Canstar Resources Inc.
TSX VENTURE : ROX

Canstar Resources Inc.

June 20, 2016 08:00 ET

Canstar Resources Inc. Extends Its Ace Gold Showing to 3.1 g/t Over 29.3 Meters on Surface

TORONTO, ONTARIO--(Marketwired - June 20, 2016) - Canstar Resources Inc. (TSX VENTURE:ROX) is pleased to announce the latest results from its 2016 surface trenching and sampling program. The program focused on two high-grade gold areas, which were delineated during the 2015 exploration program: the Ace Showing on the Aviator trend; and the Westin Showing on the Westin Trend. Both areas returned significant results and confirmed the presence of extensive and high-grade gold mineralized systems, including a 29.3 meter section (true width) averaging 3.1 g/t at surface over the Ace showing and two samples returning greater than 10 g/t gold on the Westin trend.

Results from the Ace Showing followed up on the discovery of an 18.3 meter channel sample discovered in 2015 (see news release dated December 3rd, 2015). At the time, the length of this sample was limited by a lack of outcrop exposure. The latest trenching has allowed for greater exposure, and the Company has extended this channel to either side; highlights from this work include:

  • The east side of the channel was extended by 5.5 meters and yielded gold values of 8.0 g/t over this length.
  • The west side returned a 4.5 meter section grading 0.6 g/t.
  • In total, the channel extends for 29.3 meters grading 3.1 g/t over its width.

Removing the low grade west channel extension yields values of 3.6 g/t of 24.8 meters.

Previous results from the Westin Showing (see news release dated October 26th, 2015) returned high grade samples of up to 15.8 g/t. New trenching over this area has resulted in additional high-grade assays, including the following highlights:

  • 0.3 meter channel containing 15.4 g/t gold
  • 0.15 meter channel containing 10.8 g/t gold

Table 1 summarizes the trenching results:

Table 1. Channel (CH) Samples from 2016 Trenching Program
Location Channel ID from: (m) to: (m) Length (m) Au (g/t)
Ace A3East 0 5.5 5.5 8.03
Ace A1West 5 9.5 4.5 0.64
Ace 2016A2 0 8.9 8.9 0.23
Ace Select Cut 0 0.2 0.2 9.96
Ace Select Cut 0 0.2 0.2 0.64
Westin A WA-7 3.6 3.8 0.2 6.34
Westin A Select Cut 0 0.5 0.5 6.53
Westin A WAW-3 3 3.15 0.15 10.80
Westin A WAW-5 0.6 0.9 0.3 15.40
Westin A Select Cut 0 0.25 0.25 6.32

The Ace Channel rocks appear to be permeable with respect to gold bearing fluids, allowing for the development of more extensive systems of parallel and sigmoidal arrays of quartz, resulting in appreciable widths. Structurally, the rock fabric is subvertical to vertical, and thus the channel widths represent estimated true widths with respect to mineralization. In contrast, at the Westin showing, a less permeable diorite appears to be controlling the mineralization resulting in more discrete, high-grade veins.

Danniel Oosterman, Canstar's President and CEO noted, "We are extremely pleased with the newest results and particularly the potential scale of the Ace showing. This latest program has provided additional insights into the controls on gold mineralization and, as a result, we are much more confident in our exploration model for Kenora. The type of widths being identified in the mineralized system are reminiscent of widths seen at many large gold deposits and is very encouraging with respect to the potential we are seeing in the project."

The Company has also completed an induced polarization survey over the Aviator trend and expects to report the results of this work in the coming weeks.

QP and Quality Control

Channel samples were taken with a diamond blade saw at approximately 90 degrees to observed structural trends. Results reports are composited using weighted averages over the length of sample as reported. 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. Fire assay and Aqua Regia ICP analyses were completed by Activation Laboratories Ltd. (Actlabs) who are ISO 17025 accredited and/or certified to 9001: 2008.

Danniel Oosterman, P.Geo, is President and CEO of Canstar Resources, and is a Qualified Person as defined by NI43-101 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 News Release. This News Release includes certain "forward-looking statements". These statements are based on information currently available to Canstar, and Canstar provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe Canstar's future plans, objectives or goals, including words to the effect that Canstar 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". Forward-looking statements are based on Canstar's assumptions regarding, among other things, results of exploration, project development, reclamation and capital costs of Canstar's mineral properties, capital markets activities, and Canstar's financial condition and prospects. As these statements address future events and conditions, by their very nature they involve inherent risks and uncertainties, and so Canstar's actual results 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 Canstar's activities; and other matters discussed in this News Release. This list is not exhaustive of the factors that may affect any of Canstar's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Canstar's forward-looking statements. Canstar does not undertake to update any forward-looking statement that may be made from time to time by it or on its behalf, except in accordance with applicable securities laws.

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