Canstar Announces Amendment to Agreement on Its McFauld's Lake Properties, James Bay Lowlands, Ontario
TORONTO, ONTARIO - (Marketwire - April 18, 2008) - The Directors of Canstar Resources Inc. (TSX VENTURE:ROX) are pleased to announce that the Company will receive 2,500,000 shares of United Reef Limited from Geocanex as part of the option agreement announced on April 14 between Canstar, Geocanex and United Reef Limited on the Company’s 100%-owned McFauld’s Lake 1 property and the McFauld’s Lake 3 property, which is currently under option from Geocanex. The agreement gives United Reef the option to earn a 50% interest in the McFauld’s 1 and 3 properties, with Canstar owning the remaining 50%, after which a joint venture will be formed. The original option terms to United Reef remain unchanged (see news release April 14, 2008), subject to regulatory approval.
The McFauld’s 1 and 3 properties comprise 70 contiguous, unpatented mining claims in the McFauld’s Lake area of Ontario’s James Bay Lowlands. The area has attracted significant interest since 2002 with the discovery of high-grade base metal volcanogenic massive sulphide (VMS) deposits by Spider Resources and, more recently, high-grade nickel-copper-PGE magmatic massive sulphide (MMS) deposits by Noront Resources. The project is located immediately south of the VMS discoveries and approximately 20 kilometres east of the Eagle One nickel discovery.
About the Company
Canstar Resources is a junior exploration company focused on base and precious metal exploration in eastern Canada. In addition to McFauld’s Lake, the Company is currently focused on its Mary March property located in the Buchans area of central Newfoundland, which produced some of the highest-grade base and precious metal diamond drill intersections (9.2m @ 10.33% Zn, 1.62% Pb, 0.66% Cu, 118.1g/t Ag and 4.1 g/t Au) ever achieved in the area outside the Buchans mine. Canstar has the right to earn 50% interest in the property, with first refusal rights on the remaining 50%, from Phelps Dodge. In addition to these two properties, Canstar holds a 100% interest in the Shrimp Lake and Tahoe Lake VMS/gold properties north of Red Lake, Ontario, a 75% interest in the Slate Bay copper-gold project in Red Lake’s “Mine Trend”, and a 100% interest in the Miminiska gold property near Pickle Lake, Ontario. The Company currently has 59.9M shares issued and outstanding.
Canstar’s shares trade on the TSX Venture Exchange under the symbol ROX.
David Palmer, Ph.D., P.Geo., is the qualified person for all technical information in this release. To find out more about Canstar Resources, visit our website at www.canstarresources.com.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain “forward-looking statements”. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Canstar, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Canstar’s expectations are exploration risks detailed herein and from time to time in the filings made by Canstar with securities regulators.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For more information, please contact
Canstar Resources Inc.
Canstar Resources Inc.
Harry J. Hodge, P.Eng.