TORONTO, ONTARIO–(Marketwired – March 23, 2017) – Canstar Resources Inc. (TSX VENTURE:ROX) (“Canstar”) is pleased to announce recommencement of drilling as well as an exploration update for its Kenora Gold Project located near Kenora, Ontario.
As announced at the outset of Phase 1 drilling (see Company’s press release dated December 14, 2016), the Kenora Gold Project will undergo several phases of drilling this calendar year. This announced program is designed to specifically target areas discovered to be inaccessible by a standard drilling rig during Phase 1, including the “Ace Showing” whose results include surface channel samples of 29.3 meters (true width) averaging 3.1 g/t gold (see Company’s press release dated June 20, 2016). The program will be comprised of 500 meters of drilling and will act as a precursor to a larger program to commence shortly afterward. Drilling should be completed within approximately 2 weeks of this announcement.
Canstar would like to take this opportunity to review the exploration dynamics and objectives for the Spring drilling program of 2017 for the Kenora Gold Project.
The recently announced results (see Company’s press release dated March 15th, 2017) represent the first ever drill results based on only just over 1,000 meters of drilling. Two key findings came from this modest program:
- A new, 22 meter wide gold-bearing zone (0.5 g/t over 22 meters) was discovered 146 meters northeast of the Ace Showing on the same structural trend; this includes 7.0 meters at 0.7 g/t and 10.9 meters @ 0.6 g/t gold.
- A zone in proximity (“proximal zone”) to the Ace Showing occurring 22 meters east and 77 meters below the Ace comprised of low grade yet wide gold mineralization (11.0 meters @ 0.3 g/t)
These results have demonstrated low grade gold bearing veins, which is a strong indicator of potential multiple gold bearing systems within the district at depth. The surface mineralization does correlate with the IP results and with placement of past shafts, as does the recent 22 meter intersection mentioned above. From the Ace Showing to the proximal zone encountered at depth is 80 meters of intervening, untested lithology. It is possible that these two zones are related and thus must be tested in this context. This program will do that.
“Until now the Kenora Gold Project has never been explored at any detail with any modern methods including drilling. Artisanal mining from the 1800’s has left isolated shafts, which followed superficial surface veins to depth, and some indications of deeper drifts based on our drilling experience,” says Danniel Oosterman, Canstar’s President and CEO, “The size of the land package is appreciable within a historic mining camp. As there are numerous indications of gold bearing structures throughout the intrusion contact areas, the Company has determined that a strong understanding of the structural relationship is key to unraveling how mineralization occurs on the Project.”
The Company’s goal in 2017 is to determine the structure of the intrusion and how it relates to the host rock contacts throughout the district, as there are numerous superficial gold showings, and then determine where the more prospective gold bearing structures are likely to be and to focus and target these areas.
Canstar sees an incredible opportunity to explore a sizeable gold bearing system and potentially enhance the value of the Kenora Gold Project as the gold system becomes better understood.
Danniel Oosterman, P.Geo is President and Chief Executive Officer and is a Qualified Person as defined by NI 43-101 and is responsible for the technical information in this release.
ON BEHALF OF THE BOARD OF DIRECTORS
Danniel J. Oosterman, P.Geo, President & CEO
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”. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management’s expectations. 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. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company’s mineral properties, and the Company’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
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