ROX:CC - Canstar Outlines 2023 Gold Exploration Targets in Newfoundland
(TheNewswire)
Facheux Bay Target w as Discovered i n2022 a nd Has OutcropSamples Up To 18 g/t Au
Wolf Pond Prospect Has Large BulkTonnage Potential, Adjacent t o a Highway
Toronto, Ontario – TheNewswire - May 4, 2023– CANSTAR RESOURCES INC. (TSXV:ROX ) & ( OTC:CSRNF) (“ Canstar” or the “Company ”) is pleased to announce key goldexploration targets for the upcoming 2023 field season on thedistrict-scale Golden Baie project in south-central Newfoundland.
Regional exploration work done to date on the GoldenBaie claims has identified extensive surface gold anomalies that span100 kilometres (“km”) (Figures 1 & 2) along the same majorfault corridor as the Queensway project to the northeast. The size and distribution of gold anomalies on the GoldenBaie project are impressive and suggest significant potential for gold discoveries, based on otherorogenic gold projects like Bendigo-Fosterville in Australia andMother Lode in California .
2022 exploration work by Canstar confirmed additionalmineralization at the Kendell prospect, with highlight drillintercepts that included 20.6 g/t gold over 3.5 m, including 58.2 g/tgold over 1.1 m, and 3.2 g/t Au over 22 m, including 18.1 g/t over 1.0m (see news releases dated July 5,2022 , and March 13,2023 ). In addition to these highgrade drill results, regional exploration work completed in 2022highlighted the potential for brand new discoveries in areas withlittle or no historical gold exploration work. Examples of newdiscoveries include the Facheux Bay and Wood Cutter targets, which arenow high priority areas for additional exploration work.
Key targets for the first phase of the 2023 explorationprogram are as follows:
Wolf Pond Prospect – 2022 drilling confirmed shallow gold mineralizationwithin a 3 km long soil anomaly that is situated approximately 300 msouth of historical drilling that outlined gold mineralization over astrike length of 450 m. These results suggest the potential forshallow disseminated gold mineralization over a large area,conveniently located near a paved highway. Additional prospectingand trenching are planned in order to define priority drilltargets.
Facheux Bay Target – Regional exploration work in 2022 discovered goldmineralization of up to 18.4 g/t gold in outcrop grabsamples 1 alonga 600 m regional trend with a potential strike length of 10 km. Mapping and prospecting of this prospective trend is planned forthis summer and is expected to be straightforward and cost-effectivedue to the absence of overburden.
Wood Cutter Target - Located adjacent to the Baied’Espoir highway, 2022 prospecting identified gold mineralizationover an area with a strike length of 350 m and assays up to 19.7 g/tgold on a trend that is parallel to Wolf Pond, which is 1.1 km to thenortheast.
Matthieu Lapointe, Vice PresidentExploration, stated: “ Theteam is excited to follow-up on the results of the 2022 program.Facheux Bay and Wood Cutter are new high-grade discoveries that weintend on rapidly advancing to the drill ready stage.
In addition to the high-gradetargets, the Company is also evaluating bulk-tonnage targets. WolfPond is underpinned by a three-kilometre-long gold-in-soil anomaly.This is the largest soil anomaly on the Golden Baie property and webelieve there is considerable potential to delineate a large goldsystem at Wolf Pond with continued systematic exploration.”
Figure 1 – Distribution of grabsamples with anomalous gold values on the Golden Baie property (1000ppb equivalent to 1 g/t Au)
Figure 2 – Extensive gold-in-soilanomalies on the Golden Baie project
Wolf Pond Prospect
Historic drilling at Wolf Pond in the 1980s delineateda mineralized zone (the “Wolf Pond Gold Zone”) averaging 2 to 3 mthick with grades of 3 to 5 g/t gold within a broader envelope 5 to 8m thick averaging 1 to 2 g/t gold. The Wolf Pond Gold Zone wasdelineated by previous operators over a strike length of 450 m and toa depth of 165 m and is open both along strike and at depth (Figure3).
Approximately 300 m southeast of the Wolf Pond GoldZone is a 3 km by 50 m gold-in-soil anomaly, with values ranging from30 to 752 ppb gold, which had never been drill tested by previousoperators. In 2022, Canstar drilled four holes totaling 679 m into thesoil anomaly, testing approximately 150 m of strike length. All fourholes intersected gold mineralization with the best results from thetwo most north-easterly holes WP-22-04 ( 1.9 g/t Au over 6.7 m ) and WP-22-02 ( 0.8g/t Au over 11.5 m including 1.2 g/t Au over 5.0 m ). Mineralization is associated witharsenopyrite-stibnite-bearing quartz veins hosted infelsic-intermediate volcaniclastics intercalated with sediments(Figure 4).
Figure 3 – Wolf Pond prospect planmap showing 2022 drill holes into a large gold-in-soil anomaly alongwith historical drill holes
Facheux Bay Target
Prospecting and reconnaissance mapping by Canstar inthe Facheux Bay area in 2022 led to a newly discovered zone of quartzveining with associated arsenopyrite hosted in fine grainedsedimentary rocks, similar to those that host the Kendell prospectgold mineralization. Outcrop sampling of this zone 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 5).
LiDAR interpretation of the Facheux Bay area suggeststhat the anomalous gold mineralization is correlated with a regionalfault that extends another 3.5 km to the southwest and 4.5 km to thenortheast. Additional mapping, prospecting, and channel sampling areplanned along this trend in order to definepriority drill targets. This area is only accessible by boat and byair, but field work is expected to be efficient due to the lack ofoverburden in this area.
Figure 4 – Wolf Pond prospectcross section (looking northeast)
Figure 5 – Facheux Bay prospectingtargets spanning a total of 8 km, adjacent to gold-in-bedrock grabsamples collected in 2022 that assayed up to 18 g/t gold
Wood Cutter Target
The Wood Cutter target was identified in 2022. It islocated adjacent to the Baie d’Espoir highway, approximately 1.1 kmsouth of the Wolf Pond prospect (Figure 6) along what may be aparallel trend with gold mineralization. Quartz vein float samplescollected in 2022 over an area with a strike length of 350 m returnedgold assays of 19.7 g/t, 11.8 g/t, 4.4 g/t, and 4.2 g/t (Figure 7). Samples collected in this area also contain elevated antimony, inthe form of stibnite, with assays up to 2.2% Sb (see news releasedated Dec. 13,2022 ). Additional sampling andtrenching are planned at the Wood Cutter target in order to generatedrill targets.
Figure 6 – Wood Cutter targetlocation with gold anomalies and regional mineralized corridor
Figure 7 – Wood Cutter targetrock, soil and till anomalies
Cancellation of Options
The Company also announces that several of itsemployees and directors have voluntarily surrendered options thatentitled them to purchase up to an aggregate of 2,350,000 commonshares of the Company. Canstar accepted the cancellation of options onMay 4, 2023, and the options surrendered by holders were cancelledeffective May 4, 2023. Surrender of the affected options was entirelyvoluntary and no agreements or commitments have been made to holderswith respect to the receipt of new options. Of the cancelled options,2,050,000 options were surrendered by directors, senior officers andinsiders of the Company. The cancelled options all had an exerciseprice of $0.28, which is significantly above the current share price.The cancellation of these options frees up contribution room under theCompany’s 10% fixed stock option plan for new employees or forfuture grants.
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.
Acknowledgements
Canstar wishes to acknowledge the financial support ofthe 2022 and 2023 exploration programs through the Junior ExplorationAssistance Program from the Department of Natural Resources,Government of Newfoundland 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 the district-scale Golden Baie projectin south-central Newfoundland, which has multiple high-grade goldanomalies at surface along ~100 km of strike and near-surface drillingconfirming the presence of high-grade orogenic gold. The Company alsoholds the Buchans-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.
1 Readers are advised that rock grab samples are selective by natureand values reported may not represent the true grade or style ofmineralization across the property.
Copyright (c) 2023 TheNewswire - All rights reserved.