TSXV:ROX

Canstar Closes Option Agreement on the Golden Baie Project, Exploration Work Underway

 

(TheNewswire)

   

Canstar Resources Inc. (TSXV:ROX ) ( OTC:CSRNF) (" Canstar " or the " Company ") is pleased to announce that it has closed the Golden Baie Project option agreement (the " Option Agreement ") entered into with Altius Resources Inc. (" Altius "), a wholly owned subsidiary of Altius Minerals Corporation (TSX: ALS), and other arm's length parties, as originally announced by news release on August 26, 2020 . Details of the Option Agreement are provided below. The Company is also pleased to announce an update on field exploration activities currently taking place at the Golden Baie Project

 

  Golden Baie Project Exploration Program  

 

  The Golden Baie Project lies within the Coast of Bays region of south-central Newfoundland and covers 61,150 hectares under 47 Mineral Exploration Licences. Access is provided by Route 360, a paved highway which bisects the project area.  

 

  With the support of technical staff from Altius, the Company has been conducting field exploration work on the Golden Baie Project for the past two months.   The main objectives of the Phase I program are to understand the structural and chemical parameters controlling gold mineralization at the Kendell Prospect, discover additional gold mineralization, develop exploration tools for future exploration programs and establish drill targets for Phase II follow up.  

 

  The Phase I exploration program, as recommended in the recently filed    technical report    on the Golden Baie Project, consists of:  

 
  •  

      - Main access trail remediation to provide ATV and excavator access  

     

      - Compilation and interpretation of data from historical exploration programs  

     

      - Analyze existing data including geophysical and geochemical data  

     
  •  
  •  

      - Prospecting work concentrating initially on the immediate Kendell Prospect and then expanding focus more regionally as time and weather permit  

     

      - Reconnaissance and locally detailed mapping and structural analysis  

     

      - Infill soil sampling and resampling of selected historic soil grids to confirm historic soil data  

     

      - Trenching and channel sampling on the Kendell Prospect  

     

      - Structural mapping and interpretation of the Kendell Prospect.  

     
  •  

  Prospecting and trenching programs can typically run until freeze-up and this can vary from mid- to late November.   Five trenches were recently completed at the Kendell Prospect with assay results expected before the end of the year.  

 

  Rob Bruggeman, President & CEO, commented: "Optioning the Golden Baie Project in Newfoundland pivots Canstar into gold exploration in Newfoundland at a time when the island is seeing a surge of new exploration interest due to the prospectivity for orogenic gold deposits. The Golden Baie Project offers very compelling exploration potential as it covers about 95 km of a crustal-scale fault zone. Gold mineralization, including some grab samples with visible gold, have already been discovered at the Project, with a lot more ground to be covered. While weather will limit our field season this year, we are encouraged by the work so far and eagerly anticipate assay results."  

 

  Golden Baie Project Option Terms  

 

  The Option Agreement is between the Company and Altius, Corwin Northcott, and Colin Kendell (collectively the "   Optionors   ") and it grants to the Company the exclusive right and option (the "   Option   ") to acquire, subject to retention by the Optionors of certain rights related to a 2% net smelter return ("   NSR   ") royalty, a 100% interest in mineral claims in the Baie d'Espoir region of Newfoundland (the "   Golden Baie Claims   ").  

 

  Under the Option Agreement, Canstar can earn a 100% undivided interest in the Golden Baie Claims over a four year period as follows:  

 
  •  

      - Issuance of 4,000,000 common shares of the Company to Altius upon receipt of Exchange approval   (issued)   ;  

     

      - Payment of an aggregate cash payment of $50,000 and issuance of an aggregate of 2,000,000 common shares to the Optionors upon signing of the definitive agreements (the "   Definitive Agreements   ")   (paid and issued)   ;  

     

      - Issuance of 2,000,000 common shares to Altius on the first anniversary of the signing of the Definitive Agreements;  

     

      - Payment of an aggregate cash payment of $50,000 and issuance of an aggregate of 1,000,000 common shares to the Optionors on the first anniversary of the Definitive Agreements;  

     

      - Issuance of 2,500,000 common shares to Altius on the second anniversary of the Definitive Agreements;  

     

      - Payment of an aggregate cash payment of $50,000 and issuance of an aggregate of the lesser of $250,000 worth of common shares or 1,000,000 common shares to the Optionors on the second anniversary of the Definitive Agreements; and  

     

      - Payment of an aggregate cash payment of $100,000 and issuance of an aggregate of the lesser of $250,000 worth of common shares or 1,000,000 common shares to the Optionors on the third anniversary of the Definitive Agreements.  

     
  •  

  As further consideration for the Option, Canstar is required to commit to fund exploration expenditures of a minimum of $1,250,000 over a four-year period. The minimum expenditure commitment for the first year will be $500,000.  

 

  In addition, the Optionors will be entitled to an aggregate milestone payment of $1,000,000 by the Company to the Optionors upon the Golden Baie Project claims achieving National Instrument 43-101 defined measured and indicated mineral resources of at least one million contained gold ounces.  

 

  The Optionors will transfer title to the Little River Claims to Canstar subject to the Optionors retaining a 2.0% Net Smelter Royalty from all commercial production on the Golden Baie Project (the "   Royalty   "). Altius shall maintain the right to purchase from the Optionors 1% of the Royalty for the total sum of $1,500,000. Altius will also have a first right of refusal on the purchase of the remaining 1% of the Royalty.  

 

  So long as Altius owns more than 9.9% of the Company's shares outstanding, on any equity financing during the term of the Option, Altius shall have the right, at its sole discretion, to participate in 19.9% of such financing on the same terms as other investors and subject to it not becoming a control person.  

 

  Qualified Person  

 

  Bob Patey, B.Sc., P.Geo, 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.  

 

  About Canstar Resources Inc.  

 

  Canstar Resources is focused on the discovery and development of economic mineral deposits in Newfoundland and Labrador, Canada. Canstar has an option to acquire a 100% interest in the Golden Baie Project, a large claim package (over 61,000 hectares) with recently discovered, multiple outcropping gold occurrences on a major structural trend in south-central Newfoundland. 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 P.Eng., CFA  

 

  President & CEO  

 

  Email:    rob@canstarresources.com   

 

  Phone: 1-416-884-3556  

 

   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, as well as the anticipated size of the Offering, the Offering price, the anticipated closing date and the completion of the Offering, the anticipated use of the net proceeds from the Offering and the receipt of all necessary approvals. 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 complete the Offering on the terms or on the timeline as announced or at all, 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) 2020 TheNewswire - All rights reserved.

 

News Provided by TheNewsWire via QuoteMedia

The Conversation (0)
Gold bars with text: "5 Top Canadian Mining Stocks This Week."

Top 5 Canadian Mining Stocks This Week: Avanti Gold Gains 158 Percent on Misisi Settlement

Welcome to the Investing News Network's weekly look at the best-performing Canadian mining stocks on the TSX, TSXV and CSE, starting with a round-up of Canadian and US news impacting the resource sector.

Statistics Canada released its June Labour Force Survey on Friday (July 11). The data indicated that 83,000 new jobs were added to the workforce, led by 34,000 new employees in the wholesale and retail trade category and a 17,000 worker rise in the healthcare and social assistance category.

In other positive news for the Canadian job market, the overall employment rate rose by 0.1 percent to 60.9 percent, while the unemployment rate declined by 0.1 percent to 6.9 percent.

Keep reading...Show less
Gold bar on nuggets with "5 Top Australian Mining Stocks" text overlay.

Top 5 Australian Mining Stocks This Week: Yandal Shares Double on Arrakis Drilling Results

Welcome to the Investing News Network's weekly round-up of Australia’s top-performing mining stocks on the ASX, starting with news in Australia's resource sector.

This week's top-performing stocks list is dominated by oil and gas companies, alongside gold and lithium companies.

In Australian mining news, the Fair Work Commission ruled that BHP (ASX:BHP,NYSE:BHP,LSE:BHP) must raise the wages of 2,200 workers at three coal mines in Queensland. The workers in question were employed indirectly through a hiring firm and were being paid significantly less than their peers working directly under BHP.

The case was brought by two worker's unions and based on the Same Job, Same Pay reforms made by the government last year. To align wages, the FWC ruled BHP must raise the labour hire employees' wages by AU$30,000 each.

Keep reading...Show less
Pilbara region, Western Australia, Australia.

Pilbara 2.0: Inside Australia’s Newest Gold Frontier

The Central Pilbara region of Western Australia is undergoing a quiet revolution that is rapidly reshaping the global gold exploration landscape.

Once dismissed as a technically challenging and geologically inconsistent terrain, Pilbara is now emerging as one of the world’s most exciting new gold frontiers and drawing serious attention from institutional investors, driven by transformative discoveries, a maturing geological model and a wave of junior explorers tapping into underexplored intrusive-hosted systems.

Anchored by the multimillion-ounce Hemi discovery — one of the most significant gold finds in Australia in over a decade — this region is not just proving its geological potential, but also demonstrating the kind of scale, consistency and margin profile that modern gold investors seek. As the discovery window remains wide open and valuations are still accessible, the Central Pilbara presents a rare opportunity for early exposure to what may become one of Australia’s next tier-one gold districts.

Keep reading...Show less
A mining truck within the outline of Australia's map on a clear day.

Is Australia on the Brink of a New Mining Super Cycle?

Mining remains as a cornerstone of Australia’s GDP and export earnings, but current global challenges such as trade disputes and price changes may be straining its foundations.

A recent FocusEconomics report tackled Australia’s resource wealth, tracing from the gold rushes of the 1850s to the iron ore and coal booms of the 21st century.

Keep reading...Show less
Kobo Resources Confirms Additional High-Grade Gold Mineralization at Kossou with 15.5 m at 2.3 g/t Au, incl. 8.3 m at 3.43 g/t Au; Outlines Next Phase of Exploration at Kossou

Kobo Resources Confirms Additional High-Grade Gold Mineralization at Kossou with 15.5 m at 2.3 g/t Au, incl. 8.3 m at 3.43 g/t Au; Outlines Next Phase of Exploration at Kossou

 
  •   High-grade gold intercepts highlighted by 15.5 m at 2.30 g/t Au, incl. 8.3 m at 3.43 g/t Au at the Road Cut Zone  
  •  
  •   Initial drilling on the gap between Jagger and Road Cut Zone confirms target structure, warrants further testing  
  •  
  •   Current drill phase complete; Geological modelling and planning underway for 15,000 m drill program expected to begin in H2 2025  
  •  

 

 Kobo Resources Inc. (" Kobo" or the " Company ") ( TSX.V: KRI ) is pleased to report additional diamond drill results from the Road Cut Zone at its 100%-owned Kossou Gold Project (" Kossou ") in Côte d'Ivoire. Results from these holes continue to strengthen the Company's understanding of the key structural controls that define this prospective target area.

News Provided by Business Wire via QuoteMedia

Keep reading...Show less

Latest Press Releases

Related News

×