Canstar Announces Initial Surface Exploration Results from the Golden Baie Project in Newfoundland
220 Bay Street TSX-V: ROX
Suite 550 OTCPK: CSRNF
Toronto, ON M5J 2W4 www.canstarresources.com
Canstar Announces Initial Surface Exploration Results from
the Golden Baie Project in Newfoundland
Highlights
• New grab and channel samples from the Phase I field exploration program from the south end
of the Little River area at the Golden Baie Project confirm historical high-grade gold
mineralization, and have identified new exploration targets;
• Initial channel assays from the first of five trenches at the Kendell Zone include 10.17 g/t gold
over 3.0 metres and 6.20 g/t gold over 5.0 metres (measured thickness);
• Prospecting work near the Kendell Zone identified new zones with gold mineralization,
including the Landing Zone where grab samples from float assayed up to 33 g/t gold;
• Additional assay results from channel samples from the five trenches and samples from
regional prospecting work are pending.
Toronto, Ontario – November 30, 20 20 – CANSTAR RESOURCES INC. (TSXV:ROX &
OTCPK: CSRNF) (“Canstar” or the “Company”) is pleased to announce initial assay results from
the Phase I exploration program on its 62,175 hectare Golden Baie Project (the “Project”) in south-
central Newfoundland (Figure 1). These results include channel sample assays from the first of
five trenches excavated on the Kendell Zone.
The Kendell Zone, located in the central portion of the Golden Baie property, was discovered in
2009. Historic exploration work inclu ded a single trench and four short diamond -drill holes.
Prospecting in 2019 identified additional gold mineralization and grab samples with coarse free
gold assayed up to 4,485 g/t gold. This area is at the southern end of a trend of known gold
mineralization that spans over 30 kilometres (Figure 1), known as the Little River area. 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.
Rob Bruggeman, President & CEO of Canstar, commented: “ We are extremely encouraged by
these preliminary high -grade gold assay results received from Golden Baie. We were able to
accomplish a considerable amount of work in a very short time, which is a testament to our ability
to access and permit work on the project. Our Newfoundland -based team completed five
trenches and extensive prospecting within 2 km of the Kendell Zone , taking over 300 rock grab
samples and over 700 soil samples . The results of this year’s field work along with ongoing
compilation and analysis of historical geochemistry and geophysics data should greatly advance
the Company’s understanding of the property.”
“Golden Baie is a district-scale land package with gold mineralization at surface at over 20
locations along a 30km trend, however, most of the claim block has seen little or no modern
exploration. We see considerable exploration upside over the entire property with excellent
potential for numerous new discoveries.”
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Figure 1 - Golden Baie Project Location, Claims, and Known Mineralized Gold Occurrences
Regional Prospecting
The main objectives of the Phase I program were to understand the structural and lithological
(host rock) parameters controlling gold mineralization at the Kendell Zone, discover additional
gold mineralization in the Little River area, develop exploration tools for future exploration
programs and establish drill targets for Phase II follow up.
Exploration in the condensed 2020 field exploration program focused mainly in and around the
Kendell Zone. Prospecting work in 2019 and 2020 discovered multiple new gold occurrences in
outcrop exposures with visible gold that had not been previously identified.
The Little River area, which comprises the central portion of the Golden Baie claims, continues to
be highly prospective for gold mineralization. Additional sampling by Canstar confirmed and
expanded gold mineralization in float and outcrop a t the Blow Out Zone , where samples have
assayed up to 30 g/t Au. Likewise, prospecting confirmed high grade gold mineralization at the
Landing Zone, where 5 of 10 float assayed over 1 g/t Au, ranging from 11.8 g/t to 33.4 g/t and
averaging 21.1 g/t Au. In all, 290 rock grab samples were collected with assays still pending for
the majority of the samples and with results expected by the end of 2020. In addition, 690 soil
samples were collected and submitted for assay to supplement historic soil geochemical analysis.
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Kendell Zone Trenching
In November Canstar completed five shallow trenches totaling approximately 200 metres at the
Kendell Zone using an excavator. The purpose of the trenching was to better expose the gold
mineralization and host rocks to enable channel sampling and allow for determination of structural
and lithological controls on gold mineralization.
Figure 2 - Little River Area with Mineralized Zones and 2020 Trenches (looking northeast)
Seven saw cut channels were sampled in trench TGB-20-01, which abuts trench TGB -20-02
(Figure 3). Assays from channels D, E, F, and G, which span a strike length of approximately 16
metres, sampled quartz veins hosted within dark grey to black shales. Visible gold was observed
in several channel samples (Figure 4). The channel samples were sent to Eastern Analytical Ltd.
in Springdale, Newfoundland, on an expedited basis and highlight results are shown in Table 1
(inset on Figure 3).
The best results came from channels F and G. C hannel F yielded an average grade of 2.92 g/t
g Au over 11.0 metres, including 6.20 g/t Au over 5.0 metres. Channel G yielded an average
grade of 4.71 g/t Au over 6.7 metres, including 10.17 g/t Au over 3.0 metres (measured width;
true width not known). These initial trench results from the Kendell Prospect confirm the presence
of structurally controlled gold mineralization at surface, both within quartz veins and associated
with disseminated sulphides in surrounding shales. The initial trench results also appear to
confirm the surface expression of mineralization intersected b y four shallow diamond drill holes
by a previous explorer in 2009; historical drill hole LR-09-02 intercepted 4.8 g/t over 3 metres and
drill hole LR -09-01 intercepted 1.7 g/t gold over 2 metres 1. However, those drill intercepts
1 Woods, G., 2010: Second year supplementary and fourth year assessment report on prospecting and geochemical, trenching
and diamond drilling exploration for licences 15458M and 16095M-16096M on claims in the Little River area, southern
Newfoundland. Mountain Lake Resources Incorporated, 125 pages. DNR GeoFile 1M/0763.
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occurred near surface tens of metres away and are not interpreted to be the depth extensions of
mineralization in trench TGB-20-01.
Additional channel samples from trench TGB -20-01 are pending along with assay results for
channel samples from the other four trenches located 200 to 250 metres to the south and east of
trench TGB-20-01.
Figure 3 – Drone Image of Kendell Zone Trenches TGB-20-01 and TGB-20-02
Figure 4- Grab Sample from Trench TGB-20-01 with Visible Gold in Quartz Vein
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QA/QC
All rock samples are collected by company personnel and bagged in the field with a sample tag
for identification. Four standards and two blanks were included in each 100 samples, and
duplicates were taken of roughly every 30 th channel sample. Larger bags of 10-30 samples are
sealed with cable ties and kept secure at a company facility until they are transported direc tly to
the lab by Canstar staff.
All rock samples are analyzed at Eastern Analytical of 403 Little Bay Road, Springdale, NL, a
commercial laboratory that is ISO/IEC 17025 accredited and completely independent of the
Company. For all channel samples and later batches of grab samples Eastern Analytical crushed
and pulverized the entirety of each sample to approximately 95% -150 mesh material. Samples
are analyzed using package Au(Fire assay) @ 30g + ICP -34, gold by fire assay with a 30-gram
nominal sample weight followed by 34 element analysis using a four acid digestion and ICP-OES
analysis; Standards and blanks are included by the lab with every 20 samples for Quality
Assurance/Quality Control purposes.
Qualified Person
Bob Patey, B.Sc. , P.Geo, Senior Geologist 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 is focused on the discovery and development of economic mineral deposits in
Newfoundland and Labrador, Canada. Canstar has an option to acquire a 100% interest in the
Golden Baie Project, a large claim package (over 62,175 hectares) with recently discovered,
multiple outcropping gold occurrences on a major structural trend in south-central Newfoundland.
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 P.Eng., CFA
President & CEO
Email: [email protected]
Phone: 1-416-884-3556
www.canstarresources.com
Forward-Looking Statements
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Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward
looking statements include estimates and statements that describe the Company’s future plans, objectives or goals,
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conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on
information currently available to the Company, the Company provides no assurance that actual results will meet
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cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or
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to, the Company’s objectives, goals or future plans, statements, exploration results, potential mineralization, the
estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations
and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking
information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral
resources to reserves, the inability to complete a feasibility study which recommends a production decision, the
preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental,
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other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes
in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of
projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral
exploration and development industry, an inability to predict and counteract the effects of COVID -19 on the business
of the Company, including but not limited to the effects of COVID -19 on the price of commodities, capital ma rket
conditions, restriction on labour and international travel and supply chains, and those risks set out in the Company’s
public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing
the forward-looking information in this news release are reasonable, undue reliance should not be placed on such
information, which only applies as of the date of this news release, and no assurance can be given that such events
will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise
any forward -looking information, whether as a result of new information, future events or otherwise, other than as
required by law.