MONTREAL, QUEBEC--(Marketwired - April 19, 2017) -
NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES
Goldstar Minerals Inc. ("Goldstar" or the "Company") (TSX VENTURE:GDM) is pleased to announce that it has entered into a Mineral Option and Sale Agreement with Campfire Resources Ltd and Southfield Resources Ltd ("the Owners") with respect to the Victoria Lake Tin Property, consisting of 48 claims and covering an area of 12 km2. The Property is located within Clarendon, Lepreau and Pennfield Parishes of Charlotte County in New Brunswick at approximately 50 km south of Fredericton. Access to the property is excellent all year round and close to infrastructure.
The agreement provides for the acquisition of an undivided interest of 100% in and to the Property by paying the Owners in the aggregate an amount of $250,000 in cash payments over a five year period, including $20,000 at closing on or before July 15, 2017. Upon exercise of the Option, Goldstar shall grant to the Owners a net smelter return royalty ("NSR") of 2% from production derived from the Property of which royalty 50% can be purchased back by Goldstar at any time by paying to the Owners the amount of $1,000,000.
Closing is subject to the completion of the due diligence review and Board approval. Goldstar is focused on developing deposits that contain gold and technology metals such as high-value tungsten and tin, in leading mining jurisdictions in Canada.
Description of the Victoria Lake Tin Property
The Victoria Lake property is underlain by the Late Devonian Mount Douglas Granite, a late phase of the Saint George Batholith, consisting of multiple post-orogenic and high-level intrusions. The Mount Douglas Granite is a prominent intrusion in the eastern region of this batholith with a surface area of over 600 square kilometres. Multiple granite phases are known within the Mount Douglas Granite that hosts numerous tin occurrences reported as greisen vein and / or greisen vein swarm systems, some of which are present within the Victoria Lake property.
The Victoria Lake property is located approximately 15 kilometres southeast of the Mount Pleasant Property of Adex Mining Inc., which hosts National Instrument 43-101 tin, indium, tungsten and molybdenum resources. This includes an indicated estimated resource of 12.4 million tonnes at 0.38% tin (Sn), 0.86% zinc (Zn) and 64 ppm indium (In) as mentioned at Adex Mining inc.'s website. The Mount Pleasant deposits are hosted mainly in Late Devonian granitic rocks of the Late Devonian Mount Pleasant Caldera Complex, which is located immediately north of the Saint George Batholith.
Tin mineralization in float boulders and bedrock is reported in multiple regions of the Victoria Lake property. These include the Mahood Brook and Disappointment Lake tin occurrences in the east region of the property, located along a reported northwest trending geophysics anomaly (VLF-electromagnetic). Two 1983 diamond drill holes (Billiton Canada Ltd. - not 43-101 compliant) at the Mahood occurrence, approximately 260 metres apart, were reported to intersect near-surface tin bearing greisen zones. The first hole was reported to intersect 0.25% Sn over 17.6 metres (core length). The second hole was reported to intersect 0.12% Sn over 11.6 metres (core length). A channel sample (not 43-101 compliant) from a trench at this occurrence was reported to return 0.20% Sn over 6 metres. A grab sample (not 43-101 compliant) from the trench was reported to return 6510 ppm (0.65%) Sn. The Disappointment Lake occurrence is located approximately 1.5 kilometres northwest of the Mahood occurrence along the same VLF anomaly. Grab samples (not 43-101 compliant) at this occurrence are reported up to 0.53% Sn. Tin bearing boulders were collected east of this VLF anomaly during 2009 with two of the samples (not 43-101 compliant) reported to return 1.06% and 1.4% Sn.
During 2016, multiple tin bearing boulders were sampled adjacent to a section of dirt road in the southern region of the property, approximately 1 kilometre southeast of the Mahood Brook occurrence. Seven boulder samples (not 43-101 compliant) along an approximate 150 metre long section of this road were reported to exceed 2000 ppm Sn (0.2%) and up to 5950 ppm Sn (0.595% Sn). Additional tin-bearing boulders were reported further south. This prospecting along with tin mineralization at Mahood Brook and Disappointment Lake indicates a potential north-south to northwest-southeast priority trend approximately 3 kilometres long. Tin soil and till geochemical anomalies have been reported in multiple areas of the property.
Goldstar will review and compile all available data pertaining to the Victoria Lake Tin Property. The Company intends to design an exploration program to advance the project to the drilling stage.
Benoit Moreau, President and CEO of Goldstar comments: "This new acquisition further consolidates the positioning of the Company for gold and high-value commodities such as tin in stable jurisdictions. The Victoria Lake Tin Property is close to existing infrastructure that would provide lower and reasonable exploration costs."
The technical information contained in this news release has been reviewed and approved by David Martin, P.Geo. and Benoit Moreau, P.Eng., CEO and director of the Company. Both Mr. Martin and Moreau are qualified persons as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.
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 may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.