Additional Shallow High-Grade Gold Drill Results At The Golden Baie Project

TORONTO - Canstar Resources Inc. reported new assay results from six diamond drill holes from the 2021 drill program on the Golden Baie project in south Newfoundland.  Drill holes reported are from the recently discovered Kendell prospect, located near the centre of the 62,175 hectare Golden Baie claim block. Assay results for an additional 22 drill holes, collared further to the NW and testing the down-dip extension at the Kendell prospect, are pending. All intersections are downhole length as there is insufficient information to calculate true width. Reported grades have not been capped.

Rob Bruggeman, President & CEO, said, “The early drill results from the Kendell prospect are very encouraging.  We are getting high grade gold intercepts in most of these drill holes.  These types of orogenic gold deposits tend to be structurally complex and the continuity of mineralization from hole to hole is excellent because it allows us to follow the mineralized system.  The shallow dip of the gold mineralization is also a positive as it will enable us to use shorter, less expensive drill holes in future drill programs to follow the gold mineralization to depth and along strike.  As has been seen at other orogenic gold deposits, gold mineralization can extend significantly at depth and widths and grades can improve if the right conditions existed during the mineralizing events. We see great potential for additional gold discovery at the Kendell prospect and surrounding area.”

Gold mineralization has now been delineated over a down-dip length of approximately 50 meters and a strike length of 20 meters based on assays from 14 drill holes reported to date.  Mineralized intercepts reported to date ranged from 3 meters to 11 meters and are spatially associated to metasedimentary rocks within the interpreted hanging wall of a fault zone that is defined by a 4-10 meter thick strongly sheared unit of dark grey to black graphitic shale.

Assay results from LR-09-02 are from a historical drilling program (Mountain Lake Resources 2009). Assay results are pending for holes GB-21-50, GB-21-51, GB-21-52, GB-21-20, GB-21-21 and GB-21-22. Hole GB-21-10 was abandoned at a depth of 14 meter downhole and was restarted as hole GB-21-13.  

While Canstar continues to receive and assess drill hole assay results from the summer drill program, the Company has been operating an expanded grassroots field program consisting of prospecting, trenching/channel sampling, LiDAR survey and soil sampling. The Company expects to start receiving assay results from this program soon and will be providing a comprehensive update on these new activities once results are received.  The goal is to prioritize and expand the number of targets for the next drill program, expected to commence this winter.  To date, the Company has been focussing primarily on the area of 8 km strike length in the vicinity of the Kendell prospect, which represents a small portion of the projected ~95 km strike length of the gold mineralized corridor comprising the core of the Golden Baie property.