expanding its Newfoundland Gold Exploration Project Claims to 774 km2
(TheNewswire)
Toronto, Ontario - TheNewswire – January 24, 2022 – CANSTAR RESOURCESINC. (TSXV:ROX ) & ( OTC:CSRNF) (“ Canstar” or the “Company”) is pleased to announce thatit has signed a binding property purchase agreement with AltiusResources Inc. (“Altius”), a wholly owned subsidiary of AltiusMinerals Corporation (TSX: ALS), to acquire a 100% interest in theHermitage Property in southern Newfoundland (the “Acquisition”). The Hermitage Property is comprised of three (3) map-staked licensescontaining 607 claims covering 15,175 hectares (151.75 km 2 ) (the“Hermitage Property Claims”). The Hermitage Property Claims arecontiguous with the Company’s Golden Baie project and bring thetotal claims in the area to 77,350 hectares (774 km 2 ) (Figures 1& 2).
Canstar optioned the Golden Baie project claims due totheir proximity to the Day Cove Thrust (“DCT”), the tectonicboundary between the Gander and Dunnage (Exploits subzone)tectonostratigraphic zones. The Baie d’Espoir volcanic andmetasedimentary rocks to the west of the DCT host extensive goldanomalies at surface that strike parallel to the DCT. At thesouthwest end of the Golden Baie claims, the Hermitage Flexure marksthe tectonic boundary between the Gander and Exploits zones and it isbelieved that these claims may also be prospective for orogenic style gold mineralization. There has been noknown gold exploration on the Hermitage Property Claims, but there hasbeen some historical uranium exploration work in the area.
Matthieu Lapointe, VP Exploration of Canstar,commented: “Our Golden Baie project has tremendous potential fororogenic gold discoveries, based on the extent of anomalous gold inrock samples collected and our initial drill program. Our focus hasbeen primarily on the Kendell area in the centre of the claim block,but this year we will also be focusing on the southwestern end of theclaim block. The same structural setting exists there and continuesalong the Hermitage Flexure so we are enhancing our land position inthis area with the acquisition of these additional claims which extendour potential strike by almost 50% to approximately 140 km in total,including the Golden Baie claims. Most of these claims have seenlittle or no gold exploration and our technical team is excited toevaluate the potential.”
Figure 2 - Significant MineralClaim Packages in South, West and Central Newfoundland. Canstar’snewly acquired Hermitage Property shown in the dashed polygon. CRFZ:Cape Ray Fault Zone, VLSZ: Valentine Lake Shear Zone, RIL: Red IndianLine, DCT: Day Cove Thrust, GRUB: Gander River Ultramafic Belt.
Hermitage Property Acquisition Terms
The Company has entered into a binding propertypurchase agreement with Altius (the “Altius Agreement”) that setsout the principal terms and conditions upon which Altius will transferto the Company its 100% interest in the Hermitage Property, subject tothe retention by Altius of a 2.0% net smelter return royalty from allcommercial production on the Hermitage Property (the “Royalty”).Pursuant to the Altius Agreement, Altius will transfer to Canstar itsbeneficial interest in the Hermitage Property Claims, subject to theRoyalty, in consideration for the issuance of 500,000 common shares of the Company (the “Common Shares”) toAltius. The Company agreed that should the Company acquire certainmining or mineral rights within a 2 km area of interest around theHermitage Property (the “Area of Interest”), such Area of Interestwill be included in and form part of the Hermitage Property and besubject to the Royalty.
Closing of the Acquisition is expected to occur uponthe acceptance by the TSX Venture Exchange (the “Exchange”) of theAltius Agreement and the Acquisition. Closing of the Acquisition isanticipated to occur on or around February 4, 2022, and is subject tothe prior approval of the Exchange. The Common Shares to be issued inconnection with the Altius Agreement will be subject to a statutoryhold period of four months and a day from the date of issuance.
Qualified Person
Bob Patey, B.Sc., P.Geo, Senior Geologist of Canstar,and a Qualified Person as defined by National Instrument 43-101 -Standards of Disclosure for Mineral Projects, is responsible for thescientific and technical data presented herein and has reviewed andapproved this release.
About Canstar Resources Inc.
Canstar is focused on the discovery and development ofeconomic mineral deposits in Newfoundland and Labrador, Canada.Canstar has an option to acquire a 100% interest in the Golden BaieProject, a large claim package (62,175 hectares) with recentlydiscovered, multiple outcropping gold occurrences on a majorstructural trend in south Newfoundland. The Company also holds theBuchans-Mary March project and other mineral exploration properties inNewfoundland. Canstar Resources is based in Toronto, Canada, and islisted on the TSX Venture Exchange under the symbol ROX and trades onthe OTCPK under the symbol CSRNF.
For further information, pleasecontact:
Rob Bruggeman, President & CEO
Email: rob@canstarresources.com
Phone: 1-647-247-8715
Website: www.canstarresources.com
Forward-Looking Statements
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release.
This News Release includes certain"forward-looking statements" which are not comprised ofhistorical facts. Forward looking statements include estimates andstatements that describe the Company’s future plans, objectives orgoals, including words to the effect that the Company or managementexpects a stated condition or result to occur. Forward lookingstatements may be identified by such terms as “believes”,“anticipates”, “expects”, “estimates”, “may”,“could”, “would”, “will”, or “plan”. Sinceforward-looking statements are based on assumptions and address futureevents and conditions, by their very nature they involve inherentrisks and uncertainties. Although these statements are based oninformation currently available to the Company, the Company providesno assurance that actual results will meet management’sexpectations. Risks, uncertainties and other factors involved withforward-looking information could cause actual events, results,performance, prospects and opportunities to differ materially fromthose expressed or implied by such forward-looking information.Forward looking information in this news release includes, but is notlimited to, the Company’s objectives, goals or future plans,statements, exploration results, potential mineralization, theestimation of mineral resources, exploration and mine developmentplans, timing of the commencement of operations and estimates ofmarket conditions, the anticipated closing date of the Acquisition, whether the Acquisitionis conducted on the terms and conditions as disclosed in the AltiusAgreement or proceeds at all, the closing of the Acquisition, or thereceipt of all necessary regulatory approvals. Factors that couldcause actual results to differ materially from such forward-lookinginformation include, but are not limited to failure to identifymineral resources, failure to convert estimated mineral resources toreserves, the inability to complete a feasibility study whichrecommends a production decision, the preliminary nature ofmetallurgical test results, delays in obtaining or failures to obtainrequired governmental, environmental or other project approvals,political risks, inability to fulfill the duty to accommodate FirstNations and other indigenous peoples, uncertainties relating to theavailability and costs of financing needed in the future, changes inequity markets, inflation, changes in exchange rates, fluctuations incommodity prices, delays in the development of projects, capital andoperating costs varying significantly from estimates and the otherrisks involved in the mineral exploration and development industry, aninability to predict and counteract the effects of COVID-19 on thebusiness of the Company, including but not limited to the effects ofCOVID-19 on the price of commodities, capital market conditions,restriction on labour and international travel and supply chains, andthose risks set out in the Company’s public documents filed onSEDAR. Although the Company believes that the assumptions and factorsused in preparing the forward-looking information in this news releaseare reasonable, undue reliance should not be placed on suchinformation, which only applies as of the date of this news release,and no assurance can be given that such events will occur in thedisclosed time frames or at all. The Company disclaims any intentionor obligation to update or revise any forward-looking information,whether as a result of new information, future events or otherwise,other than as required by law.
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