Canstar Resources Inc.
TSX VENTURE : ROX

Canstar Resources Inc.

March 15, 2017 07:00 ET

Canstar Resources Completes First Phase of Drilling and Intercepts Several Gold-bearing Zones on Kenora Gold Project

TORONTO, ONTARIO--(Marketwired - March 15, 2017) - Canstar Resources Inc. (TSX VENTURE:ROX) ("Canstar") is pleased to announce results for the first phase of diamond drilling at its 100% owned Kenora Gold Project, located in the Wabigoon Subprovince near Kenora, Ontario, Canada. Canstar completed an 8-hole, 1,062 meter exploratory drilling program in early February of 2017. Highlights include:

  • 0.5 g/t gold over 22.0 meters in KG-17-08 located 146 meters northeast of the Company's Ace Showing, including 1.0 g/t gold over 3.0 meters

The 22 meter zone intercepted in KG-17-08 occurs 146 meters northeast of the Ace Showing and thus represents a new zone on the property and a significant continuation of trending mineralization.

This first phase drill program represents the first drilling in the area in over a century. The program focused on the Project's "Aviator Trend" which hosts the Ace Showing, a wide, surface gold discovery which returned 29.3 meters of 3.1 g/t gold in channel sampling. Results from this drilling suggest the presence of one or multiple gold zones associated with the Ace system, however, the surface showing could not be drilled directly due to access issues. As such, the Company made a significant step-back 36 meters southwest of the showing in order to test the Ace at depth.

The program was successful in intercepting several zones of low-grade mineralization at depth, interpreted to be associated with the Ace Showing, including:

  • 11.0 meters of 0.3 g/t gold from 109 to 120 meters (KG-17-01)
  • 3.2 meters of 0.3 g/t gold from 74 to 77.2 meters (KG-17-01)

The depth-to-top of these zones are 77 meters for deeper zone and 63 meters for the shallower zone. The deeper of the two zones does not occur directly under the vertically dipping Ace Showing but rather 20 meters to the east of the showing. This may suggest the mineralization is dipping eastward and oblique to the stratigraphy or may represent an entirely new zone. A second phase drill program, expected to commence later this month, will better delineate the gold zones and provide a better understanding of the mineralized system. The Ace Showing remains a high priority target and a smaller drill rig will be commissioned in order to overcome the access issues encountered in the first program.

Results from the drilling program are tabulated below:

Table 1. Phase 1 drilling results for the Kenora Gold Project

Hole ID Azimuth Dip From To Core Length Gold (g/t)
KG17-01 125 -45 35.4 36.5 1.1 0.4
74.0 77.2 3.2 0.3
109.0 120.0 11.0 0.3
KG17-02 145 -45 48.0 50.0 2.0 0.3
80.0 81.0 1.0 0.5
KG17-03 160 -45 75.0 77.1 2.1 1.2
88.2 89.3 1.1 1.0
158.80 160.10 1.3 0.6
KG17-04 117 -45 52.4 53.0 0.6 0.3
82.0 83.0 1.0 0.3
84.0 85.0 1.0 0.4
KG17-05 130 -45 110.0 111.0 1.0 0.4
115.8 117.2 1.4 0.4
128.3 128.8 0.5 1.7
134.0 134.3 0.3 1.6
159.0 160.0 1.0 0.4
KG17-06 305 -45 NSV
KG17-07 310 -45 NSV
KG17-08 310 -64 43.0 65.0 22.0 0.5
…Incl. 43.0 53.9 10.9 0.6
…Incl. 58.0 65.0 7.0 0.7
…Incl. 62.0 65.0 3.0 1.0
NSV = No Significant Value

Canstar Resources adopts industry recognized QA/QC methods. Drill intervals are core length and are not reported as true thickness. A geochemical standard control sample and one blank sample is inserted into the sample stream every 20th sample as are duplicate samples. Lab duplicates are analyzed using Thompson-Howarth plots. Samples are shipped to Act Labs in Thunder Bay for Fire Assay analysis. Overlimits are analyzed using gravimetric analysis.

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 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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