ROX:CC - Newfoundland Gold Exploration Claims Increased by 21% to 939 km2
(TheNewswire)
Toronto, Ontario – TheNewswire - August 15, 2022 – CANSTAR RESOURCES INC.(TSXV:ROX ) & ( OTC:CSRNF) (“ Canstar” or the “Company ”) is pleased to announce that it has acquired atotal of 658 additional mineral claim licenses, covering 16,450hectares, in south-central Newfoundland. The claims have beenacquired through a combination of map staking by Company personnel andacquisition from several third-party claim holders. With theseadditional claims, Canstar now controls a total of 939 squarekilometres (km 2 ) or 93,875 hectares of claims in favourablegeology along the Day Cove Thrust and Hermitage Flexure crustal-scalefaults (Figure 1).
Figure 1 - Claim blocks staked oracquired by Canstar in the vicinity of the Golden Baie project insouth-central Newfoundland
Robert Bruggeman, President & CEO of Canstar,commented: “We believe that the western side of the tectonicboundary between the Dunnage and Gander zones, which extends acrosscentral Newfoundland, is emerging as a prolific new orogenic golddistrict. Based on our exploration work on the Golden Baie projectto date, there are very anomalous gold mineralization trends overlarge areas that we believe are associated with multiplestructurally-controlled gold systems. Our ability to accumulate sucha large mineral claim package in this area has created anextraordinary opportunity to create value for Canstar and itsshareholders.”
Matthieu Lapointe, Vice President of Exploration forCanstar, commented: “The acquisition of these claims fills in somegaps that had existed on our flagship Golden Baie project. We arevery excited to start exploring the newly-acquired claims that aresituated along the +15 kilometre-long Little River Trend in thecentral portion of the Golden Baie project. These claims are knownto have several zones of very anomalous gold mineralization, includingvisible gold, and may hold the bedrock source of some of the tillanomalies we have identified along strike to the southwest. Inaddition, the Company has staked and acquired claims in new areas withsignificant anomalous gold in soil and stream sediment samples thathave seen little or no historical exploration – the Bernards Pondand Roti Bay properties. All of these claims are in the highlyprospective Baie d’Espoir Group rocks, which are believed to beequivalent to the Davidsville Group at the Queensway project to thenorth.”
Additional Claims at the Golden BaieProject
At the Company’s flagship Golden Baie project, 16claims, covering 400 hectares, were staked by Canstar personnel in thekey Little River Trend area (Figure 2). These claims, which werepreviously held by another company, are just northeast of the tillsample containing 502 gold grains (reported in the Company’s May 4,2022, news release), and host the Golden Eye and Osprey targets. Historical work on these claims includes three shallow drill holesdrilled in 2009, which the Company does not believe were sampled. Rockgrab samples included a boulder grading 142.1 g/t gold and outcropsamples grading up to 19.8 g/t gold, and there were 1,014 historicsoil samples of which 102 returned gold values of 10 ppb or higherwith a maximum of 577 ppb gold. These are historic results that have notbeen confirmed by the Company. Readers should also note that rockgrab samples are selective by nature and values reported may notrepresent the true grade or style of mineralization across theproperty.
Figure 2 - Little River Trend onthe Golden Baie project showing soil anomaly heatmap and prioritytargets
An additional four claims, covering 100 hectares,located along the Little River Trend, were acquired from an arm’slength third party in exchange for a nominal cash payment and a 2% NetSmelter Royalty (“NSR”). Six diamond drill holes were completedon these claims in 2009/2010. Drill hole LR-09-09 encountered a 1.0 metre interval containing 2.4 g/tgold and this hole also contained a separate 1.5 metre interval of0.46% antimony. Drill hole LR-10-02, located 300 metres southwest ofhole LR-09-09, intersected visible gold in aninterval which returned 2.95 g/t gold over 0.7 metres. A third drillhole (LR-10-03) returned assays with 1.49 g/t gold over 0.8 metres. No subsequent drilling has been completed on the property since2010. A total of 509 historic soil sampleshave reportedly been collected on these claims, with 68 returningassays of at least 10 ppb gold with a maximum of 323 ppb gold.
The Company also acquired 20 new claims, covering 500hectares, in the vicinity of the Le Pouvoir fault within the GoldenBaie project area. These claims were also previously held by anothercompany and were recently map staked by Canstar personnel. Historicwork on these claims includes 617 soil samples, of which 98 returnedgold assays of at least 10 ppb with a maximum of 159 ppb gold. The LePouvoir area is notable because it has the highest grade stibnite (theprincipal ore of antimony) sample ever reported in Newfoundland. Asindicated in the Company’s July 5, 2022, newsrelease , there appears to be a strongcorrelation between gold mineralization and antimony, as well asarsenic, on the Golden Baie project.
Bernards Pond Claims
The Bernards Pond area is located to the north of theCompany’s existing Swangers Cove claims, which in turn are locatedto the north of the central portion of the Golden Baie project claims(Figure 1). The area geology consists of Ordovician marinesiliciclastics of the Baie d’Espoir Group. Canstar recently mapstaked two licenses in this area covering 440 claims (11,000 hectares)on which there is no reported historical exploration work.
An additional 106 claims covering 2,650 hectares (the“Bernards Pond Claims”) were acquired from local prospectors inexchange for approximately 148,876 Canstar common shares. Thevendors have conducted some preliminary prospecting work on theacquired claim block, including 65 lake sediment samples of which 20returned gold assays of at least 5 ppb and up to 177 ppb gold, whichis highly anomalous. Historic soil sampling consisted of 102 samplesof which seven assayed at least 10 ppb gold with a maximum of 39 ppbgold. Limited historical prospecting on the acquired claims yieldedrock grab samples of up to 3.4 g/t gold in float.
Roti Bay Claims
The Roti Bay area is located approximately 15 km westof the Kendell prospect on the Company’s Golden Baie project. Atotal of 72 claims covering 1,800 hectares (the “Roti Bay Claims”)were acquired from local prospectors in exchange for approximately101,124 Canstar common shares. The Roti Bay Claims are notable forhaving one of the highest active/inactive streambank sediment samplegold anomalies in the Baie d’Espoir area based on historical workdone by the Newfoundland Department of Natural Resources (Open File: 001M_0319).
The vendors of the Bernards Pond and Roti Bay Claimsalso retain a 2% NSR, subject to the Company having a right to buy 1%of the NSR at any time for $750,000.
Acquisition Terms for the BernardsPond Claims and Roti Bay Claims
The Company has entered into a binding propertypurchase agreement (the “Agreement”) with four individuals (the“Vendors”) that sets out the principal terms and conditions uponwhich the Vendors transferred to the Company their 100% interest inthe Bernards Pond Claims and Roti Bay Claims, subject to the retentionby the Vendors of a 2.0% net smelter return royalty from allcommercial production on the Bernards Pond Claims and Roti Bay Claims(the “Royalty”). The Vendors transferred to Canstar theirbeneficial interest in the Bernards Pond Claims and Roti Bay Claims,subject to the Royalty, in consideration for the issuance of a totalof 250,000 common shares of the Company (the “Common Shares”) tothe Vendors and the payment of an aggregate of $30,920 to the Vendorsfor reimbursement of certain fees incurred by them.
The closing of the acquisition of the Bernards PondClaims and Roti Bay Claims (the “Acquisition”) was completed todayand is subject to the final acceptance of the TSX Venture Exchange(the “Exchange”). The Common Shares to be issued in connectionwith the Agreements will be subject to a statutory hold period of fourmonths and a day from the date of issuance.
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 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 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. 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 any forward-lookinginformation, whether as a result of new information, future events orotherwise, other than as required by law.
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