Canstar Announces Final 2021 Field Work Results, Commences 2022 Field Season at Golden Baie Project in Newfoundland Four New Gold Targets Identified in 2021 13.1 g/t Au over 1.0 m in Channel Sample and 35.5 g/t Au in Grab Sample at 97 West Target
220 Bay Street TSX-V: ROX
Suite 550 OTCPK: CSRNF
Toronto, ON M5J 2W4 www.canstarresources.com
Canstar Announces Final 2021 Field Work Results, Commences
2022 Field Season at Golden Baie Project in Newfoundland
Four New Gold Targets Identified in 2021
13.1 g/t Au over 1.0 m in Channel Sample and 35.5 g/t Au in Grab Sample at 97 West Target
2022 Fully-funded Exploration Program is Largest Ever on Project
Toronto, Ontario – June 7, 2022 – CANSTAR RESOURCES INC. (TSXV: ROX & OTCPK: CSRNF)
(“Canstar” or the “Company”) is pleased to announce final 2021 exploration results and the
commencement of the 2022 field season on its Golden Baie and Hermitage properties in south-central
Newfoundland. Highlights of the 2021 field program on Golden Baie are provided below.
• Multiple new gold occurrences identified – 2021 prospecting included the collection of more
than 1,600 grab samples, including outcrop samples grading up to 35.5 g/t gold*, located 300
metres (“m”) northeast of the 97 West target, and float/boulder samples grading up to 289.4
g/t gold at Skidder, as previously announced. Sampling in new areas identified four new gold
occurrences, including Train Hill discovery, an anomalous gold zone spanning 800 m by 50 m.
• New drill target generated – Channel sampling from the 97 West target included 11.0 g/t gold
over 1.8 m and 10.7 g/t gold over 0.6 m; the Company expects to drill this target in the fall.
Canstar commenced the 2022 field season in May as part of a fully-funded exploration program with
a full-year budget of approximately $6 million. The primary objectives of the 2022 exploration program
are to:
• Expand high-grade gold mineralization at the Kendell prospect – Canstar drilled 36
diamond drill holes (2,920 m) in 2021 . Notable near-surface intercepts included 9.6 g/t gold
over 7.75 m (GB-21-01) and 11.8 g/t gold over 5.69 m (GB-21-50). An additional 29 diamond
drill holes were completed this past winter with assay results pending. Gold mineralization
remains open in several directions and additional drilling , aimed at extending gold
mineralization, is planned for late summer.
• Identify the source of the 289 g/t gold “Skidder boulder” – An angular boulder containing
visible gold and grading 289 g/t gold was discovered in 2021 approximately 1.2 kilometres
(“km”) north-northeast of the Kendell prospect (see news release dated November 11, 2021).
Based on geophysical data, glaciation studies, and recent till sample results, the Company
believes that this area likely hosts additional structurally-controlled gold prospects. Additional
work is planned to vector in on the source of the Skidder boulder and other grab samples in
order to define an area to be drilled later this summer.
• Conduct maiden exploration on remote claims – The Golden Baie and Hermitage
properties follow major crustal-scale faults and exhibit favourable geology along a strike length
of over 150 km. The more remote claims in the southwest portion of the project have had little
or no historical gold exploration . The Company has begun helicopter-supported grassroots
exploration, which has the potential to extend the current 40 km strike length of anomalous
gold at surface (Figure 1).
* Note that rock grab samples are selective by nature and values reported may not represent the true
grade or style of mineralization across the property.
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Canstar’s VP Exploration Matthieu Lapointe commented: “The Canstar exploration team is very
excited to be back out in the field to find more gold at Golden Baie . We have already dri lled one
significant gold prospect at Kendell, but we know from the preponderance of gold anomalies on the
Golden Baie project that there are likely multiple sources of gold mineralization on our very large claim
block. Our goal is to make additional gold discoveries with the drill bit this year while continuing to
build our inventory of future drill targets.”
Figure 1 – Central portion of Golden Baie claims (red outline) highlighting key gol d occurrences (see Figure 5
for full property outline)
2021 Prospecting Results
Prospecting work in 2021 focused on a combination of infilling this anomalous gold trend and
extending it farther south. As well, prospecting was conducted on the Swanger’s Cove claim block,
which is located to the west of the main Golden Baie claims. A tot al of 1,645 grab samples were
collected and assayed in 2021, and all assays have now been received and analyzed. Four new
significant gold occurrences were identified by prospecting:
1. Train Hill – Prospecting identified an anomalous trend spanning 800 m by 50 m (Figure 2), with
grab samples grading more than 1.0 g/t gold. A soil sampling program was recently completed
on this area and assays are pending.
2. Kendell SW – An outcrop sample grading 6.7 g/t gold and containing acicular arsenopyrite was
collected 1 km SW of the Kendell prospect. Acicular arsenopyrite is frequently associated with
gold mineralization at Golden Baie and often found in the vicinity of gold-bearing quartz veins.
This area also yielded a float sampl e that contained quartz and arsenopyrite in siliceous
sediments and assayed 63.7 g/t gold. Prospecting and tightly -spaced soil sampling are
expected to begin this summer.
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3. Swanger’s Cove – An outcrop sample was collected which graded 2.4 g/t gold and contained
quartz veining and up to 30% sulphides, primarily as pyrrhotite. A till sampling program is
planned for this claim block in the summer.
4. Lazy Man – An outcrop sample was collected which graded 3.5 g/t gold and contained quartz
veining and acicular arsenopyrite hosted in shale . A soil sampling program was recently
completed on this area and assays are pending.
Figure 2 - New Train Hill gold discovery east of Wolf Pond
A total of 578 samples characterized as float or boulders were collected in 2021. The average grade
of these samples was 1.3 g/t gold. The highest grade was 289.4 g/t from the visible -gold bearing
Skidder boulder. Twenty two samples assayed more than 5.0 g/t gold, 48 samples assayed more than
1.0 g/t Au, and 33 samples returned more than 0.5 g/t gold. Table 1 provides highlights of the 2021
grab samples, with newly reported results shown in bold.
Table 1 - Highlights of the 2021 prospecting - new gold in outcrop occurrences shown in bold
Au (g/t) Area Comments Source
289.4 Skidder 100 lbs quartz boulder with visible gold, arsenopyrite and galena. Float
63.7 - South of Bower's Tickle, quartz with arsenopyrite in sileceaous
sediments
Float
35.5 97 West Quartz vein with acicular arsenopyrite Outcrop
34.1 Kendell Mixture of quartz veining and black shale. Outcrop
21.6 - 500m west of Blow Out. Arsenopyrite-bearing sediments. Float
19.7 - 1km south of Wolf Pond. Boulder with acicular arsenopyrite and
stibnite
Float
18.5 97 West Grey silicified sediments with arsenopyrite Subcrop
17.0 Skidder Rusty quartz vein with rusty weathering Float
13.7 97 West Quartz vein with arsenopyrite hosted in fine grained sediments Outcrop
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12.9 97 West Grey silicified sediments with arsenopyrite Outcrop
10.2 Heart Hill Rusty quartz, angular Float
10.0 Skidder Angular boulder comprised of quartz veining hosted in shale Float
7.8 38 West Quartz vein with arsenopyrite and antimony Outcrop
6.7 - 1km SW of Kendell. Rusty quartz with acicular arsenopyrite Outcrop
6.5 Skidder Quartz veining in shale with arsenopyrite and pyrite Float
4.5 Wolf Pond Quartz vein in volcanics, arsenopyrite and pyrite Outcrop
4.2 Mothers Hill Quartz with pyrite and arsenopyrite Float
3.5 Lazyman Quartz veining hosted in shale with acicular arsenopyrite Outcrop
2.9 Hillside Brecciated siltstone and sandstone with acicular arsenopyrite Float
2.4 Swangers
Cove
Quartz veining, up to 30% sulphides, primarily pyrrhotite Outcrop
2.4 Mothers Hill Quartz with pyrite and arsenopyrite in volcanics Outcrop
1.9 Hillside Silicified grey, siltstone, locally disseminated arsenopyrite Outcrop
1.5 Train Hill Quartz vein hosted in shale with acicular arsenopyrite Outcrop
An additional 1,067 samples from outcrop and subcrop were collected in 2021. The average grade of
these samples was 0.3 g/t gold. The highest grading outcrop sample returned 35.5 g/t gold and is
located ~300 m NE of the 97 West target. Twelve samples graded more than 5.0 g/t Au, 51 samples
graded more than 1.0 g/t gold and 37 samples contained more than 0.5 g/t gold.
2021 Trenching and Channel Sampling Results
In 2021, the Company completed trenching on the 97 West, 90 West, Northbrush, Hillside and Blow
Out targets (Figures 3 & 4 ). A total of 230 m of channel samples were collected from the trench
exposures. Highlights from the channel results are reported in Table 2.
Figure 3 – 97 West Trench 1 (viewed from above) with locations of grab and channel samples
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Figure 4 – 97 West Trench 3 (viewed from above) with locations of grab and channel samples
The best channel results were from the 97 West target area and, more specifically, from the 97W-21-
TR01 trench. Gold mineralization grading in excess of 10.0 g/t was encountered in two channel
samples from this trench and highlights the potential for the 97 West target to host high -grade
mineralization. Like many of the occurr ences at Golden Baie, gold mineralization at 97 West is
associated with complex quartz vein arrays, silicification of wall rocks and disseminations of pyrite and
arsenopyrite.
Table 2 - Highlights of 2021 channel sampling
Channel ID From To Length Au (g/t) Area
97W-21-TR01-N 0.0 1.0 1.0 13.1 97 West
97W-21-TR01-E 0.0 0.6 0.6 10.7 97 West
97W-21-TR03-C 0.0 1.0 1.0 5.8 97 West
97W-21-TR03-A 0.0 2.3 2.3 1.7 97 West
97W-21-TR01-P 0.0 0.6 0.6 1.2 97 West
97W-21-TR04-B 0.0 1.5 1.5 1.4 97 West
97W-21-TR10-E 5.9 6.8 1.0 1.9 97 West
97W-21-TR10-F 0.0 1.0 1.0 1.0 97 West
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2022 Exploration Plans
Canstar has budgeted approximately $6 million for the 2022 exploration program, which is more than
double the exploration budget for 2021. Work is already well underwa y, with a winter drill program
successfully completed on the Kendell prospect in February -March and soil sampling programs
completed on the Train Hill and Lazy Man targets in April.
Regional Exploration
The regular field season commenced in early May with helicopter -supported programs on the
Hermitage property and SW Golden Baie licenses (Figure 5). The Hermitage and SW Golden Baie
claim blocks are situated along major crustal -scale faults known as the Hermi tage Flexure and Day
Cove Thrust, respectively. These remote areas have undergone very little exploration, which was
primarily for uranium and base metals. Canstar is currently completing systematic mapping transects,
prospecting, and stream sediment sampling along the 45 km strike length of the Hermitage property
and the 35 km strike length of SW Golden Baie.
In combination with the helicopter-based activities, the Company currently has field crews prospecting
and till sampling on the Swanger’s Cove property and in the NE Golden Baie area. Both till sampling
programs are reconnaissance in nature , with stations spaced at 500 m intervals along lines spaced
500 m or 1,000 m apart. All till samples will be processed for gold grain characterization by Overburden
Drilling Management Limited of Nepean, Ontario.
Drill Target Generation
In early July, the company intends to focus its exploration efforts on the prospective central Golden
Baie area (Figure 6), which has excellent access due to the nearby Baie d’Espoir highway. Planned
work includes follow up prospecting and potentially scout drilling with a power auger and trenching on
Figure 5 - Canstar claim blocks (red outline) along Day Cove Thrust and Hermitage Flexure in southcentral
Newfoundland, with simplified geology and Baie d’Espoir Highway (Route 360)
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the newly discovered SW Kendell target as well as the Skidder area. To advance its drill targets, the
Company is planning to acquire up to 10 line-kilometres of Induced Polarization (“IP”) on the Kendell,
Skidder and 97 West targets. The IP/resistivity data are expected to aid in delineating zones of
sulphide enrichment and silicification. The company also intends to acquire Optical and/or Acoustic
Televiewer (ATV/OTV) data from select 2021 and 2022 drill holes to gain a better understanding of
the veining orientations associated with the gold mineralized zones.
Reconnaissance Drilling in the Skidder Area
The Skidder target is located approximately 1.2 kilometres north-northeast of the Company’s Kendell
prospect and appears to have a similar style of orogenic gold mineralization. Rock sampling in the
target area has defined a 500 m by 400 m gold anomaly with outcrop samples containing up to 30.3
g/t gold. Multiple anomalous float rock samples were also found in this area, generally assaying
between 1 g/t and 10 g/t gold, and visible gold was noted in two float rocks which assayed 21.7 g/t
gold and 289.4 g/t gold. The latter sample is referred to as the “Skidder boulder” and it is likely to have
a nearby bedrock source, based on till analysis and an understanding of regional glaciation. The area
is mostly covered by till, and systematic drilling is planned with the aim of locating the source of the
Skidder boulder. The exact area to be drilled will be defined once the results of the additional till
sampling and aforementioned IP survey have been received and analyzed.
Figure 6 - Golden Baie exploration focus area
Kendell Prospect Drilling
Winter drilling results from the Kendell prospect are pending. High -grade gold mineralization was
trenched and sampled in 2020 and 2021, with two subsequent rounds o f diamond drilling completed
to follow the orogenic style of gold mineralization identified in the trenches. Gold mineralization
typically occurs between two graphitic shale units that dip at a shallow angle to the northwest (down-
dip). To date, gold min eralization has been defined for 75 m along strike and approximately 200 m
down-dip. The Company believes that gold mineralization at Kendell is open in several directions and
plans to conduct additional drilling this fall, with the potential to extend the gold mineralized zone.
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QA/QC:
All 2021 drilling was of NQ-sized drill core. Core samples were split with a diamond saw and half-core
retained for further study after being detail logged and photographed. Samples are collected by
company personnel and shipped to Eastern Analytical of 403 Little Bay Road, Springdale, NL .
Samples are analyzed for gold using fire assay (30g) with AA finish and an ICP-34, four acid digestion
followed by ICP-OES analysis for 34 additional elements. Metallic screening is being used for samples
with visible gold and all samples with initial fire assays over 1 g/t Au.
Beginning in 2022, samples are sent to SGS Labs, Lakefield, ON for preparation of assay pulps. Gold
analysis is completed in th e SGS Labs, Burnaby, BC with a 30 g fire assay and AAS finish (code
GE_FAA30V5). Samples returning >1 g/t Au are re -assayed with a gravimetric finish (code GO -
FAG30V). Mineralized zones with visible gold are also analyzed by a 500 g screen fire assay with
screening to 106 microns (code GO-FAS30M).
Soils are dried at a secure company facility and will be processed at SGS Labs using the
GE_FAM50V5 assay method for gold (1-2,000 ppb Au detection) and the GE-IMS21B20 method, an
ICP-MS analysis that captures 37 elements including trace level detection of pathfinders such as, Sb
and W.
Canstar's QAQC program utilizes four commercially available reference standards, blanks and
duplicate samples to ensure data quality. In addition, duplicates of selected sam ples are being sent
to a second laboratory as check assays.
Qualified Person
Matthieu Lapointe, B.Sc., P.Geo, Vice President Exploration of Canstar, and a Qualified Person as
defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects, is responsible
for the scientific and technical data presented herein and has reviewed and approved this release.
About Canstar Resources Inc.
Canstar Resources has a very experienced technical team and board who are focused on new mineral
discoveries in Newfoundland, Canada. Central Newfoundland has emerged as one of the most
exciting gold exploration districts due to recent high -grade orogenic gold discoveries along crustal
scale fault corridors. The Company’s flagship Golden Baie project, comprised of 774 km2 of claims in
south-central Newfoundland, has multiple high-grade gold anomalies at surface along 40 km of strike.
The Company also holds the Buchans-Mary March project and other mineral exploration properties in
Newfoundland. Canstar Resources is based in Toronto, Canada, and is listed on the TSX Venture
Exchange under the symbol ROX and trades on the OTCPK under the symbol CSRNF.
For further information, please contact:
Rob Bruggeman, President & CEO
Email: [email protected]
Phone: 1-647-247-8715
Website: www.canstarresources.com
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.