CSRNF - Canstar Announces Initial Surface Exploration Results from the Golden Baie Project in Newfoundland
(TheNewswire)
Highlights
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- New grab and channel samples from the Phase I fieldexploration program from the south end of the Little River area at theGolden Baie Project confirm historical high-grade gold mineralization,and have identified new exploration targets;
- Initial channel assays from the first of fivetrenches at the Kendell Zone include 10.17 g/t gold over 3.0 metresand 6.20 g/t gold over 5.0 metres (measured thickness);
- Prospecting work near the Kendell Zone identified newzones with gold mineralization, including the Landing Zone where grabsamples from float assayed up to 33 g/t gold;
- Additional assay results from channel samples fromthe five trenches and samples from regional prospecting work arepending.
Toronto, Ontario - TheNewswire- November 30, 2020 -CANSTAR RESOURCES INC. (TSXV:ROX ) ( OTC:CSRNF) (" Canstar" or the"Company ") ispleased to announce initial assay results from the Phase I explorationprogram on its 62,175 hectare Golden Baie Project (the"Project") in south-central Newfoundland (Figure 1). Theseresults include channel sample assays from the first of five trenchesexcavated on the Kendell Zone.
The Kendell Zone, located in the central portion of theGolden Baie property, was discovered in 2009. Historic explorationwork included a single trench and four short diamond-drill holes.Prospecting in 2019 identified additional gold mineralization and grabsamples with coarse free gold assayed up to 4,485 g/t gold. Thisarea is at the southern end of a trend of known gold mineralizationthat spans over 30 kilometres (Figure 1), known as the Little Riverarea. Note that rock grabsamples are selective by nature and values reported may not representthe true grade or style of mineralization across the property.
Rob Bruggeman, President & CEO of Canstar,commented: "We are extremely encouraged by these preliminaryhigh-grade gold assay results received from Golden Baie. We were ableto accomplish a considerable amount of work in a very short time,which is a testament to our ability to access and permit work on theproject. Our Newfoundland-based team completed five trenches andextensive prospecting within 2 km of the Kendell Zone, taking over 300rock grab samples and over 700 soil samples. The results of thisyear's field work along with ongoing compilation and analysis ofhistorical geochemistry and geophysics data should greatly advance theCompany's understanding of the property."
"Golden Baie is a district-scale land packagewith gold mineralization at surface at over 20 locations along a 30kmtrend, however, most of the claim block has seen little or no modernexploration. We see considerable exploration upside over the entireproperty with excellent potential for numerous newdiscoveries."
Figure 1 - Golden Baie ProjectLocation, Claims, and Known Mineralized Gold Occurrences
Regional Prospecting
The main objectives of the Phase I program were tounderstand the structural and lithological (host rock) parameterscontrolling gold mineralization at the Kendell Zone, discoveradditional gold mineralization in the Little River area, developexploration tools for future exploration programs and establish drilltargets for Phase II follow up.
Exploration in the condensed 2020 field explorationprogram focused mainly in and around the Kendell Zone. Prospectingwork in 2019 and 2020 discovered multiple new gold occurrences inoutcrop exposures with visible gold that had not been previouslyidentified.
The Little River area, which comprises the centralportion of the Golden Baie claims, continues to be highly prospectivefor gold mineralization. Additional sampling by Canstar confirmed andexpanded gold mineralization in float and outcrop at the Blow OutZone, where samples have assayed up to 30 g/t Au. Likewise,prospecting confirmed high grade gold mineralization at the LandingZone, where 5 of 10 float assayed over 1 g/t Au, ranging from 11.8 g/tto 33.4 g/t and averaging 21.1 g/t Au. In all, 290 rock grab sampleswere collected with assays still pending for the majority of thesamples and with results expected by the end of 2020. In addition,690 soil samples were collected and submitted for assay to supplementhistoric soil geochemical analysis.
Kendell Zone Trenching
In November Canstar completed five shallow trenchestotaling approximately 200 metres at the Kendell Zone using anexcavator. The purpose of the trenching was to better expose the goldmineralization and host rocks to enable channel sampling and allow fordetermination of structural and lithological controls on goldmineralization.
Figure 2 - Little River Area withMineralized Zones and 2020 Trenches (looking northeast)
Seven saw cut channels were sampled in trenchTGB-20-01, which abuts trench TGB-20-02 (Figure 3). Assays fromchannels D, E, F, and G, which span a strike length of approximately16 metres, sampled quartz veins hosted within dark grey to blackshales. Visible gold was observed in several channel samples (Figure4). The channel samples were sent to Eastern Analytical Ltd. inSpringdale, Newfoundland, on an expedited basis and highlight resultsare shown in Table 1 (inset on Figure 3).
The best results came from channels F and G. Channel Fyielded an average grade of 2.92 g/t g Au over 11.0 metres, including6.20 g/t Au over 5.0 metres. Channel G yielded an average grade of4.71 g/t Au over 6.7 metres, including 10.17 g/t Au over 3.0 metres(measured width; true width not known). These initial trench resultsfrom the Kendell Prospect confirm the presence of structurallycontrolled gold mineralization at surface, both within quartz veinsand associated with disseminated sulphides in surrounding shales. Theinitial trench results also appear to confirm the surface expressionof mineralization intersected by four shallow diamond drill holes by aprevious explorer in 2009; historical drill hole LR-09-02 intercepted4.8 g/t over 3 metres and drill hole LR-09-01 intercepted 1.7 g/t goldover 2 metres 1 . However, thosedrill intercepts occurred near surface tens of metres away and are notinterpreted to be the depth extensions of mineralization in trenchTGB-20-01.
Additional channel samples from trench TGB-20-01 arepending along with assay results for channel samples from the otherfour trenches located 200 to 250 metres to the south and east oftrench TGB-20-01.
Figure 3 - Drone Image of KendellZone Trenches TGB-20-01 and TGB-20-02
Figure 4 - Grab Sample from TrenchTGB-20-01 with Visible Gold in Quartz Vein
QA/QC
All rock samples are collected by company personnel andbagged in the field with a sample tag for identification. Fourstandards and two blanks were included in each 100 samples, andduplicates were taken of roughly every 30 th channelsample. Larger bags of 10-30 samples are sealedwith cable ties and kept secure at a company facility until they aretransported directly to the lab by Canstar staff.
All rock samples are analyzed at Eastern Analytical of403 Little Bay Road, Springdale, NL, a commercial laboratory that isISO/IEC 17025 accredited and completely independent of the Company.For all channel samples and later batches of grab samples EasternAnalytical crushed and pulverized the entirety of each sample toapproximately 95% -150 mesh material. Samples are analyzed usingpackage Au(Fire assay) @ 30g + ICP-34, gold by fire assay with a30-gram nominal sample weight followed by 34 element analysis using afour acid digestion and ICP-OES analysis; Standards and blanks areincluded by the lab with every 20 samples for QualityAssurance/Quality Control purposes.
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 (over 62,175 hectares) with recentlydiscovered, multiple outcropping gold occurrences on a majorstructural trend in south-central Newfoundland. The Company also holdsthe Buchans-Mary March project and other mineral explorationproperties in Newfoundland. Canstar Resources is based in Toronto,Canada, and is listed on the TSX Venture Exchange under the symbol ROXand trades on the OTCPK under the symbol CSRNF.
For further information, pleasecontact:
Rob Bruggeman P.Eng., CFA
President & CEO
Email: rob@canstarresources.com
Phone: 1-416-884-3556
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". Since forward-lookingstatements are based on assumptions and address future events andconditions, by their very nature they involve inherent risks anduncertainties. Although these statements are based on informationcurrently available to the Company, the Company provides no assurancethat actual results will meet management's expectations. Risks,uncertainties and other factors involved with forward-lookinginformation could cause actual events, results, performance, prospectsand opportunities to differ materially from those expressed or impliedby such forward-looking information. Forward looking information inthis news release includes, but is not limited to, the Company'sobjectives, goals or future plans, statements, exploration results,potential mineralization, the estimation of mineral resources,exploration and mine development plans, timing of the commencement ofoperations and estimates of market conditions. Factors that couldcause actual results to differ materially from such forward-lookinginformation include, but are not limited to failure to identifymineral resources, failure toconvert estimated mineral resources to reserves, the inability tocomplete a feasibility study which recommends a production decision,the preliminary nature of metallurgical test results, delays inobtaining or failures to obtain required governmental, environmentalor other project approvals, political risks, inability to fulfill theduty to accommodate First Nations and other indigenous peoples,uncertainties relating to the availability and costs of financingneeded in the future, changes in equity markets, inflation, changes inexchange rates, fluctuations in commodity prices, delays in thedevelopment of projects, capital and operating costs varyingsignificantly from estimates and the other risks involved in themineral exploration and development industry, an inability to predictand counteract the effects of COVID-19 on the business of the Company,including but not limited to the effects of COVID-19 on the price ofcommodities, capital market conditions, restriction on labour andinternational travel and supply chains, and those risks set out in theCompany's public documents filed on SEDAR. Although the Companybelieves that the assumptions and factors used in preparing theforward-looking information in this news release are reasonable, unduereliance should not be placed on such information, which only appliesas of the date of this news release, and no assurance can be giventhat such events will occur in the disclosed time frames or at all.The Company disclaims any intention or obligation to update or reviseany forward-looking information, whether as a result of newinformation, future events or otherwise, other than as required bylaw.
1 Woods, G., 2010: Second year supplementary and fourth yearassessment report on prospecting and geochemical, trenching anddiamond drilling exploration for licences 15458M and 16095M-16096M onclaims in the Little River area, southern Newfoundland. Mountain LakeResources Incorporated, 125 pages. DNR GeoFile 1M/0763.
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