Canstar Resources Inc.
TSX VENTURE : ROX

Canstar Resources Inc.

July 28, 2015 07:00 ET

Canstar Samples Up to 68.0 g/t Gold in Grab Samples and Delineates 1.2 Kilometer Gold Bearing Structural Trend Containing Grab Samples Up to 35.3 g/t

TORONTO, ONTARIO--(Marketwired - July 28, 2015) - Canstar Resources (Canstar) (TSX VENTURE:ROX) is pleased to announce results from its ongoing 2015 exploration program on its Kenora Gold Project. Rock sampling over various locales on the project is serving to augment the project's exploration potential.

Highlights of these results are:

  • 10 of 89 samples returned high gold values ranging from 2.9 to 68.0 g/t
  • 5 samples returned very high gold values ranging from 18.5 to 68.0 g/t
  • High-grade gold Samples taken from the "Airport" Claims in the northwest part of the project have delineated a structure over 1.2 kilometer strike length; this demarcates a mappable trend the Company dubs "The Aviator Trend".
  • Three areas, including the Airport Claims, identified for immediate follow-up work

The results of the sampling program are very encouraging, building on the previous results and further expanding the number of gold bearing structures identified on the property. Of the 89 samples, 17 are anomalous (>0.1 g/t) or exhibit appreciable grade, with the upper 90 percentile (10 samples) having 2.8 g/t or better.

Table 1 shows the top 10 samples ranked by gold values:

Table 1. Ranked gold values for Kenora Project 2015.
Sample ID Au g/t Comments
1197103 68.0 Treasure East
1197118 44.8 Triumph (south)
1192483 35.3 Aviator Trend (Airport Claims)
1197104 24.1 Treasure East
1197102 18.5 Treasure East
1192459 10.0 Roseman Occurrence
1197105 8.7 Treasure East
1192467 8.5 Triumph
1192015 3.1 Aviator Trend (Airport Claims)
1197108 2.9 Triumph (south)

To date, sampling on the Kenora project has returned 38 samples containing over 0.5 g/t Au (see press release dated December 1, 2014). Among this subset, the average grade is 11.6 g/t and show a normal distribution, indicating that where gold is present, the values tend to be high grade.

A consistent feature among the gold bearing samples continues to be the presence of pyrite, allowing for specific geophysical methods in future targeting purposes. Geologically, gold is associated with shear zones and occur in proximity to a regional contact between an intrusive dioritic body and country rock, as well as in the diorite. To date significant gold values in recovered samples can be traced intermittently along this contact for over 15 kilometers.

The gold values reported represent grab samples hosted exclusively in quartz. Owing to the presence of significant and potentially long-lived gold mineralizing systems future programs will focus on determining the width of the mineralized structures, which may represent thicker stockwork systems and mineralized alteration haloes surrounding the veins.

Three key areas have been identified for immediate follow-up work, which will be comprised of mapping, trenching and channel sampling:

  1. Black Sturgeon/Island Lake area - high-grade samples defining a 700 metre-long trend along strike of the former producing Princess Mine located to the southwest of the property.

  2. Airport Claims - high-grade samples occur along a 1.2 kilometre north-northeast trending structure ("The Aviator Trend") which is open in both directions. This structure may intersect the Black Sturgeon/Island Lake structure. The intersection of mineralizing systems often result in the formation of very high-grade ore shoots and zones.

  3. Roseman/Treasure/Triumph area - high-grade gold bearing samples from this area delineate a series of parallel gold bearing structures, which include the past-producing Treasure Mine (2,300 ozs @ 5.6 g/t gold in 1897).

"Once again we are demonstrating the presence of high grade gold bearing structures on the Kenora gold project, and we're delighted that these structures now demarcate a contact relationship that extends for at least 15 kilometers, with now at least two instances on the project of mineralized trends that can be traced from 700 meters to 1.2 kilometers long in two separate locations," states Danniel Oosterman, President and CEO of Canstar Resources, "Geologically we can conclude that these gold bearing structures are part of a larger mineralized system and not isolated occurrences, which makes for an exciting development in moving the project forward."

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. "Past-producing" production values are considered "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. Laboratory analyses were completed by Accurassay Labs, who are an accredited lab under Standards Council of Canada to the internationally recognized ISO/IEC 17025 guidelines.

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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