Canstar Resources Inc.

TSX VENTURE : ROX


Canstar Resources Inc.

January 21, 2014 07:00 ET

Canstar Resources Announces Significant Results from Winter Drill Program on its Mary March/Nancy April Projects

TORONTO, ONTARIO--(Marketwired - Jan. 21, 2014) - Canstar Resources (Canstar) (TSX VENTURE:ROX) -

Highlights include:

  • Hole MM13-30 - 11.6 meter intersection containing 3.6% Zn, 0.1% Cu, 0.8% Pb, 25 g/t Ag, 1.5 g/t Au; including 3.6 meters containing 7.5% Zn, 0.04% Cu, 1.37% Pb, 26.1 g/t Ag and 1.7 g/t Au
  • Hole MM13-29 - 5.0 meters of 4.82% Zn, 0.38% Cu, 1.04% Pb, 71.3 g/t Ag, and 1.8 g/t Au including 3.5 meters of 6.21% Zn, 0.13% Cu, 1.42% Pb, 82.8 g/t Ag, and 1.9 g/t Au

Canstar Resources is pleased to announce that it has intersected significant widths of base and precious metal mineralization during its recently completed drilling program on the Mary March Joint Venture project located in the prolific Buchans Mining District of central Newfoundland. Results from the program were very encouraging, with mineralization encountered in all 3 of its planned drill holes.

Mary March Zone

Drill holes MM13-29 and MM13-30 confirmed the continuity of the gold-bearing, zinc-rich volcanogenic massive sulphide (VMS) mineralization as well as extending the zone to depth. The two holes were drilled on the same section and indicate a minimum 30 meter down dip extension to the Mary March zone, which remains open in the down dip and down plunge directions.

Highlights from the drilling include an 11.6 meter intersection in hole MM13-30 containing 3.6% Zn, 0.1% Cu, 0.8% Pb, 25 g/t Ag, and 1.5 g/t Au, including a 3.6-meter high-grade zone containing 7.5% Zn, 0.04% Cu, 1.37% Pb, 26.1 g/t Ag, and 1.7 g/t Au, which extended the Mary March Zone to depth. The Mary March zone was also targeted in hole MM13-29 and encountered 5.0 meters of 4.82% Zn, 0.38% Cu, 1.04% Pb, 71.3 g/t Ag, and 1.8 g/t Au, including 3.5 meters of 6.21% Zn, 0.13% Cu, 1.42% Pb, 82.8 g/t Ag, and 1.9 g/t Au. Results are tabulated below:

BHID From To Length Zn% Cu% Pb% Ag ppm Au ppm
MM13-29 341.56 346.60 5.04 4.82 0.38 1.04 71.3 1.8
including… 343.00 346.45 3.45 6.21 0.13 1.42 82.8 1.9
MM13-30 354.78 366.35 11.57 3.56 0.12 0.81 24.6 1.5
including… 362.71 366.35 3.64 7.54 0.04 1.37 26.1 1.7

Nancy April Zone

A single drill hole, MM13-31, was designed to test the continuity of a previously recognized mineralized stockwork zone in the Nancy April area, located 500 meters southwest of the Mary March zone. Stockwork zones are important indicators of VMS systems and represent the lower root zones of these types of orebodies through which metal-bearing fluids percolate to an upper main zone. Stockworks are also important sources of copper mineralization in many VMS systems.

Drill hole MM13-31 was collared 30 meters from previous drilling and encountered the stockwork zone at approximately 150 meters vertical depth. Results indicate a widening of the zone from previous intercepts, increasing from 7.1 meters to 18.9 meters with an attendant rise in metal grades (cf. MM294-3, 1.00% Zn, 0.04% Cu, 0.50% Pb), which bodes well for further exploration in the Nancy April area.

In addition to the stockwork zone intercepts, MM13-31 encountered a shallow zone of anomalous to low-grade mineralization interpreted to be a near surface component of the Nancy April mineralized zone. It is known that this zone occurs at depth of approximately 150 metres in holes located to the northeast of MM13-31 (MM294-4; 6.75 meters @ 1.00% Zn, 0.80% Cu, 0.59% Pb). The anomalous zone in MM13-31 was encountered only 51 meters from surface, indicating potential for the Nancy April area to host shallow mineralization and represents a significant geological target for future programs. Results for the Nancy April drilling are presented in the following table:

BHID From To Length Zn% Cu% Pb% Ag ppm Au ppm
MM13-31 208.10 226.64 18.54 1.59 0.13 0.21 2.4 0.0
MM13-31 259.32 278.18 18.86 1.64 0.08 0.45 3.8 0.0
MM13-31 73.00 84.48 11.48 0.23 0.50 0.06 1.3 0.1
including… 82.54 82.87 0.33 0.64 15.30 0.13 23.2 0.6

"The results of this program confirm that the Mary March and Nancy April zones are not only present, but have significant potential to grow in size," stated Canstar's President and CEO, Danniel Oosterman, "We already have future targets resulting from this round of drilling alone, and have yet to complete borehole geophysics on these holes. Any targets derived from that work would underscore the outstanding potential we believe exists on the Mary March Property which we hope to evaluate in 2014."

A conference call will be held on Wednesday, January 22 at 2pm 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. 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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