Canstar Announces 2nd Phase of Drilling on the Kenora Gold Project
canstar resources inc.
56 Temperance St. TSX-V: ROX
Suite 1000 www.canstarresources.com
Toronto, ON M5H 3V5
Tel: 647-557-3442 Fax: 647-557-3448
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NEWS RELEASE March 23, 2017
Canstar Announces 2nd Phase of Drilling on the Kenora Gold Project
March 23, 2017 - Toronto, ON – Canstar Resources Inc. (TSX.V:ROX) (“Canstar”) is pleased to
announce recommencement of drilling as well as an exploration update for its Kenora Gold
Project located near Kenora, Ontario.
As announced at the outset of Phase 1 drilling (see Company’s press release dated December
14, 2016), the Kenora Gold Project will undergo several phases of drilling this calendar year. This
announced program is designed to specifically target areas discovered to be inaccessible by a
standard drilling rig during Phase 1, including the “Ace Showing” whose results include surface
channel samples of 29.3 meters (true width) averaging 3.1 g/t gold (see Company's press release
dated June 20, 2016). The program will be comprised of 500 meters of drilling and will act as a
precursor to a larger program to commence shortly afterward. Drilling should be completed
within approximately 2 weeks of this announcement.
Canstar would like to take this opportunity to review the exploration dynamics and objectives
for the Spring drilling program of 2017 for the Kenora Gold Project.
The recently announced results (see Company’s press release dated March 15th, 2017) represent
the first ever drill results based on only just over 1,000 meters of drilling. Two key findings came
from this modest program:
1. A new, 22 meter wide gold-bearing zone (0.5 g/t over 22 meters) was discovered 146
meters northeast of the Ace Showing on the same structural trend; this includes 7.0
meters at 0.7 g/t and 10.9 meters @ 0.6 g/t gold.
2. A zone in proximity (“proximal zone”) to the Ace Showing occurring 22 meters east and
77 meters below the Ace comprised of low grade yet wide gold mineralization (11.0
meters @ 0.3 g/t)
These results have demonstrated low grade gold bearing veins, which is a strong indicator of
potential multiple gold bearing systems within the district at depth. The surface mineralization
does correlate with the IP results and with placement of past shafts, as does the recent 22 meter
intersection mentioned above. From the Ace Showing to the proximal zone encountered at
depth is 80 meters of intervening, untested lithology. It is possible that these two zones are
related and thus must be tested in this context. This program will do that.
“Until now the Kenora Gold Project has never been explored at any detail with any modern
methods including drilling. Artisanal mining from the 1800’s has left isolated shafts, which
followed superficial surface veins to depth, and some indications of deeper drifts based on our
drilling experience,” says Danniel Oosterman, Canstar’s President and CEO, “The size of the land
package is appreciable within a historic mining camp. As there are numerous indications of gold
bearing structures throughout the intrusion contact areas, the Company has determined that a
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strong understanding of the structural relationship is key to unraveling how mineralization
occurs on the Project.”
The Company’s goal in 2017 is to determine the structure of the intrusion and how it relates to
the host rock contacts throughout the district, as there are numerous superficial gold showings,
and then determine where the more prospective gold bearing structures are likely to be and to
focus and target these areas.
Canstar sees an incredible opportunity to explore a sizeable gold bearing system and potentially
enhance the value of the Kenora Gold Project as the gold system becomes better understood.
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
Contacts:
Danniel J. Oosterman, P. Geo.
President & CEO
Karen Willoughby
Director Corporate Communications
T: 1-866-936-6766
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 managemen t 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 assu mptions 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 Compa ny; and other
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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 reli ance 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.