Toronto, Ontario – TheNewswire - March 16, 2022 – CANSTAR RESOURCES INC. (TSXV:ROX ) & ( OTC:CSRNF) (“ Canstar” or the “Company ”) is pleased to announce an update on the winter drill program at the Kendell prospect, located in the central portion of its Golden Baie claim block which is at the southern end of the emerging central Newfoundland gold belt (Figure 1). Based on preliminary results, the Company is also pleased to announce that the winter drill program has been increased to 3,000 metres of diamond drilling, a 50% increase from the original 2,000 metre program that was announced on Feb. 8, 2022 .
Figure 1 - Newfoundland gold explorers along major structures and Canstar's Kendell Prospect
Drilling at Kendell Prospect
Canstar drilled a total of 2,620 metres in 36 diamond drill holes at the Kendell prospect in 2021. Gold mineralization at Kendell was delineated over a down-dip length of approximately 100 metres and a strike length of 50 metres based on assays from 36 drill holes in the 2021 drill program, 32 of which intercepted meaningful gold mineralization. Mineralized intercepts ranged from one metre to 11 metres in length and are spatially associated with metasedimentary rocks within the interpreted hanging wall of a fault zone that is defined by a four metre to 10 metre thick strongly sheared unit of dark grey to black graphitic shale. Highlight holes from the 2021 program included: GB-21-01, which intersected 9.6 g/t gold over 7.8 metres; GB-21-50, which intersected 11.8 g/t gold over 5.6 metres; and GB-21-53, which intersected 12.2 g/t gold over 3.9 metres (see news releases from Aug. 19, 2021 , and Feb. 8, 2022 ).
The 2022 winter drill program was designed to test the continuity of the shallow-dipping gold mineralization along strike, down-dip, and down-plunge (Figure 2). Drilling commenced on February 8, 2022, and to date 2,065 metres have been drilled in 31 holes. Based on preliminary drill core logging, the Company plans to drill an additional 9 holes to bring the total winter drill program to 3,000 metres. Assay results from the drill holes are expected to be received by June, which will enable planning of another phase of drilling on the Kendell prospect later in the year.
Figure 2 - Kendell prospect plan map showing mineralized intercepts and areas to be drill tested
2022 Exploration Plans
Due to the high level of exploration activity in Newfoundland last year, the Company is still waiting for some final assay results from the 2021 exploration program. The Company expects to announce remaining drill results from the 2021 Golden Baie drill program in the coming weeks along with till sampling results from the area around the Kendell prospect, as well as trench results from the 97 West target located about 3.5 kilometres to the northeast of Kendell.
Rob Bruggeman, President & CEO of Canstar, commented: “The winter drill program on the Kendell prospect has gone well despite challenges posed by weather and COVID. Increasing the current drill program to 3,000 metres will allow us to test the continuation of gold mineralization farther down-dip. We are also pleased to finally be receiving the remaining assays from the 2021 exploration program. These results are important for finalizing the Company’s 2022 exploration program, the budget for which is expected to be approximately $6.0 million.”
Canstar wishes to acknowledge the financial support of the 2021 exploration program through the Junior Exploration Assistance Program from the Department of Natural Resources, Government of Newfoundland and Labrador.
In 2021 all rock samples were shipped to Eastern Analytical of 403 Little Bay Road, Springdale, NL, a commercial laboratory that is ISO/IEC 17025 accredited and completely independent of Canstar Resources Inc. Samples were analyzed for gold using fire assay (30g) with AA finish and an ICP-34, four acid digestion followed by ICP-OES analysis for 34 additional elements. Metallic screening was used for samples with visible gold and all samples with initial fire assays over 1.0 g/t Au.
For 2022 all rock samples are shipped to SGS Labs in Lakefield, ON for preparation and forwarded to SGS, Burnaby, BC for analyses. Samples are analyzed for gold using a fire assay (30g) with ICP finish. Assaying is followed by a two-acid digestion and analyses for 34 elements using ICP-OES or ICP-MS. Metallic screening is being used for samples with visible gold and all samples with initial fire assays over 1.0 g/t Au. In addition to SGS Labs quality control program of standards, blanks and duplicates, Canstar’s QAQC program utilizes commercially available reference standards, blanks and duplicate samples to ensure data quality. In addition, duplicates of selected samples are being sent to a second laboratory as check assays.
Matthieu Lapointe , B.Sc., P.Geo, Vice President Exploration of Canstar, and a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects, is responsible for the scientific and technical data presented herein and has reviewed and approved this release.
About Canstar Resources Inc.
Canstar is focused on district-scale gold exploration in Newfoundland, Canada. Canstar has a 100% interest in the Golden Baie and Hermitage projects, large claim packages at the south end of the central Newfoundland gold belt, which cover 77,350 hectares or 774 km 2 with multiple outcropping gold occurrences on a major structural trend. The Company also holds the Buchans-Mary March project and other mineral exploration properties in Newfoundland. Canstar Resources is based in Toronto, Canada, and is listed on the TSX Venture Exchange under the symbol ROX and trades on the OTCPK under the symbol CSRNF.
For further information, please contact:
Rob Bruggeman, President & CEO
Email: [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company’s objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains, and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or 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.