ROX:CC - Canstar Discovers New High-Grade Gold Occurrence and Provides Exploration Activities Update
(TheNewswire)
Toronto, O N - TheNewswire - December 13, 2022 - CANSTAR RESOURCES INC.(TSXV:ROX ) & ( OTC:CSRNF) (“ Canstar” or the “Company ”) is pleased to provide an update on the ongoingexploration programs at its properties in southcentral Newfoundland.The diamond drilling program that commenced in mid-September isongoing and expected to be completed at the end of this week. Assayresults are pending from more than 50 drill holes in approximately6,200 metres (“m”) worth of drilling at the Kendell prospect andtargets at Hillside-Skidder, 97 West, Golden Eye, Northbrush and WolfPond (Figures 1 & 2).
Highlights :
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•• A new high-grade golddiscovery was made on the claims near Facheaux Bay, located 43kilometres (“km”) southwest of the Kendell prospect (Figure 1).Outcrop grab samples collected from arsenopyrite-bearing quartzveining hosted in sedimentary rocks assayed 18.4 grams per tonne(“g/t”) and 13.7 g/t gold.
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•• Gold assays of 197.0 g/t,45.6 g/t and 29.6 g/t were returned from separate channel cut samplesthat were 0.5 m long and collected from a recently discovered, ~2 mwide quartz-veined and silicified float boulder that contains abundantfine grained visible gold (see photo 1). The boulder is located 325 meast of the Blow Out target with the bedrock source yet to bedetermined.
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•• Channel samples from a newtrench at 97 West returned 3.3 g/t gold over 5 m, including 18.0 g/tgold over 0.7 m.
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•• Several new target areaswere identified in areas with no previous trenching or drilling. Rockgrab samples from a mineralized trend located 1.8 km southwest of theKendell prospect assayed up to 6.1 g/t gold in outcrop and 5.3 g/tgold in float. A newly identified target area 1.1 km south of WolfPond yielded quartz vein float samples over an area 350 m long alongstrike that returned gold assays of 19.7 g/t, 11.8 g/t, 4.4 g/t, and4.2 g/t (Figure 2).
Readers are advised that rock grabsamples are selective by nature and values reported may not representthe true grade or style of mineralization across the property.
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•• On the Hermitage property,the Company identified elevated concentrations of tantalum (Ta),tungsten (W), and ytterbium (Yb) from stream sediment concentrates.These elements suggest that there is the potential for the Hermitageproperty to host Lithium-Cesium-Tantalum (LCT)-type pegmatitemineralization. Results are pending for subset of rock samplesanalyzed for lithium-cesium-tantalum and associated pathfinders.
Matthieu Lapointe, VP Exploration of Canstar,commented: “Our exploration team has made immense progress this yearon two fronts. The team, which was expanded this year, conductedexploration work along key trends across the vast 939 km 2 mineral claimpackage and was successful in making several new gold discoveries, themost notable being at Facheaux Bay. In addition, we have made greatstrides in how we convert mineral occurrences to drill targets, whichis done using geophysics (LiDAR, mag, and IP) and geochemical sampling(rock, till, and trench channel sampling). Glaciation and theresulting till cover make pinpointing the sources of goldmineralization more challenging. However, we are confident that oursystematic and efficient data-centric approach will lead to new golddiscoveries with the drill. The continued discovery of boulders withvisible gold confirms that there is high-grade mineralization in thevicinity and we believe that it is just a matter of time until welocate the source through drilling.”
2022 Exploration ProgramUpdate
The 2022 exploration program on the Golden Baie andHermitage properties has been extensive and productive. The Companyestimates that approximately $5.5 million will be spent on explorationactivities this year. These expenditures have funded grass rootsregional exploration, as well as drill target generation and diamonddrilling.
Fall 2022 Drill Program
As of December 12th, a total of 9,093 m of drilling in92 diamond drill holes has been completed during the 2022 season.Assay results from the winter drill program on the Kendell prospect(2,907 m in 39 holes) were announced on July 5,2022 , and extended high grade goldmineralization for a total of 180 m downdip. A fall drill programcommenced in September2022 and expanded drill testing ofthe Kendell prospect as well as multiple other targets along an areawhich extends for approximately 10 km along strike to the northeastand has multiple surface gold anomalies.
Drilling is ongoing and expected to be completed at theend of this week. Since September, more than 50 holes totaling over6,000 metres have been drilled at the Kendell prospect and targetareas at Hillside-Skidder, 97 West, Golden Eye, Northbrush and WolfPond. The Company expects to announce assay results early in the newyear, once results have been received and interpreted.
Regional Exploration
Many of the mineral claims on the vast 939km 2 land package held by Canstar have had little or no prior goldexploration work. Extensive grass roots exploration work was completedthroughout 2022, including helicopter-supported work on more remotemineral claims with no road access. Approximately 2,300 grabsamples, 600 m of channel samples, 2,200 soil samples, 38 streamsediment samples and 410 till samples have been collected during the2022 field season. Results will be released once compiled andinterpreted for each target area.
Figure 1 - Mineral claim licenses,totaling 939 km 2 , held by Canstar in south-centralNewfoundland
Figure 2 - Plan map of Golden Baiecentral claims with some of the significant results to date. Resultsin bold text are from 2022 season.
2022 Exploration ProgramDiscussion
Facheux Bay – Hermitage Flexure
In the spring and summer of 2022, Canstar completedhelicopter-supported prospecting, stream sediment sampling and channelsampling on the Hermitage and Facheux Bay claim areas. These claimsare located from 45 to 80 km west-southwest of the core licensescomprising the Golden Baie property. No modern exploration has takenplace in these regions aside from regional-scale mapping and basemetal prospecting in the 1980s.
Prospecting and reconnaissance mapping by Canstar onthe Facheux Bay property has led to a newly discovered zone of quartzveining with associated arsenopyrite hosted in fine grainedsedimentary rocks, similar to those that host the Kendell goldmineralization. Outcrop sampling of this zone has delineated a goldtrend with grades exceeding 1.0 g/t that strikes northeast-southwestfor over 600 m and has samples grading up to 18.4 g/t gold (Figure 3and Table 1). The mineralization remains fully open along anortheast-southwest trend with follow up prospecting required.
Systematic prospecting and mapping traverses across theHermitage property this year did not reveal any significant goldresults. However, the Company identified elevated concentrations oftantalum (Ta), tungsten (W), ytterbium (Yb), uranium (U) and thorium(Th) from instrumental neutron activation analysis (“INAA”) of thestream sediment concentrates. These incompatible elements are oftenassociated with highly evolved felsic systems and suggest that thereis potential for the Hermitage property to hostLithium-Cesium-Tantalum (LCT) -type pegmatite mineralization. Resultsare pending for a subset of rock samples analyzed forlithium-cesium-tantalum and associated pathfinders. Lithium-bearingpegmatite dykes have recently been discovered along the HermitageFlexure by other exploration companies in Newfoundland.
Figure 3 - Plan map of Facheaux Baydiscovery areas with notable grab sample results.
Gold Boulder Discovery
In 2020, a one- to two-tonne boulder of quartz withinclusions of shaley wall rock was discovered 325 m east of the BlowOut drill target (Photo 1). A grab sample of the boulder returned agrade if 36.1 g/t gold (see news release dated
). In the summer of 2022, Canstar collected three 0.5 mlong channel samples from this boulder with all of the samplescontaining fine grained visible gold. The channel samples assayed197.0 g/t, 45.6 g/t, and 29.6 g/t gold. The overburden which blanketsthe area precludes the ability to easily identify the bedrock sourceof this boulder. To vector back to the source, the Company hascollected closely spaced till samples in an ‘up-ice’ directionfrom the boulder at East Blow Out (Figure 4). The till samples havebeen sent to Overburden Drilling Management (“ODM”) for processingto determine the total gold
grains and characterize the gold grains based on theirshape. This information will be used to assess the proximity ofpotential local bedrock gold sources.
Figure 4 - Map with sample locationsrelative to Blow Out drilling area. Includes locations of new tillsamples collected up-ice of the boulder at East Blow Out.
New Magnetic and VLF Airborne Surveys
The Company recently initiated a 1,900 line-kilometerairborne survey using GoldSpot’s Multi-Parameter Airborne SurveySystem (M-PASS). The gradient magnetic/VLF survey will be acquired ata 50 m-line spacing over the Facheux Bay discovery area as well as thecorridor from Kendell to southern Wolf Pond where GoldSpot and Canstarhave identified several high priority targets (Figure 5). Theclosely-spaced survey will aid with the interpretation of thisyear’s exploration and drilling results and also advance theCompany’s understanding of local geology and structural controls onmineralization.
Figure 5 - Map of GoldSpot highpriority targets areas and polygons representing MPASS surveyareas.
Table 1 - Summary of assay resultsreported in this news release.
Qualified Person
Matthieu Lapointe, B.Sc., P.Geo., Vice PresidentExploration of Canstar, and a Qualified Person as defined by NationalInstrument 43-101 - Standards of Disclosure for Mineral Projects, isresponsible for the scientific and technical data presented herein andhas reviewed and approved this release.
QA/QC
All 2022 drilling is NQ-sized drill core. Core samplesare split with a diamond saw and half-core retained for further studyafter being detail logged and photographed. Core and rock samples aresubmitted to SGS Canada Inc. in Grand Falls-Windsor, Newfoundland forpreparation and then sent to SGS Canada Inc. analytical laboratory inBurnaby, British Columbia. Samples are assayed using a 30 g fire assaywith AAS finish (SGS code GO_FAA30V10). Samples with visible gold areassayed using a screen metallic method (SGS code GO_FAS30K). All rocksamples returning >1 g/t Au are reanalyzed using screen metallicmethod (SGS code GO_FAS30M). Additional geochemical data (34 element)are acquired using a aqua regia digest with ICP finish (SGS codeGE_ICP21B20).
Canstar's QAQC program utilizes commercially availablereference standards, blanks and duplicate samples to ensure dataquality. In addition, duplicates of selected samples are being sent toa second laboratory as check assays.
Acknowledgements
Canstar wishes to acknowledge the financial support ofthe 2022 exploration program through the Junior Exploration AssistanceProgram from the Department of Natural Resources, Government ofNewfoundland and Labrador.
About Canstar Resources Inc.
Canstar Resources has a very experienced technical teamand board who are focused on new mineral discoveries in Newfoundland,Canada. Central Newfoundland has emerged as one of the most excitinggold exploration districts due to recent high-grade orogenic golddiscoveries along crustal scale fault corridors. The Company isfocused on gold exploration on 939 km 2 of mineralclaim licenses in south-central Newfoundland, including the GoldenBaie project which has multiple high-grade gold anomalies at surfacealong 40 km of strike and near-surface drilling confirming thepresence of high-grade orogenic gold. The Company also holds theBuchans-Mary March project in central Newfoundland.
Canstar Resources is based in Toronto, Canada, and islisted on the TSX Venture Exchange under the symbol ROX and trades on theOTCPK 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. Factors that could cause actual results to differmaterially from such forward-looking information include, but are notlimited to failure to identify mineral resources, failure to convertestimated mineral resources to reserves, the inability to complete afeasibility study which recommends a production decision, thepreliminary nature of metallurgical test results, delays in obtainingor failures to obtain required governmental, environmental or otherproject approvals, political risks, inability to fulfill the duty toaccommodate First Nations and other indigenous peoples, uncertaintiesrelating to the availability and costs of financing needed in thefuture, changes in equity markets, inflation, changes in exchangerates, fluctuations in commodity prices, delays in the development ofprojects, capital and operating costs varying significantly fromestimates and the other risks involved in the mineral exploration anddevelopment industry, an inability to predict and counteract theeffects of COVID-19 on the business of the Company, including but notlimited to the effects of COVID-19 on the price of commodities,capital market conditions, restriction on labour and internationaltravel and supply chains, and those risks set out in the Company’spublic documents filed on SEDAR. Although the Company believes thatthe assumptions and factors used in preparing the forward-lookinginformation in this news release are reasonable, undue reliance shouldnot be placed on such information, which only applies as of the dateof this news release, and no assurance can be given that such eventswill occur in the disclosed time frames or at all. The Companydisclaims any intention or obligation to update or revise anyforward-looking information, whether as a result of new information,future events or otherwise, other than as required by law.
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