Overview

…the central Newfoundland gold belt is emerging as the next significant mining and exploration jurisdiction in Canada

Ian Honsberger, Geological Survey of Canada

Canstar Resources is focused on mineral exploration in central Newfoundland, Canada, which has emerged as one of the most exciting new gold exploration areas due to recent high-grade orogenic gold discoveries.

The Company’s flagship gold exploration property is the Golden Baie project in south-central Newfoundland. The Golden Baie project is comprised of a 62,500 hectare (625 km²) claim package along the eastern edge of the Exploits subzone of the Dunnage Zone, which hosts the majority of the gold deposits and discoveries in Newfoundland. The Company also holds an additional 3,225 hectare (32 km²) claim block along the Hermitage Flexure. Many of these claims have seen little or no gold exploration despite being in a favourable geological setting.

Figure 1 – Anomalous gold occurrences along ~40 km of strike in the central portion of the Golden Baie project claims

The Golden Baie project is located in the same crustal-scale fault corridor and has similar geology as recent high-grade orogenic gold discoveries in central Newfoundland. These gold deposits are believed to have resulted from the closure of the Iapetus Ocean and tectonic plate subduction related to the formation of the Appalachian Mountains. Despite limited historical exploration, the Golden Baie claims appear highly prospective, with recent new discoveries of visible gold in outcrop at surface and multiple gold occurrences spanning a distance of about 40 km along strike (Figure 1). Drilling by the Company at the Kendell prospect has confirmed the presence of high-grade orogenic gold mineralization starting from surface and open in several directions.

Canstar also holds the Buchans-Mary March project, which is located in the vicinity of the formerly producing Buchans mine in central Newfoundland.