Canstar Re-initiates District-Scale Precious & Critical Metals Exploration; Announces 11.8 g/t Gold Grab Sample Result; New Geological Model for the Buchans-Mary March VMS Project; and Expansion of Newfoundland Claims Holdings
Canstar Re-initiates District-Scale Precious &
Critical Metals Exploration; Announces 11.8
g/t Gold Grab Sample Result; New Geological
Model for the Buchans-Mary March VMS
Project; and Expansion of Newfoundland
Claims Holdings
Toronto, Ontario--(Newsfile Corp. - July 8, 2024) -
CANSTAR RESOURCES INC. (TSXV: ROX) (OTC
Pink: CSRNF)
("
Canstar
" or the "
Company
").
In January 2024
the Company announced a change of
management concurrent with an oversubscribed private placement led by J. Paul Austin III. Following a
detailed assessment of the Company's assets and strategic positioning, Canstar's new President &
Chief Executive Officer, Juan Carlos Giron Jr., today announces a new geological model, priority
exploration targets, and the reinitiation of district-scale exploration at Canstar's flagship Golden Baie
and Buchans-Mary March Projects in south-central and central Newfoundland, respectively.
Exploration Highlights
Golden Baie
Spring 2024 prospecting of the under-explored
Woodcutter Prospect
along the Little River Trend
collected over 300 combined soil and grab rock samples; over 60% of the rock samples
demonstrated anomalous gold results above 100 ppb gold; several float grab samples returned
significant assay results including
11.8 g/t, 3.1 g/t,
and
1.8 g/t gold
.
A re-evaluation of data previously acquired by Canstar, and historical data, has identified 13
priority exploration targets, including
Facheux Bay
with up to
18.4 g/t gold
in bedrock,
Le
Pouvoir
with up to
74.4% antimony
and
24.1 g/t gold
in a bedrock vein, and
Blowout East
with
a high-grade large boulder sample grading
197 g/t gold over 0.5m.
Commenced new 3D geological modelling of the Kendell Prospect, where notable drilling
intercepts from Canstar's 2022 drilling program included
9.6 g/t gold over 7.8m, 20.6 g/t gold
over 3.5m, and 58.2 g/t gold over 1.1m.
Staked an additional 1,100 hectares of prospective mineral claims surrounding the Le Pouvoir
antimony/gold prospect expanding coverage within the highly anomalous Little River Trend for a
total current area of
548.75 km
2
at Golden Baie.
Buchans
Completed new 3D geological model indicating significant potential that the deposit-hosting
Buchans River Formation may underlie Canstar's Buchans mineral claims.
Historical mining by ASARCO of 5 deposits hosted by the Buchans River Formation yielded
16.2
million tonnes
with average mill head grades of
14.51% zinc, 7.56% lead, 1.33% copper, 126
g/t silver, and 1.37 g/t gold
(1).
Newly staked 13 mineral claims in 2 licenses, adding 325 hectares of prospective land near the
Skidder deposit south of the historic Buchans Mining District.
CEO Juan Carlos Giron, Jr., said, "In 2023, driven by our belief that the world is on the cusp of a
commodities supercycle, we went on a search for the ideal platform from which to capitalize on what we
believe is a generational opportunity in metals and mining. Upon being introduced to Canstar, we were
immediately excited by the locally-based technical team, its distinguished board of directors, its
cornerstone shareholders (Eric Sprott & Altius Minerals Corp), and its exploration projects, which we
believe are situated in highly prospective geological settings in an emerging, world-class mining district.
"Canstar's 100% owned Golden Baie Project was optioned from
Altius Minerals
(TSX: ALS) in 2020
and features district-scale orogenic gold exploration replete with gold anomalies, including over 315
bedrock samples with more than 1 g/t gold, and combines what we believe is high project prospectivity,
low exploration maturity, a deep pipeline of exploration targets, and attractive ease of exploration due in
part to the excellent infrastructure in and around the project (
Figure 1
).
"Canstar also has two projects in the historic Buchans Mining District, known for hosting previously-
mined polymetallic (zinc-lead-copper-silver-gold) volcanogenic massive sulphide ("VMS") deposits. The
Buchans Project includes mineral licenses with hundreds of metres of historical drilling and great
potential to host additional deposits. The Mary March Project, 20 km east of Buchans, is a joint venture
with Glencore and has one of the highest-grade drilling intercepts outside of the main Buchans mining
camp (
Figure 2
).
"Following months of assessment, technical review, 3D geological modeling, and new surface
exploration, we are excited to announce that Canstar is re-initiating mineral exploration work on its
projects. We have cumulatively identified over 50 exploration targets, including high-priority and drill-
ready targets at both the Golden Baie and Buchans-Mary March projects, and we will be communicating
our plans for advanced exploration soon."
Sampling, QAQC, and Analytical Procedures
Canstar field staff collected all rock samples either from outcrops (bedrock) or as float/boulder samples
and put into sample bags with unique sample tags. Field staff recorded the exact location of the
collected grab sample using a GPS-enabled tablet and took field notes on lithology, structure, and
mineralization. Canstar field staff securely transported rock samples to Eastern Analytical Ltd's (EAL)
laboratory in Springdale, NL. EAL is a commercial laboratory that is ISO/IEC 17025 accredited and
independent of Canstar. The laboratory crushes the entire sample to 80% 10 mesh (2mm), splits out a
250g subsample which is pulverized to 95% 150 mesh (<0.089mm) from which the fire assay and ICP
aliquots are taken. EAL analyzed the samples using fire assay (30g) with AA finish and an ICP-34, four-
acid digestion followed by ICP-OES analysis. Field staff collected all soil samples at approximately 25m
spacing along 50m to 100m-spaced lines and from the B-horizon soil layer wherever possible. Canstar
field staff recorded each soil sample location using a GPS-enabled tablet and placed the sample in a
paper bag with a unique sample ID tag. Canstar field staff securely transported the soil samples to EAL
for sample preparation, gold fire assay, and 34-element ICP analysis.
Figure 1: Map of Golden Baie Project
To view an enhanced version of this graphic, please visit:
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Figure 2: Map of Buchans-Mary March Project
To view an enhanced version of this graphic, please visit:
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*Historical production source: Zinc and Lead, Mineral Commodities of Newfoundland and Labrador, Geological Survey of Newfoundland and
Labrador, Compiled by R.J. Wardle, 2008.
Qualified Person Statement
Paul Ténière, M.Sc., P.Geo., Senior Vice President of Exploration for Canstar, and a Qualified Person
as defined in NI 43-101, prepared and approved all scientific and technical information disclosed in this
news release, including the rock and soil sampling results and certified analytical data underlying the
technical information disclosed. Mr. Ténière noted no errors or omissions during the data verification
process and Canstar's geological staff have also verified the information disclosed. The Company and
Mr. Ténière do not recognize any factors of sampling or recovery that could materially affect the accuracy
or reliability of the assay data disclosed in this news release.
Acknowledgements
Canstar wishes to acknowledge the financial support of the Junior Exploration Assistance Program from
the Department of Natural Resources, Government of Newfoundland and Labrador, which has been a
valuable contribution to the exploration programs on the Buchans-Mary March and Golden Baie Projects.
Cautionary Statements
Please note that soil, till, and rock samples are selective by nature, and values reported may not
represent the true grade or style of mineralization at Golden Baie. Readers are cautioned that these
potential grades are conceptual in nature; there has been insufficient exploration by the Company or its
Qualified Person to define a mineral resource or deposit; and it is uncertain whether further exploration
will result in these targets being delineated as a mineral resource.
About Canstar Resources Inc.
Canstar Resources Inc. (TSXV: ROX) is a mineral exploration company unlocking immense potential for
gold and critical minerals in Newfoundland and Labrador. Our 100%-owned Golden Baie Project
(548.75 km
2
) hosts 93 km of a structure similar to that which hosts New Found Gold's Queensway Gold
Project. Our Buchans-Mary March projects (65.75 km
2
), which include a Glencore joint venture, are
located within the world-class, past producing, VMS zinc-copper-silver rich Buchans Mining Camp and
boast high-grade zinc and copper discoveries.
For further information, please contact:
Juan Carlos Giron, Jr.
President & Chief Executive Officer
Email:
Phone:
1-647-247-8715
Website:
www.canstarresources.com
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.
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 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
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 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, including, but not limited to, 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 revise any forward-
looking information, whether as a result of new information, future events or otherwise, other than as
required by law.
(1) Source: Zinc and Lead, Mineral Commodities of Newfoundland and Labrador, Geological Survey of Newfoundland and Labrador, Compiled by
R.J. Wardle, 2008.
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