Canstar Discovers New High-Grade Gold Occurrence and Provides Exploration Activities Update
220 Bay Street TSX-V: ROX
Suite 550 OTCPK: CSRNF
Toronto, ON M5J 2W4 www.canstarresources.com
Canstar Discovers New High-Grade Gold Occurrence and Provides
Exploration Activities Update
Toronto, Ontario – December 13, 2022 – CANSTAR RESOURCES INC. (TSXV: ROX & OTCPK:
CSRNF) (“Canstar” or the “Company”) is pleased to provide an update on the ongoing exploration
programs at its properties in southcentral Newfoundland . The diamond drilling program that
commenced in mid -September is ongoing and expected to be completed at the end of this week.
Assay results are pending from more than 50 drill holes in approximately 6,200 metres (“m”) worth of
drilling at the Kendell prospect and targets at Hillside-Skidder, 97 West, Golden Eye, Northbrush and
Wolf Pond (Figures 1 & 2).
Highlights:
• A new high-grade gold discovery was made on the claims near Facheaux Bay, located 43
kilometres (“km”) southwest of the Kendell prospect (Figure 1). Outcrop grab samples collected
from arsenopyrite-bearing quartz veining hosted in sedimentary rocks assayed 18.4 grams per
tonne (“g/t”) and 13.7 g/t gold.
• Gold assays of 197.0 g/t, 45.6 g/t and 29.6 g/t were returned from separate channel cut samples
that were 0.5 m long and collected from a recently discovered, ~2 m wide quartz-veined and
silicified float boulder that contains abundant fine grained visible gold (see photo 1). The boulder
is located 325 m east of the Blow Out target with the bedrock source yet to be determined.
• Channel samples from a new trench at 97 West returned 3.3 g/t gold over 5 m , including 18.0
g/t gold over 0.7 m.
• Several new target areas were identified in areas with no previous trenching or drilling . Rock
grab samples from a mineralized trend located 1.8 km southwest of the Kendell prospect
assayed up to 6.1 g/t gold in outcrop and 5.3 g/t gold in float. A newly identified target area 1.1
km south of Wolf Pond yielded quartz vein float samples over an area 350 m long along strike
that returned gold assays of 19.7 g/t, 11.8 g/t, 4.4 g/t, and 4.2 g/t (Figure 2).
Readers are advised that rock grab samples are selective by nature and values reported may
not represent the true grade or style of mineralization across the property.
• On the Hermitage property, the Company identified elevated concentrations of tantalum (Ta),
tungsten (W), and ytterbium (Yb) from stream sediment concentrates. These elements suggest
that there is the potential for the Hermitage property to host Lithium -Cesium-Tantalum (LCT)-
type pe gmatite mineralization. Results are pending for subset of rock samples analyzed for
lithium-cesium-tantalum and associated pathfinders.
Matthieu Lapointe, VP Exploration of Canstar, commented: “Our exploration team has made
immense progress this year on two fronts. The team, which was expanded this year, conduct ed
exploration work along key trends across the vast 939 km 2 mineral claim package and was
successful in making several new gold discoveries , the most notable being at Facheaux Bay. In
addition, we have made great strides in how we convert mineral occurrences to drill targets, which
is done using geophysics (LiDAR, mag, and IP) and g eochemical sampling (rock, till, and trench
channel sampling). Glaciation and the resulting till cover make pinpointing the sources of gold
mineralization more challenging. However, we are confident that our systematic and efficient data-
centric approach will lead to new gold discoveries with the drill. The continued discovery of boulders
with visible gold confirms that there is high-grade mineralization in the vicinity and we believe that
it is just a matter of time until we locate the source through drilling.”
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2022 Exploration Program Update
The 2022 exploration program on the Golden Baie and Hermitage properties has been extensive
and productive. The Company estimates that approximately $5.5 million will be spent on
exploration activities this year. These expenditures have funded grass roots regional exploration,
as well as drill target generation and diamond drilling.
Fall 2022 Drill Program
As of December 12th, a total of 9,093 m of drilling in 92 diamond drill holes has been completed
during the 2022 season. Assay results from the winter drill program on the Kendell prospect (2,907
m in 39 holes) were announced on July 5, 2022, and extended high grade gold mineralization for
a total of 180 m downdip. A fall drill program commenced in September 2022 and expanded drill
testing of the Kendell prospect as well as multiple other targets along an area which extends for
approximately 10 km along strike to the northeast and has multiple surface gold anomalies.
Drilling is ongoing and expected to be completed at the end of this week. Since September, more
than 50 holes totaling over 6,000 metres have been drilled at the Kendell prospect and target areas
at Hillside-Skidder, 97 West, Golden Eye, Northbrush and Wolf Pond. The Company expects to
announce assay results early in the new year, once results have been received and interpreted.
Regional Exploration
Many of the mineral claims on the vast 939 km2 land package held by Canstar have had little or no
prior gold exploration work. Extensive grass roots exploration work was completed throughout
2022, including helicopter -supported work on more remote mineral claims with no road access.
Approximately 2,300 grab samples, 600 m of channel samples, 2, 200 soil samples, 38 stream
sediment samples and 410 till samples have been collected during the 2022 field season. Results
will be released once compiled and interpreted for each target area.
Figure 1 - Mineral claim licenses, totaling 939 km2, held by Canstar in south-central Newfoundland
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Figure 2 - Plan map of Golden Baie central claims with some of the significant results to date. Results
in bold text are from 2022 season.
2022 Exploration Program Discussion
Facheux Bay – Hermitage Flexure
In the spring and summer of 2022, Canstar completed helicopter -supported prospecting, stream
sediment sampling and channel sampling on the Hermitage and Facheux Bay claim areas. These
claims are located from 45 to 80 km west-southwest of the core licenses comprising the Golden Baie
property. No modern exploration has taken place in these regions aside from regional-scale mapping
and base metal prospecting in the 1980s.
Prospecting and reconnaissance mapping by Canstar on the Facheux Bay property has led to a newly
discovered zone of quart z veining with associated arsenopyrite hosted in fine grained sediment ary
rocks, similar to those that host the Kendell gold mineralization. Outcrop sampling of this zone has
delineated a gold trend with grades exceeding 1.0 g/t that strikes northeast-southwest for over 600 m
and has samples grading up to 18.4 g/t gold (Figure 3 and Table 1). The mineralization remains fully
open along a northeast-southwest trend with follow up prospecting required.
Systematic prospecting and mapping traverses across the Hermitage property this year did not reveal
any significant gold results . However, the Company identified elevated concentrations of tantalum
(Ta), tungsten (W), ytterbium (Yb), uranium (U) and thorium (Th) from instrumental neutron activation
analysis (“ INAA”) of the stream sediment concentrates. These incompatible elements are often
associated with highly evolved felsic systems and suggest that there is potential for the Hermitage
property to host Lithium-Cesium-Tantalum (LCT) -type pegmatite mineralization. Results are pending
for a subset of rock samples analyzed for lithium -cesium-tantalum and associated pathfinders.
Lithium-bearing pegmatite dykes have recently been discovered along the Hermitage Flexure by other
exploration companies in Newfoundland.
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Figure 3 - Plan map of Facheaux Bay discovery areas with notable grab sample results.
Gold Boulder Discovery
In 2020, a one- to two -
tonne boulder of quartz
with inclusions of shaley
wall rock was discovered
325 m east of the Blow
Out drill target (Photo 1).
A grab sample of the
boulder returned a grade if
36.1 g/t gold (see news
release dated Dec. 8,
2020). In the summer of
2022, Canstar collected
three 0.5 m long channel
samples from this boulder
with all of the samples
containing fine grained
visible gold. The channel
samples assayed 197.0
g/t, 45.6 g/t, and 29.6 g/t
gold. The o verburden
which blankets the area
precludes the ability to
easily identify the bedrock
source of this boulder. To vector back to the source , the Company has collected closely spaced till
samples in an ‘up-ice’ direction from the boulder at East Blow Out (Figure 4). The till samples have
been sent to Overburden Drilling Management (“ ODM”) for processing to determine the total gold
Photo 1 - East Blow Out visible gold-bearing boulder.
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grains and characterize the gold grains based on their shape. This information will be used to assess
the proximity of potential local bedrock gold sources.
Figure 4 - Map with sample locations relative to Blow Out drilling area. Include s locations of new till
samples collected up-ice of the boulder at East Blow Out.
New Magnetic and VLF Airborne Surveys
The Company recently initiated a 1,900 line -kilometer airborne survey using GoldSpot’s Multi-
Parameter Airborne Survey System (M-PASS). The gradient magnetic/VLF survey will be acquired at
a 50 m -line spacing over the Facheux Bay discovery area as well as the corridor from Kendell to
southern Wolf Pond where GoldSpot and Canstar have identified several high priority targets (Figure
5). The closely-spaced survey will aid with the interpretation of this year’s exploration and drilling
results and also advance the Company’s understanding of local geology and structural controls on
mineralization.
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Figure 5 - Map of GoldSpot high priority targets areas and polygons representing MPASS survey
areas.
Table 1 - Summary of assay results reported in this news release.
Area Sample ID Gold (g/t) Sb (ppm) Easting
(NAD83)
Northing
(NAD83) Sample Type
2166 13.7 215 556054 5282218 Grab - outcrop
2401 18.4 47 556320 5282331 Grab - outcrop
3284 5.8 29 556532 5282471 Grab - float
2403 5.1 91 556404 5282197 Grab - float
1916 4.1 11 556299 5282322 Grab - outcrop
D00342851 1.5 54 556640 5282449 Grab - outcrop
1879 1.2 23 560695 5284305 Grab - outcrop
2452 1.3 11 555590 5281948 Grab - outcrop
D00340171 29.6 50 598450 5299749 0.5m long channel in boulder
D00340172 197.0 186 598450 5299749 0.5m long channel in boulder
D00340173 45.6 78 598450 5299749 0.5m long channel in boulder
1648 19.7 3900 607129 5306901 Grab - boulder
1649 11.8 22200 607130 5306902 Grab - boulder
2364 4.3 >10000 607086 5306765 Grab - float
2266 4.3 4482 606978 5306763 Grab - float
2410 4.4 317 606920 5306719 Grab - float
1652 4.2 5 607106 5306999 Grab - float
22 West 869359 21.5 42 604957 5305647 Grab - outcrop
D00342537 6.1 123 595930 5296518 Grab - outcrop
D00342538 5.3 108 595896 5296489 Grab - float
97 West D00342937 18.9 - 599118 5301168 0.7m long channel in trench
Facheux Bay
Wood Cutter
Blow Out East
Kendell SW
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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.
QA/QC
All 2022 drilling is NQ-sized drill core. Core samples are split with a diamond saw and half -core
retained for further study after being detail logged and photographed. Core and rock s amples are
submitted to SGS Canada Inc. in Grand Falls-Windsor, Newfoundland for preparation and then sent
to SGS Canada Inc. analytical laboratory in Burnaby, British Columbia. Samples are assayed using a
30 g fire assay with AAS finish (SGS code GO_FAA30V10). Samples with visible gold are assayed
using a screen metallic method (SGS code GO_FAS30K). All rock samples returning >1 g/t Au are
reanalyzed using screen metallic method (SGS code GO_FAS30M). Additional geochemical data (34
element) are acquired using a aqua regia digest with ICP finish (SGS code GE_ICP21B20).
Canstar's QAQC program utilizes commercially available reference s tandards, blanks and duplicate
samples to ensure data quality. In addition, duplicates of selected samples are being sent to a second
laboratory as check assays.
Acknowledgements
Canstar wishes to acknowledge the financial support of the 202 2 exploration program through the
Junior Exploration Assistance Program from the Department of Natural Resources, Government of
Newfoundland and Labrador.
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 is focused on gold exploration on 939 km2 of mineral claim licenses
in south-central Newfoundland, including the Golden Baie project which has multiple high-grade gold
anomalies at surface along 40 km of strike and near-surface drilling confirming the presence of high-
grade orogenic gold . The Company also holds the Buchans -Mary March project in central
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 Serv ices Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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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, 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 the ir 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 management’s expectations. Risks, uncertain ties
and other factors involved with forward -looking information could cause actual events, results, performance,
prospects and opportunities to differ materially from those expressed or implied by such forward -looking
information. Forward looking informat ion in this news release includes, but is not limited 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, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate
First Nations and 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 i nability 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 market 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 revi se any forward -looking
information, whether as a result of new information, future events or otherwise, other than as required by law.