CSRNF - Canstar Hits Visible Gold in Initial Drill Holes Increases Drill Program at Golden Baie Project
(TheNewswire)
Toronto, Ontario - TheNewswire - July 6, 2021 -CANSTAR RESOURCES INC. (TSXV:ROX ) ( OTC:CSRNF) (“ Canstar” or the“Company ”) is pleasedto announce that it plans to double the size of the diamond drillprogram that commenced on its Golden Baie Project on June 8, 2021. The Company now plans to drill approximately 5,000 metres thissummer based on positive visual observations of drill core in theinitial holes drilled. Assay results for the first drill hole samplesare expected in late July.
Drilling to date has focused on the Kendell Target,located in the central portion of the Golden Baie Project. To date22 drill holes have been completed at the Kendell Target for a totalof approximately 1,200 metres and visible gold had been observed inquartz veins in eight of the twelve drill holes logged to date (seeFigure 1). The drill rig has now moved to the Hillside Target, locatedapproximately 950 metres north-northeast of the Kendell Target. Theobservation of visible gold flakes in the core is a positive sign butis not necessarily indicative that assay results with significant goldmineralization will be received.
In light of the positive initial indications from thedrill program, the Company plans to double the size of the drillprogram to approximately 5,000 metres from 2,500 metres. Drilling isnow expected to continue until early September 2021 and will continueto focus on the area containing the Kendell Target and the Blow OutTarget (Figure 2). The Company currently has permits forapproximately 4,000 metres of drilling at the Kendell Target, the BlowOut Target, 22 West, and Wolf Pond. Permit amendments to expand thedrilling at the Kendell Target and the Blow Out Target arepending.
Rob Bruggeman, President & CEO of Canstar, stated:“I’m very pleased that the initial drill holes contain visiblegold in quartz veins within broader intercepts of arsenopyrite, whichtends to be associated with disseminated gold mineralization on theGolden Baie Project. This is a great start to the program and givesus the confidence to double the planned meterage. We look forward togetting the assay results from the drill hole samples and reportingthose to our investors and the market.”
Kendell Target Overview
Initial drilling at the Kendell Target is targeting thecontinuation of gold mineralization previously identified at surfacethrough trenching. Trench TGB-20-01 was excavated in the fall of2020 and intercepted NE-SW trending quartz veins of varying thicknessalong a strike length of approximately 70 metres, approximately 16metres of which contained visible gold. Seven channels were saw cutand sampled with the best results being 10.17 g/t gold over 3.0 metresand 6.20 g/t gold over 5.0 metres (seen news release dated Nov. 30, 2020 ).
Trench TGB-20-01 was expanded perpendicular to strikein the northwest direction in May 2021. The trench extensionencountered a thick section (~4m) of abundant, visible gold bearingquartz veins in strongly sheared metasediments (see news release dated Jun. 8, 2021 ). The grab samples from the newly identified quartz veinsassayed up to 34 g/t gold and the initial drilling in the 2021 programwas targeting the extension of these quartz veins. Due to theextensive deformation of the rocks, the initial drill holes are fairlyshort and tightly spaced, oriented at dips of 45 to 90 degrees tofollow the mineralization and better understand the structure andorientation. ( Note: the reader is cautioned that rockgrab samples are selective by nature and values reported may notrepresent the true grade or style of mineralization across theproperty.)
Figure 1 - Visible gold in quartzveins in drill core from hole GB-21-01 (-45 degree dip, 88 degreeazimuth - assays pending)
2021 Drill Program Focus
The 2021 summer drill program is focusing primarily onthe area from the Kendell Prospect to the Blow Out Prospect (Figure2). The Blow Out Target area consists of strongly sheared-myloniticfabrics within duplex packages, similar to the thrust systemidentified at the Kendell Prospect.
Figure 2 - Golden Baie Propertywith key gold occurrences noted and 2021 drill target area in redellipse.
Acknowledgements
Canstar wishes to acknowledge the financial support ofthe 2021 exploration program through the Junior Exploration AssistanceProgram from the Department of Natural Resources, Government ofNewfoundland and Labrador.
QA/QC:
All rock and soil samples were collected by companypersonnel and shipped to Eastern Analytical of 403 Little Bay Road,Springdale, NL, a commercial laboratory that is ISO/IEC 17025accredited and completely independent of Canstar Resources Inc. Mostrock samples were crushed to 10 mesh (2000 ?m) and a 250g splitpulverized to 150 mesh (89 ?m). The core samples are being entirelypulverized to 150 mesh (89 ?m). Splits of the pulverized samples areanalyzed for gold using fire assay (30g) with AA finish and an ICP-34,four acid digestion followed by ICP-OES analysis for 34 additionalelements. Metallic screening is being used for samples with visiblegold and all samples with initial fire assays over 25 g/t. Soilsamples were dried and sieved to 80 mesh (177 ?m) and a splitanalyzed for gold using fire assay (30g) with AA finish and an ICP-34,four acid digestion followed by ICP-OES analysis for 34 additionalelements. In addition to Eastern Analytical’s quality controlprogram of standards, blanks and duplicates, Canstar utilizes its ownreference materials to ensure data quality.
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: 1-416-884-3556
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 informationcould cause actual events, results, performance, prospects andopportunities to differ materially from those expressed or implied bysuch forward-looking information. Forward looking information in thisnews 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 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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