Canstar Resources Completes First Phase of Drilling and Intercepts Several Gold-bearing Zones on Kenora Gold Project

TORONTO, ONTARIO--(Marketwired - Mar 15, 2017) - Canstar Resources Inc. (TSX VENTURE:ROX) ("Canstar") is pleased to announce results for the first phase of diamond drilling at its 100% owned Kenora Gold Project, located in the Wabigoon Subprovince near Kenora, Ontario, Canada. Canstar completed an 8-hole, 1,062 meter exploratory drilling program in early February of 2017. Highlights include:

  • 0.5 g/t gold over 22.0 meters in KG-17-08 located 146 meters northeast of the Company's Ace Showing, including 1.0 g/t gold over 3.0 meters

The 22 meter zone intercepted in KG-17-08 occurs 146 meters northeast of the Ace Showing and thus represents a new zone on the property and a significant continuation of trending mineralization.

This first phase drill program represents the first drilling in the area in over a century. The program focused on the Project's "Aviator Trend" which hosts the Ace Showing, a wide, surface gold discovery which returned 29.3 meters of 3.1 g/t gold in channel sampling. Results from this drilling suggest the presence of one or multiple gold zones associated with the Ace system, however, the surface showing could not be drilled directly due to access issues. As such, the Company made a significant step-back 36 meters southwest of the showing in order to test the Ace at depth.

The program was successful in intercepting several zones of low-grade mineralization at depth, interpreted to be associated with the Ace Showing, including:

  • 11.0 meters of 0.3 g/t gold from 109 to 120 meters (KG-17-01)

  • 3.2 meters of 0.3 g/t gold from 74 to 77.2 meters (KG-17-01)

The depth-to-top of these zones are 77 meters for deeper zone and 63 meters for the shallower zone. The deeper of the two zones does not occur directly under the vertically dipping Ace Showing but rather 20 meters to the east of the showing. This may suggest the mineralization is dipping eastward and oblique to the stratigraphy or may represent an entirely new zone. A second phase drill program, expected to commence later this month, will better delineate the gold zones and provide a better understanding of the mineralized system. The Ace Showing remains a high priority target and a smaller drill rig will be commissioned in order to overcome the access issues encountered in the first program.

Results from the drilling program are tabulated below:

Table 1. Phase 1 drilling results for the Kenora Gold Project

Hole ID

Azimuth

Dip

From

To

Core Length

Gold (g/t)

KG17-01

125

-45

35.4

36.5

1.1

0.4

74.0

77.2

3.2

0.3

109.0

120.0

11.0

0.3

KG17-02

145

-45

48.0

50.0

2.0

0.3

80.0

81.0

1.0

0.5

KG17-03

160

-45

75.0

77.1

2.1

1.2

88.2

89.3

1.1

1.0

158.80

160.10

1.3

0.6

KG17-04

117

-45

52.4

53.0

0.6

0.3

82.0

83.0

1.0

0.3

84.0

85.0

1.0

0.4

KG17-05

130

-45

110.0

111.0

1.0

0.4

115.8

117.2

1.4

0.4

128.3

128.8

0.5

1.7

134.0

134.3

0.3

1.6

159.0

160.0

1.0

0.4

KG17-06

305

-45

NSV

KG17-07

310

-45

NSV

KG17-08

310

-64

43.0

65.0

22.0

0.5

…Incl.

43.0

53.9

10.9

0.6

…Incl.

58.0

65.0

7.0

0.7

…Incl.

62.0

65.0

3.0

1.0

NSV = No Significant Value

Canstar Resources adopts industry recognized QA/QC methods. Drill intervals are core length and are not reported as true thickness. A geochemical standard control sample and one blank sample is inserted into the sample stream every 20th sample as are duplicate samples. Lab duplicates are analyzed using Thompson-Howarth plots. Samples are shipped to Act Labs in Thunder Bay for Fire Assay analysis. Overlimits are analyzed using gravimetric analysis.