KENORA PROJECT 2017 EXPLORATION OVERVIEW
This year will be a significant one for the Kenora Project. Our work to date has identified over a dozen prospects cumulatively containing hundreds of samples with significant gold grades. As work has progressed, we have been able to prioritize specific targets or areas.

For 2017's scope of work, five targets or areas will comprise the focus of Canstar's exploration effort.

1. Aviator Trend (as a whole)
2. Aviatior West
3. Aviator South
4. East Shear Zone
5. Far East Shear Zone

1. THE AVIATOR TREND

The Aviator Trend has been the focus of the bulk of work on the Kenora Project. It has enjoyed approximately 80% of the work to date and as such is at a stage where it remains drill ready with several geological and geophysical targets, and it has several new prospects that require further investigation. The Aviator Trend is also the host of the Ace Showing (3.1 g/t over 29 meter channel). The trend will be drilled this summer upon full evaluation of all ground targets.

To date, the Aviator has proven to be the best prospect on the project. This is due to the volcanic host-rock which has accommodated a good portion of the regional strain that resulted in many of structures in the region.

Figure 1.


2017 Exploration Areas. 1. Aviator Trend; 2. Aviator West; 3. Aviator South; 4. East Shear; 5. Far East Shear

A full review of the 2017 drilling results won't be covered here, however, some of the challenges faced in that program still leave a number of targets untested. Drilling of the Ace Showing proper remains one of the priority targets for this summer's program. The step-back hole under the Ace did not hit any high grade material below what was presumed to be down-dip; rather a low-grade zone was intercepted. This may be due to faulting as mapping has indicated the presence of shallow dipping thrust faults throughout the area. Drilling the Ace proper will help to answer this quandary. It is interesting to ponder what kind of/if any mineralization may occur in the approximately 80 metres between this low-grade mineralization and the surface mineralization of the Ace showing that grades 3.1g/t Au over 29.1.

There remain several geophysical targets on the property that require testing. One of these targets is situated directly under a historic shaft from the days of artisanal mining on the property. Another of these targets coincides with a new showing that was discovered in fall of 2016 with a minimal amount of work. Canstar is planning to conduct some stripping work on this property which is called Aviator West and will reviewed in this document. According to the interpretation provided by the geophysicists, at least 4 targets should be considered high priority.

Figure 2 illustrates some of these targets on map and on section for illustration.

Figure 2.


Colour contoured IP chargeability map and Quantitative Sections showing chargeability superimposed with resistivity. Note that some of the targets highlighted demonstrate a relationship with known mineralization. These represent priority drilling targets for 2017

The Aviator's mineralized trend has been demonstrated by drilling, and we will continue to look for high grade continuous mineralization such as has been seen on the surface at the Ace Showing. For example, the 2017 drilling results did complete a 140 meter step-out along strike and successfully intercepted 22 meters of 0.5 g/t gold.

The area updip of this mineralization is scheduled for stripping this summer. The location of this area in relation to the Ace Showing is shown in Figure 3.

Figure 3.


2017 Kenora Gold Project Winter Drilling Map showing drill traces. A 22 meter intersection along strike of the Ace Showing was intercepted containing 0.5 g/t gold including 7 meters containing 0.7 g/t gold.

2. AVIATOR WEST

This prospect was discovered in fall of 2017 whilst assessing potential IP targets. Most of our work has focused on the main trend that hosts the Ace Showing. A select channel was taken in sheared volcanic rocks grading 58 g/t gold. This shearing is visibly similar to the Ace Showing and thus is subject to further stripping and trenching this campaign.

3. AVIATOR SOUTH

Aviator South was discovered in late fall of 2016 as numerous grabs samples were taken from sheared volcanic rocks with quartz veining similar in appearance to other known showings along the Aviator Trend.

This showing represents an extension to our previous outline of the Aviator trend and thus was not included in the 2016 induced polarization survey.
However, the anamolous trends from that survey are in line with the location of Aviator South. Grab samples taken along a 90 meter sampling traverse yield gold grades up to 2 g/t with numerous samples of low grade.

What is compelling is the consistency with which gold-bearing samples were returned. Based on these results stripping and trenching is scheduled. Figure 4 shows a lower scale location map of the Aviator South showing with respect to the main Aviator grid.

Figure 4.


Location of the Aviator South samples. The geology here is notably similar to other showings and returns gold values up to 2 g/t over a sample traverse of 90m.

4. EAST SHEAR

The East Shear was discovered in summer of 2016 and followed up in late Fall of that year to assess its potential. Further investigation yielded gold bearing samples along a recognized structure for at least 300 meters.

The trend of this structure leads in the direction of a former operating mine known as the Triumph Mine. The Triumph Mine was mined contemporaneous to the production at the Treasure Mine to the west. In 1987 President Mines dewatered the shaft at Triumph to assess its potential. Interestingly, they noted an orthogonal structure to the main trend of ~30 degrees, that trends 127 degrees (the direction of the Far East Shear see next section).

This structure was not considered in past exploration---the operators covered the structure under the waste pile during its operation. The Triumph Mine operated between 1896 and 1900, with reported grades of 39 g/t of which only 16 g/t was recovered.

Geologically the East Shear has a much more classic shear-veining brittle-ductile appearance with occasional mylonitic zones. Grab samples from the East Shear are variable but show respectable grades. To the southwest grades range from 0.4 to 4.0 g/t. The northeast has more impressive grades with samples ranging between 8 g/t and 68 g/t.

Whether this increase in grade is a systematic change associated with the mineralizing event is yet to be ascertained. Figure 5 shows the location of the East Shear with associated gold values.

Figure 5.


Location and assay results of the East and Far East Shear zones. See text for details.

5. FAR EAST SHEAR

The Far East Shear was discovered in spring of 2017. Incidentally, it was discovered while searching for the location of the Triumph Mine noted in Section 4 of this summary. It is the least well understood of all the targets.

While this area may not be trenched, small scale stripping is scheduled until it is better understood. It can be postulated that these results are related to the former operating Gold Cross Occurrence located to the southeast of this location. Our sampling at this new occurrence yields results up to 44 g/t gold with several +1 g/t on a geologically distinct structure warranting additional work in the area.

  • Mary March
  • Kenora Gold
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