- Canstar Resources is a mineral exploration and development company focused on district-scale mineral properties in Newfoundland, Canada.
- In September 2020, Canstar Resources partnered with Newfoundland-based Altius Minerals on an option agreement to acquire a 100 percent interest in approximately 62,000 hectares of Golden Baie claims. This strategic partnership solidly positions Canstar for shareholder value growth at a time when gold prices are rising and gold exploration in Newfoundland is seeing a resurgence.
- The company’s flagship Golden Baie project has widespread high-grade gold mineralization on over 30 kilometers of strike length, with much of the property yet to be explored. Gold grades discovered in the past year have been as high as 4,485 g/t gold in grab samples.
- The company currently has a market cap of C$21 million, with almost half of shares presently held by insiders and management.
- In November 2020, the company announced completion of phase one field exploration of its Golden Baie project and the identification of new gold mineralization zones. Float samples assayed up to 33 g/t gold, with additional assay results still to be announced. The company is excited about the larger exploration program planned for 2021, which will include the drilling of multiple gold targets.
Newfoundland is becoming known for more than just beautiful scenery, ocean-fresh seafood and its strategic importance in defense, transportation and communications as Canada’s easternmost province. Hundreds of millions of years ago, the area where Newfoundland is now located was host to crustal-scale tectonic activity that primed the geological terrain for orogenic style, high-grade gold mineralization.
Compared to other gold belts in Canada, Newfoundland had been relatively underexplored due to a lack of understanding of the controls on high grade gold mineralization.
In recent years, however, this has changed. With the recognition of high-grade gold mineralization along major fault structures identified in other companies’ recent drill programs, Newfoundland is becoming one of the world’s most exciting areas for new gold discoveries. With excellent infrastructure, good road access, and a skilled workforce in a safe jurisdiction with straightforward permitting processes, Newfoundland is experiencing revitalized interest in gold exploration and mining.
Canstar Resources (TSXV:ROX,OTCQB:CSRNF) is a Canadian exploration company with two district-scale mineral exploration projects on the island of Newfoundland. The resurgence of gold exploration in the province and a company market cap of approximately C$21 million primes Canstar for tremendous upside potential for investors based on its district scale property holdings in Newfoundland.
In September 2020, Canstar Resources partnered with mining heavyweight Altius Minerals (TSX:ALS,OTCQX:ATUSF) on an option agreement to acquire 100 percent interest in 61,150 hectares of Golden Baie claims. Altius is a half-billion-dollar base metals royalty company with extensive project generation experience in Newfoundland, so this strategic relationship gives Canstar access to Altius’ technical team and adds a lot of market credibility.
With over 20 high-grade gold occurrences along 30 kilometers of strike on the company’s 620 km2 Golden Baie property, Canstar has the potential of soon mimicking the exploration successes of New Found Gold Corp (TSXV:NFG), which is in the same gold belt and currently has a market cap of C$550 million. In 2019, New Found Gold reported drill results that included 92.9 g/t gold over 19 meters in a geological setting that is very similar to that found at Golden Baie.