Canstar Exploration Update – New Till Sample Returns 1,049 Gold Grains at the Golden Baie Project
220 Bay Street TSX-V: ROX
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Canstar Exploration Update – New Till Sample Returns 1,049 Gold
Grains at the Golden Baie Project
Toronto, Ontario – August 30, 2022 – CANSTAR RESOURCES INC. (TSXV: ROX & OTCPK:
CSRNF) (“Canstar” or the “Company”) is pleased to provide an update on gold exploration work on
its properties in south-central Newfoundland. Since completing a successful winter drill program on
the Kendell prospect in March, the Company’s exploration team has been focused on regional
exploration and drill target generation on the Hermitage, Swangers Cove and Golden Baie claim
blocks (Figure 1).
As of the end of July, approximately 42 stream sediment samples, 1,541 soil samples, 348 till samples,
and 1,386 rock grab samples have been collected and submitted for assaying. The Company has also
recently completed 11 trenches, and 10 line-kilometres of IP surveying as part of the ongoing ~$6M
2022 exploration program . The majority of assays remain outstanding , but early results are
encouraging and include till sample T5926 from the Golden Baie project that contained 1,049 gold
grains (Figure 2), which is highly anomalous. This till sample was collected approximately 20 metres
northeast of the previously-reported till sample containing 502 gold grains (see news release dated
May 4, 2022), making this emerging trend one of the top targets for drilling later this year.
Figure 1 – Mineral claim licenses held by Canstar in south-central Newfoundland, totaling 939 km2
Matthieu Lapointe, Vice President of Exploration for Canstar, commented: “ The Company has
amassed a very large mineral claim package at the south end of the highly prospective central
Newfoundland gold belt. One of the reasons that there has been little historical exploration on these
claims is the extensive glacial till cover. Our work to date is confirming that airborne geophysics and
LiDAR are good targeting tools for establishing the regional structures and that soil and till sampling
are very efficient methods for identifying anomalous areas within these structural corridors. The case
in point is the Little River Trend in the central portion of the Golden Baie property (Figure 3), where
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follow-up work on soil and till anomalies yielded a till sample with an impressive 1,049 gold grains.
Trenching and prospecting are ongoing in this area to develop drill targets to be tested later this year.”
Figure 2 – Photomicrograph of selected gold grains from till sample T5926 (1,049 total gold grains)
New Till Sampling Results
Ten till samples were collected to follow up on the previously-reported 502 gold grain sample and to
initiate systematic exploration of the newly acquired Golden Eye mineral claim licenses nearby (see
news release dated August 15, 2022). Sampling at a tighter spacing of approximately 100 metres in
the vicinity of the 502 grain sample confirms strongly anomalous gold grain counts in till (Figure 3).
Highlights include three till samples containing more than 100 gold grains ( 1049, 289 and 280 total
grains) among which 77%, 72% and 82% of the grains, respe ctively, have a pristine shape. The till
samples returning in excess of 100 gold grains form an anomaly that trends northeast for
approximately 200 metres and coincides with a regional-scale structure located along the contact of
the Isle Galet and Riches Island Formations. A sample collected 1.5 kilometres northeast of this area,
in the newly acquired Golden Eye claims, returned 102 total gold grains of which 86% are
characterized as pristine shaped . The company has prioritized these target areas for trenching and
drilling in late 2022.
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Figure 3 - Little River Trend on the Golden Baie project showing total gold grains in till and major structures
with LiDAR background
Qualified Person and Technical Notes
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.
Till samples were hand dug to the desired depth (C Horizon Till) with a 10 kg – 12 kg sieved sample
(8 mesh) placed in a clear plastic sample bag and sealed. Samples were shipped in plastic totes to
Overburden Drilling Management (“ODM”) of Nepean, Ontario , to complete gold grain count s,
identification of indicator minerals, and the determination of gold grain morphologies. Quantities of
grains mentioned in the text and shown in figures correspond to normalized values calculated fro m
the counts given by ODM by adjusting the table feed weights to 10 kg. HMC samples were sent to
ActLabs of Ancaster, ON and analyzed via Instrumental Neutron Activation Analysis (“INAA”), for gold
and 33 elements.
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 c rustal
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.
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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
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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 facts.
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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
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and the other risks involved in the mineral exploration and development industry, an inability to predict and
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COVID-19 on the price of commodities, capital market conditions, re striction 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 th is
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 d isclaims 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.