Canstar Drills 20.6 g/t Gold over 3.5 Metres at Kendell Prospect; Extends Mineralization Downdip by 80% to 180 Metres

Canstar Drills 20.6 g/t Gold over 3.5 Metres at Kendell Prospect; Extends Mineralization Downdip by 80% to 180 Metres

(TheNewswire)

Canstar Resources Inc.

Includes 58.2 g/t Over 1.1 Metres

Toronto, Ontario TheNewswire - July 5, 2022 Canstar Resources Inc. (TSXV:ROX ) & ( OTC:CSRNF) (" Canstar" or the "Company ") is pleased to announce new assay results for diamond drilling at the Kendell prospect on its Golden Baie property in south-central Newfoundland.  Drilling took place in February and March 2022 and consisted of 2,907 metres ("m") in 39 holes.  Notable drill intercepts are provided in Table 1 and full results are in Table 2 at the end of this release.

Table 1 - Notable intercepts from the 2022 Kendell prospect winter drill program

Hole ID

From (m)

To (m)

Length (m)

Au (g/t)

GB-22-64

34.0

36.0

2.0

9.5

GB-22-65

34.6

37.6

3.0

6.2

GB-22-72

28.4

34.4

6.0

6.7

inc.

30.4

31.4

1.0

15.2

inc.

33.4

34.4

1.0

13.3

GB-22-74

14.0

17.7

3.7

2.5

and

27.7

31.0

3.4

5.1

GB-22-92

52.5

56.1

3.6

6.1

inc.

55.7

56.1

0.4

44.9

GB-22-93

46.9

50.0

3.1

4.3

GB-22-94

47.0

50.5

3.5

20.6

inc.

47.8

48.9

1.1

58.2

GB-22-96

36.4

39.4

3.0

11.0

and

42.4

46.0

3.6

3.0

GB-22-97

34.0

43.0

9.0

4.3

inc.

42.0

43.0

1.0

15.1

Notes :

  1. All intersections are downhole length as there is insufficient information to calculate true width.

  2. Reported grades have not been capped.

Matthieu Lapointe, Vice President of Exploration for Canstar, commented: "This was the Company's first winter drill program on the Golden Baie project and we are very pleased with how the program was executed and also with the assay results.  Gold mineralization was significantly extended downdip and we encountered the thickest auriferous quartz vein drilled yet in hole GB-22-94.  We believe gold mineralization remains open to the northwest and southwest.  Additional drilling is planned for this fall after downhole Acoustic/Optical Televiewer work has been done, further advancing our understanding of vein orientation."

Gold Mineralization at Kendell Extended at Depth and Along Strike

The 2022 winter drill program at the Kendell prospect was designed to test the continuity of gold mineralization downdip to the northwest and along strike to the northeast and southwest of the previously-drilled mineralized intercepts (Figure 1).  The best mineralized intercepts in the 2021 drilling program appear to follow a structure, interpreted from ground magnetics, that strikes northwest-southeast and dips gently in that direction.  Gold mineralization was generally in the form of fine grains in centimetre-scale quartz veins with additional gold mineralization associated with arsenopyrite and/or stibnite in the adjacent wall rocks.  Mineralized intercepts are focused in the hanging wall of a sheared black shale horizon (Figure 2).


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Figure 1 - Plan map of the Kendell prospect showing 2021 and 2022 drill collars and mineralized intercepts


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Figure 2 - Vertical section A-A' of the Kendell prospect based on 2021 and 2022 drilling (looking northeast)

The 2022 Kendell drill results successfully extended gold mineralization downdip to the northwest.  Hole GB-22-92 intersected 6.1 g/t gold over 3.6 m at a downhole depth of 52.5 m, including 44.9 g/t over 0.4 m. This intercept is approximately 80 m downdip of hole GB-21-53, which intersected 12.2 g/t gold over 3.9 m, extending the total known downdip length of gold mineralization at the Kendell prospect to approximately 180 m.  The best intercept in the 2022 winter drill program was in hole GB-22-94, which intersected 20.6 g/t gold over 3.5 m, including 58.2 g/t over 1.1 m in the thickest quartz vein encountered in drilling to date.  Due to its gentle dip, gold mineralization remains shallow. Hole GB-22-95, which was oriented to the northwest to test downdip of hole GB-22-94, did not intersect significant mineralization. Hole GB-22-95 may not have been drilled at the optimal orientation and possibly deviated from the target horizon. The Company intends to obtain a higher precision bore hole survey of GB-22-95 during the planned Televiewer work.

Winter drilling at Kendell also extended gold mineralization along strike to the southwest.  Hole GB-22-64 intersected 9.5 g/t gold over 2.0 m and hole GB-22-72 intersected 6.7 g/t gold over 6.0 m approximately 10 m southwest of previously-drilled intercepts .  Gold mineralization remains open along strike to the southwest. Drilling to the northeast, approximately 10 m from previous intercepts, did not return significant gold mineralization.  Downhole televiewer work is expected to provide additional information on the orientation of mineralized quartz veins, which will enhance the understanding of the mineralization and optimize the azimuth for future drilling.

A thick quartz vein encountered in hole GB-22-94 (Figure 3) suggests the potential for broader zones of high grade gold mineralization where structures opened up through progressive deformation during orogenesis.


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Figure 3 - Drill core from GB-22-94 with large quartz vein starting at downhole depth of 47.8 m (visible gold within red circles)

Gold mineralization may be related to a lithological contact between the Isle Galet formation sedimentary rocks and black shales of the Riches Island formation (Figure 4), which also corresponds with a trend of anomalous till sample and grab sample results (see news release dated May 4, 2022 ). Multiple regional faults striking northeast-southwest, parallel to the Day Cove Thrust, are believed to exist on the Golden Baie property and these regional faults may be important controlling structures for orogenic gold mineralization, as seen in other recent gold discoveries in central Newfoundland.


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Figure 4 – Plan map of the Kendell prospect area showing interpreted faults, lithologies and select gold anomalies in grab samples and till samples

Gold Association with Arsenic and Antimony

The 75 diamond drill holes completed to date at the Kendell prospect in 2021 and 2022 indicate a very strong correlation between gold mineralization and arsenic and antimony.  The gold-arsenic-antimony association is a well-defined hallmark of world-class gold producers such as the Fosterville, Bendigo and Ballarat mines of the Victorian Goldfields.  The Golden Baie property has numerous areas with significant arsenic and antimony anomalies based on soil geochemistry (Figure 5), which are priority areas for regional exploration.  The size and extent of these anomalies, combined with multiple rock samples with anomalous gold spanning a strike length of 40 km, indicate the potential for multiple gold mineralized structures on the district-scale Golden Baie property.

Additional soil sampling is planned for multiple locations on the Golden Baie project in 2022 to infill areas that have not been sampled or have historic soil samples with only gold assay data.


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Figure 5 – Significant gold-arsenic-antimony anomalies on the Golden Baie project based on soil samples

QA/QC:

All 2021 and 2022 drilling was of NQ-sized drill core. Core samples were split with a diamond saw and half-core retained for further study after being detail logged and photographed. 2022 drill core samples were collected by company personnel and shipped to SGS Labs, Lakefield, ON for preparation of assay pulps. Gold analysis is completed in the SGS Labs, Burnaby, BC with a 30 g fire assay and AAS finish (code GE_FAA30V5). Samples returning >1 g/t Au are re-assayed with a gravimetric finish (code GO-FAG30V). Mineralized zones with visible gold are also analyzed by a 500 g screen fire assay with screening to 106 microns (code GO-FAS30M).

Soils are dried at a secure company facility and will be processed at SGS Labs using the GE_FAM50V5 assay method for gold (1-2,000 ppb Au detection) and the GE-IMS21B20 method, an ICP-MS analysis that captures 37 elements including trace level detection of pathfinders such as, Sb and W.

Canstar's QAQC program utilizes four commercially available reference standards, blanks and duplicate samples to ensure data quality. In addition, duplicates of selected samples are being sent to a second laboratory as check assays.

Qualified Person

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.

Table 2 - Kendell prospect 2022 winter drilling assay results

Hole ID

From (m)

To (m)

Length (m)

Au (g/t)

GB-22-63

18.5

22.5

4.0

0.5

GB-22-64

34.0

36.0

2.0

9.5

GB-22-65

20.1

25.0

5.0

1.0

and

34.6

37.6

3.0

6.2

GB-22-66

NSR

GB-22-67

6.0

6.5

0.5

5.7

GB-22-68

7.0

9.0

2.0

2.6

GB-22-69

NSR

GB-22-70

NSR

GB-22-71

NSR

GB-22-72

15.4

17.4

2.0

2.1

and

28.4

34.4

6.0

6.7

inc.

30.4

31.4

1.0

15.2

inc.

33.4

34.4

1.0

13.3

GB-22-73

14.0

17.0

3.0

4.7

and

27.0

36.0

9.0

0.5

GB-22-74

14.0

17.7

3.7

2.5

and

27.7

31.0

3.4

5.1

GB-22-75

16.0

18.0

2.0

0.5

GB-22-76

15.9

17.9

2.0

0.7

GB-22-77

19.0

20.0

1.0

2.2

GB-22-78

18.0

18.9

0.9

1.6

GB-22-79

NSR

GB-22-80

NSR

GB-22-81

7.0

21.3

14.3

0.3

GB-22-82

5.5

23.5

18.0

0.2

GB-22-83

15.5

16.0

0.5

7.6

GB-22-84

NSR

GB-22-85

8.0

19.6

11.6

0.2

GB-22-86

7.5

16.0

8.5

0.3

GB-22-87

9.0

13.0

4.0

0.7

GB-22-88

3.0

16.5

13.5

0.2

GB-22-89

2.0

14.0

12.0

0.2

GB-22-90

9.5

11.6

2.1

2.4

GB-22-91

9.0

10.0

1.0

1.7

GB-22-92

52.5

56.1

3.6

6.1

inc.

55.7

56.1

0.4

44.9

and

61.6

64.2

2.6

1.5

GB-22-93

46.9

50.0

3.1

4.3

GB-22-94

47.0

50.5

3.5

20.6

inc.

47.8

48.9

1.1

58.2

and

55.0

56.0

1.0

2.6

GB-22-95

NSR

GB-22-96

36.4

39.4

3.0

11.0

and

42.4

46.0

3.6

3.0

GB-22-97

34.0

43.0

9.0

4.3

inc.

42.0

43.0

1.0

15.1

and

45.0

46.9

1.9

1.7

GB-22-98

NSR

GB-22-99

NSR

GB-22-100

27.0

28.5

1.5

0.5

and

53.0

54.0

1.0

0.6

GB-22-101

56.0

57.0

1.0

0.6

Table 3 - Kendell prospect 2022 winter drilling collar locations and drill hole details

Hole

Location

Easting NAD83

Northing NAD83

Azimuth

Dip

Total Length (m)

GB-22-63

Kendell

596807

5298139

135

-46

91

GB-22-64

Kendell

596807

5298139

136

-65

82

GB-22-65

Kendell

596807

5298139

127

-83

82

GB-22-66

Kendell

596844

5298105

135

-46

52

GB-22-67

Kendell

596844

5298105

132

-64

52

GB-22-68

Kendell

596844

5298105

121

-84

55

GB-22-69

Kendell

596841

5298099

93

-45

52

GB-22-70

Kendell

596841

5298099

100

-59

0

GB-22-71

Kendell

596841

5298099

99

-69

52

GB-22-72

Kendell

596828

5298116

108

-69

67

GB-22-73

Kendell

596828

5298116

90

-54

61

GB-22-74

Kendell

596828

5298116

91

-45

61

GB-22-75

Kendell

596826

5298120

128

-45

70

GB-22-76

Kendell

596826

5298120

129

-65

70

GB-22-77

Kendell

596826

5298120

118

-84

70

GB-22-78

Kendell

596806

5298125

131

-66

136

GB-22-79

Kendell

596806

5298125

132

-44

100

GB-22-80

Kendell

596806

5298125

136

-84

85

GB-22-81

Kendell

596885

5298118

130

-75

52

GB-22-82

Kendell

596885

5298118

134

-60

40

GB-22-83

Kendell

596885

5298118

135

-44

40

GB-22-84

Kendell

596894

5298131

128

-84

40

GB-22-85

Kendell

596894

5298131

129

-65

40

GB-22-86

Kendell

596894

5298131

130

-44

61

GB-22-87

Kendell

596908

5298118

137

-66

62.5

GB-22-88

Kendell

596908

5298118

137

-45

43

GB-22-89

Kendell

596900

5298111

140

-85

37

GB-22-90

Kendell

596900

5298111

133

-66

40

GB-22-91

Kendell

596900

5298111

137

-47

40

GB-22-92

Kendell

596768

5298190

140

-85

157

GB-22-93

Kendell

596768

5298190

134

-70

121

GB-22-94

Kendell

596768

5298190

132

-56

115

GB-22-95

Kendell

596768

5298190

311

-54

163

GB-22-96

Kendell

596788

5298173

130

-52

79

GB-22-97

Kendell

596788

5298173

129

-70

112

GB-22-98

Kendell

596808

5298180

132

-50

91

GB-22-99

Kendell

596809

5298180

128

-70

100

GB-22-100

Kendell

596783

5298145

131

-76

100

GB-22-101

Kendell

596820

5298167

131

-64

82

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 crustal scale fault corridors.  The Company's flagship Golden Baie project, comprised of 774 km 2 of claims in south-central Newfoundland, has multiple high-grade gold anomalies at surface along 40 km of strike. The Company also holds the Buchans-Mary March project and other mineral exploration properties in Newfoundland. 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: rob@canstarresources.com

Phone:        1-647-247-8715

Website: www.canstarresources.com

Forward-Looking Statements

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, an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on 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.

Copyright (c) 2022 TheNewswire - All rights reserved.

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About Lode Gold

Lode Gold (TSXV: LOD) is an exploration and development company with projects in highly prospective and safe mining jurisdictions in Canada and the United States.

Its Golden Culvert and WIN Projects in Yukon, covering 99.5 km2 across a 27-km strike length, are situated in a district-scale, high-grade-gold-mineralized trend within the southern portion of the Tombstone Gold Belt. Gold deposits and occurrences within the Belt include Fort Knox, Pogo, Brewery Creek and Dublin Gulch, and Snowline Gold. A NI 43-101 technical report entitled "Technical Report on the WIN-Golden Culvert Property for Lode Gold" with an effective date of May 15, 2024, summarizing the work to date on these properties is available on the Company's profile on SEDAR+ (www.sedarplus.ca) and on the Company's website (www.lode-gold.com).

In New Brunswick, Lode Gold has created one of the largest land packages with a 42km strike within 420km2. Its McIntyre Brook Project, New Brunswick, covering 111 km2 and a 17-km strike length in the emerging Appalachian/Iapetus Gold Belt, is surrounded by Puma Exploration's Williams Brook Project (5.55 g/t Au over 50m)1 and is hosted by orogenic rocks of similar age and structure as New Found Gold's Queensway Project. The Fancamp's Riley Brook is a 309 km2 package covering a 25 km strike of Wapske formation with its numerous felsic units. Previous exploration efforts have focused on just VMS-style mineralization hosted in the felsic intrusions, and mostly focused on the base metals - the Company is the first to focus on and assay for gold. This transaction will close upon Exchange's acceptance.

The Company is also advancing its Fremont Gold development project in the historic Mother Lode Gold Belt of California where 50,000,000 oz of gold has been produced. Fremont, located 500km north of Equinox Gold's Castle Mountain and Mesquite mines, has a Preliminary Economic Assessment(" PEA") with an after-tax NPV (5%) of USD $217M, a 21% IRR, 11-year LOM, averaging 118,000 Oz per annum at USD $1,750 gold. A sensitivity to the March 31, 2023, PEA at USD $2,000/oz gold gives an after-tax NPV (5%) of USD $370M and a 31% IRR over an 11-year LOM. The project hosts an NI 43-101 resource of 1.16 MOz at 1.90 g/t Au within 19.0 MT Indicated and 2.02 MOz at 2.22 g/t Au within 28.3 MT Inferred. The MRE evaluates only 1.4 km of the 4 km strike length of the Fremont property which features five gold-mineralized zones. Significantly, three step-out holes at depth hit the mineralized structure, typical of orogenic deposits that often occur at depth. Fremont is located on 3,351 acres of 100% owned private land in Mariposa, the original Gold Rush County, and is 1.5 hours from Fresno, California. The property has year-round road access and is close to airports and rail.

Please refer to the Fremont Gold project NI 43-101 PEA technical report dated March 31, 2023, which is available on the Company's profile on SEDAR+ (www.sedarplus.ca) and on the Company's website (www.lode-gold.com). The PEA technical report has been reviewed and approved by independent "Qualified Persons" Eugene Puritch, P.Eng., FEC, CET, and Andrew Bradfield, P.Eng. both of P&E, and Travis Manning, P.E. of KCA.

QUALIFIED PERSON STATEMENT

The scientific and technical information contained in this press release has been reviewed and approved by Jonathan Victor Hill, Director, BSc (Hons) (Economic Geology - UCT), FAusIMM, and who is a "qualified person" as defined by NI-43-101.

ON BEHALF OF THE COMPANY

Wendy T. Chan, CEO & Director

Information Contact

Winfield Ding
CFO
info@lode-gold.com
+1-416-320-4388

Kevin Shum
Investor Relations
kevin@lode-gold.com
+1 (647) 725-3888 ext. 702

Cautionary Note Related to this News Release and Figures

This news release contains information about adjacent properties on which the Company has no right to explore or mine. Readers are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on the Company's properties.

Cautionary Statement Regarding Forward-Looking Information

Neither the 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.

All statements, trend analysis and other information contained in this press release about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. All statements, other than statements of historical fact, included herein, including, without limitation, statements regarding the anticipated use of proceeds from the Special Warrant financing, additional proceeds from the exercise of the warrants underlying the Special Warrants, and the receipt of final acceptance from the TSX Venture Exchange with respect to the transactions, are forward-looking statements. Although Lode Gold believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since Lode Gold can give no assurance that such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the risks, uncertainties and other factors identified in Lode Gold's periodic filings with Canadian securities regulators, and assumptions made with regard to: the ability of Lode Gold to obtain final acceptance from the TSX Venture Exchange with respect to the transactions; that the Company will be able to use the proceeds of the Special Warrant financing as anticipated; and the ability of the Company to continue with its stated business objectives and its ability to obtain required approvals and raise additional capital to proceed. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Important factors that could cause actual results to differ materially from expectations include risks associated with the business of Lode Gold and Fancamp; risks related to the Company's ability to obtain final acceptance from the TSX Venture Exchange with respect to the transactions; the risk that the use of proceeds from the Special Warrant financing may differ from management's expectations; and other risk factors as detailed from time to time and additional risks identified in the Companies' filings with Canadian securities regulators on SEDAR+ in Canada (available at www.sedarplus.ca). Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements.

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