Canstar Resources Inc.
TSX VENTURE : ROX

Canstar Resources Inc.

November 15, 2017 07:00 ET

Canstar Resources Intersects 1.1 g/t Gold Over 11.2 meters on Kenora Gold Project

TORONTO, ONTARIO--(Marketwired - Nov. 15, 2017) - Canstar Resources Inc. (TSX VENTURE:ROX) ("Canstar" or the "Company") is pleased to provide results from its 100%-owned Kenora Gold project located near Kenora Ontario. The program was designed to test a number of induced polarization ("IP") targets on the property as well as the mineralized extent of the Ace discovery on the Aviator structural trend. Highlights of the drill results include:

  • 1.1 g/t gold over 11.2 meters in hole KG17-11 within a greater zone 14.7 meters 0.9 g/t gold

  • 0.9 g/t gold over 4.5 meters in hole KG17-15

Results are from eleven (11) holes, totaling 1,526 metres, drilled along the Aviator Gold Trend. This program was designed to test:

  1. The Company's Ace Showing which has demonstrated channel samples of 3.1 g/t over 29.3 meters in 2015 (see press release dated December 3, 2015)

  2. Numerous IP targets predominantly to the south portion of the Aviator Trend

  3. A newly discovered zone during the Winter 2017 ("W17") drilling program wherein the Company intercepted sub-g/t mineralization of 0.7 g/t over 7 meters approximately 140 meters to the northeast of the Ace Showing (see press release dated March 15, 2017). This was to be tested at depth.

KG 17-11 was testing the newly discovered zone at depth, where it intercepted the 11.2 meter zone of 1.1 g/t within a 14.7 meter zone of 0.9 g/t gold, all of which occurs in low grade envelope of 0.6 g/t over 24.3 meters. KG17-15, which drilled 0.9 g/t over 4.5 meters, was drilled over the Ace Showing and represents the best results from the Ace Showing.

Drill holes testing the IP targets were successful in explaining the IP anomalies, which were represented by sulphide-bearing sedimentary rocks in the area. Although extensive, the mineralization returned only anomalous gold values.

Geologically, a key feature is notable within these results. The highlighted intercept of 1.1 g/t over 11.2 meters occurs downdip of the new zone discovered from the Winter 2017 drilling and represents and increase in grade at depth. Most interestingly this mineralization is associated with a quartz-diorite dike that has intruded the volcano-sedimentary package that runs parallel to the Aviator Trend. This was noted in the Winter 2017 drilling, and provided a geological target for this most recent round of drilling. This dike can be traced for several kilometers along the property. Results from the Ace, to date, indicate that the mineralization is typically near-surface.

Selected assay results are tabulated below:

Hole ID From To Length Au (g/t) Host Rock Target
KG17-09 40.5 42.1 1.6 0.7 Dio W17
KG17-10 74.9 75.4 0.5 1.1 Dio W17
KG17-11 61.3 64.5 3.2 0.6 Dio W17
also: 72.0 95.2 23.2 0.5 Dio W17
including… 80.4 95.2 14.7 0.9 Dio W17
also including…. 84.0 95.2 11.2 1.1 Dio W17
KG17-12 2.3 10.5 8.2 0.6 Mvol Ace
also: 53.8 54.0 0.2 1.1 Mtsd Ace
KG17-13 51.0 52.4 1.5 0.6 Mvol Ace
KG17-14 24.4 25.2 0.8 0.9 Qz-vn Ace
also: 35.1 35.6 0.5 1.6 Qz-vn Ace
KG17-15 7.0 11.5 4.5 0.9 Mvol Ace
also: 137.6 139.0 1.4 1.3 Dio (dike) Ace
KG17-16 9.8 10.0 0.3 10.4 Qz-vn Ace
also: 15.5 15.9 0.4 14 Qz-vn Ace
*Dio = diorite/quartz diorite; Mvol = mafic volcanics; Mtsd = metasediments; Qz-vn = quartz vein

Danniel Oosterman, President and CEO of Canstar states "It's notable that the quartz diorite dikes not only appear to act as structural pathways for mineralization, but these dikes are mappable and can be traced property-wide. They may represent a key-feature in future exploration for the project."

The Company is currently planning the next phase of exploration on its Mary March Project located in Newfoundland near the historic Buchans Mining Camp. Canstar will be submitting a work plan to it's JV partner, Glencore Plc for consideration.

The Mary March Project has excellent potential whose highlights include:

  • Historic drilling intercept (1996) by Phelps Dodge that intersected 9.63 metres of mainly massive sulphides with an average grade of 10.1% zinc, 1.68% lead, 0.64% copper, 122.1 g/t silver and 4.2 g/t gold (Mary March Zone);
  • 2013 drilling by Canstar semi-massive sulphides intercepting 11.6 meters of 3.6% zinc, 0.1% copper, 0.8% lead, 25 g/t silver and 2 g/t gold, as well as 5.0 meters of 4.8% zinc, 0.4% copper, 1.0% lead, 71 g/t silver and 2 g/t gold (Mary March Zone);
  • 2013 drilling by Canstar of a stockwork sulphide zone intercepting 18.5 meters of 1.6% zinc, 0.1% copper, 0.2% lead, and 2 g/t silver and another intercept of 18.9 meters of 1.6% zinc, 0.1% copper, 0.5% lead and 4 g/t silver (Nancy April Zone);
  • 2014 drilling by Canstar of semi-massive sulphides intercepting 5.5 meters of 2.5% copper, 9 g/t silver and 0.7 g/t gold (Nancy April Zone);
  • 2014 drilling by Canstar westward continuation of the stockwork sulphide zone intercepting 93.7 meters of 1.0% zinc, 0.1% copper, 0.2% lead and 3 g/t Ag (Nancy April Zone);
  • Numerous untested geophysical anomalies similar to anomalies associated with known mineralization.
Canstar Resources will be holding a conference call on Monday, November 20 at 1:00pm EST to discuss the results and plans going forward.
The conference numbers are:
Local Dial-in Number: (+1) 416 764 8658
Toll Free Dial-in Number: (+1) 888 886 7786

Qualified Persons

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.

Quality Control

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. Lab duplicates are analyzed using Thompson-Howarth plots. Samples are shipped to Act Labs in Thunder Bay for Fire Assay analysis. Overlimit values greater than 5000 ppb are analyzed using gravimetric analysis.

About Canstar Resources Inc.

Canstar Resources is a well-funded, Canadian mineral exploration and development company led by a professional, highly technical management team and an experienced board of directors. The Company's objective is to discover and develop economic mineral deposits primarily in North America. Currently, the Company's focus is on the Kenora Gold Project located in Kenora, Ontario.

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.

Contact Information