Canstar Resources Inc.
TSX VENTURE : ROX

Canstar Resources Inc.

November 04, 2014 08:00 ET

Canstar Intersects 93.7 meters of 1.00 zinc, 3 g/t silver, and 5.33 meters of 1.21% copper, 4.9 g/t silver in Nancy April Zone on its Mary March Project

TORONTO, ONTARIO--(Marketwired - Nov. 4, 2014) - Canstar Resources (TSX VENTURE:ROX) is pleased to announce the final results of the 2014 summer drilling program on its Mary March Project. Results have been received for the final three drillholes completed in the program and indicate a significant improvement in the Nancy April mineralized zone along strike and confirmation that the geophysical program was successful in identifying the mineralized horizon. The current program was successful in extending the Nancy April Zone approximately 50 meters to the southwest, returning the following results:

  • Borehole MM14-33 intersected 5.33 meters 1.2% copper, 0.2% zinc, 4.9 g/t silver, 0.4 g/t gold from 66.5 to 71.8 meters

    • Including an interval of 2.3 meters grading 2.5% copper, 0.1% zinc, 8.6 g/t silver and 0.7 g/t gold nested in the above intercept from 69.5 to 71.8 meters.

  • Borehole MM14-33 returned 93.7 meters of 1.0% zinc, 0.2% lead, and 2.9 g/t silver in stockwork sulphides

    • Including an interval of 10.2 meters of 3.4% zinc, 0.1% copper, 7.1 g/t silver and 0.3 g/t gold

The summer 2014 drilling program was comprised of 5 holes totaling 1724 meters of drilling, and was drilled in two separate phases. Phase 1 results (2 holes) were announced in the Company's press release dated October 28, 2014.

Phase 2 Drilling Results (Nancy April Zone)

The remaining 3 holes reported were designed to test an extensive IP anomaly that is coincident with the Nancy April Horizon. The Nancy April deposit lies approximately 500 meters west of the Mary March deposit and was discovered in 1999 by Phelps Dodge Corporation ("PDC"). PDC's discovery hole intersected 6.8 meters of 1.5% zinc, 0.8% copper and 0.6% lead. Geochemical work and re-logging on historic drill core completed by the Company in summer of 2013 noted strong alteration with minor mineralization downhole of Nancy April intersect and it was hypothesized that a footwall zone to a larger system may be present in the area. Drilling in Fall 2013 confirmed these results (see press release dated January 21, 2014).

The following table provides a summary of significant drilling results from the summer 2014 drill program:

BHID From To Length Cu% Pb% Zn % Ag gpt Au gpt
MM14-33 66.46 71.79 5.33 1.21 0.03 0.15 4.85 0.35
including… 69.54 71.79 2.25 2.49 0.03 0.10 8.64 0.72
MM14-33 128.66 129.58 0.92 0.03 2.09 1.80 19.96 0.46
MM14-33 200.88 294.55 93.67 0.05 0.15 1.00 2.92 0.03
including… 237.00 247.17 10.17 0.12 0.01 3.36 7.13 0.03
MM14-34 383.58 390.89 7.31 0.05 0.17 0.28 8.80 0.08
MM14-35 61.40 68.39 6.99 0.08 0.02 0.05 10.07 0.23

These results indicate a significant thickening of the Nancy April mineralized horizon from previous drilling. Hole MM13-31, drilled during the Fall 2013 program, returned a mineralized interval of 18.5 metres, in comparison to hole MM14-33 which encountered over five times this thickness only 50 metres along strike. The results suggest that the Nancy April horizon is improving along strike and warrants follow-up drilling to test for continued improvement to the southwest.

The second phase of the drilling program was designed to include targets delineated from the Company's recent induced polarization (IP) survey (see Company's press release dated June 25, 2014). Drillholes were prioritized based on known geological data and, specifically, the known presence of the Nancy April chargeability anomaly that is coincident with the mineralized zone. Drill hole MM14-35 encountered 6.99 meters of massive sulphide at the targeted zone, confirming the efficacy of the IP system for detecting sulphide mineralization on the property. MM14-33 and MM14-35 are separated by 200 meters of untested chargeable strike length, with the anomaly extending to the southern edge of the survey grid where it is presumed to continue.

Danniel Oosterman, President and CEO of Canstar states "Not only have we significantly increased the width of the Nancy April footwall zone, we now have a minimum 200 meter anomaly of untested IP chargeability along strike, and in a direction where we are seeing improving grades and widths. More importantly, we have confirmed that the IP survey is detecting sulphide mineralization, and raises the potential for mineralization on several other parallel chargeable trends observed from the survey, including a large anomaly to the north with peak chargeabilities that extend for over 600 meters long and 100 meters wide. The Mary March Project now has the highest quality targets and upside potential in its storied history."

The Mary March Property is subject to a Joint Venture Agreement between Canstar Resources Inc and Glencore Plc. Glencore opted for voluntary non-participation for this program.

A conference call will be held on Wednesday, November 5, 2014 at 12 noon EST to discuss the results and plans going forward. Investors are invited to submit questions to kwilloughby@canstarresources.com, which will be addressed by President Danniel Oosterman during the call.

The conference numbers are:

Local Dial-in Number: (+1) 416 764 8600

Toll Free Dial-in Number: (+1) 888 575 5156

Guest Code: 8562103 #

Canstar Resources adopts industry recognized QA/QC methods. Drill intervals are core length and are estimated to be close to true thickness. A geochemical standard control sample and one blank sample is inserted into the sample stream every 20th sample. Lab duplicates are analyzed using Thompson-Howarth plots. Samples are shipped to AGAT Laboratories in Mississauga for analysis. AGAT Labs is an ISO/IEC 17025 accredited laboratory and maintains ISO 9001 standards, policies and procedures.

Mr. Danniel Oosterman, P.Geo., the President and CEO of the Company, is a "Qualified Person" under National Instrument 43-101 and has reviewed the technical disclosure in this press release.

On behalf of myself and the Board of Directors,

Danniel J. Oosterman, P.Geo, President & CEO

Forward-Looking Statements

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". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. 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. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

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