(TheNewswire)
Known High Grade Orogenic Gold Mineralization a nd UnexploredTargets
Toronto, Ontario – TheNewswire - November 9,2023 – CANSTAR RESOURCES INC. (TSXV:ROX ) & ( OTC:CSRNF) (“ Canstar” or the “Company ”) is pleased to announce that it hasthe fulfilled all of the requirements of an option agreement datedSeptember 25, 2020 (see Aug. 26, 2020, newsrelease ), and that it has exercisedthe option to acquire 100% ownership of 47 licences totaling 2,446claims, covering 61,150 hectares (612 km 2 ) insouth-central Newfoundland (the “Golden Baie Project” or the“Project”). The Golden Baie Project remains subject to a 2.0%net smelter return royalty.
Highlights of the Golden Baie Project Mineral ClaimsAcquired
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Multiple gold anomalies hosted in soils, tills, androck samples that span a strike length of about 100 km along a majortectonic boundary.
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Underexplored – Only ~25,400 metres (“m”) ofshallow drilling to date (historic and recent). Orogenic gold beltswith similar geology, such as the Victoria Goldfields and Mother LodeDistrict, span hundreds of kilometres and host clusters ofmulti-million ounce gold deposits.
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The Kendell prospect, the first high grade orogenicgold discovery on the Golden Baie project, has seen 7,953 m ofdrilling to date with results up to 20.6 grams per tonne (“g/t”)gold over 3.5 m including, 58.2 g/t gold over1.1 m (hole GB-22- 94 – see news release dated July 5,2022 ), and 9.6 g/t gold over 7.8 m(hole GB-21-01 – see news release dated Aug. 19,2021 ). Gold mineralization has beendefined near-surface over a length of approximately 200 m and remainsopen along strike and downdip.
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In the ‘Little River Trend’ area, located close toa paved highway, till samples have returned up to 1,049 grains of gold(see news release dated Aug. 30,2022 ) and a 0.5 m channel sample froma boulder graded 197 g/t gold (see news release dated Dec. 13,2022 ) , both of which were up-icefrom the Kendell prospect. Such samples indicate the likely presenceof additional mineralized zones that are obscured by glacial tillcover and yet to be found.
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At the south end of the Golden Baie Project, theFacheux Bay target is an exciting new gold discovery made by theCompany in 2022. This is a top exploration target consisting of an ~8km structural trend (based on recent high resolution magnetics andLiDAR) with multiple 1 g/t outcrop grab samples 1 , including samplesgrading 13 g/t and 18 g/t gold (see news release dated May 24,2023 ).
Rob Bruggeman , President and CEO,stated: “ The Golden BaieProject is a district-scale property with extensive gold anomalismover a large area in an emerging new orogenic gold belt. Canstar hasspent over $8 million on exploration of the Golden Baie Project in thepast three years, which has generated multiple new exploration targetsand proven the presence of orogenic gold mineralization near-surface. We are very pleased to exercise the option to gain full control ofthese mineral licenses, located in an excellent jurisdiction for goldexploration.
Last year’s discovery of goldmineralization at the Facheux target at the south end of the GoldenBaie Project demonstrates the potential for new discovery in thisarea. We are excited to continue exploration, given the potential formaking new discoveries in this emerging orogenic golddistrict.”
2023 Field Season Update
After a very busy exploration program in 2022 thatincluded two phases of successful drilling at the Kendell prospect,technical work in 2023 was scaled back due to market conditions andhas been focused on extensive data compilation, mineral claimsmanagement and re-grouping, as well as some soil sampling and mappingwork at the Wolf Pond prospect. The Company had intended to conductmapping and sampling of the compelling Facheux Bay target in 2023, buta lack of helicopter availability untilmid-September resulted in those exploration plans being postponed dueto weather risk. The lack of till cover and overburden at Facheux Baymake it a particularly attractive exploration target.
Mapping and soil sampling of the Wolf Pond prospectthis summer built on historical exploration work from the 1980s. Soilsamples collected in 2023 returned assays up to 5.55 g/t (5,550 ppb)(Table 1) gold, confirming historical data and indicating thepotential for multiple NE-SW trending, steeply-plunging structureswith gold mineralization. Wolf Pond has bulk tonnage potential andis ideally situated just off the paved Route 360 Highway.
Table 1 – Wolf Pond soil samples referenced in thisrelease
Sample ID | Year | Easting (NAD83) | Northing (NAD83) | Gold (g/t) | Sample Comment |
S1963 | 2023 | 608900 | 5309877 | 5.55 | 0.3m sample depth, B-horizon, silty-sand |
Mineral license re-grouping work was recently completedon the Golden Baie Project and surrounding claims. The goal of thiswork was to prioritize and retain claims with the highest probabilityof gold mineralization and good access. As well, grouping of minerallicenses allows exploration expenditures incurred to be spread over alarger number of claims so that these can be held in good standing forlonger periods of time. The Company dropped some claims, but continuesto hold approximately 657 km 2 of mineral claims in 46 licenses (Figure1).
Figure 1 - Canstar MineralTenements in South-Central Newfoundland
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 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.
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