Canstar Drills 20.6 g/t Gold over 3.5 Metres at Kendell Prospect; Extends Mineralization Downdip by 80% to 180 Metres Includes 58.2 g/t Over 1.1 Metres
220 Bay Street TSX-V: ROX
Suite 550 OTCPK: CSRNF
Toronto, ON M5J 2W4 www.canstarresources.com
Canstar Drills 20.6 g/t Gold over 3.5 Metres at Kendell Prospect;
Extends Mineralization Downdip by 80% to 180 Metres
Includes 58.2 g/t Over 1.1 Metres
Toronto, Ontario – July 5, 2022 – CANSTAR RESOURCES INC. (TSXV: ROX & OTCPK: CSRNF)
(“Canstar” or the “Company”) is pleased to announce new assay results for diamond drilling at the
Kendell prospect on its Golden Baie property in south-central Newfoundland. Drilling took place in
February and March 2022 and consisted of 2,907 metres (“m”) in 39 holes. Notable drill intercepts
are provided in Table 1 and full results are in Table 2 at the end of this release.
Table 1 - Notable intercepts from the 2022 Kendell prospect winter drill program
Hole ID From (m) To (m) Length (m) Au (g/t)
GB-22-64 34.0 36.0 2.0 9.5
GB-22-65 34.6 37.6 3.0 6.2
GB-22-72 28.4 34.4 6.0 6.7
inc. 30.4 31.4 1.0 15.2
inc. 33.4 34.4 1.0 13.3
GB-22-74 14.0 17.7 3.7 2.5
and 27.7 31.0 3.4 5.1
GB-22-92 52.5 56.1 3.6 6.1
inc. 55.7 56.1 0.4 44.9
GB-22-93 46.9 50.0 3.1 4.3
GB-22-94 47.0 50.5 3.5 20.6
inc. 47.8 48.9 1.1 58.2
GB-22-96 36.4 39.4 3.0 11.0
and 42.4 46.0 3.6 3.0
GB-22-97 34.0 43.0 9.0 4.3
inc. 42.0 43.0 1.0 15.1
Notes:
1. All intersections are downhole length as there is insufficient information to calculate true width.
2. Reported grades have not been capped.
Matthieu Lapointe, Vice President of Exploration for Canstar, commented: “This was the Company’s
first winter drill program on the Golden Baie project and we are very pleased with how the program
was executed and also with the assay results. Gold mineralization was significantly extended downdip
and we encountered the thickest auriferous quartz vein drilled yet in hole GB-22-94. We believe gold
mineralization remains open to the northwest and southwest. Additional drilling is planned for this fall
after downhole Acoustic/Optical Televiewer work has been done, further advancing our understanding
of vein orientation.”
Gold Mineralization at Kendell Extended at Depth and Along Strike
The 2022 winter drill program at the Kendell prospect was designed to test the continuity of gold
mineralization downdip to the northwest and along strike to the northeast and southwest of the
previously-drilled mineralized intercepts (Figure 1). The best mineralized intercepts in the 2021 drilling
2
program a ppear to follow a structure, interpreted from ground magnetics, that strikes northwest-
southeast and dips gently in that direction. Gold mineralization was generally in the form of fine grains
in centimetre -scale quartz veins with additional gold minerali zation associated with arsenopyrite
and/or stibnite in the adjacent wall rocks. Mineralized intercepts are focused in the hanging wall of a
sheared black shale horizon (Figure 2).
Figure 1 - Plan map of the Kendell prospect showing 2021 and 2022 drill collars and mineralized intercepts
Figure 2 - Vertical section A-A' of the Kendell prospect based on 2021 and 2022 drilling (looking northeast)
The 2022 Kendell drill results successfully extended gold mineralization downdip to the northwest.
Hole GB-22-92 intersected 6.1 g/t gold over 3.6 m at a downhole depth of 52.5 m, including 44.9 g/t
over 0.4 m. This intercept is approximately 80 m downdip of hole GB-21-53, which intersected 12.2
g/t gold over 3.9 m , extending the total known downdip length of gold mineralization at the Kendell
prospect to approximately 180 m. The best intercept in the 2022 winter drill program was in hole GB-
22 92
nc. .9 t u o er 0. m
22 93
.3 t u o er 3. m
22 97
nc. . t u o er .0m
22 9
nd 3. t u o er 3.0m
2 3
2 0
endell Trench
Channel M:
2
22
22 72
22
22 73
.7 t u o er 3.0m
2 03
2 2
2 22
2 0
22 9
nc. .2 t u o er . m
3
22-94, which intersected 20.6 g/t gold over 3.5 m, including 58.2 g/t over 1.1 m in the thickest quartz
vein encountered in drilling to date. Due to its gentle dip, gold mineralization remains shallow. Hole
GB-22-95, which was oriented to the northwest to test downdip of hole GB -22-94, did not intersect
significant mineralization. Hole GB-22-95 may not have been drilled at the optimal orientation and
possibly deviated from the target horizon. The Company intends to obtain a higher precision bore hole
survey of GB-22-95 during the planned Televiewer work.
Winter drilling at Kendell also extended gold mineralization along strike to the southwest. Hole GB -
22-64 intersected 9.5 g/t gold over 2.0 m and hole GB-22-72 intersected 6.7 g/t gold over 6.0 m
approximately 10 m southwest of previously-drilled intercepts. Gold mineralization remains open
along strike to the southwest. Drilling to the northeast, approximately 10 m from previous intercepts,
did not return significant gold mineralization. Downhole televiewer work is expected to provide
additional information on the orientation of mineralized quartz veins, which will enhance the
understanding of the mineralization and optimize the azimuth for future drilling.
A thick quartz vein encountered in hole GB-22-94 (Figure 3) suggests the potential for broader zones
of high grade gold mineralization where structures opened up through progressive deformation during
orogenesis.
Figure 3 - Drill core from GB -22-94 with large quartz vein starting at downhole depth of 47.8 m (visible gold
within red circles)
4
Gold mineralization may be related to a lithological contact between the Isle Galet formation
sedimentary rocks and black shales of the Riches Island formation (Figure 4), which also corresponds
with a trend of anomalous till sample and grab sample results (see news release dated May 4, 2022).
Multiple regional faults striking northeast-southwest, parallel to the Day Cove Thrust, are believed to
exist on the Golden Baie property and these regional faults may be important controlling structures
for orogenic gold mineralization, as seen in other recent gold discoveries in central Newfoundland.
Figure 4 – Plan map of the Kendell prospect area showing interpreted faults, lithologies and select gold
anomalies in grab samples and till samples
Gold Association with Arsenic and Antimony
The 75 diamond drill holes completed to date at the Kendell prospect in 2021 and 2022 indicate a very
strong correlation between gold mineralization and arsenic and antimony. The gold-arsenic-antimony
association is a well-defined hallmark of world-class gold producers such as the Fosterville, Bendigo
and Ballarat mines of the Victorian Goldfields. The Golden Baie property has numerous areas with
significant arsenic and antimony anomalies based on soil geochemistry (Figure 5), which are priority
areas for regional exploration. The size and extent of these anomalies , combined with multiple rock
samples with anomalous gold spanning a strike length of 40 km, indicate the potential for multiple gold
mineralized structures on the district-scale Golden Baie property.
Additional soil sampling is planned for multiple locations on the Golden Baie project in 2022 to infill
areas that have not been sampled or have historic soil samples with only gold assay data.
5
Figure 5 – Significant gold-arsenic-antimony anomalies on the Golden Baie project based on soil samples
QA/QC:
All 2021 and 2022 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. 2022 drill core samples
were collected by company personnel and shipped to SGS Labs, Lakefield, ON for preparation of
assay pulps. Gold analysis is completed in the 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 samples 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.
6
Table 2 - Kendell prospect 2022 winter drilling assay results
Hole ID From (m) To (m) Length (m) Au (g/t)
GB-22-63 18.5 22.5 4.0 0.5
GB-22-64 34.0 36.0 2.0 9.5
GB-22-65 20.1 25.0 5.0 1.0
and 34.6 37.6 3.0 6.2
GB-22-66 NSR
GB-22-67 6.0 6.5 0.5 5.7
GB-22-68 7.0 9.0 2.0 2.6
GB-22-69 NSR
GB-22-70 NSR
GB-22-71 NSR
GB-22-72 15.4 17.4 2.0 2.1
and 28.4 34.4 6.0 6.7
inc. 30.4 31.4 1.0 15.2
inc. 33.4 34.4 1.0 13.3
GB-22-73 14.0 17.0 3.0 4.7
and 27.0 36.0 9.0 0.5
GB-22-74 14.0 17.7 3.7 2.5
and 27.7 31.0 3.4 5.1
GB-22-75 16.0 18.0 2.0 0.5
GB-22-76 15.9 17.9 2.0 0.7
GB-22-77 19.0 20.0 1.0 2.2
GB-22-78 18.0 18.9 0.9 1.6
GB-22-79 NSR
GB-22-80 NSR
GB-22-81 7.0 21.3 14.3 0.3
GB-22-82 5.5 23.5 18.0 0.2
GB-22-83 15.5 16.0 0.5 7.6
GB-22-84 NSR
GB-22-85 8.0 19.6 11.6 0.2
GB-22-86 7.5 16.0 8.5 0.3
GB-22-87 9.0 13.0 4.0 0.7
GB-22-88 3.0 16.5 13.5 0.2
GB-22-89 2.0 14.0 12.0 0.2
GB-22-90 9.5 11.6 2.1 2.4
GB-22-91 9.0 10.0 1.0 1.7
GB-22-92 52.5 56.1 3.6 6.1
inc. 55.7 56.1 0.4 44.9
and 61.6 64.2 2.6 1.5
GB-22-93 46.9 50.0 3.1 4.3
GB-22-94 47.0 50.5 3.5 20.6
inc. 47.8 48.9 1.1 58.2
and 55.0 56.0 1.0 2.6
GB-22-95 NSR
7
GB-22-96 36.4 39.4 3.0 11.0
and 42.4 46.0 3.6 3.0
GB-22-97 34.0 43.0 9.0 4.3
inc. 42.0 43.0 1.0 15.1
and 45.0 46.9 1.9 1.7
GB-22-98 NSR
GB-22-99 NSR
GB-22-100 27.0 28.5 1.5 0.5
and 53.0 54.0 1.0 0.6
GB-22-101 56.0 57.0 1.0 0.6
Table 3 - Kendell prospect 2022 winter drilling collar locations and drill hole details
Hole Location
Easting
NAD83
Northing
NAD83 Azimuth Dip
Total
Length (m)
GB-22-63 Kendell 596807 5298139 135 -46 91
GB-22-64 Kendell 596807 5298139 136 -65 82
GB-22-65 Kendell 596807 5298139 127 -83 82
GB-22-66 Kendell 596844 5298105 135 -46 52
GB-22-67 Kendell 596844 5298105 132 -64 52
GB-22-68 Kendell 596844 5298105 121 -84 55
GB-22-69 Kendell 596841 5298099 93 -45 52
GB-22-70 Kendell 596841 5298099 100 -59 0
GB-22-71 Kendell 596841 5298099 99 -69 52
GB-22-72 Kendell 596828 5298116 108 -69 67
GB-22-73 Kendell 596828 5298116 90 -54 61
GB-22-74 Kendell 596828 5298116 91 -45 61
GB-22-75 Kendell 596826 5298120 128 -45 70
GB-22-76 Kendell 596826 5298120 129 -65 70
GB-22-77 Kendell 596826 5298120 118 -84 70
GB-22-78 Kendell 596806 5298125 131 -66 136
GB-22-79 Kendell 596806 5298125 132 -44 100
GB-22-80 Kendell 596806 5298125 136 -84 85
GB-22-81 Kendell 596885 5298118 130 -75 52
GB-22-82 Kendell 596885 5298118 134 -60 40
GB-22-83 Kendell 596885 5298118 135 -44 40
GB-22-84 Kendell 596894 5298131 128 -84 40
GB-22-85 Kendell 596894 5298131 129 -65 40
GB-22-86 Kendell 596894 5298131 130 -44 61
GB-22-87 Kendell 596908 5298118 137 -66 62.5
GB-22-88 Kendell 596908 5298118 137 -45 43
GB-22-89 Kendell 596900 5298111 140 -85 37
GB-22-90 Kendell 596900 5298111 133 -66 40
GB-22-91 Kendell 596900 5298111 137 -47 40
GB-22-92 Kendell 596768 5298190 140 -85 157
8
GB-22-93 Kendell 596768 5298190 134 -70 121
GB-22-94 Kendell 596768 5298190 132 -56 115
GB-22-95 Kendell 596768 5298190 311 -54 163
GB-22-96 Kendell 596788 5298173 130 -52 79
GB-22-97 Kendell 596788 5298173 129 -70 112
GB-22-98 Kendell 596808 5298180 132 -50 91
GB-22-99 Kendell 596809 5298180 128 -70 100
GB-22-100 Kendell 596783 5298145 131 -76 100
GB-22-101 Kendell 596820 5298167 131 -64 82
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 fla ship olden aie project, comprised of 77 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 Servic es 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" which are not comprised of historical f acts.
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 sta tements 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 their very natu re 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, uncertainties
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 information 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 commencemen t 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