Canstar Resources Inc.
TSX VENTURE : ROX

Canstar Resources Inc.

December 01, 2014 08:00 ET

Canstar Receives Numerous High-Grade Grab Sample Results on Its Kenora Project, Including up to 24.9 g/t Gold

TORONTO, ONTARIO--(Marketwired - Dec. 1, 2014) - Canstar Resources (Canstar) (TSX VENTURE:ROX) is pleased to announce results from its 2014 reconnaissance surface mapping program on its Kenora Gold Project. Rock sampling over various locales on the project have returned significant gold assays indicating a strong potential for the project's future.

Highlights of this exploration program are:

  • Numerous gold-bearing grab samples near Island Lake including samples containing 23.0 g/t Au, 15.9 g/t Au, 15.0 g/t Au and 6.0 g/t Au located along the same structure approximately 1.2 kilometers apart;
  • Several grab samples near Kenora Airport block containing 13.6 g/t Au and 20.9 g/t Au;
  • Grab samples near Hilly Lake area containing 24.9 g/t Au and 5.5 g/t located approximately 50 meters apart along same structure

The program involved initial reconnaissance mapping to outline the nature and location of the historic structures and mineral showings that are described in the Ontario Mineral Deposit Inventory ("MDI") and to determine their continuity and relationship with the overall regional geology. The Kenora Project is comprised of 4 mining claim blocks that cover areas that were mined in the late 1800's but have seen little work since that time. Of approximately 108 samples taken over the Project area, 25 show high-grade to anomalous gold values in and around mapped structures and their trends. Of particular significance is the northernmost block, closest to Island Lake, where high-grade gold values of 15.9 g/t can be found along a mappable trend, with a distance of approximately 700 meters between samples. Historic production in 1897 (see OGS Report OFR 5695, "Princess Mine", 1988) along trend and to the southeast of these results have been documented in the recorded high gold values up to 19.5 g/t gold and suggest a minimum 2.0 kilometer gold bearing structure. In addition, mapping indicates the structure continues to the northeast offering additional exploration potential in that direction, which suggests the presence of a potential district-scale gold bearing structure on the Project.

Additional mapping and rock sampling to the south of this area yielded very high gold values near the Hilly Lake area along a 50 meter structural trend. Gold values of 24.9 g/t and 5.5 g/t were traced along a mappable shear zone. Regional magnetic data exhibits a coincident magnetic anomaly with this trend which may indicate a continuation towards the eastern portion of the Company's claim block.

It is noted that higher gold values tend to occur with higher sulphide content, which the Company feels will allow it to effectively employ modern geophysical methods that have yet to be used in the area from the time there was gold production in the late 19th Century.

Significant assays are tabulated below:

Sample Claim Block Au (g/t ) Sample Claim Block Au (g/t )
ROX14-05 Airport 13.6 273257 Island Lake 1.5
ROX14-09 Airport 1.0 273258 Island Lake 5.1
273269 Airport 20.9 273260 Island Lake 15.0
273272 Airport 1.4 273262 Island Lake 2.5
5612401 Hilly 5.5 273263 Island Lake 3.5
5612402 Hilly 24.9 273264 Island Lake 1.0
ROX14111 Hilly Lake 2.0 273268 Island Lake 0.7
ROX14112 Hilly Lake 2.9 ROX14105 Island Lake 0.8
ROX14113 Hilly Lake 0.7 ROX14107 Island Lake 23.0
273251 Island Lake 1.3 5612408 Island Lake 6.0
273253 Island Lake 5.8 5612415 Island Lake 4.3
273255 Island Lake 1.5 5612416 Island Lake 15.9
273256 Island Lake 1.8

QP and Quality Control

"Significant Assays" as mentioned in this Press Release are based on statistically significant results determined by plotting data in normal probability plots to ascertain background and anomalous values. Quantile values of "mean" +1 standard deviation are considered anomalous and therefore significant. Historic values and indications of historic results noted in this press release are not NI43-101 compliant and should be evaluated as "historic" under NI43-101. Canstar observes a quality control program for all of its exploration work according to best practices in the industry from sample shipment and preparation to data collection and analyses. Chemical analysis was completed by AGAT Laboratories and ALS CHEMEX Laboratories. A 50-gram split of each sample is analyzed Fire Assay with an ICP-OES finish for overlimit values

Danniel Oosterman, P.Geo is President and Chief Executive Officer and is a Qualified Person as defined by NI 43-101 and is responsible for the technical information in this release.

On behalf of 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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